2.14 Provisions, Contingent liabilities, Contingent
assets

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable that
an outflow of resources embodying economic benefits
will be required to settle the obligation and there is
a reliable estimate of the amount of the obligation.
Provisions are measured at the best estimate of the
expenditure required to settle the present obligation
at the Balance sheet date.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized
as a finance cost.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the Company. Contingent asset is
not recognized, but its existence is disclosed in the
financial statements.

2.15 Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to Chief
Operating Decision Maker (CODM) of the Company.
The CODM is responsible for allocating resources and
assessing performance of the operating segments of
the Company. Refer note 38 for segment information.

2.16 Borrowing costs

Borrowings are initially recognised at net of transaction
costs incurred and measured at amortised cost. Any
difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in
the Statement of Profit and Loss over the period of
the borrowings using the effective interest method.

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily

takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of cost of
asset, if any. All other borrowing costs are expensed
in the period in which they occur.

Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the
interest cost.

2.17 Events occurring after the reporting date

Where events occurring after the balance sheet date
provide evidence of conditions that existed as at the
end of the reporting period, the impact of such events
is adjusted within the financial statements. Otherwise,
events after the balance sheet date of material size or
nature are only disclosed.

2.18 Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.

A. Financial assets

a) Initial recognition and measurement

Financial assets are recognized when
the Company becomes a party to the
contractual provisions of the instrument.
The Company determines the classification
of its financial assets at initial recognition.
All financial assets are recognized initially
at fair value plus transaction costs that are
directly attributable to the acquisition of the
financial asset except for financial assets
classified as fair value through profit or loss.

b) Subsequent measurement

For the purposes of subsequent
measurement, financial assets are classified
in four categories:

i) Debt instruments measured at
amortised cost

ii) Debt instruments measured at fair
value through other comprehensive
income (FVTOCI)

iii) Debt instruments measured at fair
value through profit or loss (FVTPL)

iv) Equity instruments measured at FVTOCI
or FVTPL

Debt instruments

The subsequent measurement of debt
instruments depends on their classification.
The classification depends on the Company's
business model for managing the financial
assets and the contractual terms of the
cash flows.

i) Debt instruments measured at
amortised cost

Debt instruments that are held for
collection of contractual cash flows
where those cash flows represent
solely payments of principal and
interest are measured at amortised
cost. A gain or loss on a debt investment
that is subsequently measured at
amortised cost and is not part of a
hedging relationship is recognised in
the statement of profit and loss when
the asset is derecognised or impaired.
Interest income from these financial
assets is disclosed as interest income
in the statement of profit and loss using
the effective interest rate method.

ii) Debt instruments measured at
FVTOCI

Debt instruments that are held for
collection of contractual cash flows and
for selling the financial assets, where
the assets cash flows represent solely
payment of principal and interest,
are measured at FVTOCI. Movements
in the carrying amount are taken
through OCI, except for the recognition
of impairment gains or losses and
interest income which are recognised
in statement of profit and loss. When
the financial asset is derecognised,
the cumulative gain or loss previously
recognised in the OCI is reclassified
from equity to statement of profit
and loss. Interest income from these
financial assets is disclosed as interest
income in the statement of profit
and loss using the effective interest
rate method.

iii) Debt instruments measured at FVTPL

Debt instruments that do not meet the
criteria for amortised cost or FVTOCI are
measured at fair value through profit or

loss. Debt instruments which are held
for trading are classified as FVTPL. A
gain or loss on a debt investment that
is subsequently measured at fair value
through profit or loss and is not part of a
hedging relationship is recognised and
presented net in the statement of profit
and loss in the period in which it arises.
Interest income from these financial
assets is included in other income.

iv) Equity instruments

All equity investments in scope of Ind AS
109 are measured at fair value. Equity
instruments which are held for trading
are classified as FVTPL. The Company
may make an irrevocable election to
present in other comprehensive income
subsequent changes in the fair value.
The Company makes such election on
an instrument-by-instrument basis.
The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding
dividends, are recognized in the OCI. There
is no reclassification of the amounts from
OCI to the statement of profit and loss,
even on sale of investment. However, the
Company may transfer the cumulative gain
or loss within other equity.

Equity instruments included within the
FVTPL category are measured at fair value
with all changes recognized in the statement
of profit and loss.

B. Derecognition of financial assets

A financial asset is derecognised only when

i) The Company has transferred the rights to
receive cash flows from the financial asset or

ii) retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay the
cash flows to one or more recipients.

Where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial

asset is derecognised. Where the Company has
not transferred substantially all risks and rewards
of ownership of the financial asset, the financial
asset is not derecognised.

