(o) Accounting for Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized, when there is a present legal or constructive obligation as a result
of a past event, it Is probable that an outflow of resources will be required to settle the
obligation, and when a reliable estimate of the amount of the obligation can be made. If the
effect of the lime value of money ts material, the provision is discounted using a pre-tax raie
that reflects current market assessments of Ihe lime value of money and the risks specific to
the obligation and the unwinding of the discount is recognised as interest expense.
Contingent liabilities are recognized only when there is a possible obligation arising from
past events, due to occurrence or non-occurrence of one or more uncertain future events, not
wholly within (he 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 Ihe
obligation cannotba made. Obligations are assessed on an ongoing basis and only those
having a largely probable outflow of resources are provided for. Contingent liabilities are not
recognized in ihese financial statements, but are disclosed in Note No.45.
Contingent assets are not recognized in the financial statements
(p) Borrowing Costs;
General and specific borrowing costs directly attributable to the acquisition or construction of
qualifying assets that necessarily takes a substantial period of time to gel ready for their
intended use or sale, are added to Ihe cost of those assets, until such lime as the assets are
substantially ready for their intended use or sale Borrowing costs consist of interest and
olher costs that the company Incurs in connection with the borrowing of funds
Interest income earned on temporary investment of specific borrowings pending their
expenditure on qualifying assess is deducted from the borrowing costs eligible for
capitalization. Borrowing costs that are not directly attributable to a qualifying asset are
recog n [sect in Ihe State men I of Profit or Loss using the effective i nterest method.
(q) Cash and Cash Eqinvalent(forthe purpose of cash flow statements):
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short¬
term balances {with an ÝÝjriginaf maturity of three months or less from the dale of acquisition),
highly liquid investments that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value.
(r) Cash Flow Statement:
Cash flows are reported using ihe indirect method, whereby profit/ {loss} before tax is
adjusted for the effects of transactions of no cash nature and any deferrals or accruals of past
or future cash receipts or payments. Cash flow for the year are classified by operating,
investing and financing activities.
(s) Earnings Per Share:
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the
post-tax effect of exlraordinary items if any) by the weighted average number of equity
shares outstanding during tne year including potential equity shares on compulsory
Avertible debentures. Diluted earnings per share is computed by dividing the profit / floss)
aftertax (including I he post-tax effect of extraordinary items, if any) as adjusted for dividend,
interest and other charges lo expense or income (net of any attributable taxes} relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered
for deriving basic earnings per share and the weighted average number of equity shares
which could have been issued on the conversion of all dilutive potential equity shares,
(t) Segment Reporting:
The Company identifies operating segments based on the internal reporting provided to the
Managing Director
The Managing Doctor, who is responsible for allocating resources and assessing
performance of the operating segments, has beer identified as the committee that makes
strategic decisions.
The accounting policies adopted for segment reporting are in line with the accounting
policies of the Company Bagmen! revenue, segment expenses segment assets and
segment liabilities have been identified to segments on the basis of their relationship to the
operating activities of the segment.
Inter-segment revenue is accounted on the basis of transactions which are primarily
determined based on market / fair value factors. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are not allocable to segments on reasonable
basis have been included under "unallocated revenue/ expenses / assetsJhabilities1'.
All operating segments, operating results are reviewed regularly by the Company's Board of
Directors to make decisions about resources to be allocated to the segments and assess
their performance.
(U) Financial Instruments:
Financial Assets:
Classification
The Company classifies financial assets as subsequently measured at amortised cost, fair
value through other comprehensive income or fair value through profit or loss on the oasis of
its business model for managing the financial assets and the coni factual cash How
characteristics of the financial asset.
Inilial Recognition and measurement:
All financial assets (not measured subsequently at fair value through profit or lossj are
recognised initially affair value plus transaction costs that are attributable to the acquisition
of the financial asset. Purchases or sales of financial assets that require delivery of assets
within a time frame established by regulation or convention in Ihe market place {regular way
trades) are recognised on the trade date, i.e.. the date that the Company commits lo
purchase or sell the asset
Oebtinstnjmet its at amortised cast
A debt instrument' Is measured at the amortised cost If both the following condillons are met:
a) The asset is held within a business model whose objeclive is to hdd assets for
collecting contractual cosh flews, and
b) Contractuaf terms of the asset give use on specified dates to cash flows that
aresoJely payments of principal and inleresl (SPPl) on Ihe principal amount
outstanding.
