2 There is no dividend proposed for, or distributed to the shareholders for the preceding five financial years.

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

4 The Company do not have any transactions with companies struck off.

5 There are no charges or satisfactions which are yet to be registered with the Registrar of Companies beyond the

6 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered

7 or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

8 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)

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

9 with the understanding (whether recorded in writing or otherwise) that the Company shall: (i) 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, (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

10 The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

11 No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

₁₂ The quarterly returns and statements of current assets filed by the Company with banks and financial institutions are in

² agreement with the books of accounts. Hence no reconciliation is required.

13 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or

³ both during the current or previous year.There are no intangible assets under development.

Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instruments are disclosed.

B. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds unquoted investments in a wholly owned subsidiary.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The senior management reviews and agrees policies for managing each of these risks, which are summarized below.

i) 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.Financial instruments affected by market risk include deposits, investments and borrowings.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the company’s financial instruments will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rate relates primarily to the Company’s borrowings with floating interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected, with all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

ii) Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and credit worthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the company result in material concentration of audit risk.

iii) Liquidity risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings. The table below summarises the maturity profile of the Company’s financial liabilities:

18 Government Grant (i) Viability Gap Funding

The Ministry of Electronics & Information Technology (Meity), Government of India has notified the ‘India BPO Promotion Scheme (IBPS)’ under Digital India Programme, whereby it has provided financial support to eligible BPO/BPM units in the form of Viablility Gap Funding.

Financial support is upto 50% of Expenditure incurred on BPO/ ITES on Capital Expenditure and/or operational expenditure, subject to an upper ceiling Limit of Rs. 1,00,000 per seat. The company has elected to utilize the grant towards operational expenditure only.

The company has already received Rs. 10,33,384 in the FY 2021 -22 which constitutes 40% of total grant receivable. The grant received has been apportioned in the remaining period of contract, i.e. 4 years. Rs. 2,58,346 has been booked/ credited as income in the Profit & Loss Account for the FY 2021-22, FY 2022-23 & FY 2023-24. Balance amount of Rs. 2,58,346 has been shown under “Other Current Liabilities” to be written off in F.Y. 2024-25.

Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

20 The Income Tax Deducted at source, of which refund is claimed is disputed by the department. The Appellate Order has been passed vide Order No. ITA 18/Id/2022 for AY 2013-14 dated 03.02.2023, however appeal effect is yet to be given as on 31st March, 2024. The income tax recoverable for the current as well for the past years mentioned in Note 14 includes income tax paid for stay of demand AY 2013-14 is Rs. 12,57,820 .

21 Non Current investment at Note 7 comprises of Investment in shares of Surevin Weartech (P) limited amounting to Rs 40,000 valued at cost. The company holds 40% Shares (i.e 4000 Equtiy Shares of Rs. 10 each) of Surevin Weartech (P) Limited.

22 The sitting fees paid to non-executive directors is Rs. 71,000 for the year ended 31st March 2024 and Rs. 45,000 for the year ended 31 st March 2023.

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