Where the Company has neither transferred
a financial asset nor retains substantially all
risks and rewards of ownership of the financial
asset, the financial asset is derecognised if the
Company has not retained control of the financial
asset. Where the Company retains control
of the financial asset, the asset is continued
to be recognised to the extent of continuing
involvement in the financial asset.

C. Impairment of financial assets

The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through
a loss allowance. The Company recognises
lifetime expected losses for all trade receivables
and/or contract assets that do not constitute
a financing transaction. For all other financial
assets, expected credit losses are measured
at an amount equal to the 12 month expected
credit losses or at an amount equal to the lifetime
expected credit losses if the credit risk on the
financial assets has increased significantly since
initial recognition.

D. Financial liabilities

a) Initial recognition and measurement

Financial liabilities are recognised when
the Company becomes a party to the
contractual provisions of the instrument.
The Company determines the classification
of its financial liability at initial recognition.
All financial liabilities are recognised initially
at fair value plus transaction costs that are
directly attributable to the acquisition of
the financial liability except for financial
liabilities classified as fair value through
profit or loss.

b) Subsequent measurement

For the purposes of subsequent
measurement, financial liabilities are
classified in two categories:

i) Financial liabilities measured at
amortised cost

ii) Financial liabilities measured at FVTPL
(fair value through profit or loss)

i) Financial liabilities measured at
amortised cost

After initial recognition, financial liability
are subsequently measured at amortized
cost using the effective interest rate (EIR)
method. Gains and losses are recognised in
the statement of profit and loss when the
liabilities are derecognised as well as through
the EIR amortization process. Amortized
cost is calculated by taking into account any
discount or premium on acquisition and fee
or costs that are an integral part of the EIR.
The EIR amortisation is included in finance
costs in the statement of profit and loss.

ii) Financial liabilities measured at fair value
through profit or loss (FVTPL)

Financial liabilities at FVTPL include financial
liabilities held for trading and financial
liabilities designated upon initial recognition
as at FVTPL. Financial liabilities are classified
as held for trading if they are incurred for
the purpose of repurchasing in the near
term. Financial liabilities at FVTPL are carried
in the statement of profit and loss at fair
value with changes in fair value recognized
in the statement of profit and loss.

c) Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit and loss.

E. Fair value measurement

The Company measures financial instruments,
such as, investment in debt and equity
instruments at fair value at each reporting date.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value
measurement is based on the presumption that
the transaction to sell the asset or transfer the
liability takes place either:

• i n the principal market for the asset or
liability, or

• in the absence of a principal market, in the
most advantageous market for the asset
or liability.

The principal or the most advantageous market
must be accessible to the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

• Level 1 — Quoted (unadjusted) market
prices in active markets for identical assets
or liabilities

• Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the
fair value measurement is unobservable.

For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers, if any,
have occurred between levels in the hierarchy by
re-assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

2.19 Investment in subsidiaries

In its standalone financial statements, the Company
accounts for its investments in subsidiaries at cost.

2.20Significant accounting estimates and judgements

The preparation of financial statements in conformity
with Ind AS requires the Management to make
estimates and assumptions that affect the reported
amount of assets and liabilities as at the Balance
Sheet date, reported amount of revenue and
expenses for the year and disclosures of contingent
liabilities as at the Balance Sheet date. The estimates
and assumptions used in the accompanying financial
statements are based upon the Management's
evaluation of the relevant facts and circumstances as
at the date of the financial statements. Actual results
could differ from these estimates. Estimates and
underlying assumptions are reviewed on a periodic
basis. Revisions to accounting estimates, if any, are
recognized in the year in which the estimates are
revised and in any future years affected.

(a) Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and other
claims against the Company. Potential liabilities
that have a low probability of crystallising or
are very difficult to quantify reliably, are treated
as contingent liabilities. Such liabilities are
disclosed in the notes but are not provided for
in the financial statements. There can be no
assurance regarding the final outcome of these
legal proceedings.

(b) Useful lives and residual values

The Company reviews the useful lives and
residual values of property, plant and equipment
and intangible assets at each financial year end.

(c) Impairment testing

i) Judgment is also required in evaluating
the likelihood of collection of customer
debt after revenue has been recognised.
This evaluation requires estimates to be
made, including the level of provision to be
made for amounts with uncertain recovery
profiles. Provisions are based on historical
trends in the percentage of debts which are
not recovered, or on more detailed reviews
of individually significant balances.

ii) Determining whether the carrying amount
of these assets has any indication of
impairment also requires judgment. If an
indication of impairment is identified, further
judgment is required to assess whether

the carrying amount can be supported by
the net present value of future cash flows
forecast to be derived from the asset. This
forecast involves cash flow projections and
selecting the appropriate discount rate.