After initial measurement, such financial assets are subsequently measured at amortised
cost using the effective interest rale i ElR) method. Amortised cost is calculated by taking into
account any discount or premium anti fees or costs that are an integral part of the EIR The
EfR amortisation is included in finance income in the Statement of Profit and toss. The
losses arising from Impairment are recognised In the Statement of Profit and Loss. This
category generally applies to loans and advances, deposits, trade and other receivables.
Deb! instruments included within the fair value through profit and loss lEVIPL) category are
measured at fair value with all changes recognized m the Statement of Profit and Loss.
Equity investments
All equity investments in scope of Jnd-AS 109 are measured at fair value Equity instruments
are classified as l-\/TPL. Investment in subsidiaries, joint ventures and associates are
carried at cost less impairment, if any.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i,e. removed from the Company's balance sheet)
when:
* The rights to receive cash Rows from the asset have expired or
* The Company has transferred its rights to receive cash flows from Ihe asset or
has assumed an obligation to pay the received cash flows in full without material
delay lo a third party under a 'pass-through'arrangement; and either.
(a) the Compa ny has transfer ed substantially all Ihe risks and rewards or Ihe asset. or
(b) Ihe Company has neither transferred nor retained substantially all Ihe risks and
i awards of the asset, but lias transferred control of rhe asset.
When Ihe Company has transferred its rights lo receive cash flows from an asset or has
entered into a pass-through arrangement il evaluates rf and to what extent ii hasreiainert [he
risks and rewards of ownership. When it has nelthertransferred nor retained substantially all
of The risks and rewards of the asset, nor transferred comrol 01 the asset, the Company
continues to recognise the transferred asset to Ihe extern of the Company's continuing
involvement. In that case, the Company also recogmses an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights
and obligations that the Company has retained.
Continuing involvement that takes Ihe form of a guarantee over the transferred asset is
nieasured at the lower of the original carrying amount of the asset and the maximum amount
of consideration l.hal the Company could be reqi lired lo repay.
im pajrrne nt of financial assets
In accordance with Ind-AS 109. the Company applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment loss or the following financial assets and credit
risk exposure:
a) financial assets that are dsbt instruments, and are measured at amortised cost
e.g., loans, debt securities, deposits, and bank balance
b) Trade receivables.
The Company follows ‘simplified approach for recognition of impairment loss allowance on
trade receivables which do not contain a significant financing component.
The application of simplified approach does not require Ihe Company to track changes in
credit risk, Rather, It recognises impairment loss allowance based on lifetime ECLs at each
Balance Sheet date, right from ils initial recognition.
Financial Liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at amortised cost,
except for financial liabilities at fair value through profit or loss. Such liabilities, including
derivatives that are liabilities, shall be subsequently measured at fair value
initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, or as derivatives designated as
hedging Instruments in an effective hedge, as appropriate.
All financial liabilities ate recognised initially ai fair value and in the case of loans and
borrowings and payables, net of directly attributable transaction costs
Tne Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Loans and borrowings
After initial recogniliom interest-bearing loans and borrowings are subsequently measured
at amortised cost using the EIR method Gains and losses are recognised in the Statement
of Profit and Loss when the tiabBIties are derecognised.
Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs lhat are an integral part of the EIR The EIR amortisation is included as
finance costs in the Statement of Profit and loss.
This category generally applies to interest-bearing loans and borrowings.
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.
Offsetting of financial instalments
Financial assets and financial [labilities are offset and Ihe net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
Equilyins.truments
An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity instruments issued by the Company are
recognized at the proceeds received, netgfdirect issue costs.
49, Financial risk management
The Company's activities expose to IJm ited financial risks: market risk credit risk and liquidity nsk
The Company's primary focus is to foresee the unpredictability of financial markets and seek to
minimize potential adverse effects on Its financial performance.
