Panache Digilife Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

20 Provisions. Contingent Liabilities and Contingent Assets.

Provisions are recognised only when:

a) The Company has a present obligation (legal or Constructive) as a result of a past event;

b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

c) A reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material.
the carrying amount of the provision is discounted to the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

a) possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or
more uncertain future events beyond the control of the Company

b) a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the
obligation.

Accordingly, the company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the unavoidable costs of meeting
the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under
the contract is recognised and measured as a provision.

21 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating
activities is reported using indirect method, adjusting the net profit for the effects of:

a) Changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

b) Non-cash items such as depreciation, provisions, and deferred taxes, and;

c) All other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for
general use as on the date of Balance Sheet.

22 Earnings Per Share

Basic and Diluted earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders and
weighted average number of shares outstanding during the period.

Diluted EPS is computed by dividing the net profit / loss attributable to ordinary equity holders of the Company by the weighted average
number of ordinary shares outstanding during the year adjusted for the weighted average number of ordinary shares that would be issued on
conversion of all the dilutive potential ordinary shares into ordinary shares.

The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the
average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

Previous Year''s Figures have been regrouped / reclassified wherever necessary

Note :

1 The Cash Credit is secured by first charge by way of hypothecation of Stock and book debts. Further, it is secured by way personal guarantee
provided by Mr. Amit Rambhia - Promoter, Mr. Nikit Rambhia - Promoter, Mr. Devchand Rambhia - Promoter Group.

2 Quarterly returns or Statements of Current assets filed with bank are not in agreement with the books of accounts. Disclosed below are the
details provided by the company to the Lender Bank - Canara Bank and Valuation of Book debts & Stock as per books of accounts and
reasons of their discrepancies.

3 The Company has registered all details of Registration or satisfaction of charge with ROC within the prescribed time limit from the execution of
document.

4 The company has not been declared wilful defaulter by any Banks / Financial Institutions.

Note for discrepancies :

(a) Discrepancy in Inventory is primarily on account of the details being submitted on the basis of provisional books of accounts and due to
estimated overhead rates considered while valuing Finished Goods given to the bank and the actual overhead rates arrived later.

(b) Discepancy in trade receivable is on account of non inclusion of receivables from group companies, customers with discounting facility etc.

In the previous year ended 31 March 2024, Exceptional Item includes write-off of an amount receivable due to non receipt of GST credit,
which had to be paid by the company. Additionally, the company had made advance payments to foreign suppliers for the procurement of
goods. However, due to disputes over the quality and technical specifications of these goods, the company has been unable to recover the
funds or receive the materials. Given the significance and one-time nature of this transaction, it has been disclosed under exceptional items.
Classifying these bad debts as an exceptional item allows for clear distinction from the company''s regular operational results, highlighting
that this is a one-time, non-recurring event. This write-off, while impacting the net profit ratio for the year, does not reflect the ongoing
operational performance or the company''s ability to generate revenue from its core business activities.

Notes :

The Company has reviewed its disputed liabilities and proceedings and does not expect material impact on financial position of the
Company.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums /
authorities.

The cash outflows, if any, could generally occur up to five years, being the period over which the validity of the guarantees extends except in
a few cases where the cash outflows, if any, could occur at any time during the subsistence of the borrowing to which the guarantees relate.

The Company, through three layers of defence viz: policies & procedures, review mechanism and assurance, aims to maintain a disciplined
and constructive control environment in which all employees understand their roles and obligations. The audit committee oversees the
formulation and implementation of Risk Management Policies. The risk and mitigation plan are identified, deliberated and reviewed at
appropriate Forums.

A. Market Risk Management

Market Risk is the risk that changes in market prices-such as foreign exchange rates-will affect the company''s income or the value of
Financial Instruments. The objective of Market Risk Management is to manage and control market risk exposure within acceptable
parameters, while optimizing the return.

i. Foreign Exchange Risk

In General, the company is a net payer of Foreign Currency. Accordingly, changes in exchange rates and in particular a strengthening of
Indian rupee will positively affect the Company''s net results as expressed in Indian Rupees. The currency towards which the company is
exposed to risk is US Dollars.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates.

The Company''s exposure to changes in interest rates relates primarily to the Company''s Overdraft CC Account, other working capital loans.
The company''s total outstanding debt in local currency presented in the Financial Statements are serviced via floating rate Debts. Floating
Rate Debts are linked to domestic interest rate benchmarks issued by Reserve Bank of India like RLLR (Repo Linked Lending Rate).

B. Financial Risk Management

i. Credit Risk

Credit Risk is the Risk of Financial Loss to the company if a customer or counter party to a financial instrument fails to meet its contractual
obligations and arises principally from the Company''s receivables from customers and other receivables.

Trade Receivable and other financial assets

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into
the contract, delivery terms and conditions of payments. The company''s review includes external ratings (if they are available), financial
statements, industry information and business intelligence.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or
a legal entity, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

ii. Liquidity Risk

Liquidity Risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by cash or another financial asset. The Company manages liquidity risk by maintaining sufficient cash and bank balances and by
having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and
cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans
and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

The Company''s Finance Department is responsible for managing the short term and long term liquidity requirements. Short term liquidity
finance is reviewed daily by finance department. Long Term Liquidity position is reviewed on a regular basis by the board of directors and
appropriate decisions are taken according to the situation.