(d) Tax

i) The Company periodically assesses its
liabilities and contingencies related to
income taxes for all years open to scrutiny
based on latest information available. The
Company records its best estimates of the
tax liability in the current tax provision.
The management believes that they have
adequately provided for the probable
outcome of these matters.

ii) In determining the recoverability of deferred
income tax assets, the Company primarily
considers current and expected profitability
of applicable operating business segments
and their ability to utilise any recorded tax
assets. The Company reviews its deferred
income tax assets at every reporting year
/ period end, taking into consideration
the availability of sufficient current and
projected taxable profits, reversals of
taxable temporary differences and tax
planning strategies.

iii) The recognition of deferred tax assets is
based upon whether it is more likely than
not that sufficient and suitable taxable
profits will be available in the future
against which the reversal of temporary
differences can be deducted. Where the
temporary differences are related to losses,
the availability of the losses to offset against
forecast taxable profits is also considered.
Recognition therefore involves judgment
regarding the future financial performance
of the particular legal entity or tax Company
in which the deferred tax asset has
been recognized.

(e) Defined benefit obligation

The costs of providing pensions and other
post-employment benefits are charged to the
Statement of Profit and Loss in accordance
with Ind AS 19 'Employee benefits' over the
period during which benefit is derived from the
employees' services. The costs are assessed
on the basis of assumptions selected by the

management. These assumptions include salary
escalation rate, discount rates, expected rate of
return on assets and mortality rates.

(f) Fair value measurement

The fair value of financial instruments that are
not traded in an active market is determined
using valuation techniques. In applying the
valuation techniques, management makes
maximum use of market inputs and uses
estimates and assumptions that are, as far
as possible, consistent with observable data
that market participants would use in pricing
the instrument. Where applicable data is not
observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from
the actual prices that would be achieved in an
arm's length transaction at the reporting date.
For details of the key assumptions used and the
impact of changes to these assumptions.

(g) Leases

The Company has exercised judgement in
determining the lease term as the non cancellable
term of the lease, together with the impact of
options to extend or terminate the lease if it is
reasonably certain to be exercised. Where the
rate implicit in the lease is not readily available,
an incremental borrowing rate is applied. This
incremental borrowing rate reflects the rate
of interest that the lessee would have to pay
to borrower over a similar term, with a similar
security, the funds necessary to obtain an asset
of a similar nature and value to the right of-
use asset in a similar economic environment.
Determination of the incremental borrowing rate
requires estimation.

3 Recent Pronouncements

Recent Indian Accounting Standards (IND AS)

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 31
March 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. 1 April 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

9.1 For related party transactions Refer note 37.

9.2 Trade Receivables are non interest bearing and payment is generally due as per payment terms agreed between
the parties.

9.3 The Company's exposure to credit and currency risk and loss allowance related to trade receivables are disclosed in
note 45

9.4 No trade receivables are due by directors or other officers of the Company either severally or jointly with any other
person or trade receivables due from firms or private companies respectively in which any director is a partner or a
director or a member, other than as disclosed in note 37

9.5 There are no disputed trade receivables as at 31 March 2025 and 31 March 2024.

Notes: 11.1 Held as lien by bank against bank guarantees issued of ' 111.73 lakhs (Previous Year : ' 105.52 lakhs)
including interest, against loan taken by Sri Gayatri Educational Society.

Further, bank guarantee given by the Company against loan taken by Sri Gayatri Educational Society via Agreement dated
17 February 2016 was invoked and considered as Non Performing Asset (NPA) by Axis Bank Limited via Notice dated 31
October 2022.

11.2 Held as lien by bank against Bank overdraft of ' 326.30 lakhs (Previous Year : ' 305.76 lakhs) including interest.

Note 12.1 For related party transactions, Refer note 37
Note 12.2 Disclosure as required by section 186(4) note 41.2

Note 12.3 No loans are due by directors or other officers of the Company either severally or jointly with any other person
or loans due from firms or private companies respectively in which any director is a partner or a director or a member,
other than as disclosed in note 37.

Note 12.4 The Company has not provided for interest income of ' 1,987.35 lakhs (Previous Year ' 1,762.64 lakhs) for
the year ended 31 March 2025 and ' 3,749.99 lakhs (previous year ' 1,762.64 lakhs) upto 31 March 2025 on loans given
considering prudence for pending recovery of long outstanding principal amount.

Note 12.5 The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs
and related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are
repayable on demand or without specifying any terms or period of repayment except as given below.

Note:17.1 Nature of security and terms of repayment for secured borrowings:

Term Loan from Axis Bank Limited

Term loan from Axis Bank limited of ' 348.51 lakhs (previous year : ' 348.51 lakhs) is secured by first pari passu
hypothecation charge on the entire current assets and movable assets (except vehicles) of the Company both present
and future, pledge of shares owned by the promoter of the Company and personal guarantee given by the promoter of
the Company. The said loan is repayable in 8 Half yearly installments starting from September 2018. Last Installment was
due in February 2022. Rate of interest is 2.50% over banks 12 months Marginal Cost of Funds based Lending Rate (MCLR).

