Rights, Preferences and restriction attached to shares

The Company has one class of equity shares having a par value of ? 10 each. Each shareholder is eligible for one vote per share held and carry a right to dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The Company had given an advance of ? 1,200 thousands to an agency for providing consultancy and guidance services in relation to the establishment of an Export Unit in a Special Economic Zone (SEZ). Subsequently, due to the unfortunate demise of the working partner of the said agency, the assignment could not be completed and the process was discontinued. The Company has initiated legal proceedings for the recovery of the said amount.

Dividend, aggregating to ? 138 thousands, on 1% Unlisted, Unrated Fully paid-up, Non-Convertible, Perpetual Non- | Cumulative Preference Shares of ? 10/- each of Unity Small Finance Bank Limited, received during the financial years 2022-23 and 2023-24, which hitherto was credited to the Investment account in respective years is now being reversed and correspondingly the said dividend is recognised under Other Income, considered as being Prior Period Income. I I

Upon reconciling Input Tax Credit (ITC) as per Electronic Credit Ledger (ECL) and ITC recorded as per books of account, | an accumulated excess ITC amounting to ? 862 thousands was identified due to wrong availment of credit both in current and previous periods. Due to lack of availability of details so as to accurately allocate the excess ITC to the respective expenses, the reversal is considered as GST expense.

Exceptional items represent the write down of inventories to its net realisable value. The write down is due to material items identified on physical verification of inventories as at March 31,2025 as no longer usable or saleable in ordinary course of business.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of appeals.

Amount deposited with department of Goods and Service Tax with respect to VAT liability is ? 9 thousands.

Amount deposited with department of Goods and Service Tax with respect to VAT liability is ? 198 thousands.

The Company has entered in to cancellable leasing arrangement for its factory / office premises and warehouse. The following amounts are recognised in the Statement of Profit and Loss :

Disclosure Pursuant To AS 15 on "Employee Benefits”

i. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded. The following tables summaries the components of net benefit expense recognised in the Statement of Profit and Loss and amounts recognised in the Balance Sheet for the gratuity plan.

ii. Defined Contribution Plan:

Provident Fund and pension

In accordance with the Employee’s Provident Fund and Miscellaneous ProvisionsAct, 1952 eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the provident fund set up as an irrevocable trust by the Company, post contribution of amount specified under the law to Employee Provident Fund Organisation on account of employee pension scheme.

Segment ReportingAs PerAS 17

Identification of Segments

I. Primary Segment - Business Segment

The Company is engaged in the business of developing and manufacturing high quality Audio Systems,which is the only operating segment asperAS-17

ii. Secondary Segment - Geographical Segment

The analysis of geographical information is based on the geographical location of the customers. The geographical information considered for disclosure are as follows:

Sales within India include sales to customers located within India

Sales outside India include sales to customers outside India as per the following geographical segments:

Property, Plantand Equipment by Geographical Locations

The Company has common Property, Plant and Equipment for producing goods for domestic as well as overseas market.There are no Property, Plant and Equipment situated outside India. Hence, additional Isegment-wise information for Property, Plant and Equipment or addition to Property, Plant and Equipment has not been furnished.

35 The Company came with an Initial Public Offer of equity shares on November 14, 2017 and closed on November 16, 2017. The Initial Public Offer was for 7,26,000 equity shares of face value of ? 10 each. The shares were offered to the public through the book building process at a price band of ? 51 to ? 54. The price of ? 54 was discovered under the book building process and the issue proceeds aggregated to ? 39,204 thousands. The shares of the Company were listed on the National Stock Exchange of India Limited, EMERGE Platform on November 24, 2017. Out of the issue proceeds an amount of ? 5,889 thousands, is unutilized.

These unutilized amounts were held as fixed deposits with Punjab Maharashtra Bank. On 23 September 2019, the RBI imposed operational restrictions on PMC Bank for six months. Due to this, the bank account holders were not allowed to withdraw funds from their accounts. The Central Government has sanctioned the scheme of amalgamation ofPunjaband Maharashtra Bank With Unity Small Finance Bank Limited (‘UNITY BANK’) with effect from January 25, 2022 and the entire undertaking of PMC Bank,all its business, assets and liabilities including deposits were transferred to and vested in Unity Bank in terms of the scheme.

In pursuant to the scheme the balance amount of deposits was be settled as follows:

i. 80 % of the uninsured deposits outstanding (aggregate in various accounts) to the credit of each institutional depositor, are converted into Perpetual Non-Cumulative Preference Shares (‘PNCPS”) of Unity Bank. The PNCPS shall have dividend of One Percent (1%) per annum payable annually, on and from the appointed date. The PNCPS shall not be redeemed or convertible into equity shares of Unity Bank. After 10 years from the appointed date, Unity Bank may at its sole discretion, consider additional benefits of such PNCPS at face value on a pro-rata basis, subject to receipt of approval from the RBI.

ii. The remaining 20% amount of the uninsured deposits outstanding to the credit of each institution depositor are converted into equity warrants of Unity Bank at a price of INR 1 per warrant. These equity warrants will be converted into equity shares of Unity Bank at the time of Initial Public Offers (IPO) of Unity Bank. The price of such conversion will be determined at the lower band of the IPO price.

