3.2 Provisions

A provision is recognized if, as a result of a past event; and
that the company has a present obligation that can be
estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligations.
Provisions are recognized at the best estimate of the
expenditure required to settle the present obligation at
the balance sheet date. The provisions are measured on
an undiscounted basis.

Provision in respect of loss contingencies relating to claims,
litigation, assessment, fines, penalties, etc. are recognized
when it is probable that a liability has been incurred, and
the amount can be estimated reliably.

3.3 Contingent liabilities and contingent assets

A contingent liability exists when there is a possible but
not a probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or
a present obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant provisions but
are disclosed unless the possibility of outflow of resources
is remote. Contingent assets are neither recognized nor
disclosed in the financial statements. However, contingent
assets are assessed continually and if it is virtually certain
that an inflow of economic benefits will arise, the assets
and related income are recognized in the period in which
the change occurs.

3.4 Impairment

a. Financial assets:

Financial assets (other than at fair value) The Company
assesses at each date of balance sheet whether a financial
asset or a Company of financial assets is impaired. Ind AS
109 (''Financial Instruments'') requires expected credit losses

to be measured through a loss allowance. The Company
recognises lifetime expected losses for all contract assets
and / or all trade receivables that do not constitute a
financing transaction. As a practical expedient, the
Company uses a provision matrix to determine impairment
loss allowance on trade receivables (net of billing in excess)
and Contract assets. For all other financial assets, expected
credit losses are measured at an amount equal to the
12-month expected credit losses or at an amount equal
to the lifetime expected credit losses if the credit risk on
the financial asset has increased significantly since initial
recognition. The Company provides for impairment upon
the occurrence of the triggering event.

b. Non-financial assets

Intangible assets and property, plant and
equipment

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable amount is the
higher of an asset or cash-generating unit''s (CGU) fair value
less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the
asset does not generate cash inflows that are largely
independent of those from other assets or Company''s
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

Intangible assets and property, plant and equipment are
evaluated for recoverability whenever events or changes
in circumstances indicate that their carrying amounts may
not be recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the higher of the fair value,
less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate
cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is
determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the
impairment to be recognized in the statement of profit
and loss is measured by the amount by which the carrying
value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the
statement of profit and loss if there has been a change in
the estimates used to determine the recoverable amount.
The carrying amount of the asset is increased to its revised
recoverable amount, provided that this amount does
not exceed the carrying amount that would have been
determined (net of any accumulated amortization or
depreciation) had no impairment loss been recognized
for the asset in prior years.

3.5 Events after the reporting period

Adjusting events are events that provide further evidence
of conditions that existed at the end of the reporting
period. The financial statements are adjusted for such
events before authorization for issue. Non-adjusting events
are events that are indicative of conditions that arose after
the end of the reporting period. Non-adjusting events
after the reporting date are not accounted but disclosed.

3.6 Financial instruments

A Financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and financial
liabilities are recognised when the Company becomes a
party to the contractual provisions of the instruments.

Financial Assets: Company''s financial assets broadly
comprise the following:

(a) Current financial assets: Investments, trade
receivables, cash and cash equivalents, loans and
advances, other short-term receivables

(b) Non-current financial assets: Investments, other
long-term receivables and deposits.

Initial recognition and measurement:

Financial assets are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial assets
at fair value through Profit and loss) are added to the fair
value of the financial assets, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets at fair value through Profit
and loss are recognised immediately in statement of profit
and loss.

Subsequent measurement:

For the purpose of subsequent measurement, financial
assets are classified into following categories:

(a) Financial assets at amortised cost financial assets are
subsequently measured at amortised cost, if both the
conditions below are met:

1. These financial assets are held within a business
model whose objective is to hold these assets in
order to collect contractual cash flows.

2. Contractual terms of financial asset give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding. After initial recognition,
these financial assets are subsequently measured
using the effective interest rate (EIR) method, less

impairment, if any. The amortisation of EIR and
loss arising from impairment, if any, recognised
in the statement of Profit and loss. This category
generally applies to trade and other receivables.

(b) Financial Assets at fair value through other
comprehensive Income (FVTOCI) Financial assets are
measured at fair value through other comprehensive
incomes if both the below conditions are met:

1. These financial assets are held within business
model whose objective is achieved by both
collecting contractual cash flows on specified
dates and selling financial assets

2. These assets contractual cash flows represent
solely payments of principal and interest on the
principal amount outstanding The Company
does not own any financial asset classified
at FVTOCI.

(c) Financial assets at fair value through Profit and loss
(FVTPL) This is a residual category. Any financial assets
which do not fall under the category of financial
assets measured at amortised cost or FVTOCI are
classified as FVTPL.

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with gain or loss
arising on remeasurement recognised in statement of
Profit and loss incorporates any dividend or interest
earned on the financial assets and is included in other
Income line item.

Impairment of Financial Assets In accordance with Ind
AS 109 "Financial Instruments", the Company applies
Expected Credit Loss (ECL) model for measurement
and recognition of loss allowance on the following
and the basis of its measurement:

Trade Receivable - For Trade receivable and other
financial assets that results from transactions that
are in scope of Ind AS 115, the Company applies the
simplified approach required in Ind AS 109, which
requires expected lifetime losses to be recognised
from initial recognition of the receivables.

Financial assets measured at amortised cost
(other than trade receivable) - In case of other than
trade receivable, the Company determines if there is
any significant increase in credit risk of the financial
asset since initial recognition. Below methods are
followed based on the credit risk changes:

If there are no significant changes in credit risk since
initial recognition, twelve months ECL is used to
provide the impairment loss.

