The Company performed its annual impairment test for the years ended March 31, 2024 and March 31, 2023. The recoverable amount of digital marketplace CGU as at March 31, 2024 is Rs.13,160 lakhs (March 31, 2023: Rs.6,150 lakh), has been determined based on value in use calculation using cash flow projections from financial budgets approved by the senior management covering a period of five-year period. The pre-tax discount rate applied to cash flow projections for impairment testing during the current year is 22% (March 31, 2023: 19%) and cash flows beyond the five-year period are extrapolated using a 5% growth rate (March 31, 2023: 5%) that is same as the long-term average growth rate for the digital marketplace industry. Further, management has also performed the sensitivity around various key assumptions considered for value-in-use calculation.

ii) On transition to Ind AS (i.e. April 01, 2015), the Company elected to continue with the carrying value of all other intangible assets measured as per previous GAAP and use that carrying value as the deemed cost of other intangible assets.

The Company has recognised deferred tax assets on various components primarily consists of lease liabilities (net of right to use assets), difference in tax and accounting base of property, plant and equipment, other temporary differences, etc. to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences will be utilised. In the current year, the Company has incurred losses and has not recognised deferred tax assets (in respect of carry forward losses) of Rs. 433 lakhs (March 31, 2023: Nil) as there is no reasonable certainty supported by convincing evidence of its recoverability in near future. If the Company had to recognise the unrecognised deferred tax assets, the losses would have been reduced by Rs. 433 lakhs. The Company has carry forward losses of Rs. 1,722 lakhs (March 31, 2023: Nil), which are available for off setting for 8 years against taxable future profits, which will expire in the year ending March 31, 2032.

Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

No shares was issued as bonus shares, shares issued for consideration other than cash and shares buy back during the five years immediately preceding the reporting date.

iii. Performance obligation

Revenue recognition at a point of time: Performance obligation in respect of sale of traded goods and commission income/margin on third party inventory are satisfied when control of the goods is transferred to the customer, generally on delivery of the goods.

Revenue recognition over period of time: Performance obligation in respect of services is satisfied over a period of time and acceptance of the customer. In respect of these services, payment is generally due upon completion of service based on time elapsed and acceptance by the customer.

30 Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the loss for the period attributable to equity holders by the weighted average number of Equity shares outstanding during the period.

Diluted EPS amounts are calculated by dividing the loss for the period attributable to equity holders by the weighted average number of Equity shares outstanding during the period plus the weighted average number of Equity shares that would be issued under ESOP Scheme to employees.

Note:

i. Effect of dilution is anti-dilutive. Accordingly, diluted EPS is restricted to basic EPS.

ii. There have been no other transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements.

31 Significant accounting judgements, estimates and assumptionsh

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, 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.

In particular, the Company has identified the following areas where significant judgements, estimates and assumptions are required. Further information on each of these areas and how they impact the various accounting policies are described below and also in the relevant notes to the financial statements. Changes in estimates are accounted for prospectively.

I Judgements

In the process of applying the Company's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

a) Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., leasehold improvements or costs relating to the termination of the lease, and the importance of the underlying asset to Company's operations taking into account the location of the underlying asset and the availability of suitable alternatives).

For leases which are expired and under discussion for renewal, the Company Considers such leases as short term leases since, the Company is not certain that option to extend the lease will be exercised as lessor has right to terminate the lease.

Further, the Company has exercised its judgement in using a single discount rate to a portfolio of leases with reasonably similar characteristics.

b) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgments and the use of estimates regarding the outcome of future events.

c) Recognition of deferred tax

The extent to which deferred tax asset to be recognized is based on the assessment of the probability of the future taxable income against which the deferred tax asset can be utilized.

II Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i) Useful lives of property, plant and equipment and other intangible assets

The Company reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets.

ii) Defined benefit obligation

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future trends salary increases, mortality rates and future pension increases. In view of the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

iii) Share based payments

The Company initially measures the cost of cash-settled transactions with employees using a black Scholes model to determine the fair value of the liability incurred. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. For equity-settled share-based payment transactions, the liability is recognised at the vesting date. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in note 35.

iv) Impairment of non-financial assets and goodwill

Impairment exists when the carrying value of an asset or cash generating unit (“CGU”) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (“DCF”) model. The cash flows are derived from the budget for the next four years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset's performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles recognised by the Company. The key assumptions used to determine the recoverability of Goodwill are disclosed and further explained in note 5.

v) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

vi) Assessment of potential markdown inventory

The Company at each reporting date makes an assessment of potential markdown due to aged inventory. In doing so, it estimates the net realisable value of aged inventory based on historic trend of sale of similar aged inventory. Further, it also estimate the provision for shrink based on past trends which it believes is more than or near to actual shrink to be booked as and when stores are counted annually.

vii) Incremental borrowing rate for leases

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay', which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

34 Employee benefits obligation

A. Defined contribution plan

The Company makes provident and other funds contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. Accordingly, the Company recognised expense amounting to Rs. 2,154 lakhs (March 31, 2023: Rs. 1,727 lakhs) for contribution to provident and other funds in the Statement of profit or loss (Refer note 25).

B. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan which is not funded. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who have completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age.

(i) Risk analysis

The Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefits plans and management estimation of the impact of these risks are as follows:

Interest rate risk

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields falls, the defined benefit obligation will tend to increase.

Salary Inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary Increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Detailed information to the extent provided by the actuary in the actuarial certificate has been included in the disclosure given above.

35 Share Based Payments

Employee Stock Options (ESOP)

The Company has implemented an Employee Stock Option Scheme, which was approved by the Board of Directors and the shareholders vide resolution dated July 2, 2012 and July 10, 2012 respectively (‘the V-Mart ESOP Scheme 2012' or the “Scheme”), consequent to which 3,00,000 equity shares with a nominal value of Rs.10 each will be granted upon exercise of stock options (ESOPs) to eligible employees. Further, the Members of the Company in its meeting held on September 18, 2017 had further approved the amendment in the V-Mart ESOP scheme, 2012 by increasing the total number of options from 3,00,000 (Three Lakhs) to 6,00,000 (Six Lakhs) options The exercise price of these options will be determined by the Remuneration Committee and the options will vest over a period of twelve months to thirty six months of continued employment from the grant date. The Company has introduced new Employee Stock Option Scheme which was approved by Board of Directors and the shareholders vide resolution dated August 10, 2020 and September 30, 2020 respectively (‘the V-Mart ESOP Scheme 2020' or the “Scheme”), consequent to which equity shares with the nominal value of Rs 10 each was granted to the eligible employees above certain level and based on certain portion of their remuneration subject to achievement of Company's performance and individual performance at the cut-off date.

During the year ended March 31, 2024, considering the actual performance vis-a-vis budgeted performance considered for ESOP scheme for the current year, the Company has re-assessed its liability with respect to share based payments for the current year and revisited its estimate for near future. Consequent to such re-assessment, ESOP liability amounting to Rs. 663 lakhs has been reversed in the current year.

The expected life of the stock is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not also necessary be the actual outcome.

36 Segment information

The Company has two different lines of business i.e. retail business and digital marketplace, which has altogether different risk and rewards.

A. Operating segments

Retail trade Domestic sale to customer at stores

Digital marketplace Commission and other income by providing Limeroad platform to vendors

B. Identification of segments

The Chief Operating Decision Makers (CODM) also views both the business lines separately and accordingly identified and considered as two different segments in terms of the requirements of Ind AS 108 ‘Operating Segments'. Accordingly, the financial statements for the year end include segment reporting.

C. 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”.

D. Segment assets and segment liabilities represent assets and liabilities in respective segments. Tax assets/liabilities, borrowings and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as “unallocable”.

39 Financial risk management A. Capital risk management

The Company's objectives when managing capital are to safeguard continuity as a going concern, provide appropriate return to shareholders and maintain a cost efficient capital structure. The Company determines the amount of capital required on the basis of an annual budget and a five year plan, including, for working capital, capital investment in stores and technology. The Company's funding requirements are met through internal accruals and a combination of both long-term and short-term borrowings. The Company does not have any long term borrowings from bank. However, it has obtained working capital loan and cash credit facility from bank. The Company has obtained a working capital demand loan of Rs. 11,000 lakhs (March 31,2023: Rs. 10,988 lakhs) and has sanctioned borrowing limit of Rs. 29,500 lakhs (March 31. 2023: Rs. 20,000 lakhs).

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Further, as at March 31, 2024, the Company has cash and cash equivalent of Rs. 2,723 lakhs (March 31, 2023: Rs. 1,806 lakhs).

B. Financial risk management

A wide range of risks may affect the Company's business and operational / financial performance. The risks that could have significant influence on the Company are market risk and liquidity risk. The Company's Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the Company's operational and financial performance.

