Note 15.2 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of INR. 1/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note on Changes in promoters shareholding pattern:

During the financial year 2022-23, the shareholding of Col.David Devasahayam decreased by 9.05% consequent to offering his shares in the intial public offering (IPO) through offer for sale (OFS) and the shareholding of Dr. (Mrs.) Renuka David marginally decreased by 0.42% on account of fresh issue of shares to the public in the IPO.

Except for the above, there is no change in shareholding pattern.

Promoters do not hold any class of shares other than stated above,

Note 15.4 Dividend

The Board as its meeting held on 22nd May 2023, declared a Final Dividend of 3 2/- per share (200%) for the financial year

2022- 23, which was approved by the Shareholders In the AGM held on September 11, 2023.

The Board as its meeting held on 23rd May 2024, declared a Final Dividend of 3 2.50/- per share (250%) for the financial year

2023- 24,

16.1. Securities Premium: The amount received in excess of face value of the shares is recognised in Securities Premium. The Companies share of IPO expenses is netted off against share premium.

16.2. Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

The vehicle loans are repayable in 60 to 84 equated monthly installments and secured by exclusive charge on vehicles. However, the loans has been preclosed during the Financial year 23-24

Defined benefit plan

As per the payment of Gratuity Act, 1972, the Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days’ salary (last drawn salary) for each completed year of service. The scheme of the Company is funded with an insurance company in the form of a qualifying insurance policy. Management aims to keep annual contribution relatively stable at such a level such that no plan deficits will arise. The Company has purchased an insurance policy, which is a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

The following table summarizes the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the balance sheet for the gratuity plans of the Company.

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 and has invited suggestions from stakeholders. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Note 34 - LeasesIn case of assets taken on lease:

The Company has taken office premises, vehicles and computers under operating lease agreements, which expire at various dates. These agreements are generally renewable by mutual consent. Some of the lease agreements for premises have a lock In period of 3 years and price escalation clause. ROU asset for long term leases has been recognised with corresponding credit to Lease liability.

‘Against which INR 0.084 million paid on 13-05-2019 and 0.003 million paid on 30-01-2024 under dispute and included in other non current assets (Note 9).

Capital commitments - 4 20.47 million (Previous year - 4 13.65 Mn)

The management assessed that cash and cash equivalents, trade receivables, trade payables, and other current financial assets and financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Further the difference between carrying amount and fair value of insurance receivables, deposit measured at amortised cost is not significantly different in each of the year presented.

*Financial Assets/ Liabilities at fair value through profit or loss

#Financial Assets/ Liabilities at fair value through OCI

b) Fair Value Hierarchy

• Level 1 - Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly

(i.e, derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

Use of quoted market prices for Listed instruments

For the year ended March 31, 2024 and year ended March 31, 2023 there are no financial assets under the categories FVTOCI or FVTP&L

Note 39 - Risk Management Financial Risk Management

The company is exposed to Interest rate risk, Credit risk, Collection risk and liquidity risk. Given the nature of operations, the company does not face any forex risk, commodity risk and other market risk aspects. The company has assigned the responsibility of managing these risks with the respective division heads as stated below.

Market Rate - Interest Rates

The company does not have any term loans with variable interest rate. Long term borrowings, in the nature of vehicle loans, are of fixed interest rate, and the extent of such borrowings are less than 5% of the networth of the company. Hence the company does not face any significant market risk in relation to interest rate volatility. Cash credit limits, to the extent of k 850 million are variable rate borrowings, subject to periodic interest rate revision. The Company manages its CC limit utilisation judiciously to minimise interest outgo. This risk is managed by GM - Finance.

Credit Risk

The company is highly underleveraged with zero net debt (total debt minus free cash) as on March 31, 2024 and March 31, 2023. Hence credit risk of the company is very healthy and risk of default is negligible. This risk is managed by Managing Director.

Trade Receivable

Over 92% of the clients of the company are highly rated banks and financial institutions, with no history of defaults. Hence, credit risk on the trade receivables are neglible. The company takes adequate precaution in terms of evaluation of the creditworthiness of its direct clients. The track record of collection of Trade Receivables has been very healthy. The company also has a practice of obtaining confirmation on service provided from most of its clients before invoicing, and hence risk of subsequent non-collection is negligible. This risk is managed by Head - Business Development for new clients, and Head - Billing for the existing clients.

Liquidity risk

The company has cash credit limit of T 850 million. The company is also highly underleveraged and also has sufficient drawing power in its net current assets, to enhance its borrowing capacity at short notice, if required. Hence liquidity risk faced by the company is negligible. This risk is managed by the GM - Finance.

Capital management

During the financial year 2022-23 the Company issued fresh issue of 54,54,546 equity shares in the of T 1/- each at a premium of T 98 /- per share in the Initial Public Issue (IPO). The promoter Col. David Devasahayam and the investor Ascent Capital sold 64,86,856 and 1,47,35,575 share respectivly in the Offer for Sale (OFS) portion of the IPO.

Note 42

As stated in Note 1.2 and 15.6, the Company has completed its Initial Public Offer (“IPO”) of 26,676,977 Equity Shares of face value of Re. 1 each. The IPO consist of fresh issue of 5,454,546 Equity Shares by the Company and an offer for sale of 21,222,431 Equity Shares by the selling shareholders as detailed in the prospectus. The fresh issue of the Company has been subscribed at 7 99 per Equity Share (including securities premium of 7 98 per Equity Share) aggregating to 7 540.00 millions (shares alloted on 2nd January,2023) and the offer for sale of 21, 222,431 Equity Shares of Re. 1 each were subscribed at 7 2,026.41 millions.

** During the quarter ended March 31, 2024, the Company completed the purchase of 220 nos. of specially fabricated armoured vans, amounting to 7 235.33 million (including the amount to be paid to vendors) resulting in a saving of 7 19.47 million on account of better negotiations with the vendors. In addition, there is a saving of 7 1.10 million (in the Companies share of IPO expenses) after actualisation. The Company has allocated both the savings amounting to 7 20.57 million to General Corporate purposes.

The Company’s shares were listed in the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 4th January 2023. Note 43

The Company is in the process of reconciling the monthly returns filed under the Central Goods and Services Tax Act, 2017 (“CGST Act”), integrated Goods and Services Tax Act, 2017 (“IGST Act”) and other relevant States Goods and Services Tax Acts (SGST Acts) with its books and records to file the annual return for FY 2023-24. Adjustments, if any, consequent to the said reconciliation will be given effect to in the financial statements on completion of reconciliation and filing of returns. However, in the opinion of the Management, the impact of the same will not be material,

Note 44 - Code on Social Security

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 and has invited suggestions from stakeholders. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Note 45 - Events after the reporting period

There are no significant events after the reporting period that affect the figures presented in this financial statement.

Note 46 - Prior Year Comparatives

Previous year figures have been re-grouped/ re-classified, wherever necessary, to confirm to current year’s classification and presentation.