fix) Provisions

Provisions are recognized when the enterprise has a present obligation (legal or constructive] as
a result of past events, and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation.

The expense relating to any provision is presented in the statement of profit and loss net of any
reimbursement

(x) Revenue Recognition

fa) All income and expenses are accounted for on accrual basis, except otherwise stated.

fb) Interest Income

Interest income is recognized by applying the Effective Interest Rate [EIR) to the gross carrying
amount of financial assets other than credit-impaired assets and financial assets classified as
measured at Fair Value through Profit & loss account (FVTPL).

The EIR in case of a financial asset is computed:

i. As the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to tiie gross carrying amount of a financial asset.

ii. By considering all the contractual terms of the financial instrument in estimating the cash
flows.

iii. Including all fees received between parties to the contract that are an integral part of the
effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows is recognized in interest
income with the corresponding adjustment to the carrying amount of the assets.

fc) Dividend Income

Dividend income is recognized

a. When the right to receive the payment is established,

b. it is probable that the economic benefits associated with the dividend will flow to the entity and

c. the amount of the dividend can be measured reliably

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(d} Fees & Commission Income

Fees and commissions are recognized when the Company satisfies the performance obligation, at
lair value oi me consideration received nr receivable, unless included in the effective interest
calculation.

fe) Net gain on Fair value changes

Any differences between the fair values of financial assets classified as lair value through the profit
or loss, held by the Company on the balance sheet date is recognized as an unrealized gain / loss. In
cases where there is a net gain in the aggregate, the same is recognized in "Net gains on fair value
changes "under Revenue from operations and if there is a net loss the same is disclosed under
Expenses” in the statement of Profit and Loss.

Similarly, any realized gain or loss on sale of financial instruments measured at FVTPL and debt
instruments measured at FVOC1 is recognized in net gain / loss on fair value changes.

^ ^ Vas loWowed the prudential norms for income recognition and provisioning for

non-performing assets as prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.

fxi) Retirement and other employee benefits

falShort term employee benefit

All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits. These benefits include short term compensated absences such as paid
annual leave which is accounted for as per Service Rules and charged to the Statement of Profit &
Loss account. The undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees is recognized as an expense during the period.
Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are recognized
in the period in which the employee renders the related service.

(blnostiemployment employee benefits

[a) Provisions for Retirement benefits for Gratuity are made as per The Payment of Gratuity Act

1972. '

(b) Contribution to Provident Fund is recognized when due.

(xii) Taxation

Tax expense for the period comprises current and deferred tax. Tax is recognized in statement of
profit & loss except to the extent that it relates to items recognized in the comprehensive income or
in equity in which case, the tax is also recognized in other comprehensive income or equity.

CERTIFIED TO IIF A TRUE COPY

fa) Current Tax

Current tax assets and liabilities for the current and prior years are measured at the

evaluates p«i«onTtterf„Vhrtat7em™ " ‘“T^{% 1}" ^ P^iodioally

regulations are subject to ^interP^rttation mid cstabli^l]cTprovisions^tw¹here'^!app_r^^,p₎!|^¹te^a^^1iCa^^{R tax}
(b) Deferred fav

bases of aSs and Abilities and' ^arisl"^{8 bet}™«" ¹e lax

^tax (^{and laws}J that have been enacted or substantial 'nj-ome ^{tax ls} determined using

experled to apply when the related deferred income tax asseUsreaf H ' “ c^⁰"'"^{8 daK a,ld are}
liability is settled. income tax asset is i eahzod or the deferred income tax

- Ý—-—«,

and losses. Deferred tax assets are reviewed at each ™ r !^ltlh” ^,hose temporary differences
that ,t IS no longer probable that the related tax benefit Jill be realized “^{1 red}“^{Ced 1}° ^{lhe ment}

-forceabie right to offset

the same tax, ... entity, or on different tax entire TT, ™^{d lly ,hc} samL'^tax authority on

and assets „„ a net bas.s or their tax assets and liabifife a^Xds^mt™' ¹“

(^c) floods Servirn Tpv

the goods and se.-e«s^a“e^aZed r^nxceVt" "^{1 rec}°⁸"^ized «•« of

authority, in . . - _: , paid'is re f ^ ^Sm''^{CeS iS not reC0Vf>}rable from the taxation

part of the expe-r -»= ,, applicable. ^{CUgmZe di> part ofthe cost}°facquisition of the asset or as

probable that an outflow of resources will be required to settle the obligation. A contingeni
liability also arises in extremely rare cases where there is a liability that cannot be recognizee
because it cannot be measured reliably.

(xv) Recent Pronouncements

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. Foi
the year ended March 31, 2024 MCA has not notified any new standards or amendments to the
existing standards applicable to the company.

In terms of our separate report For and on behalf of Key Corp Limited

Of even date attached CIN: L65921UP1985PLC007547

For V.P. ADITYA & CO. K.B. Agarwal G.D. Maheshwari

Chartered Accountants (DIN: 00339934) (DIN: 00235209)

(FRN: 000542C) (Chairman) (Executive Director)

(CA SURENDRA KAKKAR) Ms. Namrata Shukla R.N. Singh

Partner (C.P. No. 59175) (Chief Financial Officer)

M. No: 071912 (Company Secretary)

Place: Kanpur
Date: 27.05.2024

CERTIFIED TO EE A TRUE COPV

For Key C&rp Ltd.

(V. K. banday)

Joint SfccrotJiry

1

2Z7¹:' ' ^: With the ~ °^f2 ‘-eluded. The net amount of

2

payables in the ^ V, ' ^{2 taXat,}°" ^author^ ^is ‘eluded as part of receivables or

(xiii) Earning - -- - Ý

The Compan .

Earnings per _: ^{U et carnmgs per share in} accordance with Ind AS 33 on

fxiv) Continy. - • _ •...

A contingent h • ir» « » aam- , ,

confirmed!. .....- _M|||| ; - .1^“°" "if ^a™« &™, past events whose existence will be

the control ^{one Qr mnrc} uncertain future events bevund

*-» - ¹ - -sen, obligation that is no, recognised because it i/not

-------- CB»Tlf:irrs ir, .... .