(i) Investment in Opal Luxury Time Products Limited

Under the Corporate Insolvency Resolution Process of M/s. Opal Luxury Time Products Ltd. (Opal), the Hon. National Company Law Tribunal (NCLT) has ordered the acceptance of the resolution plan submitted by Univastu India Limited vide its Order No. I.A. 1136 of 2022 in C.P. No. 1332 of 2020 dated July 20, 2023 . The said event has been duly disclosed to The Securities Exchange Board of India (SEBI) on July 21, 2023. The technical, physical and legal handing over formalities of Opal are in process. Meanwhile, the Company has deposited an amount of R119.50 Lakh with the judicial authority until the completion of handing over formalities. Till date, the cheque has not been encashed by the authorities.

The Company had submitted the application to ROC on 4^th September, 2023 for appointment of a Director in Opal. In response, subsequent to the year end, the form was approved on 25^th April, 2024 enabling formation of the Board. Accordingly, the Board came into existence on 8^th May, 2024.

(ii) Impairment of investments

During the current year, the Company determined that its investment in firm was impaired. The impairment was assessed in accordance with Ind-AS 36 Impairment of Assets and recognized as a loss in the statement of profit and loss (Refer Note No. 37). The impairment loss of R 4.80 Lakh reflects the difference between the carrying amount of the investment and its recoverable amount.

The Company has not paid or proposed any dividend during the current year.

(ii) The Company has issued one class of equity shares having a face value of H 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note: Adjustment of prior period errors

The Corporate Social Responsibility expenses amounting ot §16.66 Lakh and Leave encashment expense amounting to R 14.94 Lakh (net of deferred tax asset R5.03 Lakh) pertaining to previous years have been adjusted against the opening retained earnings as per the provisions of Ind AS 8.

Notes:

(i) The GST Department had audited the GST returns filed by the Company for the period from July 1,2017 to March 31, 2020 and determined a total liability of K 172.11 Lakh. The Company has filed and appeal against the order with The Commissioner of Central Goods and Service Tax, (Appeals-II) on March 27, 2024 and has deposited an amount of K 15.47 Lakh under protest (Refer Note No. 16).

Dues to Micro and Small Enterprises have been determined to the extent of the cofirmation from the suppliers after the communication from the management to the suppliers. The Company has communicated with Vendors for transactions arising during the current financial year only.

38.07 : Employee benefits -

a) Defined contribution plans

The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 11.11 Lakhs (Previous year Rs. 10.70 Lakhs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Defined benefit plans

The Company offers the following employee benefit schemes to its employees

Gratuity

In accordance with Payment of Gratuity Act, 1972, the Company is required to provide post-employment benefits to its employees in the form of gratuity. The obligations are measured at the present value of estimated future cash flow by using a discount rate that is determined with reference to the market yields at the Balance Sheet date on Government Bonds which is consistent with the estimated terms of the obligation.

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 listed 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 partially offset this impact. 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.

$ The current service cost, past service cost and net interest cost for the year, as applicable, pertaining to Pension and Gratuity expenses have been recognised in "Contribution to Provident and other funds" and Leave Encashment in "Salaries and wages" under Note No. 34. The remeasurements of the net defined benefit liability are included in Other Comprehensive Income.

# Leave encashment is unfunded. Hence, this disclosure is only with respect of Gratuity.

^A The entire plan asset is managed by the Life Insurance Corporation of India Limited (the insurer). In the absence

of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

@ The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

! The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

* The Company has actuarially valued its leave encashment liability for the first time in the current year. Accordingly, the obligation as on April 1,2023 which consists of past service cost has been adjusted against opening reserves net of deferred taxes amounting to H 5.03 Lakh and has been disclosed under Note No. 18 Statement of Changes in Equity.

38.08 Details on derivative instruments and unhedged foreign currency exposures

a) The year-end foreign currency exposures that have been hedged by a derivative instrument:

Rs. Nil (Previous year Rs. Nil).

b) There are no period-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise.

38.11 Details of Benami Property held

The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

38.12 Cash Credit / Working Capital Demand Loan facility secured against current assets

The Company has been sanctioned cash credit / working capital demand loan facility of R2600 Lakhs (Canara Bank R1900 Lakhs and HDFC bank Rs. 700 Lakhs) secured against current assets during the period.

38.13 Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

38.14 Relationship with Struck off Companies

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

38.15 Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

38.16 Compliance with number of layers of companies

The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

38.17 Compliance with approved scheme(s) of arrangements

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

38.18 Funding on behalf of the ultimate beneficiaries:

a) The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

i) 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

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) The Company has not received any funds from any person(s) or entity(ies), including foreign entities ("Funding Parties"), 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.

38.19 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey).

38.20 Details of Crypto Currency or Virtual Currency

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

38.21 Valuation of PP&E, intangible asset and investment property

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

38.22 Title deeds of immovable properties not held in name of the Company

The title deeds of all immovable properties which are shown as part of Property, Plant and Equipment are registered in the name of the Company. There are no such immovable properties which are not held in the name of the Company.

1 The amount required to be spent on CSR activities during the year is calculated as per the provisions of Section 135 of the Companies Act, 2013 i.e., 2% of average net profits for the immediately preceding three financial years.

2 Reason for shortfall in CSR expenditure:

The Company has identified a project relating to promotion of education among children in the rural areas. Since this project has not yet commenced, the Company spent an amount of H 6.20 Lakh on similar ongoing projects and the unspent amount is transferred within a period of thirty days from the end of the financial year to a special account opened in that behalf for that financial year.

3 Nature of CSR activities:

The Company spends its CSR expenditure for promoting education, including special education, especially among children.

4 The amount of CSR expense was not recorded in the year 2021-22. The error has been identified and corrected in the current year by adjusting the opening reserves and has been disclosed under Note No. 18 Other equity.

5 While, as mentioned in Note 4 above, the CSR expense for FY 2021-22 was not accounted for, the amount was partially spent during that year and remaining amount was transferred to CSR unpent account.

i The tax rate of 25.168% (22% surcharge @ 10% and cess @ 4%) used for the year 2023-24 and 2022-23 is the

corporate tax rate applicable on taxable profits under the Income-tax Act, 1961.

38.26 Recent Indian Accounting Standard (Ind AS) pronouncements which are not yet effective

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 March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

38.27 Audit trail

The Company uses an 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 transactions recorded in the accounting software. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software

38.28 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.