Term Loan from Others - Prudent ARC Limited assigned from Assets Care and Restructuring Enterprise Limited
(ACRE) (earlier assigned to Assets Care and Restructuring Enterprise Limited (ACRE) from Xander Finance Private
Limited)

"Term loan of ' 1,652.49 lakhs (previous year : 1,652.49 lakhs) is secured by first pari passu hypothecation
charge on the entire current assets and movable assets of the Company both present and future and
personal guarantee given by the promoter of the Company. The said loan is repayable in 10 half yearly
installments starting from October 2018. Last installment due in March 2023. Rate of interest is 13.75%.
In financial year 2021-22, borrowings was assigned by Xander Finance Private Limited to Assets Care and Restructuring
Enterprise Limited (ACRE) vide letter dated 23 August 2021. During the previous year, the borrowings were assigned by
Assets Care and Restructuring Enterprise Limited (ACRE) to Prudent ARC Limited vide letter dated 22 August 2023."

The Company along with its subsidiaries had applied for One Time Restructuring (OTR) in accordance with Resolution
Framework for Covid-19-related Stress issued by Reserve Bank of India dated 6 August 2020, bearing reference number
DOR.No.BP.BC/ 3/21.04.048/2020-21 but was rejected by the lender on 28 June 2021 and accordingly was declared as
Non-Performing Assets (NPA).

17.2 The Company has not submitted its quarterly statement because its borrowings have been classified as
non-performing assets.

17.3 The Company has not been declared as wilful defaulter by any lender.

17.4 For Related party transactions, Refer note 37.

Note 21: Current financial liabilities - borrowings (Contd.)

The Company has exceeded the limit sanctioned in overdraft facility during the year ended 31 March 2025, considering
the unrecognised interest expenses included in note 21.4.

The Company has not submitted its quarterly statement because its borrowings have been classified as
non-performing assets.

II. Overdraft facility from ICICI Bank Limited

Overdraft facility from ICICI Bank Limited of ' 236.86 lakhs (previous year : ' 239.27 lakhs) is secured by fixed deposits.
It carries interest rate @ 1% pa over FD interest and is repayable on demand.

Note: 21.2. Inter Corporate Deposits

- Holding Company

' 234.77 lakhs (previous year : 234.77 lakhs) is repayable not later than 31 March 2025 and carries an interest at the rate
of 12.50% p.a. Claims have been filed by the lender under CIRP.

- Other party

' 323.63 lakhs (previous year : ' 323.63 lakhs) is repayble not later than 31 March 2023 and carries an interest at the rate
of 12.00% p.a. The lender has filed the claims under CIRP.

Note: 21.3. Nature of security and terms of repayment for secured borrowings and details of default, Refer note 17

Note: 21.4 The Company has not recognised interest expenses of ' 347.35 lakhs (Previous year: ' 348.32 lakhs) for the
year ended 31 March 2025 and ' 1,547.11 lakhs (Previous year ' 1,199.75 lakhs) upto 31 March 2025 on borrowings taken.

Note 35: Contingent liabilities (Contd.)

2. Corporate guarantee provided to a party in respect of loan taken by subsidiary Company, Lakshya Forrum For
Competitions Private Limited. Corporate guarantee is utilised for business purposes.

3. Corporate guarantee provided to a party in respect of loan taken by subsidiary Company, Labh Ventures India
Private Limited. Corporate guarantee is utilised for business purposes. The Company has received claims of ' 4,973
lakhs from SVC Cooperative Bank Ltd (SVC) against Land and building including related assets (property) situated at
Mangalore under their possession of Labh Ventures India Private Limited. (Refer note 48)

4. The Company has received legal notices of claims/law suits filed against it related to other matters. In the opinion
of the management, no material liability is likely to arrive on account of such claims/law suits. Amount represents
the best possible estimate. The Company has engaged reputed professionals to protect its interest and has been
advised that it has firm legal position against such disputes.

5 The Company had taken loan from a Bank and other lenders which was secured against the pledge of equity shares
of the Company held by one of its promoters. The pledge was invoked by the lenders and was adjusted against the
dues owed by the Company. Total Amount of shares pledged and Invoked was ' 974.41 lakhs as received by the
Company in Insolvency and Bankruptcy Code, 2016 (IBC) claim from its Promoter Mr. Mahesh Shetty, out of which
' 293.20 lakhs was pertaining to the Company and has been already provided for in the books of accounts, balance
' 681.21 lakhs is pertaining to subsidiary Company and has been considered above as contingent liability.