B. Details of Benami Property held

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibitions Act), 1988 (45 of 1988) and rules made thereunder.

C. Disclosure relating to company being declared as Wilful defaulter

The company has not been declared as wilful defaulter by any Banks or Financial Institution or other lender.

D. Transactions with Struck-off Companies

There were no transactions with any struck-off companies during the year.

E. Disclosure relating to Registration of charge or Satisfaction with ROC beyond Statutory period

All the Charges (be it Fixed or Floating Charge created on the assets of the Company by way of Cash credit or Car Loan or Property Loan or
Term loans) have been registered with ROC within statutory period.

F. Disclosure relating to complaince with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of section 2 of Companies Act, 2013.

G. Financial Ratios

The Financial ratios for the years ended March 31, 2025 and March 31, 2024 are as follows :

Reasons for variance :

(a) The current ratio improved primarily on account of higher trade receivables and reduction in short-term borrowings during the year, resulting in
stronger liquidity and working capital position

(b) The substantial reduction in the debt-equity ratio was driven by repayment of borrowings and equity infusion during the year, improving the
company''s capital structure and reducing financial leverage

(c) DSCR improved significantly due to higher operating profits and lower finance costs, reflecting enhanced ability to meet debt obligations

(d) Return on Equity improved due to substantial growth in net profits, driven by increased revenue and better operational efficiency

(e) The decline in Net Capital Turnover Ratio was due to a higher buildup of working capital - mainly in trade receivables and inventories - leading
to relatively slower capital efficiency

(f) Net profit margin rose sharply on account of improved operating margins, lower interest burden, and absence of exceptional losses compared
to the previous year

H. Note on Undisclosed Income If any

The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax
Act, 1961). Also none of the previously unrecorded income and related assets have been recorded in the books of account during the year.

I. Disclosure relating to Complaince with approved scheme of Arrangements

The company has not applied for any Schemes of Arrangements to any Competent Authority in terms of section 230 to 237 of the Companies
Act, 2013.

J. Disclosure relating to reporting under rule 11( e ) of the companies (audit and auditors) rules, 2014 , as amended.

1 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the company to or any other person or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

2 No funds have been received by the Company from any person or entity, including foreign entities (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF BOARD OF DIRECTORS

FOR JAIN SALIA & ASSOCIATES
CHARTERED ACCOUNTANTS
[ICAI FRNo. 116291W]

MR. AMIT D. RAMBHIA MR. NIKIT D. RAMBHIA

MANAGING DIRECTOR JOINT MANAGING DIRECTOR

CA JAYESH K SALIA DIN:- 00165919 DIN:- 00165678

PARTNER
(MEM NO. 044039)

MR. HARSHIL CHHEDA MR. NITESH M. SAVLA

COMPANY SECRETARY AND CFO & WHOLE TIME DIRECTOR

COMPLIANCE OFFICER DIN:- 05155342

PLACE: MUMBAI

DATED: 13.05.2025 PLACE: MUMBAI

UDIN: 25044039BMJIAI1597 DATED: 13.05.2025

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Mar 31, 2024

20 Provisions, Contingent Liabilities and Contingent Assets.

Provisions are recognised only when:

a) The Company has a present obligation (legal or Constructive) as a result of a past event;

b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

c) A reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is discounted to the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

a) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

b) A present obligation arising from past events, when no reliable estimate is possible.

Accordingly, Contingent liability related to the Corporate Guarantee given to one of its Associate (Cadcord Technology Private Limited) has been disclosed in Note No.42.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

21 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the effects of:

a) Changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

b) Non-cash items such as depreciation, provisions, and deferred taxes, and;

c) All other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.

22 Earnings Per Share

Basic and Diluted earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders and weighted average number of shares outstanding during the period.

There are no potential equity shares in the books, and therefore diluted earnings per share are same as basic earnings per share.

B Accounting Transactions

1 None of the employees were in receipt of or are entitled to receive remuneration aggregating to more than Rs.1,02,00,000/- for the year or more than Rs.8,50,000/- per month, if employed for part of the year.

2 Outstanding balances as at 31st March, 2024 of Current & Non-Current Assets and Liabilities including Trade Receivables and Trade Payables are subject to confirmation.

3 In the opinion of the Board of Directors, the Company is dealing in different varieties of IT Hardware & its peripherals, Alkaline Water Ionizers, GPS Tracking Units, Solar Power Supply System and Consumer Electronic Goods etc. Day to day Quantitative Stock Records have been maintained properly.

4 All the Directors have drawn remuneration for the Accounting Year 2023-24 aggregating to Rs. 98,76,912/-C Previous Year''s Figures have been regrouped / reclassified wherever necessary

f. Capital Management

The company adheres to a disciplined Capital Management Framework in order to safeguard it''s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits to other stakeholders.

