10. PROVISONS.CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes as provisions, the liabilities being present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources which can be measure only by using a substantial degree of estimation.

Contingent liabilities are disclosed by way of notes to the financial statements after careful evaluation by the management of the facts and the legal aspects of the matter involved.

Contingent assets are neither recognized nor disclosed.

As per the Actuarial Valuation Report of Gratuity Liability, based on the above assumptions, gratuity liability as on March 31,2024 works out to INR 5,812.63.The same has been provided in the books of accounts.

The company does not allow accumulation of leaves and the employees are allowed to encash maximum 12 days of the balance leave on December 31 every year. However during the current year the employees were allowed to encash all accumulated leaves over and above 7 days available on March 31,2024.

By considering the materiality level of accumulation of leave balance, the company has not obtained the actuarial valuation as on March 31,2024 and has provided for the liability of the accumulated leave of INR 456.44 /-.

32. Sundry Debtor and Creditors Balances are subject to confirmation, adjustments if any, will be made in the accounts on receipt of such confirmation.

33. The Company is listed on the SME platform of the National Stock Exchange of India Limited and the provisions of the IND AS as per rule 4 of the Companies (Indian Accounting Standards) Rules, 2015, Reconciliation of Profit and Loss and Reconciliation of Equity does not apply to the company and hence not reported.

34. a) Primary segment reporting (by business segments)

The company is in the business of developing and manufacturing high quality Audio Systems and the company's business falls within a single business segment of Audio Systems. Therefore disclosures under Accounting Standard 17- Segment Reporting are not reported separately.

b) Secondary segment reporting (by geographical segments)

Secondary segmental reporting is identified on the basis of the geographical location of the customers. The Company has identified India, South East Asian Countries and rest of the world.as the geographical segments for secondary segmental reporting.

Geographical sales are segregated based on the location. All assets other than trade receivables and advances to suppliers are located in India. Similarly all capital expenditure is incurred towards fixed assets located in India.

a) Current Ratio : The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is calculated by computed by dividing its total current assets by its total current liabilities.

There is variance in this ratio as the Current Assets have increased in the current year.

b) Return on Equity Ratio : Return on Equity (ROE) is a measure of profitability of a Company expressed in percentage. It is calculated by dividing total income by average shareholder's equity.

There is variance in this ratio due to increase in shareholder's equity in the current year as compared to in preceding year.

c) Inventory Turnover Ratio: measures the efficiency with which a Company utilizes or manages its inventory. It establishes the relationship between sales and average inventory held during the period. It is calculated by dividing turnover by average inventory.

There is variance in this ratio is primarily on account of increase in Inventory.

d) Trade Receivable Turnover Ratio: Trade Receivable Turnover Ratio measures the efficiency at which the Company is managing the receivables. The ratio shows how well a Company uses and manages the credit it extends to customers and how quickly that short-term debt is collected or is paid. It is calculated by dividing turnover by average trade receivables.

There is variance in this ratio primarily on account of decrease in Trade Receivable.

I e) Trade Payable Turnover Ratio: Trade Payable Turnover Ratio measures the efficiency at which the Company |

is managing the payables. The ratio shows how well a Company uses and manages the credit extended to it by I 1 its vendors. It is calculated by dividing turnover by average trade payables. II I II

There is variance in this ratio primarily on account of decrease in Trade Payables.

f) Net Capital Turnover Ratio: Net Capital Turnover Ratio indicates a company's effectiveness in using its working capital.

| | There is variance in this ratio is primarily on account of increased working capital.

g) Net Profit Ratio: The Net Profit Margin is equal to how much Net Profit is generated as a percentage of revenue. It is calculated by dividing net profit by turnover.

Ý Ý There is variance in Net profit ratio as there is higher profit in the current yearto in preceding year. Ý

h) Return on Capital Employed (ROCE) indicates the ability of a Company's management to generate returns for Ý i « both the debt holders and the equity holders. It measures a Company's profitability and the efficiency with which •

its capital is used. It is calculated by dividing profit before exceptional items, interest and tax by capital employed. Capital Employed = tangible net worth total debt deferred tax liability.

There is variance in Capital Employed ratio as the capital employed is higher in the current year compared to in preceding year.

42. The Company came with an Initial Public Offer of equity shares on November 14, 2017 and closed on November 16, 2017. The Initial Public Offer was for 7,26,000 equity shares of face value of Rs. 10 each. The shares were offered to the public through the book building process at a price band of INR 51 to INR 54. The price of INR 54 was discovered under the book building process and the issue proceeds aggregated to INR 39,204.00. The shares of the company were listed on the National Stock Exchange of India Limited, EMERGE Platform on November 24,

2017.Out of the issue proceeds an amount of INR 5.889.00/- ,is unutilized.

These unutilized amounts are held as fixed deposits with Punjab Maharashtra Bank.

On 23 September 2019, the RBI imposed operational restrictions on PMC Bank for six months. Due to this, the bank account holders are not allowed to withdraw funds from their accounts.

The Central Government has sanctioned the scheme of amalgamation of Punjab and Maharashtra Bank With Unity Small Finance Bank Limited ('UNITY BANK') with effect from January 25, 2022 and the entire undertaking of PmC Bank, all its business, assets and liabilities including deposits shall stand transferred to and vested in Unity Bank in terms of the scheme.

I n pursuant to the scheme the balance amount of deposits shall be settled as follows:

i. 80 percent of the uninsured deposits outstanding (aggregate in various accounts) to the credit of each institutional depositor, shall be converted into Perpetual Non-Cumulative Preference Shares ('PNCPS”) of Unity Bank. The PNCPS shall have dividend of One Percent (1%) per annum payable annually, on and from the appointed date. The PNCPS shall not be redeemed or convertible into equity shares of Unity Bank. After Ten years (10 years) from the appointed date, Unity Bank may at its sole discretion, consider additional benefits of such PNCPS at face value on a pro-rata basis, subject to receipt of approval from the RBI.

ii. The remaining 20 percent amount of the uninsured deposits outstanding to the credit of each institution depositor will be converted into equity warrants of Unity Bank at a price of INR 1 per warrant .These equity warrants will be converted into equity shares of Unity Bank at the time of INITIAL Public Offers (IPO) of Unity Bank. The price of such conversion will be determined at the lower band of the IPO price.

43. Company has given an advance of INR 12,00.00 to an agency in relation to setting up an Export Unit in SEZ.The scope of the agency was to provide consultancy and guidance in this relation. However due to the unfortunate demise of the working partner of the agency, the process has since then been discontinued. The company has initiated recovery of the said amount through legal process.

44. Previous Year's figures have been regrouped/reclassified to conform to the current year's presentation, wherever necessary

As per our report of even date attached For and on behalf of the Board of Directors

| For KUMBHAT & CO. | | | | | |

Chartered Accountants ^{Ramakrishnan M}.^K. ^Anirvan G^h°s^e

Fi_rm R_eg. No. : 001609S Chairman & Director Managing Director

DIN: 00194891 DIN: 00188496

Gaurang C. Unadkat

P_art_ner Mihir Doshi Sneha Mundra

Membership No. 131708 Chief Financial Officer Company Secretary

& Compliance Officer

Place: Mumbai ^{Place: Mumbai}

Dated: May 30, 2024 ^{Dated: May 30}, ²⁰²⁴