Market risk
Marke! risk is the risk of loss of future earnings or fair values or future cash flows that may result
from a cliange in the price of a financial Instrument
The company is exposed to markel risk primarily related to foreign exchange rate risk (currency
risk;. Interest rate risk and the market value of its investments.
Securities Prices Risk:
The company's exposure to equity securities price risk arises From Investments held and classified
in the Balance Sheei as Fair Value through R&L The company has investment in the form of
Mutual funds ard Equity shares. The company monitors the movement in the value of the
Investments by observing the NAV,
Credit Risk
Credit risk refers 10 the risk of default on its obligation by the counterparty resulkng in a financial
loss. It principally arises from the Company s Trade Receivables. Advances and deposit(s) made.
Trade receivables
The company has outstanding made receivables amounting to Rs. 1177,61 Lakhs and Rg 1329.20 Lakhs
as of March 31,2025 and March 31. 2024 respectively, Trade receivables ere typically unsecured am
derived from revenue earned from customers Company's exposi.ire to cretin risk is Influenced mainly by
the individual characteristics of each customer. The company is riot exposed to concentration of credit risk
to any one single customer Defaulter accountof Trade Receivables happens when the counterparty Fails
to make ^cutractuai payment t/vh en.thfcy fal I due,
Further for amounts overdue are constantly monitored by the management and provision towards
expected credit loss ."ire made in the books. Management estimated of expectea credit loss for the Trade
RaceivaDies are provided below with the classification on debtors
The company manages liquidity needs by continuously monitoring cash inflows and by maintaining
adequate cash and cash equivalents Net cash require men is are compared to available cash in order to
determine any shortfalls.
Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues,
repayment of loans and retention & deposits arising during the normal course of business as of each
reporting date. We maintain a sufficient balance in cash and cash equivalents to meet our short-term
liquidity requirements.
Long term liquidity requirements ere monitored on a periodical basis end manage them through Internal
accruals. Our non-current liabilities include Term Loans from Banks, Retentions & deposits.
The table have been drawn up based on the undiscounted cash Hows of financial liabilities based on the
earliest date on which the company can be required to pay.
liabilities may fluctuate with changes in market Interest rates, white interest rates en other Types of assets
nay change with a lag The risk estimates provided assume a parallel shift of 100 basis points interest
rate across all ypeid curves.. This calculation also assumes that the change occurs al the balance sheet
date and has been calculated based on risk exposures outstanding as at that date.
The persod end halances are not necessarily representative of the average debt outstanding during the
period
Capital managements
The Company's objectives when managing capital are to safeguard the Company's ability to continue as
s going concern in order to provide returns for shareholders and benelils for other stakeholders and lo
maintain an optimal capila! structure.
fn order to maintain or adjust The caprtaf structure, the Company may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets or by adequate funning by
the shareholders to absorb the losses of the Company,
The Company's capital comprises equity share capita!, reLamed earnings and other equity attributable lo
equity holders The primary objective of Company's capital management is to maximize shareholders
value. The Company manages its capita! and makes adjustment to it in tight of the changes in economic
and market conditions. The capita] qearinq ratio is provided in table below.
50. Disclosure in respect of Indian Accounting Standard (Incl AS)-19 “Employee Benefits"
General description of various defined employee's benefits schemes are as under:
a) Provident Fund:
Company’s Provided fund is managed by Regional Provident Fund Commissioner Company
pays fixed contribution to provident fund at pre-determined rate.
b) Gratuity:
Gratuity is a defined benefit plan, provided in respect of past services based on the actuarial
valuation carried oulbyUCof India and corresponding contribution to the fund is expensed in
the year ol such contribution.
The scheme is funded by the company for employees and the liability is recognized on the
basis of contribution payable to the insurer, i.e the Life Insurance Corporation of India
The summarized position of various defined benefits recognized in the Statement of Profit &
Loss. Other Comprehensive Income (OCI) and Balance Sheet & other disclosures are as
under: However, the disclosure of information as required under IndAs 19 have been made in
accordance with Actuarial valuation.
