2.13 Provisions and Contingencies

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle
the obligation, and a reliable estimate can be made of the
amount of the obligation.

The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When a
provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the
present value of those cash flow (when the effect of the time
value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a third
party, a receivable is recognised as if it is virtually certain
that reimbursement will be received, and the amount of the
receivable can be measured reliably.

Contingent liabilities are disclosed unless the possibility

of outflow of resources is remote. Contingent assets are
neither recognised nor disclosed in the financial statements.

2.13.1 Onerous contracts

Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous
contract is considered to exist where the Company has a
contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits
expected to be received from the contract.

2.14 Financial instruments

Financial assets and financial liabilities are recognised when
a Company becomes a party to the contractual provisions of
the instruments.

Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at
fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised
immediately in profit or loss.

2.15 Financial assets

All regular way purchases of sales of financial assets
are recognised or de-recognised on a trade date basis.
Regular way purchases or sales are purchases or sales
of financial assets that require delivery of assets within
the time frame established by regulation or convention in
the marketplace.

All recognised financial assets are subsequently measured in
their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.

to receive (i.e. all cash shortfalls), discounted at the original
effective interest rate (or credit-adjusted effective interest
rate for purchased or originated credit-impaired financial
assets). The Company estimates cash flows by considering
all contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) through the
expected life of that financial instrument.

The Company measures the loss allowance for a financial
instrument at an amount equal to lifetime expected credit
losses if the credit risk on that financial instrument has
increased significantly since initial recognition. If the credit risk
on a financial instrument has not increased significantly since
initial recognition, the Company measures the loss allowance
for that financial instrument at an amount equal to 12-month
expected credit losses. 12-month expected credit losses are
portion of the life-time expected credit losses that represent
the lifetime cash shortfalls that will result if default occurs
within the 12 months after the reporting date and thus, are not
cash shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial
instrument at lifetime expected credit loss model in the
previous period but determines at the end of a reporting
period that the credit risk has not increased significantly
since initial recognition due to improvement in credit
quality as compared to the previous period, the Company
again measures the loss allowance based on 12 month
expected credit losses.

When making the assessment of whether there has been a
significant increase in credit risk since initial recognition, the
Company uses the change in the risk of a default occurring
over the expected life of the financial instrument instead
of the change in the amount of expected credit losses.
To make that assessment, the Company compares the risk
of a default occurring on the financial instrument as at the
reporting date with the risk of a default occurring on the
financial instrument as at the date of initial recognition and
considers reasonable and supportable information that is
available without undue cost or effort, that is indicative of
significant increase in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash
or another financial asset that result from transactions that
are within the scope of Ind AS 115, the Company always
measures the loss allowance at an amount equal to lifetime
expected credit losses.

Further, for the purpose of measuring lifetime expected
credit loss allowance for trade receivables, the Company
has used a practical expedient as permitted under Ind
AS 109. This expected credit loss allowance is computed
based on a provision matrix which takes into account
historical credit loss experience and adjusted for
forward-looking information.

2.15.4 De-recognition of financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another party.
If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to
control the transferred asset, the Company recognises its
retained interest in the asset and an associated liability for
the amounts it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of
a transferred financial asset, the Company continues to
recognise the financial asset and also a collateralised
borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the sum
of the consideration received and receivable is recognised in
profit or loss on disposal of that financial asset.

2.15.5 Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign
currency is determined in that foreign currency and translated
at the spot rate at the end of each reporting period and the
exchange differences are recognised in profit or loss.

2.16 Financial liabilities and equity instruments2.16.1 Classification as debt or equity

Debt and equity instruments issued by the Company are
classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangement and the
definitions of a financial liability and equity instrument.

2.16.2 Equity instruments

An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all its liabilities. Equity instruments issued by a Company are
recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company's own equity instruments is
recognised and deducted directly in equity. No gain or loss
is recognised in profit or loss on the purchase, sale, issue or
cancellation of the Company's own equity instruments.

2.16.3 Financial liabilities

All financial liabilities are subsequently measured at
amortised cost using the effective interest method.

2.16.3.1 Financial liabilities subsequently measured at amortised cost

The carrying amounts of financial liabilities that are
subsequently measured at amortised cost are determined
based on the effective interest method. Interest expense
that is not capitalised as part of costs of an asset is included
in the 'Finance costs' line item.