The company strategically manages its funds by :-

(i) Maintaining Diversity of Sources of Financing and spreading the maturity across periods in order to minimise liquidity risk.

(ii) Analysing and managing its financial market risks like foreign exchange, interest rates and commodity prices, and minimise the impact or market volatility on earnings.

(iii) Analysing the changes in macro economic factors affecting business environment and re-organising its capital structure accordingly to adapt to the ever changing dynamics of business environment.

(iv) Leveraging Optimally in order to maximise shareholder returns.

Terms of Repayment of Secured Borrowings

Property Loan of Rs.4,00,00,000 (Sanction Amount) is secured by way of exclusive first charge created on the concerned Property.The Balance loan as on March 31, 2024 is repayable in 5 monthly repayment of Rs.7.41 Lakhs. Interest to be serviced as and when debited. Interest as per Repo Linked Lending Rate (RLLR) is applicable on the said loan.

Term Loan (Guaranteed Emergency Credit Line) of Rs 2,50,00,000 (Sanction Amount) is secured by way of hypothecation of Stocks and Book Debts. The Balance as on 31st March, 2024 is repayable in 3 equated monthly installments of Rs 7,91,500/- each. Interest as per Repo Linked Lending Rate (RLLR) is applicable on the said loan.

Term Loan (Guaranteed Emergency Credit Line) of Rs 2,50,00,000 (Sanction Amount) is secured by way of hypothecation of Stocks and Book Debts. The Balance as on 31st March, 2024 is repayable in 33 monthly installments of Rs 6,94,444/- each. Interest as per Repo Linked Lending Rate (RLLR) is applicable on the said loan

(a) Recognition of Revenue

The company derives revenue primarily from sale of IT Hardware & its peripherals, Alkaline Water Ionizers, and other Consumer Electronic Goods. It also derives revenue from renting of Alkaline Water Ionizers.

Revenue is recognised upon transfer of control of promised products or services to the customers in an amount that reflects the consideration the company expects to be entitled to, in exchange for those products or services.

Revenue from fixed-price, fixed-time frame contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognised as per the percentage of completion method. When there is uncertainty as to the measurement of ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.Maintenace revenue is recognized over the term of underlying maintenance agreement.

The Company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on allocation of discounts/ incentives to each of the underlying performance obligations that corresponds to the progress by the customer towards earning the discount/ incentive. The company presents revenue net of Indirect Taxes.

NOTE NO. 44 RISK MANAGEMENT

The company''s Board of Directors has overall responsibility for establishment and oversight of the Company''s risk management framework.

The Company, through three layers of defence viz: policies & procedures, review mechanism and assurance, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The audit committee oversees the formulation and implementation of Risk Management Policies. The risk and mitigation plan are identified, deliberated and reviewed at appropriate Forums.

A; Market Risk Management

Market Risk is the risk that changes in market prices-such as foreign exchange rates-will affect the company’s income or the value of Financial Instruments. The objective of Market Risk Management is to manage and control market risk exposure within acceptable parameters, while optimizing the return.

i. Foreign Exchange Risk

In General, the company is a net payer of Foreign Currency. Accordingly, changes in exchange rates and in particular a strengthening of Indian rupee will positively affect the Company''s net results as expressed in Indian Rupees. The currency towards which the company is exposed to risk is US Dollars.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company’s exposure to changes in interest rates relates primarily to the Company’s Overdraft CC Account, Term loan and other working capital loans. The company’s total outstanding debt in local currency presented in the Financial Statements is a combination of fixed rate and floating rate Debts. For the portion of local currency debt on fixed rate basis, there is no interest rate risk. Floating Rate Debts are linked to domestic interest rate benchmarks issued by Reserve Bank of India like RLLR (Repo Linked Lending Rate).

B. Financial Risk Management

i. Credit Risk

Credit Risk is the Risk of Financial Loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customers and other receivables.

Trade Receivable and other financial assets

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into the contract, delivery terms and conditions of payments. The company''s review includes external ratings (if they are available), financial statements, industry information and business intelligence.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

ii. Liquidity Risk

Liquidity Risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by cash or another financial asset. The Company manages liquidity risk by maintaining sufficient cash and bank balances and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

The Company''s Finance Department is responsible for managing the short term and long term liquidity requirements. Short term liquidity finance is reviewed daily by finance department. Long Term Liquidity position is reviewed on a regular basis by the board of directors and appropriate decisions are taken according to the situation.

H. Note on Undisclosed Income If any

The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also none of the previously unrecorded income and related assets have been recorded in the books of account during the year.

I. Disclosure relating to Complaince with approved scheme of Arrangements

The company has not applied for any Schemes of Arrangements to any Competent Authority in terms of section 230 to 237 of the Companies Act, 2013.