The summarised position of various defined benefits recognised in the statement of Profit
and Loss, Other comprehensive income (OCI) and balance sheet and other disclosure are
as under.
54, Minimum Remoanration pnid to Managcml Personal:
In iccms al Section 15? read with Schedule V of (he Companies Act2013, the Financial Year
2024-202being the fiiltli uiat of inadequate profits tluriny die tenure (2020-25) of
Ms.inngurd Vclagapudi, Managing Director and MrVmod R.Sellil. Executive Chairman, tlicr
minimum remwiaaliuii pnnj lo Managerial Personnel of a sum of Rs.OU.55 '- lor the Financial
Year 2024-25 is ratified by tile Board of Directors in jis Meeting held on 2S.U5.2025 based
on the re com inend atio ei of Nomination and Remuneration Committee. In pursuance of
Section 197(10), a special resolution will be placed before the shareholders tor their approval
in llie ensuing -Ynmiril Genera] Meeting.
55, The title deeds ot immutable properties are held in the name oi the Company, except in
respect of certain immovable properties (land and buildings), which have been transferred to
the Company as per a scheme of demerger which are in the name of the erstwhile demerged
Company. ’Nil
56, The company has not revalued its property, plan band equipment during tile year. -Nil
57, The company has not iv\allied its itLUitgfble assets dm mg dir year.
5fJ, Details relating to Joant oi advances in the nauire oflbans u> Promoters, Directors, KMP
and related parties, -Nil
59, Agii\g schedule of Capilal wurk-ui-piogres Re let note no. 3(a) -Nil
GU. Del ails relating i o ageing of ini migibi e :is set s under de veto pmeni - N fl
6L Details relating to Ben ami Property held by the Company - Nfl
62, Disclosures of Borrowings from B.uihs or linajpal institutions is used ibr intended purpose.
62, Details relating to declaration of the company as wilful defaulter by any bunk or jinanci.il
instil lii ion or other lender - Nil;
64. Deidils relaiing to ilie ualure of irunsac uon cameii ou i withthe si.nmk- offcom;ianv - N ii
65. Details regarding registrurion or satisfaction ui charges ^ ith Regisrrai of
Companies beyond Lhe Statutory period - Nil
66. Details regarding compliance with number of layers of companies - Nil
67 Details regarding compliance with approved scheme of arrangements * Nil
MS. Hie Company has not advanced or loaned or invested funds tn any other percouO) or
entilyties), including foreign entirtes (Intermediaries I wiih die understanding that die
Intermediary shall:
(.i) directly or indirectly lend or invest in other persons or entities identified in any
tii.timer whatsoever by or on behalf of die company (Ultimate Benrficiarirst or
(b) provide any guarantee,security or the like to or on behalf of the Ultimate Beneficiaries
69. The Company has not received any fund from any personal or eniityl iesj. including foreign
entities (Funding Party) wit In be understanding nvheihcr recorded in writing or otherwise)
that the Company shall
(a) directly or indirect^ lend or invest in amir persons or entities identified in any
iiijnillt v. htilmIvy or oh belwli oftlic I undmg Party (1 Ultimate Beneficiaries)
or
(b) provide an y guarantee, security or Hie like on belialfofthi' Ultimate
Beneficiaries.
70. Details relating to the transactions undertaken in Crypto or Virtual i Yrrrcncy -Nil
7J. Devils relating to the undisclosed income reported - Nil
The aocempenying nodes farm wi tniegrel parr ijrege financial statements For on-: on i>vn --ir of The %aard nt rNrecinr.
As per our report of even dale attached
for B PURUSHOTTAM & CO. IRMGARD VELAGAPUDI
Ch^rt^rod Account nts Managing Director
FRM D02B0BS DIN r 00091370
d.Mahitihar Krrishna
Partner
Mem here hip No.' 2^3632
K.Panneer Selvan tKarthlk Narayanan KIRAN VELAGAPUDI
Place Chen rial Chief Financial Officer Company Secretary 6 Executive Director
Dale 2B/05/2O25 DMA M No.9894 Compliance Officer DIN : 00091466
WI NoA51274
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