The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or
received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts)

through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on
initial recognition.

2.16.3.2 Financial guarantee contracts

A financial guarantee contract is a contract that requires the
issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make
payments when due in accordance with the terms of a
debt instrument.

Financial guarantee contracts issued by the Company are
initially measured at their fair values and, if not designated as
at FVTPL, are subsequently measured at the higher of:

• The amount of loss allowance determined in accordance
with impairment requirements of Ind AS 109; and

• The amount initially recognised less, when appropriate,
the cumulative amount of income recognised in
accordance with the principles of Ind AS 115.

2.16.3.3 Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign
currency and are measured at amortised cost at the end
of each reporting period, the foreign exchange gains and
losses are determined based on the amortised cost of the
instruments and are recognised in 'Other income'.

2.16.3.4 De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled or have expired. An exchange with a lender of debt
instruments with substantially different terms is accounted
for as an extinguishment of the original financial liability
and the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing financial
liability (whether or not attributable to the financial difficulty
of a debtor) is accounted for as an extinguishment of the

original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of the
financial liability derecognised and the consideration paid
and payable is recognised in profit or loss.

2.17 Offsetting

Financial assets and financial liabilities are off set and the
net amount is presented when and only when, the Company
has legally enforceable right to set off the amount it intends,
either to settle them on a net basis or to realise the asset and
settle the liability simultaneously.

2.18 Cash and Cash equivalents

The Company's cash and cash equivalents consists of cash
on hand and in banks and demand deposits with banks,
which can be withdrawn at any time, without prior notice or
penalty on the principal.

For the purposes of cash flow statement, cash and cash
equivalents comprise cash and cheques in hand, bank
balances, demand deposits with banks, net of outstanding
bank overdrafts that are repayable on demand and
considered part of the Company's cash management
system. In the balance sheet, bank overdrafts are presented
under borrowings within current financial liabilities.

2.19 Segment reporting

Operating segments are reported in a manner consistent with
internal reporting provided to the Chief Operating Decision
Maker (CODM) of the Company. The CODM is responsible
for allocating resources and assessing performances of the
operating segments of the Company.

2.20 Earnings per share

The Company presents basic and diluted earnings per
share ("EPS") data for it's equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to equity
shareholders of the Company by weighted average number

of equity shares outstanding during the period. Diluted EPS
is determined by adjusting the profit or loss attributable
to equity shareholders and the weighted average number
of equity shares outstanding for the effect of all dilutive
potential ordinary shares, which includes all stock options
granted to employees.

2.21 Exceptional items

Exceptional items refer to items of income or expenses

within the statement of profit and loss from ordinary
activities which are non-recurring and are of such size, nature
or incidence that their disclosure is considered necessary to
explain the performance of the Company.

2.22 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 event is adjusted within the
financial statements. Otherwise, events after the balance
sheet date of material size or nature are only disclosed.

2.23 Critical accounting judgements and key sources of

estimation uncertainty

In the application of the Company's accounting policies,
the management of the Company is required to make
judgements, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experiences and other
factors that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current
and future periods.

2.23.1 Taxation

The Company makes estimates in respect of tax liabilities
and tax assets. Full provision is made for deferred and
current taxation at the rates of tax prevailing at the year-end
unless future rates have been substantively enacted.
These calculations represent best estimate of the tax charge
that will be incurred and recovered but actuals may differ
from the estimates made and therefore affect future financial
results. The effects would be recognised in the Statement of
Profit and Loss.

Deferred tax assets arise in respect of unutilised losses and
other timing differences to the extent that it is probable that
future taxable profits will be available against which the asset
can be utilised or to the extent they can be offset against
related deferred tax liabilities. In assessing recoverability,
estimation is made of the future forecasts of taxable profit,
including for transactions expected to be consummated
during the current year. If these forecast profits do not
materialise, they change, or there are changes in tax rates
or to the period over which the losses or timing differences
might be recognised, then the value of deferred tax assets
will need to be revised in a future period.

