Purpose of Reserves & Surplus:

(i) Securities Premium: Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the I

provisions of the Companies Act, 2013.

(ii) Retained Earnings: The amount that can be distributed by the Company as dividends to its equity shareholders out of accumulated reserves is determined considering the requirements of the Companies Act, 2013. Thus, the closing balance amounts reported above are not distributable in entirety.

The Company has exposure to regulated entities, hence the credit risk is limited. All trade receivables are reviewed and assessed for default on a monthly basis and the risk is mitigated by timely monitoring of receivables. (Based on historical experience of collecting receivables, supported by the level of default, We conclude that the credit risk is low. Accordingly our provision for expected credit loss on trade receivable is not material, so not made.

The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.

The Company issued 2976000 Preference Share Warrants during the previous financial years. Total unconverted outstanding preference share warrants at the beginning of the year were 1734500 which were converted in to Equity Shares on 9th December, 2023 (1508500 preference share warrants) and 1st February, 2024 (226000 preference share warrants).

There are no overdues to Micro, Small and Medium Enterprises as at March 30, 2024. Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended March 31, 2024 is given above. This information has been determined to the extent such parties have been identified on the basis of information available with the company.

B. The Company had applied for registration under Employees State Insurance Act, 1948 but due to technical glitch of the website, application was pending with the respective department for registration till 31st March, 2024. However, the Company has duly complied with the applicable provisions of the aforesaid Act with effect from April, 2024.

As per Ind AS-19 "Employee Benefits" The Company has provided for, to the applicable provisions of the Payment of Bonus Act, 1965, the Payment of Gratuity Act, 1972 and other related applicable labour laws.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumption may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligations has been calculated using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

As per Ind-AS 109 "Financial Instrument", Measurement of Financial Assets (Investments in other listed company’s shares) at fair value (unrealized gain/loss) which is routed through Other Comprehensive Income (OCI) was previously done by the Company through Profit and Loss Account. The same has been rectified during the Current Financial year.

A. Fair value hierarchy

Level I - Quoted prices in active markets for identical assets or liabilities such as quoted price for an equity security on Security Exchanges.

Level II - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level III - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

B. Financial Risk Management

The Company's activities expose it to variety of financial risks such as credit risk, liquidity risk, settlement risk and market risk. The Company's senior management overseas the management of these risk and also ensure that its financial risk activities are identified, measured and managed in accordance with its policies and risk objectives.

(i) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Since the company has exposure to regulated entities, the credit risk is limited. It is mitigated by timely monitoring of receivables. The company has robust accounts receivable collection mechanism which has ensured near zero level of credit risk since inception. The investment of the company is in high grade investment categories which reducing the credit risk exposure to near minimal.

Exposure to credit risk

There is no requirement for providing for expected credit loss as the company has robust collection mechanism and has not written off any amount due to client credit risk exposure.

C. Market risk

Under the current changing dynamics of the market, there is always a business of market risk of the company. More innovation and R&D for new products, will be made so as to maintain its competitiveness. Value addition on the existing products will be carried out so as to maintain its leadership in the market. Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprise three type of risk: interest rate risk, currency risk and other price risk, such as commodity risk.

(i) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company’s

exposure to the risk of changes in market interest rates relates primarily to the overdraft etc. Facilities provided by the respective banks to the company carrying variable interest rates.

Since, the company has not availed any long term credit facilities, therefore there is no need for the company to enter into hedge contract to mitigate the possible exposure risk.

(ii) Foreign currency exchange rate risk

Foreign currency is the risk that the fair values or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company’s exposure to the risk of changes in foreign exchange rates relates primarily to the company's operating activities.

27.1 There are no MSME creditor’s payable for 45 days and above, hence no provision for interest is required as per the provision of the Micro, Small and Medium Enterprises, 2006

28. SEGMENT INFORMATION (IND AS-108-Operating Segments).

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting:

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable”.

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable”.

29. CAPITAL MANAGEMENT

The Company's objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.

30. In the ordinary course of business, the Company faces claims and assertions by various parties. The company assesses such claims and assertions and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

31. Corporate Social Responsibility

The provisions contained in Section 133 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules 2014 were applicable to the Company.

32. The provisions contained in Section 133 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules 2014 were applicable to the Company.

33. Other Notes:

(i) The Company does not have any Benami Property where any proceedings has been initiated or pending against company for holding any Benami Property.

(ii) The Company does not have granted any loan or advance in the nature of loan to promoters, KMP, Directors and related parties where it is repayable on demand or without specifying any terms of repayment.

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

(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(v) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vii) The Code on Social Security, 2020 (’Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come in to effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

(viii) The Company does not undertake any transactions with respect to crypto currency or virtual currency during thr FY.

(ix) The Company do not have any transactions with Companies Struck off.

34. Sundry Debtors, Creditors, Loans and Advances balances as shown in the balance sheet are subject to confirmation from the parties concerned and consequential adjustments, if any.

35. Previous year figures have been re-grouped, re-arranged and re-casted wherever it is considered necessary to make them comparable with those of current year.

36. RECLASSIFICATION OF COMPARATIVE FIGURES

a) Certain reclassifications have been made to the comparative period's financial statements to:

- enhance comparability and ensure consistency with the current year’s financial statements; and

- ensure compliance with the Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013 (Revised)

The Company believes that such presentation is more relevant for understanding of the Company’s performance. However, this does not have any material impact on the profit, equity and statement of cash flows for the comparative period.

b) Certain reclassifications have been made to the financial statements as compared to Limited Review Report to ensure compliance with the Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013 (Revised).

The Company believes that such presentation is more relevant for understanding of the Company’s performance. However, this does not have any material impact on the profit, equity.

c) Certain reclassifications have been made to the financial statements as compared to Limited Review Report to ensure compliance with the Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013 (Revised).

The Company believes that such presentation is more relevant for understanding of the Company’s performance. However, this does not have any material impact on the statement of cash flows.