V R Films & Studios Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

2.13 Provisions

"A provision is recognized when the Company has a present obligation Legal or Constructive that is reasonably
estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. These
estimates are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost."

2.14 Segment Reporting

The Company operates in a single segment only i.e Film Distribution and Dubbing. Thus, in the context of Ind
AS 108 "Operating Segment”, issued by the Institute of Chartered Accountants of India, there is only one
identified reportable segment.

2.15 Earnings per Share

Basic earnings per share are calculated by dividing the net profit/ loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of diluted potential equity shares, if any.

2.16 Contingent Liabilities and Assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there
is a liability that cannot be recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the financial statements. Contingent Assets are
not disclosed in the Financial Statements.

2.17 Financial Instruments

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

Financial Assets

"Initial recognition and measurement:

All financial assets are initially recognised at fair value. Transaction costs of acquisition of financial assets
carried at Fair value through profit or loss are expensed in the Statement of profit and loss. Financial assets
are classified, at initial recognition and subsequent measurements, as financial assets at fair value or as
financial assets measured at amortised cost."

A financial asset is measured at amortised cost less impairment, if the objective of the company''s business
model is to hold the financial asset to collect the contractual cash flows.

Impairment of financial assets:

All financial assets are initially recognised at fair value. Transaction costs of acquisition of financial assets
carried at fair value through profit and loss are expensed in the Statement of Profit and Loss.

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured subsequently at amortised cost. Interest income from
these financial assets is included in other income using the effective interest rate method.

Impairment of Financial Assets

In accordance with Ind-As 109, the company uses "Expected Credit Losses (ECL)" model, for evaluating
impairment of Financial Assets other than those measured at Fair Value through Profit and Loss (FVTPL).

Expected credit losses are measured through as loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instruments that are possible within 12 months after the reporting date); or

Full lifetime expected credit losses (expected losses that result from all possible default events over the life of
the financial instrument)

The credit loss is difference between all contractual cash flow that are due to an entity in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the
original effective interest rate. This is assessed on an individual or collective basis after considering all
reasonable factors including that which are forward-looking.

For trade receivable company applies ''Simplified approach'' which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 months ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Financial liabilities

1) Initial recognition and measurement

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial
liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be
subsequently measured at fair value.

2) Subsequent measurement

Financial liabilities are carried at amortised cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.

3) Derivative Financial Instruments

Derivative financial liabilities are measured at fair value through Profit and loss.

"Derecognition of Financial Instruments:

The company derecognises a financial asset when the contractual rights to the cash flows from the Financial
Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109.
A Financial Liability (or part of Financial Liability) is derecognised from the Company''s Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires."

"Offsetting of financial instruments:

Financial assets and financial liabilities are offsetted and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle
on a net basis, to realize the assets and settle the liabilities simultaneously."

2.19 Fair Value Measurement

"Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability the principal
or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurementisunobservable. For

assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting year."

3 Critical Accounting Judgements and Key Sources of Estimation Uncertainty

The Preparation of Company''s financial Statements requires management to make judgements, estimates and
assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustments to the carrying amount of assets or liabilities affected in next financial years.

a. Determination of the estimated useful lives of Property, Plant and Equipment and Intangible
Assets:

Estimates are involved in determining the cost attributable to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by the management. Property, Plant and
Equipment/Intangible Assets are depreciated/ amortised over their estimated useful life, after taking into
account estimated residual value. Management reviews the estimated useful life and residual values of the
assets annually in order to determine the amount of depreciation/amortisation to be recorded during any
reporting period. The useful life and residual values are based on the Company''s historical experience with
similar assets and take into account anticipated technological changes. The depreciation/ amortisation for
further period is revised if there are significant changes from previous estimates.

b. Recoverability of Trade Receivables:

Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required or not. Factors considered include the credit rating
of the counterparty, the amount and timing of anticipated future payments and any possible actions that can
be taken to mitigate the risk of non-payment.

c. 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 requires the application of judgements
to existing facts and circumstances, which can be subject to change. The carrying amount of provisions and
liabilitie s are reviewed regularly and revised to take account of changing facts and circumstances.

d. Recognition Defined benefit plans:

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key
actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy.
The discount rate is determined by reference to market yields at the end of the reporting period on
government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of
the post-employment benefit obligations.

e. Application of Discount rates:

Estimates of rates of discounting are done for measurement of fair values of certain financial assets and
liabilitie s, which are based on prevalent bank interest rates and the same are subject to change.