2.23.2 Depreciation and useful lives of property, plant and
equipment and intangible assets

Property, plant and equipment are depreciated over the
estimated useful lives of the assets, after taking into account
their estimated residual value. Intangible assets are amortized
over its estimated useful lives. Management reviews the
estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation/
amortization to be recorded during any reporting period.
The useful lives and residual values are based on the
Company's historical experience with similar assets and
take into account anticipated technological changes.
The depreciation/ amortization for future periods is adjusted
if there are significant changes from previous estimates.

2.23.3 Useful life of Assets

The estimated useful life of items of Furniture and Fixtures
and Office Equipment as per below:

Furniture and Fixtures - 5 years *

Office Equipment 3 years *

* Useful life is lower than as prescribed in Schedule II to the
Companies Act, 2013 in above two cases.

2.23.4 Expected credit losses on financial assets

The impairment provision of financial assets are based on
assumption about risk of default and expected timing of
collection. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on the Company's history of collections,
customer's creditworthiness, existing market condition
as well as forward looking estimates at the end of each
reporting period.

2.23.5 Provisions

Provisions and liabilities are recognized in the period when
it becomes probable that there will be a future outflow
of funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The timing
of recognition and quantification of the liability require the
application of judgement to existing facts and circumstances,
which can be subject to change. Since the cash outflows can
take place many years in the future, the carrying amounts of
provisions and liabilities are reviewed regularly and adjusted
to take account of changing facts and circumstances.

2.23.6 Fair value measurements and valuation process

Some of the Company's assets and liabilities are measured
at fair value for financial reporting purposes. Further, the
Company has used valuation experts for the purpose of
ascertaining fair value for certain assets and liabilities.
In estimating the fair value of an asset or a liability, the
Company uses market-observable data to the extent that

it is available. Where Level 1 inputs are not available, the
Company engages third party qualified valuers to perform
the valuation. The management works closely with the
qualified external valuers to establish the appropriate
valuation techniques and inputs to the model.

2.23.7 Defined benefit obligations

The costs of providing 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 benefits is derived from the employees' services and
is determined based on valuation carried out by independent
actuary. The costs are determined based on assumptions
selected by the management. These assumptions include
salary escalation rate, discount rates, expected rate of return
on assets and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to change in
these assumptions.

2.23.8 Leases

Ind AS 116 defines a lease term as the non-cancellable period
for which the lessee has the right-to-use an underlying asset
including optional periods, when an entity is reasonably
certain to exercise an option to extend (or not to terminate)
a lease. The Company considers all relevant facts and
circumstances that create an economic incentive for the
lessee to exercise the option when determining the lease
term. The option to extend the lease term is included in the
lease term, if it is reasonably certain that the lessee would
exercise the option. The Company reassesses the option
when significant events or changes in circumstances occur
that are within the control of the lessee.

2.24 Recent Pronouncements

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. For the year ended March 31, 2026, MCA has notified

below new standards or amendments that are applicable or
may have a material impact to the Company.

2.24.1 Amendment to Ind AS 1 - Classification of liabilities
as current or non-current and non-current liabilities
with covenants:

The amendment specifies the requirements for classifying
liabilities as current or non-current in the balance sheet, and
clarifies the following:

An entity's right to defer settlement of a liability for at
least twelve months after the reporting period must have
substance and must exist at the end of the reporting period.
The classification of a liability as current or non-current is
unaffected by the likelihood that the entity will exercise its
right to defer settlement.

If an entity's right to defer settlement of a liability is subject
to covenants, such covenants affect whether that right exists
at the end of the reporting period only if the entity is required
to comply with the covenant on or before the end of the
reporting period.

In case of a liability that can be settled, at the option of
the counterparty, by the transfer of the entity's own equity
instruments, such settlement terms do not affect the
classification of the liability as current or non-current only if
the option is classified as an equity instrument.

These amendments have no effect on the measurement of any
items in the standalone financial statements of the Company.

The Company did not make retrospective adjustments as a
result of adopting the amendments to Ind AS 1.

2.24.2 The below amendments are notified but not yet effective:

Amendment to Ind AS 1 'Presentation of Financial
Statements'- Classification of Liabilities as current or
non-current and non-current liabilities with covenants - The
amendment includes specific provisions that will take effect
for reporting periods beginning on or after 1 April 2026,
retrospectively, as outlined below:

- Breach of material covenant for long-term loan
arrangement on or before end of reporting period with
effect that liability becomes payable on demand as on
reporting date, then it shall be classified as current
liability, if lender agreed after reporting period and
before approval of financial statements to not demand
payment as a consequence of breach.