J. Disclosure relating to reporting under rule 11( e ) of the companies (audit and auditors) rules, 2014 , as amended.

1 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or any other person or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2 No funds have been received by the Company from any person or entity, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF BOARD OF DIRECTORS

FOR JAIN SALIA & ASSOCIATES PANACHE DIGILIFE LIMITED

CHARTERED ACCOUNTANTS [ICAI FRNo. 116291W]

MR. AMIT D. RAMBHIA MR. NIKIT D. RAMBHIA

MANAGING DIRECTOR JOINT MANAGING DIRECTOR

DIN:- 00165919 DIN:- 00165678

CA JAYESH K. SALIA

PARTNER

(MEM NO. 044039)

MR. HARSHIL CHHEDA MR. NITESH M. SAVLA

COMPANY SECRETARY CFO & WHOLE TIME DIRECTOR

DIN:- 05155342

PLACE: MUMBAI

DATED: 28th May, 2024 PLACE: MUMBAI

UDIN : 24044039BKBLWN2100 DATED: 28th May, 2024

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Mar 31, 2023

20 Provisions, Contingent Liabilities and Contingent Assets.

Provisions are recognised only when:

a) The Company has a present obligation (legal or Constructive) as a result of a past event;

b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

c) A reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is discounted to the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

a) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

b) A present obligation arising from past events, when no reliable estimate is possible.

Accordingly, Contingent liability related to the Corporate Guarantee given to one of its subsidiary (Technofy Digital Private Limited) has been disclosed in Note No.41.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

21 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the effects of:

a) Changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

b) Non-cash items such as depreciation, provisions, and deferred taxes, and;

c) All other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.

22 Earnings Per Share

Basic and Diluted earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders and weighted average number of shares outstanding during the period.

There are no potential equity shares in the books, and therefore diluted earnings per share are same as basic earnings per share.

B. Accounting Transactions

1 None of the employees were in receipt of or are entitled to receive remuneration aggregating to more than Rs.102.00 Lakhs/- for the year or more than Rs.8.50 Lakhs/- per month, if employed for part of the year.

2 Outstanding balances as at 31st March, 2023 of Current & Non-Current Assets and Liabilities including Trade Receivables and Trade Payables are subject to confirmation.

3 In the opinion of the Board of Directors, the Company is dealing in different varieties of IT Hardware & its peripherals, Alkaline Water Ionizers, GPS Tracking Units, Solar Power Supply System and Consumer Electronic Goods etc. Day to day Quantitative Stock Records have been maintained properly.

4 All the Directors have drawn remuneration for the Accounting Year 2022-23 aggregating to Rs. 73.88 Lakhs/-.

C. Recent Accounting & Reporting Framework Pronouncements

a) Amendments to Existing Standards

Ministry of Corporate Affairs has carried out amendments of the following accounting standards via a notification dated 23rd March, 2022 effective from 1st April, 2022.

1) Ind AS 103 - Business Combination

2) Ind AS 16 - Property, Plant & Equipment

3) Ind AS 37 - Provisions, Contingent Liabilities & Contingent Assets

4) Ind AS 107 & Ind AS 109 - Financial Instruments

The Company is in the process of evaluating the impact of the new amendments issued but not yet effective.

D Previous Year''s Figures have been regrouped / reclassified wherever necessary

(a) Recognition of Revenue

The company derives revenue primarily from sale of IT Hardware & its peripherals, Alkaline Water Ionizers, Solar Power Supply System and other Consumer Electronic Goods. It also derives revenue from renting of Alkaline Water Ionizers.

Revenue is recognised upon transfer of control of promised products or services to the customers in an amount that reflects the consideration the company expects to be entitled to, in exchange for those products or services.

Revenue from fixed-price, fixed-time frame contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognised as per the percentage of completion method. When there is uncertainty as to the measurement of ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.Maintenace revenue is recognized over the term of underlying maintenance agreement.

The Company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on allocation of discounts/ incentives to each of the underlying performance obligations that corresponds to the progress by the customer towards earning the discount/ incentive. The company presents revenue net of Indirect Taxes.

Reasons for variance :

* Debt Equity ratio has shown a significant variance due to enhancement in fund based limit of the bank overdraft facility availed by the company from Canara Bank.

** Net Profit ratio has shown a decline as result of decrease in margins of the goods (i.e electronic products); majorly due to supply chain constraints in the global markets; sold by the company in FY 2022-23. The revenue has been increased compared to previous year, hence there is a positive variance in Net capital Turnover Ratio. The top-line of the company has shown an improvement, however the bottom-line (profit) has reduced for the company in FY 2022-23.

H. Note On Undisclosed Income If Any

The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also none of the previously unrecorded income and related assets have been recorded in the books of account during the year.

I. Disclosure Relating To Complaince With Approved Scheme Of Arrangements

The company has not applied for any Schemes of Arrangements to any Competent Authority in terms of section 230 to 237 of the Companies Act, 2013.