6 The Company has not recognised interest expense amounting to ' 1,547.11 lakhs (excluding additional and penal
interest if any) Refer note 21.4.

7 As per Notice received dated 30 January 2023 from Ministry of Minority Affairs (GOI) (MoMA), the Company has failed
to comply with the Ministry's guidelines/office orders/terms and conditions mentioned in the MOU and also the
Company failed to furnish satisfactory responses to the Show Cause Notice dated 26 July 2022 received from Ministry
and accordingly the Ministry decided to bar the Company for a period of 5 years from all initiatives / schemes of
MoMA. Additionally, the grants released to the Company by the Ministry would be recovered along with 10% penal
interest per annum as mentioned in General Financial Rules (GFR) 2017.

8 The Company has received claims under IBC consequent to NCLT order dated 16 December, 2022 drawn for claims
received upto 1 March 2024 as referred in note 35.1 above. The amount taken as contingent liability is to the extent
of claim amount received from various vendors over and above the liability accounted in the books of accounts.

9 Connect Residuary Private limited (Operational Creditor) had filed petition in NCLT seeking to initiate Corporate
Insolvency Resolution Process (CIRP) against the Company by invoking the provisions of Section 9 of Insolvency and
Bankruptcy code, 2016 read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules,
2016 for resolution of unresolved operational debt of ' 548.62 lakhs, pertaining to which the Company received NCLT
order dated 16 December 2022.

10 The Company received claim from IndusInd Bank Limited towards Guarantee for ' 22.10 lakhs in previous year under
IBC. However, the said claim was rejected by CIRP since the guarantee was already expired as on date on submission
of claims.

35.2 Capital and other commitments:

The Company has no capital and other commitments as on 31 March 2025 (Previous Year : ' Nil)

35.3 Note on Fraud :

During the year ended 31 March 2023, the Company identified two instances of employee fraud:

(i) Mr. Ashish Srivastava, an employee of the Company, was found to have committed fraud over a period of several
years by transferring salaries to bank accounts of non-existent employees. These fraudulent activities involved
falsification of documents. The Company has initially identified a misappropriation of approximately '50.00 lakhs. The
matter remains under investigation to determine the final quantum. His employment was terminated with immediate
effect, and he was directed to repay the amount to the Company by 31 January 2023. As of date, the Company has
recovered '18.00 lakhs from the total amount due.

Note 35: Contingent liabilities (Contd.)

(ii) Mr. Harshad Kabule, an employee of the Company, was found to have committed fraud by transferring Company
funds to certain bank accounts. These activities involved falsification of documents, impersonation, and other criminal
acts. The Company has identified a misappropriation of approximately '123.00 lakhs, which is currently under
investigation. His employment was also terminated with immediate effect, and he was instructed to repay the
amount misappropriated.

(e) There are no transactions related to previously unrecorded income that have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

(f) No proceedings are initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988.

(g) Deferred Tax Assets not created on :

(i) Unused tax losses

The Company has unused tax business losses and unabsorbed depreciation of ' 7,812.40 as at 31 March 2025
(Previous year: ' 7,306.42 Lakhs). The losses are available for offsetting for eight years against future taxable
income of the Company. Deferred tax assets of ' 1,652.36 lakhs (Previous year: ' 1,525.14 Lakhs) has been not
recognised in respect of unused tax losses of ' 6,565.33 lakhs (Previous year: ' 6,059.37 Lakhs) in absence of
convincing evidence to generate sufficient future taxable profits. Significant management judgement has been
considered in determining the provision for income tax, deferred tax assets and liabilities and recoverability of
deferred tax assets. The recoverability of deferred tax assets is based on estimate of the taxable income for the
period over which deferred tax assets will be recovered.

The Company has unabsorbed business loss / depreciation which according to the management will be used to
set off taxable income arising in next few years from operations of the Company. However, deferred tax assets
has not been recognised in respect of these losses in view of uncertainty of future taxable income.

(ii) Deferred tax asset on provision for doubtful debts, other advances and loans of ' 478.56 Lakhs ( Previous year:
' 477.82 Lakhs ) is not created in absence of convincing evidence to generate sufficient future taxable incomes.

Note 38: Segment reporting

The Company's operations predominantly relates to a single segment viz. conducting commercial training, coaching,
tutorial classes and activities incidental and ancillary thereon.The Chief Operating Decision Maker (CODM) (Chief Executive
Officer) reviews the operations of the Company as one operating segment. Accordingly, segment information as required
under IND AS 108 "Operating Segments" is not applicable to the Company.