- Classify as non-current liability, if lender agreed by end
of reporting period to provide grace period ending at
least 12 months after reporting period within which
entity can rectify the breach provided lender does not
demand immediate repayment.

- Disclose information about the timing of settlement
to understand the impact of the liability on the
financial statements.

The Company does not expect this amendment to have an
impact on its operations or financial statements.

1. The contract assets primarily relate to the Company's rights to consideration for services rendered but not billed at the reporting
date. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the
Company issues an invoice to the customer.

2. A receivable is a right to consideration that is unconditional upon passage of time. Revenue from the sale of products is recognised
at the point in time when control is transferred to the customer. Revenue from licenses where the customer obtains a "right to
access" is recognised over the access period. Revenues in excess of billings is recorded as unbilled revenue and is classified as
a financial asset for these cases as right to consideration is unconditional upon passage of time.

Invoicing in excess of earnings are classified as contract liability.

3. Invoicing in excess of earnings are classified as contract liability.

4. The Revenue recognised is equivalent to the contract price and there is no element of discount, rebates, incentives, etc. which are
adjusted to revenue.

5. As at March 31, 2026 and March 31, 2025, the Company has no remaining obligations under existing contracts.
ii] Changes in contract liabilities:

During the year ended March 31, 2026 and March 31, 2025, the Company recognised revenue (net of foreign exchange gain or
loss) of INR 11,878.80 Lakhs and INR 7,099.99 Lakhs arising from opening contracted liabilities as of April 01, 2025 and April 01,
2024 respectively.

c] Performance obligation:

License Fees - Music:

The performance obligation of "right-to-use" of Music Licensing contracts gets satisfied at the time of entering into agreement/ contracts
with customers.

In case of "right-to-access" of Music Licensing contracts, the Company undertakes activities that significantly affect the Music Licenses
to which the customer has rights. In these cases, the performance obligation gets complete when the Customers accesses the music
licenses. Payment is made as per the terms of the Contract.

Revenue from Music licensing where the customer obtains a "right to use" is recognised at the time the license is made available to the
customer. Revenue from licenses where the customer obtains a "right to access" is recognised over the access period.

Sale of Vinyl Records:

In case of sales of products, customer obtains control of the products when the goods are delivered at customer's premises or when the
product is dispatched, depending on the terms of contract.

Revenue from the sale of vinyl's is recognised at the point in time when control is transferred to the customer. Revenue is measured based on the
transaction price, which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract
with the customer. Revenue also excludes taxes collected from customers.

Notes :

a. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters above pending resolution of the arbitration /

appellate proceedings. Further, the liability above excludes interest and penalty except in cases where the Company has determined

that the possibility of such levy is probable.

b. The Company does not expect any reimbursements in respect of the above contingent liabilities.

c. The Company has reviewed its proceedings and has adequately provided for where provisions are required or disclosed as contingent

liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a
materially effect on its financial statements.

3] Lease3.1] Company as a lessee

The Company has lease contracts for office premises used in its operations.

The Company also has certain leases with lease term up to 12 months and certain leases of low value. The Company applies the recognition
exemptions under IndAS 116 'Leases' relating to short-term leases and lease of low-value assets for these leases.

3.2] Company as a Lessor
Operating Lease

a] The Company has entered into operating leases for its investment properties (Note 4). These leases have terms for 1 (One) year.

During the year ended March 31,2026 INR 31.83 Lakhs (March 31,2025 INR 30.04 Lakhs) was recognised in profit and loss in relation
to rental income from the investment properties (Refer note no. 29)

b] The minimum rentals receivable on leases of investment properties are as follows :

* Includes interest income of NIL for the current year and INR 0.23 lakhs for the previous year received from the unspent CSR amount
transferred to a separate bank account.

**The Company will spend unspent CSR Amount, for the Financial year 2025-26, within 3 years subsequent to the reporting Financial Year
as per the provisions of the Companies Act, 2013 read with rules made thereunder.

# During the Financial year 2024-25, the Company has unspent amount of CSR obligation of INR 149.36 lakhs of ongoing Projects.

