i) Note: Impairment of goodwill

The Company has performed impairment testing for Goodwill (including intangible assets) acquired on acquisition of Limeroad business in earlier years. For the purposes of impairment testing, goodwill is allocated to the Cash Generating Unit (CGU) which represents the lowest level at which the goodwill is monitored for internal management reporting purposes. The recoverable amount has been determined based on value in use calculated using cash flow projections from financial budgets approved by the 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 24.50%-50% (March 31, 2024: 22%-50%) and cash flows beyond the five-year period are extrapolated using a 5% growth rate (March 31, 2024: 5%) which is same as the long-term average growth rate. As a result of this analysis, the management has concluded that the recoverable amount is higher than the carrying amount and accordingly, there is no impairment.

Further, management has also performed the sensitivity around various key assumptions considered for value-in-use calculation. Management believes that any reasonable possible changes in the projected financial budgets and other assumptions would not cause the carrying amount to exceed the recoverable amount.

ii) On transition to Ind AS (i.e. April 01, 2016), the Company has 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 to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences will be utilised. The Company has not recognised deferred tax assets (in respect of carry forward losses) of Rs. 27 lakhs (March 31, 2024: Rs. 433 lakhs) as there was 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 profits after tax would have been increased by Rs. 27 lakhs (March 31, 2024: losses after tax would have been reduced by Rs. 433 lakhs).

These carry forward losses of Rs. 106 lakhs (March 31, 2024: Rs. 1,722 lakhs), which are available for off setting for 8 years against future taxable profits, will expire in the year ending March 31, 2032.

c. 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 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.

d. The Board of Directors of the Company, in their meeting held on May 02, 2025, approved issuance of 3 bonus shares on 1 fully paid up equity share having face value of H 10/- each, subject to the approval of shareholders at the Annual General Meeting of the Company.

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

(b) Trade payables are non-interest bearing and are normally settled 7-90 days terms.

(c) For explanation on risk management process, refer note 40

(d) The Company has established a supplier finance arrangement that is offered to some of the Company's key suppliers in India. Participation in the arrangement is at the suppliers' own discretion. Suppliers that participate in the supplier finance arrangement will receive early payment on invoices sent to the Company from the Company's external finance provider. In order for the finance provider to pay the invoices, the goods must have been received or supplied and the invoices approved by the Company. Payments to suppliers ahead of the invoice due date are processed by the finance provider and, in all cases, the Company settles the original invoice by paying the finance provider in line with the original invoice maturity date. Payment terms with suppliers have not been renegotiated in conjunction with the arrangement. The Company provides no security to the finance provider and there is no change in the Company's original obligation towards the supplier.

Accordingly, the trade payables subject to the supplier finance arrangement are included in trade payables in the balance sheet.

30 Earnings / (loss) per share

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

Diluted EPS amounts are calculated by dividing the profit/(loss) 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.

i. Effect of dilution is anti-dilutive in financial year 2023-24. 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. Also refer note 14 (d).

31 Significant accounting judgements, estimates and assumptions

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, 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.

Other disclosures relating to the Company's exposure to risks and uncertainties includes:

i. Capital management (Refer note 39)

ii. Financial risk management objectives and policies (Refer note 40)

iii. Sensitivity analyses disclosures (Refer note 3, 5 and 40)

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) Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with 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, lease can be renewed only based on mutual agreement of landlord and the Company.

Refer note 46 for reassessment of lease term during the year ended March 31, 2025 and impact thereon.

b) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor, land access 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

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits.

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.

a) Useful lives and residual values of property, plant and equipment

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

b) 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. Due to 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.

The calculation is most sensitive to changes in the discount rate. In determining the appropriate discount rate , the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 34

c) 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 five 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.

d) Share based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends 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 the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses a Black Scholes model. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 35.

e) Assessment of inventory markdown

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

f) Leases - Estimating the incremental borrowing rate

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. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected credit unit method at the end of reporting period, which is the same as that applied in calculating the defined obligation liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

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 to 6,00,000 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. Options must be exercised within-eight years from the date of grant.

The Company had 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. Options issued under the scheme will vest over a period of twelve to forty eight months of continued employment from the grant date. Options must be exercised within-eight years from the date of grant.

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”.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and March 31, 2024.

40 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, credit 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.

a) 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 for the Company arises primarily from interest rate risk, credit risk and product price risk. Financial instruments affected by market risk include borrowings, security deposits and investments in mutual funds.

The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2024. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, other post retirement obligations and the non-financial assets and liabilities.

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 exposure to the risk of changes in market interest rates relates primarily to the Company's short-term debt obligations with floating interest rates. The following table demonstrates the sensitivity to a reasonably possible change in interest rates. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

39 Capital 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. The Company's funding requirements are met through internal accruals and loans repayable on demand. Also, the Company has established a supplier finance arrangement to manage its working capital.

The Company does not have any long term borrowings from bank. However, it has obtained loans repayable on demand and cash credit facility from banks. The Company has obtained a loans repayable on demand of Rs. 14,896 lakhs (March 31,2024: Rs. 11,000 lakhs) and has sanctioned borrowing limit of Rs. 34,500 lakhs (March 31. 2024: Rs. 29,500 lakhs).