Market risk :

Market Risk is the risk that changes in market place could affect the future cash flows to the Company. The market risk for the Company arises primarily from interest rate risk and product price risk.

i) Interest 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 borrowings are at fixed rates which are carried at amortised cost. They are therefore not subject to interest rate risk.

ii) Product price risk: In a potentially inflationary economy, the Company expects periodical price increases across its retail product lines. Product price increases which are not in line with the levels of customers' discretionary

spends, may affect the business/retail sales volumes. In such a scenario, the risk is managed by offering judicious product discounts to retail customers to sustain volumes. The Company negotiates with its vendors for purchase price rebates such that the rebates substantially absorb the product discounts offered to the retail customers. This helps the Company protect itself from significant product margin losses. This mechanism also works in case of a downturn in the retail sector, although overall volumes would get affected.

Liquidity risk:

Liquidity risk is a risk that the Company may not be able to meet its financial obligations on a timely basis through its cash and cash equivalents, and funds available by way of committed credit facilities from banks Management manages the liquidity risk by monitoring rolling cash flow forecasts and maturity profiles of financial assets and liabilities. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents and additional undrawn financing facilities.

Credit risk:

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of account receivables. Individual risk limits are also set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-looking information.

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

The fair value of unquoted investments are based on NAV as on the reporting date.The security deposits paid are evaluated by the Company based on parameters such as interest rate, risk factors, risk characteristics, and individual credit worthiness of the counterparty. Based on this evaluation allowances are taken into account for the expected losses of the security deposits.

42 The Company on a periodic basis assesses the markdown of its aged and obsolete inventories (including shrinkage due to various reasons). The exercise has been carried out throughout the year and also at the year end. The estimated markdown including shrinkage in consumption of stock-in-trade amounts to Rs. 6,435 lakhs (including provision at year end of Rs. 5,085 lakhs)[March 31, 2023: Rs. 4,058 lakhs (including provision at year end of Rs. 2,832 lakhs)]. The management believes that above estimation is adequate both in line with the Company practise and industry standards.

Undrawn committed borrowing facilities

The Company has sanctioned working capital limits amounting to Rs. 29,500 lakhs (March 31, 2023: Rs. 20,000 lakhs) from SBI, ICICI, Axis Bank and HDFC Bank. An amount of Rs. 18,500 lakhs remains undrawn as at March 31, 2024 (March 31, 2023: Rs. 9,012 lakhs). Further, the limits available is secured by way of:

i) Pari passu hypothecation charge with all the working capital lenders on entire current assets including stock and all the present and future book debts.

ii) Pari passu first hypothecation charge with all the working capital lenders on all the present and future property, plant and equipment of the Company excluding vehicle and assets financed by other banks under the finance lease and term loan.

iii) Exclusive charge over personal property of Mr. Lalit Agarwal, Mr. Madan Gopal Agarwal and Mrs. Sangeeta Agarwal to SBI only.

iv) Personal guarantee of Mr. Lalit Agarwal and Mr. Madan Gopal Agarwal is given to SBI, ICICI and Axis bank.

v) Personal guarantee of Mr. Lalit Agarwal is given to HDFC and personal guarantee of Mrs. Sangeeta Agarwal is given to SBI.

vi) Lien on 11,323 mutual fund units of SBI Liquid fund direct growth (Folio no 13912346).

vii) Exclusive charge over FDRs of Rs. 67 lakhs to SBI.

viii) Exclusive charge on Residential building bearing survey no. BPB081, 08^th floor, Wing-B, Gurgaon (Haryana) admeasuring Total Area: 1714 sq. feet.

44 Right of use (ROU) asset and lease liabilities

The lease terms for office premises, warehouse and store sites are for a period of nine to fifteen years and having a lock-in period ranging from one to three years. The lease are further renewable on expiry of total lease term at the option of the Company.

i. Incremental borrowing rate of 9.1% considered for measurement of lease liability.

ii. The Company has recognised profit on termination of lease of Rs. 1,180 lakh (March 31, 2023: 444 lakh) under the head Other Income in the Statement of Profit and Loss on account of reversal of lease liabilities of Rs. 7,633 lakh (March 31, 2023: 475 lakh) and right of use assets of Rs. 6,453 lakh (March 31, 2023: 31 lakh). (Refer note 22).

iii. The Company does not face a significant liquidity risk with regard to its lease liabilities as the Company believes that it will able to generate sufficient cash to meet the obligations related to lease liabilities as and when they fall due.

iv. As at March 31, 2024, the Company is in the process of getting the lease deeds registered for 190 (March 31, 2023: 196) retail stores in the name of the Company. Out of said 190 retail stores, the Company has entered into Memorandum of Understanding with the landlord for 181 retails stores (March 31, 2023: 163 stores) and the Company has right to operate such store as per Master Franchise Agreement with ALBL for nil stores (March 31, 2023: 17 stores). Accordingly, Right to Use assets (“ROU”) has been recognised on those retail stores. For the remaining 9 stores (March 31, 2023: 16 stores), the Company is in the process of entering formal agreement with the lessors, accordingly, the ROU asset has not been created on those retail stores and rent paid for those stores have been debited to statement of profit and loss. The Company believes that the delay in execution of MOU or lease agreement is largely due to procedural issues in executing such lease deeds which are beyond control of the Company. The management is confident that formal agreements will be signed between the parties shortly and no material liability is expected against the Company in this regard.