f. Current versus non-current classification:

All the assets and liabilities have been classified as current or non-current as per the company''s normal
operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

g. Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company''s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

h. Impairment of non-financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company''s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period. The impairment provision for of non-financial assets
company estimates asset''s recoverable amount, which is higher of an asset''s or Cash Generating Units (CGU''s)
fair value less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. In determining fair value less costs of disposal,
recent market transactions are taken into account, if no such transactions can be identified, an appropriate
evaluation model is used.

i. Recognition of Deferred Tax Assets and Liabilities:

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses
for which there is probability of utilisation against the future taxable profit. The Company uses judgement to
determine the amount of deferred tax that can be recognised, based upon the likely timing and the level of
future taxable profits and business developments.

j. 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 31st March,
2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed
the new pronouncements and based on its evaluation has determined that it does not have any significant
impact in its financial statements.

(i) Securities premium account

Securities premium account is created when shares are issued at premium. The Company may issue fully paid-up
Bonus shares to its members out of the Securities premium account. As per section 52 (2) (e) of the Companies Act,
2013, Securities premium account can be used for buy back of shares.

(ii) General reserve

General Reserve is used from time to time to transfer profits from retained earnings fro appropriation purposes.
General Reserve is created by a transfer from one component of equity to another and is not an item of other

(iii) Retained Earnings

Retained earning are the profits that the Company has earned till date, less any transfer to General Reserve,
dividends or other distributions paid to the shareholders.

33 The existing business of the company is to purchase distribution rights of various Films / Web Series for
a fixed period of time commonly referred to as the Licence period based on the documents/agreement
entered with the Licensor, dubbing it in various Regional languages and making it available across various
channels/OTT.

However, there has been a substantial change in the business model of the company. Earlier the
distribution rights for these Films were given to various channels for telecasting / Release for a fixed
tenure. Based on the same the Inventory valuation method for Films was designed wherein the Inventory
of Films was valued at 100% of the cost during the tenure of first Release of the Film. Subsequently on
return of the Distribution rights post 1st Release the valuation was done at 50% of cost, post 2nd Release
the valuation was done at 30% of the cost and post 3rd release at 10% of cost. There was also an exception
to this policy wherein if the Distribution Rights expires before either of the Release, the Closing Stock is
valued at NIL cost. Further if the Distribution Rights is not sold even once during 5 years from the date of
purchase the Inventory valuation was done at 30% of the cost.

However with the ever changing technology, the change in viewership from television channels to OTT,
excessive use of Mobile for watching movies, shows , news etc and the advent of OTT channels like Netpix,
Amazon, etc and almost every Television channel providing OTT content the business model of the
company has also undergone a change wherein the company established its own OTT platform namely
VROTT and all the Movies, series etc were made available on the OTT platform to create content thereby
requiring a change in the Inventory Valuation policy followed by the company .

Thus the management has decided to change the current method of Inventory for the distribution rights
of Films based over the Licence period of the Films thereby bring it at par with the existing method of
Inventory valuation being done for the Net series. Thus the closing stock of inventory of Films is being
valued on pro-rata basis from the current year over the tenure of the Licence period of the distribution
rights of Films.

38 Fair value disclosures

38.1 The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

The categories used are as follows:

• Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and
mutual funds that have quoted price. ;

• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the
use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2; and

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

39 Financial instruments and risk management

39.1 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable
to the equity holders of the company. The primary objective of the company''s capital management is to maximise the shareholder value and to
safeguard the companies ability to remain as a going concern.

The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the
financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. The current capital structure of the company is equity based with no financing through borrowings. The company
is not subject to any externally imposed capital requirement.

No changes were made in the objectives, policies or processes during the year ended 31st March, 2025 and 31st March, 2024 respectively.

39.2 Financial Risk Management- Objectives And Policies

The company''s activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The company has various financial
assets such as deposits, Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The
Company''s principal financial liabilities comprise of trade and other payables. The company''s senior management focus is to foresee the
unpredictability and minimise the potential adverse effects on the company''s financial performance. The company''s overall risk, management
procedures to minimize the potential adverse effect of the financial market on the company''s performance are as follows:

39.3 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised cost.

A Trade Receivables:

Trade receivables of the Company are generally unsecured. The Company performs ongoing credit evaluations of its customers'' financial conditions
and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business through internal evaluation. The
allowance for impairment of trade receivables is created to the extent and as and when required, based upon the expected collectability of accounts
receivables. The Company has no concentration of credit risk as the customer base is geographically distributed in India.

B Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits
and accounts in different banks across the country.

C Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances, security deposits and others. Credit risk related to these other
financial assets is managed by monitoring the recoverability of such amounts continuously and is based on the credit worthiness of those parties.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

b) Expected credit loss for trade receivables under simplified approach

The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage
of provision by analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected
credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable
is provided for). Based on such simplified approach,no allowance has been recognised.

39.4 Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk
management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company''s
short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities by regularly monitoring forecast and actual cash flows.

(i) Financial arrangements

The Company had access to the following undrawn borrowing facilities at the end of reporting period:

39.5 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
The company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:

A Foreign Currency Risk

Foreign currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. It arises
mainly where receivables and payables exist due to transactions entered in foreign currencies.

A.1 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
Exchange rate exposures are managed within approved board policy parameters. Quarterly reports are submitted to Board of Directors on
the unhedged foreign currency exposures.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting
period are as follows.

40.1 Defined Contribution Plans :

The Company participates in Provident fund as defined contribution plans on behalf of relevant personnel. Any
expense recognised in relation to provident fund represents the value of contributions payable during the period by
the Company at rates specified by the rules of provident fund.

(a) Providend fund and pension

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 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 administered and managed by
Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its
monthly contributions which are charged to the statement of Profit and Loss in the period they are incurred. The
benefits are paid to employees on their retirement or resignation from the Company.

Contribution to defined contribution plans, recognised in the Statement of profit and loss for the year under employee
benefits expense, are as under:

40.2 Defined Benefit Plans :

Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering all employees. The plan
provides for lump sum payment to vested employees at retirement or at death while in employment or on
termination of the employment of an amount equivalent to 15 days salary, as applicable, payable for each completed
year of service. Vesting occurs upon completion of five years of service. The Company accounts for the liability for
gratuity benefits payable in the future based on an actuarial valuation.

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out for the year
ended 31st March, 2025 by an independent actuary. The present value of the defined benefit obligation, and the
related current service cost and past service cost, were measured using the projected unit credit method.

(K) Sensitivity Analysis

The Sensitivity analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These
sensitivities show the hypothetical impact of a change in each of the lied assumptions in isolation. While each of these
sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset
value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Defined
Benefit Obligation 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 presented above. There was no change in the
methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

43 Additional regulatory information required by Schedule III of Companies Act, 2013

43.1 Details of Benami property:

No proceeding have been initiated or are pending against the Company for holding any Benami property under
the Benami Transaction (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

43.2 Utilisation of borrowed funds and share premium:

(a) 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:

i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like or on behalf of the ultimate beneficiaries.

(b) 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:

i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like or on behalf of the ultimate beneficiaries.

43.3 Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

43.4 Compliance with approved scheme (s) of arrangements:

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

43.5 Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account

43.6 Details of crypto currency or virtual currency:

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

43.7 Valuation of Property, Plant and Equipment:

The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the
current or previous year.

43.8 Wilful Defaulter:

The Company is not declared as wilful 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 wilful
defaulters issued by the Reserve Bank of India.

43.9 Details of Transaction with Struck of Companies:

There are no Transactions with Struck of Companies during the Current and Previous Year.

44 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the
current year presentation.

SIGNATORIES TO SCHEDULES "1 TO 44"

As per our report of even date attached For and on behalf of the Board of Directors

For and on behalf of
B.L.Dasharda & Associates

Chartered Accountants Manish Dutt Krishi Dutt

FRN No. 112615W Managing Director Director

(DIN : 01674671) (DIN : 01674721)

Sushant Mehta Prasad Sawant Aparna Akadkar

Partner Chief Financial Officer Company Secretary

M.No. 112489

Place: Mumbai Place: Mumbai

Dated : 29th May,2025 Dated : 29th May,2025

UDIN NO: 25112489BM1UYT2163

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Mar 31, 2024

2.13 Provisions

A provision is recognized when the Company has a present obligation Legal or Constructive that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. These estimates are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

2.14 Segment Reporting

The Company operates in a single segment only i.e Film Distribution and Dubbing.Thus, in the context of Ind AS 108 “Operating Segment”, issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

2.15 Earnings per Share

Basic earnings per share are calculated by dividing the net profit/ loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of diluted potential equity shares, if any.

2.16 Contingent Liabilities and Assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Contingent Assets are not disclosed in the Financial Statements.