J. Disclosure Relating To Reporting Under Rule 11( E ) Of The Companies (Audit And Auditors) Rules, 2014 , As Amended.

1 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or any other person or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2 No funds have been received by the Company from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

AS PER OUR REPORT OF EVEN DATE

FOR JAIN SALIA & ASSOCIATES FOR AND ON BEHALF OF BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS PANACHE DIGILIFE LIMITED

[ICAI FRNo. 116291W]

MR. AMIT D. RAMBHIA MR. NIKIT D. RAMBHIA

MANAGING DIRECTOR JOINT MANAGING DIRECTOR

DIN:- 00165919 DIN:- 00165678

CA JAYESHK SALIA

PARTNER

(MEM NO. 044039) MR. HARSHIL CHHEDA MR. NITESHM. SAVLA

UDIN: 23044039BGWCDI4232 COMPANY SECRETARY CFO & WHOLE TIME DIRECTOR

DIN:- 05155342

PLACE: MUMBAI PLACE: MUMBAI

DATED: 24th May, 2023 DATED: 24th May, 2023

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Mar 31, 2018

1 Accounting Transactions

1.1 None of the employees were in receipt of or are entitled to receive remuneration aggregating to not less than Rs.1,02,00,000/- for the year or not less than Rs.8,50,000/- per month, if employed for part of the year.

1.2 Outstanding balances as at 31^st March, 2018 of Current &Non-Current Assets and Liabilities including Trade

Receivables and Trade Payables are subject to confirmation.

1.3 In the opinion of the Board of Directors; the Current and Non-current Assets, Loans & Advances are recorded approximately at the value as if realised in the ordinary course of the business. The provision for depreciation and all known liabilities are adequate and are not in excess of the amounts reasonably necessary.

1.4 In the opinion of the Board of Directors, the Company is dealing in different varieties of computer systems & its peripherals and Consumer Electronic Goods etc. Day to day Quantitative Stock Records have been maintained properly.

1.5 All the Directors have drawn remuneration for the Accounting Year 2017-18 aggregating to Rs.84,00,000/-

2 Miscellaneous Expenditure (Assets)

Expenditure of Rs.62,25,135/-, out of which Rs.15,22,300/- pertaining to increase in Authorized Share Capital of the company incurred in FY 2016-17 and Rs.47,02,835/- pertaining to listing of company’s shares in SME Stock Exchange incurred in FY 2017-18, has been carried in the balance sheet (to the extent not written off), as the management of the company perceives that the benefit of such expenditure would accrue to the company gradually in subsequent years. Accordingly, the management of the company has decided that it will amortize such expenditure over a period of 5 years.

3 Standards Issued , but not yet effective

On 28^th March, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from 1^st April, 2018.

i. Issue of Ind AS 115 - Revenue from Contracts with Customers Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.

ii. Amendments to Existing Ind AS

The MCA has also carried out amendments of the following accounting standards which are more likely to have effect on reporting of transactions by the enterprise in the subsequent financial years:

- Ind AS-21 - Effect of Changes in foreign currency

- Ind AS 40 - Investment Property

- Ind AS-12 - Income Taxes

- Ind AS-112 - Disclosure of Interest in other Entities

Application of above standards is not expected to have any significant impact on the current year financial Statements of the Company.

NOTE NO. 4

PROPERTY, PLANT & EQUIPMENTS

(a) Method Of Valuation Of Fixed Assets

Property,Plant & Equipment (hereinafter referred to as PPE) is recognised when it is probable that future economic benefits associated with the item will flow to the company and the cost of such PPE can be measured reliably.PPE is stated at original cost net of tax/duty credits availed,if any,as reduced by accumulated depreciation and cumulative impairment.

Expenditure for additions, improvements and renewals are capitalized and expenditure for maintenance & repairs are charged to the profit & loss account.

(b) Value of Property,Plant & Equipment :-

The value of Property,Plant & Equipment in the books of Panache Digilife Limited as at 31st March 2018 is as follows :-

(c) Depreciation

Depreciation on PPE is recognised using Straight Line Method so as to write off the cost of assets less their residual values over their useful lives specified in Schedule- II of the Companies Act,2013.In case of PPE purchased/sold during the year, Depreciation has been provided on pro-rata basis.

The Useful Life of Assets adopted by the management from Schedule II of Companies Act,2013; for calculating Depreciation to be charged on different classes of Assets for the current year are as follows:-

The estimated useful life and residual values are also reviewed at end of each financial year and the effect of any change in the estimates of useful life/residual value is accounted for,on prospective basis as per Ind AS-8.

(d) Impairment Losses

As at the end of each accounting year, the company reviews the carrying amounts of its Property,Plant & Equipment, to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine the impairment loss, if any.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined in the case of :-

(i) an individual asset, at the higher of the net selling price and the value in use; and

(ii) a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit’s net selling price and the value in use.

If the recoverable amount of a PPE (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the PPE (or cash generating unit) is reduced to its recoverable amount.

(e) Impact of transition to Ind AS

Fortransition to Ind AS, the company has elected to adopt as deemed cost, the carrying value of Property,Plant & Equipment previously measured as per I-GAAP, as reduced by accumulated depreciation and cumulative impairment till the transition date.

NOTE NO. 5

CAPITAL WORK-IN-PROGRESS

(a) Manner of Classification

PPE not ready for intended use on the date of Balance sheet are disclosed as ‘ Capital work-in-progress’.