v. The Company has elected to apply the practical expedient of not assessing the rent concessions as a lease modification, as per MCA notification dated July 24, 2020 and June 18, 2021 on Ind AS 116 for rent concessions which are granted due to COVID-19 pandemic. Accordingly, it has accounted, which is netted from rent expenses for the year ended March 31, 2024 of Rs. nil (March 31, 2023: Rs. 232 lakhs) on account of unconditional rent concessions confirmed in writing by the landlord.

45 On November 10, 2022, the Company had acquired business of Limeroad market place from A.M. Marketing Private Limited for increasing the Company's online customer base against purchase consideration of Rs. 3,517 lakhs (net of liabilities assumed of Rs. 3,514 lakhs). Consequent to said business acquisition, all the assets and liabilities of the Limeroad market place business (excluding assets and liability as mentioned in the Business Transfer Agreement) were transferred to and vested in the Company with effect from November 10, 2022. The acquisition was accounted under the business acquisition method prescribed under Ind AS 103 - Business Combinations. Accordingly, pursuant to said business acquisition, following assets and liabilities were identified and recognised by the Company:

46 During the current year, fire broke out in one of the retail stores of the Company in Hyderabad, Telangana and the Company has incurred losses against property, plant and equipment and inventory amounting to Rs. 5 lakhs and Rs. 123 lakhs respectively. The Company has filed claim with the insurance company. The said claim has not been approved by the insurance company till date. Accordingly, the Company is carrying provision against losses in the books of account.

During the previous year, fire broke out in one of the retail stores of the Company in Kanpur, Uttar pradesh and the Company incurred losses against property, plant and equipment and inventory amounting to Rs. 56 lakhs and Rs. 99 lakhs respectively. The Company has received insurance claim during the year and provisions against anticipated loss recognised in previous year has been actualised during the current year.

47 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 into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

48 The Company made an investment in commercial papers of Infrastructure Leasing & Financial Services (IL&FS) in earlier years amounting to Rs. 980 lakhs, which were due for redemption on September 18, 2018. The aforesaid amount and interest thereon has not been received as on date. In view of the fact that there is uncertainty on recovery of the entire amount and the management is carrying a provision of full amount Rs. 980 lakhs (March 31, 2023 : 980 lakhs) against the said investment. The Company, had filed an intervention appeal on February 08, 2019 regarding the same, which is pending for disposals.

49 Other statutory information

(i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013.

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

(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(v) The Company has not advanced or loaned to or invested funds in 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.

(vi) 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.

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income 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).

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.

(x) The Company has been sanctioned working capital limits in excess of Rs. 500 lakhs in aggregate from bank during the year on the basis of security of current assets of the Company and quarterly statements filed by the Company with such banks are in agreement with the books of accounts of the Company.

51. The Company was awarded projects, under the 'Deen Dayal Upadhaya-Grameen Kaushalya Yojana' (DDUGKY) from various state governments for encouraging youth employment. Out of total approval received till Balance Sheet date amounting to Rs. 7,031 lakhs (March 31, 2023 : Rs. 7,031 lakhs), the Company has incurred expenses to the extent of Rs. 6,759 lakhs, (March 31, 2023 : Rs. 5,521 lakhs ). Out of the total expenses incurred, the Company has filed the claims amounting to Rs. 4,133 lakhs (March 31, 2023: Rs. 3,532 lakhs) and is the process of filing the claim for the remaining amount. Further, against the total claim filed by the Company, the amount received till the balance sheet date amounted to Rs. 3,757 lakhs (March 31, 2023 : Rs. 2,776 lakhs ) and balance amount appearing as other assets amounting to Rs. 3,002 lakhs (March 31, 2023: Rs. 2,745 lakhs ) (Refer note 11). Further, the Company has made provision for credit impairment amounting to Rs. 230 lakhs (March 31, 2023: Rs. 60 lakhs), in cases where the actual expenditure incurred exceeded the amount of eligible expenditure approved by the respective state governments. The management believes that entire amount is good and recoverable other than those against which adequate provision has been made in the books of accounts.

52. The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level in so far as it relates to Genesis accounting software. Further, no instance was noted of audit trail feature being tampered with respect of said accounting software.

53. The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary to make them comparable with current year classification.