16. Provision and Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as
a result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past
events but their existence will be confirmed by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or where any

present obligation cannot be measured in terms of future outflow of resources or where a
reliable estimate of the obligation cannot be made.

17. Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost. All other borrowing costs are
charged to the Statement of Profit and Loss for the period for which they are incurred.
Borrowing costs that are directly attributable to the acquisition or construction of qualifying
assets are capitalised as part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use.

18. Segment Reporting

Operating segments are reported in manner consistent with the internal reporting provided to
the chief operating decision maker. The management assesses the financial performance and
position of the Company and makes strategic decisions. The chief operating decision maker
consists of the Directors of the Company.

Defined Benefits Plan
Gratuity Plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act,
1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity.
The amount of gratuity payable on retirement/termination is the employees’ last drawn basic
salary per month computed proportionately for 15 days salary multiplied for the number of
years of service.

The Company has recognized Rs. 15.78 lacs (P.Y. Rs 11.73 lacs) in the profit & Loss Account
during the year ended 31 March 2025 under defined contribution plan.

The discount rate indicated above reflects the estimated timing and currency of benefit
payments. It is based on the yields / rates available on applicable bonds as on the current
valuation date.

The salary growth rate indicated above is the Company’s best estimate of an increase in salary
of the employees in future years, determined considering the general trend in inflation,
sonority, promotions, past experience and other relevant factors such as demand and supply in
employment market, etc.

(f) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are
discount rate, expected salary increase and mortality. The sensitivity analysis below has been
determined based on reasonably possible changes of assumptions occurring at the end of the

Please note that the sensitivity analysis presented above may not be representative of actual
change in the defined benefit obligation as it is unlikely that the change in assumptions
would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method of valuation for the prior period. For change in assumptions
please refer to section 5 above, where assumptions for prior period, if applicable, are given.

27. Segment Reporting:

Based on the “management approach” as defined in Ind AS 108 Operating Segments, the
Director of the Company has been identified as Chief Operating Decision Maker (CODM).
The Chief Operating Decision Maker evaluates the Company’s performance and allocate
resources on the analysis of various performance indicator by business segment.

The company has only one geographical segment as it caters the need of domestic market only.

28. Financial Risk Management:

Financial risk management objectives and policies

The Company’s financial risk management is an integral part of how to plan and execute its
business strategies. The Company’s financial risk management policy is set by the Managing
Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result
from a change in the price of a financial instrument. The value of a financial instrument may
change as a result of changes in the interest rates, foreign currency exchange rates, equity
prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including
investments and deposits, foreign currency receivables, payables and loans and borrowings.

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments
will fluctuate because of changes in market interest rates. In order to optimize the Company’s
position with regards to interest income and interest expenses and to manage the interest rate
risk, treasury performs a comprehensive corporate interest rate risk management by balancing
the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their
obligations as agreed. To manage this, the Company periodically assesses financial reliability
of customers, taking into account the financial condition, current economic trends, and analysis
of historical bad debts and ageing of accounts receivable. Individual risk limits are 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 through each reporting
period. To assess whether there is a significant increase in credit risk the Company compares
the risk of default occurring on asset as at the reporting date with the risk of default as at the
date of initial recognition. It considers reasonable and supportive forward-looking information
such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the
counterparty’s ability to meet its obligations

iv) Significant increase in credit risk on other financial instruments of the same counterparty

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its
obligations on time, or at a reasonable price. The Company’s treasury department is
responsible for liquidity, funding as well as settlement management. In addition, processes and
policies related to such risk are overseen by senior management. Management monitors the
Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below analyses the financial liability of the company into relevant maturity
groupings based on the remaining period from reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flow.

29. Capital Risk Management
Risk Management

The Company’s objectives when managing capital are to

Ý safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders

Ý maintain an optimal capital structure to reduce the cost of capital

The Company monitors capital on the basis of the following debt equity ratio:
31. Fair Value Measurement

The fair values of the financial assets and liabilities are included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

• Fair value of cash and short-term deposits, trade and other short term receivables, trade
payables, other current liabilities, short term loans repayable on demand approximate their
carrying amounts largely due to short term maturities of these instruments.

Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the counterparty.
Based on this evaluation, allowances are taken to account for expected losses of these
receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.