(b) Value of Capital Work-in-progress

The value of Capital Work-in-Progress in the books of Panache Digilife Limited as at 31st March 2018 is as follows :-

NOTE NO. 6

INVESTMENT PROPERTIES

(a) Method Of Valuation Of Investment Properties

Properties, including those under construction, held to earn rentals and/or capital appreciation are classified as investment property and measured and reported at cost, including transaction costs.

(b) Value Of Investment Property

The value of Investment Property in the books of Panache Digilife Limited as at 31st March 2018 is as follows :-

(c) Depreciation

Depreciation on Investment Property is recognised using straight line method so as to write off the cost of assets less their residual values over their useful lives specified in Schedule- II of the Companies Act,2013.

The Useful Life of Investment Property adopted by the management from Schedule II of Companies Act,2013; for calculating Depreciation to be charged on such Investment property for the current year is as follows:-

The estimated useful life and residual values are also reviewed at end of each financial year and the effect of any change in the estimates of useful life/residual value is accounted for,on prospective basis as per Ind AS-8.

(d) Impairment Losses

As at the end of each accounting year, the company reviews the carrying amounts of its Investment Property, to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine the impairment loss, if any.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined in the case of :-

(i) an individual asset, at the higher of the net selling price and the value in use; and

(ii) a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit’s net selling price and the value in use.

If the recoverable amount of a Investment Property (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the Investment Property (or cash generating unit) is reduced to its recoverable amount.

(e) Impact of transition to Ind AS

For transition to Ind AS, the company has elected to adopt as deemed cost, the carrying value of investment property as per I-GAAP less accumulated depreciation and cumulative impairment as on the transition date.

(f) Disclosure Pursuant to Ind AS-40 “ Investment Property”

Amount Recognised in the Statement of Profit and Loss for Investment Property

NOTE NO. 7

OTHER INTANGIBLE ASSETS

(a) Method of Valuation of Intangible Assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the company and the cost of the asset can be measured reliably.Intangible assets are stated at original cost net of tax/duty credits availed,if any,as reduced by accumulated amortisation and cumulative impairment.

(b) Value of Intangible Assets

The value of Intangible Assets in the books of Panache Digilife Limited as at 31st March 2018 is as follows :-

(c) Amortisation

Amortisation charge on Intangible asset has been allocated on a systematic basis over the best estimate of useful life.

Based on Technical evaluation considering the business specific needs & the potency of assets to generate future cash flows, the useful life of different class of intangible assets have been determined by the management, which is as follows:-

The method of amortisation and useful life are reviewed at the end of each Financial Year with the effect of any changes in the estimate being accounted for on a straight line basis.

(d) Impairment Losses

As at the end of each accounting year, the company reviews the carrying amounts of its Intangible Assets, to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine the impairment loss, if any. Intangible assets with indefinite life (if any) will be tested for impairment each year.

If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount.

NOTE NO. 8

INVESTMENTS (NON CURRENT)

(a) Investment in Subsidiary

Looking forward to the growth prospect, the company has incorporated a Wholly owned subsidiary company in Ajman Free Zone- Dubai in the name Wemart Global FZE on 21st November, 2016 to expand the company’s business and put its footprints in the global market in near future.

(b) Measurement of Invesmtments

Investment in Foreign Subsidiary, classified as Financial Assets for the purpose of Separate Financial Statements of the company has been measured at cost, since the equity instruments of subidiary are not quoted in any market and there are wide range possible fair values which can be considered and the management considers cost of such investment to be the best estimate of fair value.

(c) Value of Investments

Considering the above mentioned Measurement basis, the Value of Investments of the Entity for different reporting dates are as follows:-

(e) Impact of IND AS

Investments which were being carried at cost by following the guidelines prescribed under AS-13 have been remeasured to their respective fair values for the year ended March 2017,as such investments represent Financial Assets as per Ind AS 109.However the carryig value has not been affected as the management has considered cost to be the best estimate of Fair Value.

NOTE NO. 9 LOANS (NON CURRENT)

(a) Measurement

Financial Assets represented by Loans & advances given to parties under the terms, wherein such Loans & advances are repayable on demand to the company have been measured at their respective carrying Values as the management considers that the carrying value of such loans & advances to be the best estimate of its Fair Value.

NOTE NO. 10

OTHER FINANCIAL ASSETS (NON CURRENT)

(a) Measurement Basis

Financial Assets in the nature of deposits have been measured at fair value by discounting the deposits over the tenure of lease.The rest,being in the nature of deposits given to parties for indeterminate period, have been measured at actual amounts given/paid, as the management considers that the Fair Value of such deposits does not materially defer from the actual amounts given/paid.

(b) Value of Other Financial Assets

Considering the above measurement basis, the value of Other Financial assets are as follows :-

NOTE NO. 11

OTHER NON-CURRENT ASSETS

(a) Manner of Classification

Miscellaneous Expenses which will not be Written off either wholly orpartially within a period of 12 months from the end of reporting date have been classified as Non-Current Assets.