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.

b) Liquidity risk:

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, working capital demand loans and lease contracts. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

The Company has also entered into supply chain finance arrangement to smoothen the payment process of the suppliers. Although the payment terms are not significantly extended beyond the normal credit terms agreed upon with other suppliers, the cashflows became more predictable.

c) Currency risk:

The Company does not have any foreign currency transactions hence the Company is not exposed to currency risk.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

A substantial portion of the Company's trade payables are included in the Company's supplier finance arrangement and are thus, with a single counterparty rather than individual suppliers. This results in the Company being required to settle a significant amount with a single counterparty, rather than less significant amounts with several counterparties. However, the Company's payment terms for trade payables covered by the arrangement are identical to the payment terms for other trade payables. Management does not consider the supplier finance arrangement to result in excessive concentrations of liquidity risk. Further, the arrangement has been established to ease the administrative burden of managing invoices from a significant number of suppliers, rather than to obtain financing.

d) 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.

43 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 is recorded in Increase/ decrease in inventories of traded goods amounting to Rs. 7,993 lakhs (including provision at year end of Rs. 6,454 lakhs)[March 31, 2024: Rs. 6,453 lakhs (including provision at year end of Rs. 5,085 lakhs)]. The management believes that above estimation is adequate both in line with the Company practice, historical trends and industry standards.

Details of working capital limits and collateral provided:

The Company has sanctioned working capital limits amounting to Rs. 34,500 lakhs (March 31, 2024: Rs. 29,500 lakhs) from State Bank of India, ICICI Bank, Axis Bank and HDFC Bank. An amount of Rs. 19,604 lakhs remains undrawn as at March 31, 2025 (March 31, 2024: Rs. 18,500 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) Personal guarantee of Mr. Lalit Agarwal, Mr. Madan Gopal Agarwal and Mrs. Sangeeta Agarwal is given to SBI bank

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

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

vii) Exclusive charge over fixed deposits of Rs. 94 lakhs to State Bank of India.

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

45 Leases Company as a lessee

The Company has lease contracts for stores, office premises, warehouse and plant and machinery used in its operations. Leases have lock in period ranging from 1 to 3 years and lease term ranging from 3 to 14 years (previous year: 9 to 15 years, also refer note 46). There are several lease contracts that include extension and termination options and variable lease payments. The lease are further renewable on expiry of total lease term at the option of the Company.

The Company also has certain leases of factory outlets, machinery etc with lease term of 12 months or less. The Company applies the "Short-term lease' recognition exemptions for these leases.

The amount of the effect of this reassessment of lease term and depreciation of the leasehold improvements in future periods has not been disclosed because estimating the same is not practical.

47 During the current year, fire broke out in one of the retail stores of the Company in Law Garden, Gujarat and the Company has incurred losses against property, plant and equipment and inventories amounting to Rs. 60 lakhs and Rs. 70 lakhs respectively. The Company has filed claim with the insurance company. The said claim was not approved by the Insurance Company till March 31, 2025. Accordingly, the Company has accounted for such losses in the books of account as at March 31, 2025.

During the previous year, fire broke out in one of the retail stores of the Company in Hyderabad, Telangana and the Company had incurred losses against property, plant and equipment and inventory amounting to Rs. 5 lakhs and Rs. 123 lakhs respectively. During the current year, the Company has received insurance claim amounting to Rs. 150 lakhs which has been recognised as other income in the Statement of Profit & Loss.

A 1% increase in revenue for respective stores would increase total lease payments by 1%.

(f) The Company had total cash outflows for leases of Rs. 23,473 lakhs in financial year 2024-25 (Rs. 20,358 lakhs in financial year 2023-24).

(g) Note:

(i) Incremental borrowing rate of 7.00 % p.a. considered for measurement of lease liability (March 31, 2024: 9.1% p.a.)

(ii) Profit on termination of lease

On account of closure of stores, the Company has recognised profit on termination of lease of Rs. 232 lakhs (March 31, 2024: Rs. 1180 lakhs) under the head "Other income" in the Statement of Profit and Loss on account of reversal of lease liabilities of Rs. 1,387 lakhs (March 31, 2024: 7,633 lakhs) and right of use assets of Rs. 1,155 lakhs (March 31, 2024: 6,453 lakhs). (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.

46 Reassessment of lease term - Company as a lessee

During the year ended March 31, 2025, the Company reassessed its lease term estimates for store leases in accordance with Ind AS 116 'Leases'. This reassessment reflects the evolving nature of the Company's store portfolio based on historical trends as well as future operating strategy. Accordingly, lease term estimates have been revised to closely align with the period over which management reasonably expects to exercise option to renew its lease contracts.

49 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. Certain sections of the Code came into effect on May 03, 2024. However, the final rules/interpretation have not yet been issued. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

50 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, 2024 : 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.

51 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.

(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.

54 The Company has used Genesys accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level. Further no instance of audit trail feature being tampered with was noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the prior year.

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