Note 39Transactions with struck off Companies

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

Note 40Crypto Currency and Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Note 41

41.1 Disclosures as required under Schedule V(A)(2) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

Note:

1. Corporate guarantee provided to a bank in respect of loan taken by Sri Gayatri Educational Society pursuant to
the long term partnership arrangement entered through Company's subsidiary Sri Gayatri Educational Services
Private Limited and was utilised for business purposes. Corporate Guarantee has been invoked and declared
as NPA by bank via notice dated 31 October 2022. (Refer Note 35.1.1)

2. Corporate guarantee provided to a party in respect of loan taken by wholly owned subsidiary Company, Lakshya
Forrum For Competitions Private Limited. Corporate guarantee is utilised for business purposes. (Refer Note
35.1.2)

3. Corporate guarantee provided to a party in respect of loan taken by wholly owned subsidiary Company, Labh
Ventures India Private Limited. Corporate guarantee is utilised for business purposes. (Refer Note 35.1.3 and
48)

4. The Company received claim from IndusInd Bank Limited towards Guarantee for ' 22.10 lakhs under IBC.
However, the said claim was rejected by CIRP since the guarantee was already expired as on date on submission
of claim. (Refer Note 35.1.10)

4 Securities Given

The Company has mortgaged Office building in favour of bank for limits granted to Sri Gayatri Educational Society.

Note 42: Employee benefit plans

In accordance with the Indian Accounting Standard-19 'Employee Benefits', the Company has calculated the various

benefits provided to employees as under:

a Defined contribution plans

The Company makes contributions towards provident fund, Employee State Insurance Fund and Labour Welfare fund

to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required

to contribute a specified percentage of payroll cost to the retirement benefit schemed to fund the benefits.

Note 42: Employee benefit plans (Contd.)

b Defined benefit plans
Gratuity (funded)

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 gratuity plan is a funded plan and the Company makes
contributions to recognised funds in India. The liability towards gratuity are determined based on actuarial valuation
carried out by using Projected Unit Credit Method.

In accordance with Indian Accounting Standard 19, an actuarial valuation was carried out in respect of the aforesaid
defined benefit plans and other long term benefits based on the following assumptions:

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

Estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market.

The expected rate of return on plan assets is determined after considering several applicable factors such as
the composition of the plan assets, investment strategy, market scenario, etc. In order to protect the capital and
optimise returns within acceptable risk parameters, the plan assets are well diversified.

(b) Other long term benefits (unfunded)

The compensated absences are payable to all eligible employees at the rate of daily salary of each day of
accumulated leave on death or on resignation or upon retirement on attaining retirement age, whichever is
earlier. The liability towards compensated absences are determined based on actuarial valuation carried out
by using Projected Unit Credit Method.

The leave salary are payable to all eligible employees at the rate of daily salary of each day of accumulated leaves
(upto 35 days) on death or on resignation or upon retirement on attaining retirement age.

The liability for compensated absences as at year end is ' 94.02 lakhs (Previous year : ' 90.32 lakhs)

Current Provision as at year end is '85.83 lakhs (Previous year : '78.71 lakhs)

Non-current Provision as at year end is ' 8.19 lakhs (Previous year : ' 11.61 lakhs)

Note 43: Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. However, the
provisions of CSR are not applicable to the Company since the average net profits of the Company in the preceding three
financial years is negative.

Note 44: Financial instruments - Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

> Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

> Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

Note 44: Financial instruments - Fair value hierarchy (Contd.)

> Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

Financial Instruments measured at Fair Value through Profit and Loss

No financial assets/liabilities have been valued using level 2 and 3 fair value measurements.

Financial Instruments measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are
a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would
be significantly different from the values that would eventually be received or settled.

Note 45: Financial instruments - Risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity
risk. The Company's risk management is coordinated by the Board of Directors and focuses on securing long term and
short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price
risk, such as equity price risk and commodity risk.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because
of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates
primarily to the Company's long-term debt obligations with floating interest rates. For details of the Company's
borrowings, including interest rate profiles, refer to Note 17 and 21.

Exposure to interest rate risk

The summary quantitative data about the Company's exposure to interest rate risk as reported to the
management of the Company is as follows:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a
different currency from the Company's functional currency).

The Company does not have exposure to foreign currency, thus there is no foreign currency fluctuation risk.

(iii) Other price risk

The Company does not have exposure to equity securities price risk arising from investments in equity shares
(Unquoted) held by the Company and classified in the balance sheet at fair value through profit and loss.

(B) 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 and other counter parties,
taking into account the financial condition, current economic trends, and analysis of historical bad debts and
ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
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 forwarding¬
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 counter-party;

iii) Financial or economic conditions that are expected to cause a significant change to the counter-party's ability
to meet its obligations;

iv) Significant increase in credit risk on other financial instruments of the same counter-party; and

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.

Note 45: Financial instruments - Risk management objectives and policies (Contd.)

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates. Loss rates are based
on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not
material hence no additional provision considered.