(b) Value of Other Non-Current Assets

NOTE NO. 12 INVENTORIES

(a) Valuation Method

Inventories comprise of Computers Systems & its peripherals and Consumer Electronic Goods which have been measured at weighted average cost or Net Realisable Value whichever is lower as per Ind AS-2.Cost of Inventories consist of its purchase price, cost of conversion and other costs including any duties or taxes(to the extent not recoverable) incurred in bringing them to their present location and condition.

(b) Based on the above Valuation Method, the value of Inventories for different reproting periods are as follows

NOTE NO. 13

CASH AND CASH EQUIVALENTS

Investments in Fixed Deposits have been considered by the management to be short term in nature, made against letter of credit facility and buyers credit from the Bank and hence they are valued at cost plus accrued interest on it.

Terms of Repayment of Secured Borrowings

Car Loan of Rs. 10,00,000 (Sanction Amount) is secured by way of exclusive first charge created by hypothecation of concerned Car.The Balance loan as on March 31,2018 is repayable in 59 monthly installments of Rs.20,517 each. Interest to be serviced as and when debited.Interest @ 8.50% is applicable on the said loan.

Car Loan of Rs. 14,84,000 (Sanction Amount) is secured by way of exclusive first charge created by hypothecation of concerned Car.The Balance loan as on March 31,2018 is repayable in 33 monthly installments of Rs.30,823 each. Interest to be serviced as and when debited.Interest @ 9.35% is applicable on the said loan.

Car Loan of Rs. 9,99,000 (Sanction Amount) is secured by way of exclusive first charge created by hypothecation of concerned Car.The Balance loan as on March 31,2018 is repayable in 43 monthly installments of Rs.20,730 each. Interest to be serviced as and when debited.Interest @ 9.66% is applicable on the said loan.

NOTE NO. 14

OTHER NON-CURRENT LIABILITIES

(a) Measurement Basis

Security deposits taken have been measured at fair value by discounting the deposits over the tenure of lease.Deposit against rental systems taken from parties for a short period, have been measured at actual amounts taken/received, as the management considers that the Fair Value of such deposits does not materially defer from the actual amounts taken/received.

The Discount Rate used for discounting security Deposits taken is 7.75%, taken after considering the yield on government bonds over the period equivalent to the tenure of lease.

(a) Disclosure

There are no overdue amounts to Micro Small and Medium Enterprises as at 31st March 2018 for which disclosure requirements under Micro Small and Medium Enterprises Development Act 2006, are applicable.

NOTE NO. 15

OTHER CURRENT LIABILITIES

(a) Measurement of Current Liabilities

Current Liabilities, being in the nature of Short term payables with no stated interest rates, have been measured at their Carrying Values as the effect of discounting on such Liabilities has been considered to be immaterial.

NOTE NO. 16 REVENUE FROM OPERATIONS

(^a) Recognition of Revenue

Revenue is recognized based on the nature of activity when consideration can be measured and recovered with reasonable certainty. Revenue is measured at fair value of consideration received or receivable and is reduced for discounts, rebates and other similar allowances.

Goods & Services tax (GST) has been implemented with effect from 1st July ,2017 which replaces Excise Duty and other input taxes. According to the requirements of Ind AS, revenue for the year ended 31st March, 2017 are reported inclusive of Excise duty and other taxes like VAT, CST and Service Tax. As per Ind AS, the revenue for the year ended 31st March,2018 are reported net of GST and other aforementioned taxes.In view of aforesaid restructuring of indirect taxes, Revenue from sale of products & services for the year ended 31st March, 2018 are not comparable with the previous period.

(b) Revenue from Sales

Sales Include Revenue from sale of Computers Systems & its peripherals and Consumer Electronic Goods etc.Revenue from sale of such goods is recognized when the goods are delivered and titles have been passed, provided all the following conditions are satisfied.

(i) Significant risks and rewards of ownership of the goods are transferred to buyer;

(ii) The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

(iii) The amount of revenue can be measured reliably;

(i_v) It is probable that the economic benefits associated with the transaction will flow to the company; and

(v) The costs incurred or to be incurred in respect of the transaction can be measured reliably.

(c) Revenue from Rendering of Services

Service Charges includes revenue from repairing and servicing of Computer Systems and Consumer Electronic Goods, provided by in-house servicing staffs of the company.Revenue from such services are recognised on completed service contract method as such services are completed within a time span of hours, forwhich, adoption of stage of completion method shall prove to be inappropriate. Moreoversuch revenues are recognised only when the following conditions are satisfied :-

(i) The amount can be measured reliably.

(ii) It is probable that the economic benefits associated with the transaction will flow to the entity.

(iii) The costs incurred in respect of the transaction can be measured reliably.

Measurement of Other Incomes

(i) Interest Income is accrued on a time basis by reference to the principal amount outstanding and the effective interest rate.