2.17 Impairment

Financial Assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired, if objective evidence indicates that one or

more events have had a negative effect on the estimated future cash flows of that asset.

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure :

a) 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 18.

b) Other financial assets which are measured at amortised cost.

The Company follows simplified approach for recognition of impairment loss allowance on Trade receivables and other financial assets. The Company recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

Non Financial Assets

The carrying amount of non-financial assets other than inventories are assessed at each reporting date to ascertain whether there is any indication of impairment. If any such indication exists or when annual impairment testing for an asset is required, then the asset’s recoverable amount is estimated. An impairment loss is recognised, as an expense in the Statement of Profit and Loss, for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels into cash generating units for which there are separately identifiable cash flows.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment had been recognised.

2.18 Financial Instruments

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

Financial Assets

Initial recognition and measurement:

Financial assets are classified into the following categories upon initial recognistion:

(a) those measured at amortised cost

(b) those to be measured subsequently at fair value through Statement of Profit & Loss.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income as the case may be.

All financial assets are initially recognised at fair value. Transaction costs of acquisition of financial assets carried at fair value through profit and loss are expensed in the Statement of Profit and Loss.

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured subsequently at amortised cost. Interest income from these financial assets is included in Other income using the effective interest rate method. Derecognistion:

The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value . The company’s financial liabilities majorily comprises trade and other payables.

Financial liabilities are classified as ''Financial liabilities at fair value through profit or loss'' if they are held for trading or if they are designated as financial liabilities upon initial recognition at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offsetted and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

2.19 Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic

benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year.

2.20 Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) has notified the following new amendments to Ind AS which the Company has applied as they are effective for annual periods beginning on or after April 1, 2023.

(i) Amendment to Ind AS 1 “Presentation of Financial Instruments”

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information is material if, together with other information can reasonably be expected to influence decisions of primary users of general purpose financial statements. The amendment does not have any significant impact on the company.

(ii) Amendment to Ind AS 12 “Income Taxes”

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendment does not have any significant impact on the company..

(iii) Amendment to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities use measurement techniques and inputs to develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendment does not have any significant impact on the company.

Use of Judgment''s, Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Difference between actual results and estimates are recognised in the periods in which the results are known / materialise. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances existing when the financial statements were prepared. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the year in which the estimates are revised.

The areas involving critical estimates and judgements are:

(i) Useful lives of Property, plant and equipment and intangibles [Refer Note 2 (2.3),(2.4) and (2.5)]

(ii) Measurement of defined benefit obligations (Refer Note 38)

28 Leases

The leasing arra ngements are in most cases renewa ble by mutua l consent, on mutua lly agreea bl e terms.

The Company''s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease The Company has not recognised any right- of- use asset ("ROU") due to low value of leases where in the lease period is more then twelve months.

29 Contingent liabilities & Capital Commitments: NIL

30 Loans & Advances

The company has granted Unsecured loans to five employees other than those covered under section 185 of the Act. The aggregate a mount of Loa ns given during the yea r is .3.26 la khs, Loa ns Received back during the yea r is .4.39 lakhs balance outstanding at the Balance sheet date is .2.32 lakhs (P.Y. .3.45 lakhs).

36 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company''s capital ma nagement is to maximise the shareholder value and to safeguard the companies ability to remain as a going concern.

The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current capital structure of the company is equity based with no financing through borrowi ngs. The company is not subject to any externally imposed capital requirement.

No changes were made in the objectives, policies or processes during the year ended 31st March, 2024 and 31st March, 202 3 respectively.

37 Fair value disclosures

37.1 The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

The categories used are as follows:

• Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs a nd mutual funds that have quoted price. ;

• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included i n level 3.

37.2 Financial Risk Management- Objectives And Policies

The company''s activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The company has various financial assets such as deposits, Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The Company''s principal financial liabilities comprise of trade and other payables. The company''s senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the company''s financial performance. The company''s overall risk, management procedures to minimize the potential adverse effect of the financial market on the company''s performance are as follows :

37.3 Credit Risk

Credit risk is the risk that counterpa rty wi 11 not meet its obl igations under a financial i nstrument or customer contract, leading to a fi na ncial loss. The Company is exposed to credit risk primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised

A Trade Receivables:

Trade receivables of the Company are generally unsecured. The Company performs ongoing credit evaluations of its customers'' financial conditions and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business through i nternal evaluation. The a llowa nce for i mpa i rment of trade receivables is created to the extent a nd as a nd when required, based upon the expected collectability of accounts receivables. The Company has no concentration of credit risk as the customer base is geographical ly distributed in India.

B Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

C Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances, security deposits and others. Credit risk related to these other financial assets is ma naged by monitori ng the recovera bility of s uch a mounts continuously a nd is based on the credit worthiness of those pa rties.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

The Compa ny does not have a ny expected loss based i mpa irment recognised on such assets considering thei r low credit risk nature.

b) Expected credit loss for trade receivables under simplified approach

The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Based on such simplified approach,no allowance has been recognised.

37.4 Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining

adequate reserves, banking facilities by regularly monitoring forecast and actual cash flows.

(i) Financial arrangements

The Company had access to the following undrawn borrowing facilities at the end of reporting period:

37.5 Market Risk

Market risk is the risk that the fairvalueoffuturecash flows ofa financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. The company is not exposed to other price risk whereas the exposure to currency risk and i nterest risk is given below:

A Foreign Currency Risk

Foreign currency risk is the risk that the value of financial i nstruments will fl uctuate due to changes i n foreign exchange rates. It arises mainly where receivables and payables exist due to transactions entered in foreign currencies.

A.1 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved board policy parameters. Quarterly reports are submitted to Board of Directors on the unhedged foreign currency exposures.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

41.1 The Group has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2023, with a transition date of 1st April, 2022. These standalone financial statements for the year ended 31st March, 2014 are the first the Group has prepared under Ind AS. For all years upto and including the year ended 31st March, 2023 , the Group prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP'').

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Group has prepared financial statements which comply with Ind AS for year ended 31st March, 2024, together with the comparative information as at and for the year ended 31st March, 2023 and the opening Ind AS Balance Sheet as at 1st April, 2022, the date of transition to Ind AS.

In preparing these Ind AS standalone financial statements, the Group has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the standalone financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Group in restating its Previous GAAP financial statements, including the Balance Sheet as at 1st April, 2022 and the consolidated financial statements as at and for the year ended 31st March, 2023.

41.2 Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS; The Group has applied the following exemptions:

(a) Deemed cost for property, plant and equipment and intangible assets

The Group has elected to apply previous GAAP carrying amount of its property, plant and equipment as deemed costas on the date of transition to Ind AS.

41.3 Exceptions

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.

(a) Estimates

The estimates at 1st April,2022 and at 31st March, 2023 are consistent with those made for the same dates in accordance with India GAAP (after adjustments to reflectany differences if any, in accounting policies) apart from the following items where application of previous GAAP did not require estimation.

(b) Defined benefit obligation

In Previous GAAP, acturial gains and losses were recognised in the Statement of Proit and Loss. Under Ind AS, the acturial gains and losses form part of re-measurement of net defined benefit liability / asset which is recognised in other comprehensive income in the respective years.

42 Additional regulatory information required by Schedule III of Companies Act,2013

42.1 Details of Benami property:

No proceeding have been initiated or are pending against the Company for holding any Benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.

42.2 Utilisation of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other person (s) or entity (ies), including foreign entities (Intermediaries) with

(a)

the understanding that the Intermediary shall:

i) directly or indirectly lend or invest in other person or entities identified inany manner whatsoever by or on behalf ofthe Company (Ultimate Beneficiaries) or

ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person (s) or entity (ies), including foreign entities (Funding Party) with the understanding

(b)

(whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other person or entities identified inany manner whatsoever by or on behalf ofthe Company (Ultimate Beneficiaries) or

ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.

42.3 Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act,2013.

42.4 Compliance with approved scheme (s) of arrangements:

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

42.5 Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year inthe tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

42.6 Details of crypto currency or virtual currency:

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

42.7 Valuation of Property, Plant and Equipment:

The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the current or previous year.

42.8 Willful Defaulter:

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.

42.9 Details of Transaction with Struck of Companies:

There are no Transactions with Struck of Companies during the Current and Previous Year.

43 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.

SIGNATORIES TO SCHEDULES "1 TO 43"

As per our report of even date attached For and on behalf of the Board of Directors

For and on behalf of B.L.Dasharda & Associates

Chartered Accountants Manish Dutt Krishi Dutt

FRN No. 112615W Managing Director Director

(DIN : 01674671) (DIN : 01674721)

Sushant Mehta Prasad Sawant Aparna Akadkar

Partner Chief Financial Officer Company Secretary

M.No. 112489

Place: Mumbai Place: Mumbai

Dated : 30th May,2024 Dated : 30th May,2024

UDIN NO:24112489BKANXV5941