Note 27 (b) : Financial Risk Management Objectives and Policies

The Company's principal financial liabilities, other than derivatives, comprise loans and
borrowings, trade and other payables, and financial guarantee contracts. The main purpose of
these financial liabilities is to finance the Company's operations and to provide guarantees to
support its operations directly or indirectly. The Company's principal financial assets include
investments, loans, trade and other receivables, cash and cash equivalents that derive directly
from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the
sources of risk which the entity is exposed to and how the entity manages the risk:

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss.

Trade receivables

Customer credit risk is managed by the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed by the
management on regular basis with market information and individual credit limits are defined
accordingly. Outstanding customer receivables are regularly monitored and any further services
to major customers are approved by the senior management. Based on the business environment
in which the company operates.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the
impairment loss or gain. The Company uses a provision matrix to compute the expected credit
loss allowance for trade receivables. The provision matrix takes into account available external
and internal credit risk factors and the Company's historical experience for customers. The
company manages its credit risk through credit approvals,

Financial instruments and cash deposits

Credit risk from balances/investments with banks and financial institutions is managed in
accordance with the Company's treasury risk management policy. Investments of surplus funds

are made only with approved counterparties and within limits assigned to each counterparty. The
limits are assigned based on corpus of investable surplus and corpus of the investment avenue.
The limits are set to minimize the concentration of risks and

The Company's maximum exposure to credit risk for the components of the balance sheet at March
31, 2024 and March 31, 2013 is the carrying amounts as stated in balance sheet. The Company's
maximum exposure relating to financial guarantees and financial derivative instruments is noted
in the liquidity table below.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due. The objective of liquidity risk

The Treasury Risk Management Policy includes an appropriate liquidity risk management
framework for the management of the short-term, medium- term and long term funding and cash
management requirements. The Company manages the liquidity risk by maintaining adequate
cash reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of

Market Risk

Market risk comprises two types of risk: price risk, interest rate risk and currency risk. The risks
may affect income and expenses, or the value of its financial instruments of the Company. The
objective of the Management of the Company for market risk is to maintain this risk within
acceptable

Price risk

Equity price risk is related to the change in market price of the investments in quoted equity
securities. The value of the financial instruments is not material and accordingly any change in the
value of these investments will not affect materially the profit or loss of the Company.

Interest rate 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. Since, the Company has insignificant interest
bearing borrowings, the exposure to risk of changes in market interest rates is very low. The
Company has not used any interest rate derivatives.

The exposure of the Company to interest rate changes at the end of the reporting period are as
under:

Interest rate sensitivity

No sensitivity analysis is prepared as the Company does not expect any material effect on the
Company's results arising from the effects of reasonably

possible changes to interest rates on interest bearing financial instruments at the end of the
reporting period.

Foreing Exchange Risk

Foreign exchange risk arises on future commercial transactions and on all recognised monetary
assets and liabilities, which are denominated in a currency other than the functional currency of
the Company. The Company's management has set policy wherein exposure is identified,
benchmark is set and monitored closely, and accordingly suitable hedges are undertaken. Policy
also includes mandatory initial hedging requirements for exposure

There is no Foreign currency exposure for the company as on 31st March 2024.

Note 27(c) : Capital Management

For the purpose of the Company's capital management, capital includes issued equity share
capital, securities premium and all other reserves attributable to the equity holders of the
Company. The primary objective of the Company's capital management is to maximise the value
of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital
structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc.
The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The
Company includes within net debt, interest bearing loans and borrowings, less cash and cash
equivalents.

Note 27(f): Employee Benefits:

During the year, the provision for Gratuity and Leave Encashment created in earlier years has
been written back in the books of accounts.

Note 27(g) : Operating lease arrangements

There are no operating lease arrangements as on 31.03.2024.