NOTE NO. 17

DISCLOSURE OF CURRENT ASSETS & LIABILITIES

A. Basis of classification of Current Assets

The company classifies an asset as current asset when :-

(i) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;

(ii) it holds the asset primarily for the purpose of trading;

(iii) it expects to realise the asset within twelve months after the reporting period; or

(iv) the asset is cash or a cash equivalent (as defined in Ind AS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets have been classified as Non-Current Recovery Period for Current Assets

Pursuant to requirements of Ind AS-1, diclosures regarding current assets which are expected to be recovered within twelve months and after twelve months from the reporting date are as follows:-

B. Basis of classification of Current Liabilities The company classifies a liability as current libility when :-

(i) it expects to settle the liability in its normal operating cycle;

(ii) it holds the liability primarily for the purpose of trading;

(iii) the liability is due to be settled within twelve months after the reporting period; or

(iv) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period .

All other Liabilities have been classified as Non-Current

Credit Period for Current Liabilities

Pursuant to requirements of Ind AS-1, disclosures regarding current Liabilities which are expected to be recovered within twelve months and after twelve months from the reporting date are as follows:-

NOTE NO. 18 RISK MANAGEMENT

The company’s Board of Directors has overall responsibility for establishment and oversight of the Compan’s risk management framework.

The Company, through three layers of defence viz: policies & procedures, review mechanism, and assurance, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The audit committee oversees the formulation and implementation of Risk Management Policies.The risk and mitigation plan are identified,deliberated and reviewed at appropriate Forums.

A. Market Risk Management

Market Risk is the risk that changes in market prices-such as foreign exchange rates-will affect the company’s income or the value of Financial Instruments. The objective of Market Risk Management is to manage and control market risk exposure within acceptable parameters, while optimizing the return.

i. Foreign Exchange Risk

In General, the company is a net payer of Foreign Currency.Accordingly, changes in exchange rates and in particulara strengthening of Indian rupee will positively affect the Company’s net results as expressed in Indian Rupees.The currency towards which the company is exposed to risk is US Dollars.

The Quantitative Summary about the company’s exposure to currency risk as on different reporting date are as follows:-

Sensitivity Analysis

A reasonable possible strengthening/weakening of foreign currencies to which the company is exposed to, against all other currencies as at reporting date would have affected the measurement of financial exposure denominated in a foreign currency and would have affected equity and profit or loss by the amounts shown below.This analysis assumes that all other variables remain constant and ignores any impact on forecast sales and purchases.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The company is not exposed to any such kind of interest rate risk.

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt and Overdraft CC Account. The company’s total outstanding debt in local currency presented in the Financial Statements is a combination of fixed rate and floating rate Debts. For the portion of local currency debt on fixed rate basis, there is no interest rate risk.Floating Rate Debts are linked to domestic interest rate benchmarks issued by Reserve Bank of India like MCLR (Marginal Cost of funds based Lending Rate).

The Exposure of Company’s Borrowings to interest rate changes at the end of reporting period are as follows :-

Sensitivity Analysis

A hypothetical 10 basis point shift in MCLR rates on the unhedged loans would result in corresponding increase/decrease in interest cost for the group on a yearly basis.

B. Financial Risk Management

i. Credit Risk

Credit Risk is the Risk of Financial Loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

Trade Receivable and other financial assets

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The company’s review includes external ratings (if they are available), financial statements, industry information and business intelligence.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

Expected Credit loss for trade receivable:

The Company, based on internal assessment which is driven by the historical experience/current facts available in relation to defaults and delays in collection tereof, the credit risk for trade receivable is considered low having no material impact on Financial Statements.

ii. Liquidity Risk

Liquidity Risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by cash or another financial asset.The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

The Company’s Finance Department is responsible for managing the short term and long term liquidity requirements. Short term liquidity finance is reviewed daily by finance department.Long Term Liquidity position is reviewed on a regular basis by the board of directors and appropriate decisions are taken according to the situation.

NOTE NO. 19

EMPLOYEE BENEFIT EXPENSES

(a) Disclosures pursuant to Ind AS-19

i. Defined Contribution Plans The company has only one defined contribution plan such i.e provident fund, wherein specified percentage is contributed.

The company has contributed the following amounts to the fund :-

ii. Defined Benefit Plans.

The company’s gratuity plan to provide post employement benefits to its employees is reported in accordance with Ind AS 19, “Employee Benefits” - based on an actuarial valuation carried out in respect of such gratuity plan.

(d) Actuarial Assumptions

The discount rate assumed is 7% p.a which is determined by reference to market yield at the balance sheet date on government bonds. The retirement age has been considered to be 60 years.

The estimate of Future Salary increase considered in actuarial valuation is 6.5% p.a taking into account inflation, seniority, promotion and other relevant factors such as demand and supply in the employment market.

NOTE : A

CHANGES IN PROPERTY PLANT & EQUIPMENT AND INVESTMENT PROPERTY

Pursuant to Ind As Requirements, investment Property is presented separately.Under I-GAAP the same was presented as a part of tangible assets.Tangible assets presented under I-GAAP, have now been divided ino two categories under Ind AS viz: Property, plant and equipment and investment property.

NOTE : B

The Previously Reported I-GAAP Figures have been reclassified / regrouped to make them comparable with Ind AS Presentation.