(i) Pursuant to provisions of Sections 68, 69 and 70(1) and all other applicable provisions, if any, of the Companies Act, 2013 and the
provisions of Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018, the Company has bought back
5,95,000 (Five Lakh Ninety Five Thousand) fully paid up equity shares of the Company of face value of INR 1/- (Rupee One only)
each, from all the equity shareholders/beneficial owners of the Company (excluding promoters and promoters group) who holds
Equity Shares as on the record date i.e. April 22, 2024, on a proportionate basis, through the tender offer route, at a price of INR
625/- (Rupees Six Hundred Twenty Five Only) per Equity Share for an aggregate amount of up to INR 3718.75 Lakhs (Rupees
Thirty Seven Crores Eighteen Lakhs Seventy Five Thousands only) excluding the Transaction Cost. All 5,95,000 equity shares
bought back were extinguished on May 14, 2024 and completed the aforesaid buyback offer.

The Company funded the buy back from its free reserves, including securities premium, as explained in Section 68 of the
Companies Act, 2013. In accordance with Section 69 of the Companies Act, 2013, the Company has created "Capital Redemption
Reserve" of INR 5,95,000 equal to the nominal value of the shares bought back as an appropriation from retained earnings.

b] Rights, preferences and restrictions attached to Equity shares : The company has only one class of equity shares having a par value of
INR 1/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim 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 shareholdings.

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

Above transactions with related parties are made on terms equivalent to those that prevail in arms length transaction. Outstanding balances
at year end are unsecured.

8] Segment Reporting

a] The segment information has been prepared in line with review of operating results by Chief Operating Decision Maker (CODM) of
Company i.e. the Board of Directors.

b] The company is presently operating in Music (Audio/Video) activity . The CODM decides on allocation of the resources to the business
taking holistic view of the entire setup and hence it is consider as representing a single operating statement.

9[A] Financial instruments - Fair values and risk management

i] The carrying value of trade receivables, cash and cash equivalents, other bank balances, loans, trade payables and other financial assets
and liabilities are considered to be the same as their fair values due to their short term nature. The fair value of financial instruments as
referred to in note above have been classified into three categories depending on the inputs used in valuation technique. The hierarchy
gives highest priority to quoted prices in active market for identical assets or liabilities (Level 1 measurement) and lowest priority to
unobservable inputs (Level 3 measurement).

The Company has exposure to the following risks arising from financial instruments:

* Credit Risk ;

* Liquidity Risk ; and

* Market Risk comprising of foreign exchange risk and other price risk.

i] Risk Management objectives

The Company's activities expose it to a variety of financial risks viz. credit risk, liquidity risk and market risk. In order to manage
the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and
responding to each risk factors.

ii] Credit riska] Credit Risk management

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 receivable from customers

b] Cash and cash equivalents and Bank balances other than Cash and cash equivalents

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and
retaining sufficient balances in bank accounts required to meet a month's operational costs. The Management reviews the bank
accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.

c] Loans and Advances :

The Company does a proper financial and credibility check on the landlords before taking any property on lease and hasn't had a
single instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that
the notice period rentals are adjusted against the Other financial assets and only differential, if any, is paid out thereby further
mitigating the non-realization risk. The Company does not foresee any credit risks on deposits with regulatory authorities.

d] Trade receivables :

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by
the company 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. 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.

On account of adoption of IND AS 109, the Company uses expected credit loss model to assess the Impairment loss.The Movement
of expected credit provision (allowance for bad and doubtful receivables) made by the Company are as under:

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. The Company's approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the company's reputation.

Market risk is the risk that the fair value or future cash flows of a financials instrument will fluctuate because of changes in market
prices. Market risk comprises two types of risk currency risk and other risk such as equity price risk. the objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Financial instruments - Fair values and risk managementa] Currency Risk

The company is exposed to currency risk on account of its receivables / payables in foreign currency. The functional currency of the
Company in Indian Rupees.

i) Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

The currency profile of financial assets and financial liabilities as at March 31, 2026 and March 31,2025 are as below :

iii) Sensitivity analysis

A reasonably possible strengthening (weakening) of the foreign Currency against the Indian Rupee at March 31,2026 would have
affected the measurement of financial instruments denominated in foreign currencies 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.

b] Price Risk

Price risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company
is exposed to the price risk mainly from investment in mutual funds. Investments in mutual funds are made primarily in medium / short
tenure funds and are not exposed to significant price risk.