The Company limits its exposure to credit risk of balances held with banks by dealing with highly rated banks and
institutions and retaining sufficient balances in bank accounts required to meet a month's operational costs. The
management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is
minimal surplus in bank accounts.

(C) Liquidity risk

The Company is under CIRP. Liquidity crisis has led to delay in vendor payments and default in repayment of principal
and interest to lenders.

Liquidity risk is the financial risk that is encountered due to uncertainty resulting in difficulty in meeting its obligations.
An entity is exposed to liquidity risk if markets on which it depends are subject to loss of liquidity for any reason,
extraneous or intrinsic to its business operations, affecting its credit rating or unexpected cash outflows. A position
can be hedged against market risk but still entail liquidity risk. Prudence requires liquidity risk to be managed in
addition to market, credit and other risk as it has tendency to compound other risk. It entails management of assets,
liabilities focused on a medium to long term perspective and future net cash flows on day by day basis in order to
asses liquidity risk.

The table below analysis financial liabilities of the Company into relevant maturity groupings based on the remaining
period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
discounted cash flows.

Note 46 (a) : Capital management

The Company aims are to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to
optimise returns to our shareholders. The capital structure of the Company is based on management's judgement of the
appropriate balance of key elements in order to meet its strategic and day-to-day needs. Company considers the amount
of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders, return on capital to shareholders or issue new shares.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

48 Exceptional Items

The Company had taken a property located in Mangalore on lease from its wholly owned subsidiary, Labh Ventures
Private Limited ("Labh"). In accordance with applicable Indian Accounting Standards, the Company had recognized
a Right-of-Use (ROU) asset and corresponding lease liabilities in its books.

Labh had availed a loan facility from SVC Cooperative Bank Ltd. ("SVC"), for which the Company had provided a
Corporate Guarantee. Labh subsequently defaulted on the loan, following which SVC issued a demand notice under
Section 13(2) of the SARFAESI Act, 2002, on Labh as the principal borrower and on the Company, in its capacity as
corporate guarantor, for an amount of '4,620 lakhs.

Subsequently, on 6 October 2023, SVC filed a claim of '4,973 lakhs before the Insolvency Resolution Professional
(IRP) of the Company, citing the invocation of the Corporate Guarantee. However, the IRP rejected the claim on the
grounds that the guarantee had not been invoked prior to the commencement of the Corporate Insolvency Resolution
Process (CIRP).

SVC challenged this decision by filing IA No. 68/2024 before the Hon'ble NCLT, seeking admission of the claim.
The application was dismissed by the Hon'ble NCLT vide order dated 27 March 2025. Aggrieved by the Order, SVC
filed an appeal before the Hon'ble National Company Law Appellate Tribunal (NCLAT), Delhi, which is currently
pending for hearing. Simultaneously SVC has taken Land and building including related assets (property) situated
at Mangalore under their possession vide notice no. CRL / MIS. CASE NO 48/2024 of SARFAESI Act through Advocate
Court Commissioner on 15 March 2024. The said asset was continued to be in the possession of the Bank and
pursuant to that, the RP has filed an IA No. 3314/2024 for further direction from the Hon'ble NCLT for the possession
of the leased premises of the corporate Debtor but later withdrew the application on 03 March 2025 stating the
premises were not used during the CIRP period. SVC issued a further notice dated 15 April 2025 and informed that
the property would be put up for e-auction.

In view of the above, effective from 1 April 2024 the Company has derecognised the Right-of-use asset related to the
leased property, written off the lease deposits and advances given to Labh, and written back the corresponding lease
liability associated with the lease. The net impact has resulted in a gain of '2,378.63 lakhs, which has been disclosed
as an exceptional item in the standalone financial statements for the year ended 31 March 2025.

49 The Company has loans, trade receivables and other receivables of ' 7,769.97 lakhs (net of provisions) outstanding as
at 31 March 2025 from parties, which are overdue/rescheduled. The management anticipates progress in business in
the coming period which will enable recovery of the receivables in an orderly manner. Accordingly, the management
considers the outstanding dues to be good and recoverable.

50 (a) The Company has not advanced or loaned or invested funds during the year (either borrowed funds or share

premium or any other sources or kind of funds) to any other person or entities, 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 to or on behalf
of the Ultimate Beneficiaries

(b) The Company has not received any fund during the year from any person(s) or entity(ies), including foreign
entities (Funding Party) 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 to or
on behalf of the Ultimate Beneficiaries.

Note 52: Going Concern

The Company has incurred accumulated losses and also the Company's current liabilities exceed its current assets,
resulting in a negative working capital position. The Company has also defaulted on its debt and other financial obligations,
leading to persistent strain on working capital and a significant decline in the scale of operations.