Note 27(h) : Expenditure on Corporate Social Responsibility:

Section 135 of the Companies Act provides the threshold limit for applicability of the CSR to a
Company i.e. (a) net worth of the company to be Rs 500 crore or more; (b) turnover of the company
to be Rs 1000 crore or more; (c) net profit of the company to be Rs 5 crore or more. Further as per
the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but also
applicable to branch and project offices of a foreign company in India CSR Committee and Policy:
Every qualifying company requires spending of at least 2% of its average net profit for the
immediately preceding 3 financial years on CSR activities. Further, the qualifying company will be
required to constitute a committee (CSR Committee) of the Board of Directors (Board) consisting
of 3 or more directors. The CSR Committee shall formulate and recommend to the Board, a policy
which shall indicate the activities to be undertaken (CSR Policy); recommend the amount of
expenditure to be incurred on the activities referred and monitor the CSR Policy of the company.
The Board shall take into account the recommendations made by the CSR Committee and approve
the CSR Policy of the company. The company is not meeting the Threeshold limit specified under
companies Act so CSR provision is not applicable

Note 27(i)

The National Company Tribunal (“NCLT”), Mumbai Bench, vide order dated 1st October 2019
(“Insolvency Commencement Order”) has initiated corporate insolvency resolution process
(“CIRP”) based on petitions filed by Nityo Infotech Services Private Limited under section 9 of the
Insolvency and bankruptcy Code, 2016 (“the code”). Mr. Neehal Pathan IP Registration No.:
IBBI/IPA-001/IP-P01561/2018-19/12406 was appointed as interim resolution professional
(“IRP”) to manage the affairs of the Company in accordance with the provisions of code. In the first
meeting of Committee of creditors held on 30th October 2019, Mr. Neehal Pathan had been
confirmed as resolution professional (“RP/Resolution Professional”) for the Company. Pursuant
to the Insolvency Commencement Order and in line with the provisions of the Code, the powers of
the Board of Directors were suspended and the same were to be exercised by IRP/RP. By an order
dated 16th October, 2020, NCLT has extended the CIRP for a further period of 90 days with effect
from 16th October, 2020.

Since the Company is under Corporate Insolvency Resolution Process (CIRP), as per Section 17 of
the Insolvency & Bankruptcy Code, from the date of appointment of the Resolution professional.

• The management of the affairs of the company shall vest in the Resolution Professional.

• The powers of the Board of Directors of the company shall stand suspended and be
exercised by the Resolution Professional.

• The officers and managers of the Company shall report to the Resolution Professional and
provide access to such documents and records of the company as may be required by the
Resolution Professional.

The financial institutions maintaining accounts of the company shall act on the instructions of the
Resolution Professional in relation to such accounts and furnish all information relating to the
company available with them to the Resolution Professional.

Accordingly, the standalone financial statements are continued to be prepared on going concern
basis. The Company continues the process for ascertaining the realisable value for its assets
(including inventories and trade receivables) and necessary adjustments to the carrying value will
be effected in due course, the impact of which is not ascertainable at this stage.

Pursuant to commencement of CIRP of the Company under Insolvency and Bankruptcy Code, 2016,
there are various claims submitted by the financial creditors, operational creditors, employees and
other creditors to the RP. The overall obligations and liabilities including interest on loans and the
principal amount of loans was determined and accordingly accounting impact in provided the
books of accounts in respect of excess, short, or non-receipts of claims for operational and financial
creditors.

Note 27(j) : Going Concern:

The Company Is incurring a losses which may create uncertainties. However, various Initiatives
undertaken by the Company in relation to saving cost, optimize revenue management
opportunities and enhance ancillary revenues Is expected to result in improved operating
performance. Further, our continued thrust to improve operational efficiency and initiatives to
raise funds are expected to result in sustainable cash flows addressing any uncertainties,
Accordingly, the statement of financial results continues to be prepared on a going concern basis,
which contemplates realization of assets and settlement of liabilities in the normal course of
business.

Note 27(k): Related Party Disclosure: Nil
Note 27(l):

The balance of Trade Payables, Trade Receivables, Loans and Advances, Current Liabilities,
Borrowings from others etc. are considered as per books of account. The management has not sent
direct confirmations to parties. In the opinion of the management, since the amount due to/ from
these parties are fully payable/recoverable, no material difference is expected to arise at the time
of settlement, requiring further accounting effect as on 31/03/2024.

Note 27(m): Previous year regrouping:

Previous year's figures have been regrouped / reclassed, where necessary, to confirm to current
year's classification. This does not impact recognition and measurement principles followed for
preparation of standalone financial statements.

For and on behalf of the Board of Directors

Vineet Govardhan Shah Alyzaa Merchant

Managing Director Director

DIN:01761772 DIN:07164228

Neehal Mahamulal Pathan Meenakshi Ramandasani

Resolution Professional Company Secretary

Reg. No.IBBI/IPA-001/IP-P/01561/2018-19/12406 Membership No A47336

Place: Mumbai
Date: 14.08.2024