The key objective of the Company's capital management is to maximise shareholder value, safeguard business continuity and support
the growth of the company. The Company determines the capital requirement based on annual operating plans and long term and other
strategic investment plans. The funding requirements are met through operating cash flows generated, and equity. The Company is not
subject to any externally imposed capital requirements.

The Company contributes to the following post-employment defined benefit plans in India

i] Post Employment Defined Contribution Plans :

The contributions to the Provident Fund and Family Pension fund of certain employees are made to a Government administered
Provident Fund and there are no further obligations beyond making such contribution. The Company recognized INR 126.72 Lakhs for
year ended March 31,2026 (INR 2714 Lakhs for year ended March 31, 2025) as post emplyment gratuity benefit in the Statement of
Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

ii] Post Employment Defined Benefit Plans :Gratuity

The Company participates in the Employees Gratuity scheme, a funded defined benefit plan for qualifying employees. Gratuity is
payable to all eligible employees on death or on separation / termination in terms of the provisions of the Payment of Gratuity Act, 1972.
The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through
its Gratuity Trust fund.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out
as at March 31, 2026. The present value of the defined benefit obligations and the related current service cost and past service cost,
were measured using the Projected Unit Credit Method.

Effective November 21,2025, the Government of lndia consolidated 29 existing labour regulations into four Labour codes, namely, The
Code on Wages, 2019, The lndustrial Relations Code, 2020, The Code on Social Security, 2020 and the Occupational Safety, Health and
Working Conditions Code, 2020, collectively referred to as the 'New Labour Codes'. The New Labour Codes has resulted in increase in
provision for employee benefits on account of recognition of past service costs. Based on the requirements of New Labour Codes and
relevant Accounting Standard, the Company has assessed and accounted incremental impact of INR 96.68 Lakhs as Employee Benefits
Expense in its financial statements for the year ended March 31,2026.

k] Sensitivity Analysis

The impact to the value of the defined benefit obligation of a reasonably possible change to one actuarial assumption, holding all other
assumption constant, is presented in the table below. In practice, this is unlikely to occur, and changes in some of the assumptions may
be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method
has been applied as when calculating the defined benefit liability recognised in the balance sheet.

iii] Leave Obligation

The Company provides leave to employees. The employees at the end of the financial year can carry forward their balance leave to the
subsequent financial year and it gets lapsed if not availed in that subsequent financial year. The Company Rules does not provide encashment
of Leave at any time during the tenure of employment and also on retirement or termination. The Company records a provision for leave
obligation at the end of the financial year. The total provision recorded by the Company towards this obligation was INR 39.33 lakhs and INR
6.38 lakhs as at March 31,2026 and March 31,2025.

Inventory turnover ratio is not computed as the Company does not have inventories during the reporting period.

# Reasons provided for variances more than 25%

15] Additional regulatory information required by Schedule III

a. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami
Property Transaction Act, 1988 and rules made thereunder.

b. 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.

c. 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.

d. The Company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

e. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

f. The Company does not have 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).

g. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium
thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

h. The Company has not revalued its property, plant and equipment (including Right to Use assets) or other intangible assets or both during the
year or previous year.

i. The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017

j. The Company has not entered into any scheme of arrangement which has an accounting impact on current year or previous year.

k. Relationship with Struck off Companies

Companies transactions with companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of
Companies Act, 1956 in the financial years ended March 31,2026 and March 31,2025 are given below:
**In the financial years ended March 31,2026 and March 31,2025, the Company did not have any transaction with above equity shareholders,
being the companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.
Our Company has not allotted any Equity share to the said companies. The shareholding data is as per the record of beneficiary position
downloaded by the Registrar and Transfer Agent of the Company from the database maintained by the depositories and reported to us for
the purpose of this disclosure.

The Company does not have borrowings from banks or financials institutions on the basis of security of current assets.

17] There have been no significant events after the reporting period and before the approval of financial statements which would require a
change to or additional disclosure in the financial statements.

18] Previous year's figures have been regrouped/reclassified wherever necessary.