As disclosed in Note 1 and Note 54, pursuant to the commencement of the Corporate Insolvency Resolution Process
(CIRP) under the Insolvency and Bankruptcy Code, 2016, the powers of the Board of Directors have been suspended, and
the management of the affairs of the Company now vests with the Resolution Professional (RP). The RP is expected to
undertake all necessary efforts to protect and preserve the value of the Company's assets and to manage the operations
of the Group as a going concern.

Pending the outcome of the CIRP, the standalone financial statements have been prepared on a going concern basis.
Note 53: Social Security Code, 2020

The Indian Parliament has approved the Code on Social Security, 2020, which would impact the contributions by the
Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the
Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under
active consideration by the Ministry. The Management will assess the impact once the subject rules under the Code are
notified and will give appropriate impact in the standalone financial statements when the Code becomes effective.

Note 54: Authorisation of Standalone Financial Statements

The Honourable NCLT admitted the application filed by Connect Residuary Private Limited by pronouncing on 16
December, 2022 and appointed Mr. Ashwin Bhavanji Shah as the Interim Resolution Professional (IRP) of the Company
(Corporate Debtor). Further, the Hon'ble NCLT Mumbai vide its order dated 22 January, 2024, Order received to the
Resolution Professional (RP) on 31 January 2024, replaced Mr. Ashwin Bhavanji Shah (IRP) with the undersigned Resolution
Professional (RP), Mr. Arihant Nenawati, having IBBI Registration No.IBB/IPA-001/IP-P00456/2017-2018/10799. For the
information set out in the standalone financial statements for the year ended 31 March, 2025, the RP has relied upon the
accuracy and veracity of any and all information and data provided by the officials of the Company and the records of the
Company made available by such officials. For all such information and data, the RP has assumed that such information
and data are in conformity with the Companies Act, 2013 and other applicable laws with respect to the preparation of
the standalone financial statements and that they give a true and fair view of the position of the Company as at the dates
and period indicated therein. Accordingly, the RP is not making any representations regarding accuracy, veracity and
completeness of the data or information in the standalone financial statements.

During the CIRP period, claims from 683 creditors amounting to ' 22,919.13 lakhs were received, out of which 659 claims
amounting to ' 9,498.87 lakhs were admitted. Further, claims of '7,555.53 lakhs were not admitted for the reasons best
communicated to the creditors. A detailed list of creditors is available on the official website of the Corporate Debtor.

The Directors of the Company have approved the standalone financial statements at their meeting held on 30 May
2025 which was chaired by Mr. Arihant Nenawati, Resolution Professional ('RP') and RP took the same on record basis
recommendation from the directors.

With respect to the standalone financial statements for the year ended 31 March 2025, the RP has signed the same solely for
the purpose of ensuring compliance by the Corporate Debtor with applicable laws, and subject to the following disclaimers:

(i) The RP has furnished and signed the report in good faith and accordingly, no suit, prosecution or other legal
proceeding shall lie against the RP in terms of Section 233 of the Code;

(ii) No statement, fact, information (whether current or historical) or opinion contained herein should be construed as
a representation or warranty, express or implied, of the RP including, his authorized representatives and advisors;

Note 54: Authorisation of Standalone Financial Statements (Contd.)

(iii) The RP, while reviewing and signing the standalone financial statements, has relied upon the assistance provided by
the Directors of the Corporate Debtor, and certifications, representations and statements made by the Directors of
the Corporate Debtor, in relation to these standalone financial statements. The standalone financial statements of
the Corporate Debtor for the year ended 31 March, 2025 have been taken on record by the RP solely on the basis
of and relying on the aforesaid certifications, representations and statements of the aforesaid Directors and the
management of the Corporate Debtor. For all such information and data, the RP has assumed that such information
and data are in the conformity with the Companies Act, 2013 and other applicable laws with respect to the preparation
of the standalone financial statements and that they give true and fair view of the position of the Corporate Debtor as
of the dates and period indicated therein. Accordingly, the RP is not making any representations regarding accuracy,
veracity or completeness of the data or information in the standalone financial statements.

(iv) In terms of the provisions of the Code, the RP is required to undertake a review of certain transactions. Such review
has been completed.

Note 55: Previous year figures

Previous year's figures have been regrouped / rearranged wherever necessary to make them comparable with the current

year's classification / disclosure.

As per our report of even date attached

For MGB & Co. LLP

Chartered Accountants For MT Educare Limited

Firm Registration Number 101169W/W-100035 CIN: L80903MH2006PLC163888

Hitendra Bhandari Arihant Nenawati Surender Singh

Partner Resolution Professional Director

Membership Number: 107832 IBBI/IPA-001/IP-P00456/2017-18/10799

Email ID: mteducare.cirp@gmail.com DIN - 08206770

Ravindra Mishra

Place : Mumbai Company Secretary

Date : 30 May 2025 Membership no. ACS 29159