36 During the financial year ended March 31,2025, the Company has paid remuneration to its Managing Director as also to Whole Time Director which is in excess to the extent of ? 4,349 thousands of the limits prescribed under Section 197 of the Act, and is considered as an item of expense under “Employee Benefits Expense” for the year. The Company shall obtain approval from the shareholders by way of a special resolution at the ensuing annual general meeting.

37 During the previous financial year ended March 31, 2024, the Company had paid remuneration to its Whole Time Director which was in excess to the extent of ? 1,629 thousands of the limits prescribed under Section 197 of the Act, for which the Company has neither obtained any approval from the shareholders nor made any recovery of the said excess remuneration till the date of the Balance Sheet. The Company has recovered such excess remuneration paid since the date of the Balance Sheet.

38 In accordance with Section 177(2) of the Act, those companies which are required to have an audit committee, are to have an audit committee consist of a minimum of three directors with independent directors forming a majority. The Audit Committee of the Company was reconstituted on May 30, 2024, and as at the Balance Sheet date, the Committee comprised of four directors, including two independent directors. Such composition of the Audit Committee was not in compliance with requirements under Section 177(2) of theActfor the majority of the members of theAudit Committee to be independent directors. Since the date of the Balance Sheet, the Board of Directors, at their meeting held onApril 28,2025, have re-constituted theAudit Committee in compliance with the above requirement.

The Company has undertaken the following activities as part of its Corporate Social Responsibility (CSR) initiatives during the financial year ended March 31,2025, in accordance with Section 135 of the CompaniesAct, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014:

Nature of CSRActivities

a. Environmental Conservation:

Support for the Save Soil movement aimed at enhancing soil health and sustainable agriculture. Participation in Cauvery Calling, an initiative focused on planting trees to revitalize the Cauvery river basin and promote ecological sustainability.

b. Education:

Initiatives to provide access to quality education for underprivileged children, including scholarships, distribution of learning materials, and support for educational infrastructure.

c. Mental Health and Wellbeing:

Programs|to create awareness and provide support for mental|health care, counseling services, and|stress management.

d. Child Welfare/Senior Citizen Welfare

Support for projects focused on the nutrition, health, protection, and overall welfare of children in vulnerable communities. Assistance for programs that promote the dignity, health care, and social engagement of senior citizens.

e. Animal Welfare:

Contributions to organizations engaged in the rescue, care, and rehabilitation of animals, and promotion of animal welfare awareness.

f. Educational, Spiritual, and Cultural Activities:

Support for initiatives that foster educational advancement, cultural heritage, and spiritual well-being in society.

g. Sanitation and Public Health:

Donation to the Swachh Bharat Kosh, established by the Government of India to support activities for improving sanitation facilities and achieving the objectives of the Swachh BharatAbhiyan (Clean India Mission).

42. Additional Regulatory Information

i. The Company does not have any Immovable Property whose title deeds are not held in the name of the Company.

ii. The Company has not revalued its Property, Plant and Equipment during the year.

iii. The Compamydoes not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.

iv. The Company has borrowed from banks on the basis of security of current assets. The Company has filed Stock and Debtors statement with banks for working capital which are in agreement with the books of account.

v. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

vi. To the best of knowledge and information available with the Company, the Company has no transaction with any of the Companies whose name is struck off under section 248 of the Companies Act, 2013 or Section 560 of the CompaniesAct, 1956.

vii. There are no charges pending either requiring registration or for the satisfaction thereof with the Registrar of Companies beyond the statutory period prescribed under the relevant provisions of the CompaniesAct, 2013.

viii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the CompaniesAct, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

ix. No scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the CompaniesAct, 2013during the reporting period.

x. Utilisation of Borrowed funds and share premium and otherfunds:

a. The management represents that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or any other sources or kind of funds) by the Company to or in

: any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b. The management represents that, to the best of its knowledge and belief, no funds have been received by the

| | Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, |

whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi. Additional Regulatory Information pursuant to clause 5(ix) and 5(xi) of General Instruction for preparation of Statement of Profit and Loss as given in Part I of Division I of Schedule III to the CompaniesAct, 2013 :

a. The Company does not have any transaction which is not recorded in the books of accounts but 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 anyother relevant provisions of the IncomeTaxAct, 1961).

b. The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

44 Figures for the previous year have been regrouped/reclassified/rearranged,wherever necessary to conform to the current period's presentation and classification.