If there is a significant change in credit risk, lifetime
ECL is measured for making the impairment loss
assessment. Subsequently if there is an improvement
in credit risk, the Company reverts to recognition of
impairment loss based on twelve months ECL.

To make the assessment whether there is any
significant change in risk, the Company compares the
risk of a default occurring on the financial instrument
as at the reporting date with a risk of default
occurring on the financial instrument as at the date
of initial recognition and consider reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increase in credit risk since its initial recognition.

Lifetime ECL are the expected credit losses resulting
from all possible default events, over the expected
life of a financial asset. 12 months ECL is a portion of
lifetime ECL which results from default events that are
possible within 12 months from the reporting period.

As a practical expedient and as permitted under
Ind AS 109, the Company uses a provision matrix
to measure lifetime ECL on its portfolio of trade
receivables. The provision matrix is prepared based
on historically observed default rates over the
expected life of trade receivables and is adjusted
for forward-looking information available. At each
reporting date, the historically observed default rates
and changes in the forward-looking information
are updated.

Derecognition of financial assets The Company
derecognises a financial asset when the contractual
rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another
entity. On derecognition of a financial asset in its
entirety, the difference between the asset''s carrying
amount and the sum of the consideration received
and receivable and the cumulative gain or loss that
had been recognised in other comprehensive income
and accumulated in equity is recognised in statement
of profit and loss if such gain or loss would have
otherwise been recognised in statement of profit and
loss on disposal of that financial asset.

On derecognition of a financial assets other than
entirely, (when the Company retains an option to
repurchase part of a transferred asset), the Company
allocates previous carried over amount of financial
asset between the part it continues to recognise
under continuing involvement, and the part it no
longer recognises on the basis of the relative fair
values of those parts on the date of transfer. The

difference between the carrying amount allocated
to the part that is no longer recognised and the
sum of consideration received for the part no
longer recognised and any cumulative gain or loss
allocated to it that had been recognised in Profit and
loss on disposal of that financial asset. A cumulative
gain or loss that had been recognised in other
comprehensive income is allocated between the part
that continues to be recognised and the part that is
no longer recognised on the basis of the relative fair
value of those parts.

Financial liabilities and Equity instruments
issued by the Company:

Equity Instruments: An equity instrument is any
contract that evidences a residual interest in the
assets of an entity after deducting all its liabilities.
Equity instruments issued by the Company are
recognised at the proceeds received, net of direct
issue costs.

Financial liabilities: Company''s financial liabilities
broadly comprise, short term borrowings, Trade
payables, Liabilities for capital expenditure and Other
long term/ short term obligations

Initial recognition and measurement: Financial
liabilities are recognised when the Company
becomes a party to the contractual provisions of
the instrument. All financial liabilities are recognised
initially at Fair value.

I n case of loans, borrowings and payables, net of
directly attributable transaction costs. Financial
liabilities are classified, at initial recognition, as
financial liabilities at FVTPL or at amortised cost
as appropriate.

Subsequent measurement: Financial Liabilities at
amortised cost - The carrying amounts of financial
liabilities that are subsequently measured at
amortised cost using the effective interest method.
All the financial liabilities of the Company fall
under this category. The effective interest method
is a method of calculating the amortised cost of
financial liability and of allocating interest expense
over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future
cash payments (including all fees and points paid or
received that form an integral part of the effective
interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to
the net carrying amount on initial recognition.

Financial Liabilities at FVTPL - Financial liabilities at
fair value through Profit and loss include financial
liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value
through Profit and loss. The Company does not owe
any financial liability which is classified at FVTPL.

Derecognition of financial liabilities- The Company
de-recognises financial liabilities when, and only
when, the Company''s obligations are discharged,
cancelled or have expired. The difference between
the carrying amount of the financial liability de¬
recognised and the consideration paid and payable
is recognised in statement of profit and loss.

3.7 Cash Flow Statement

Cash flows are reported using indirect methods,
whereby net profit before tax is adjusted for the effects
of transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The
cash flows from regular revenue generating (operating
activities), investing and financing activities of the
Company are segregated.

3.8 Leases

The Company as Lessee

The Company''s lease asset classes primarily consist
of leases for offices. The Company assesses whether a
contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognizes a right-of-use (ROU'') asset and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of 12 months or less
(short-term leases) and low value leases. For these short¬
term and low-value leases, the Company recognizes
the lease payments in the statement of profit and loss
systematically over the term of the lease.

The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated amortisation and
impairment losses

ROU assets are depreciated from the commencement date
on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset.

I f a lease transfers ownership of the underlying asset
or the cost of the right-of-use asset reflects that the
Company expects to exercise a purchase option, the
related right-of-use asset is depreciated over the useful
life of the underlying asset. The depreciation starts at the
commencement date of the lease.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases.

Lease payments included in the measurement of the lease
liability comprise:

(a) Fixed lease payments (including in-substance fixed
payments), less any lease incentives receivable;

(b) The amount expected to be payable by the lessee
under residual value guarantees;

(c) Payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option to
terminate the lease.

The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease liability
(using the effective interest method) and by reducing the
carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes
a corresponding adjustment to the related right-of-use
asset) whenever:

(a) The lease term has changed or there is a significant
event or change in circumstances resulting in a
change in the assessment of exercise of a purchase
option, in which case the lease liability is remeasured
by discounting the revised lease payments using a
revised discount rate.

(b) A lease contract is modified, and the lease modification
is not accounted for as a separate lease, in which case
the lease liability is remeasured based on the lease
term of the modified lease by discounting the revised
lease payments using a revised discount rate at the
effective date of the modification.

Lease liability and ROU assets have been separately
presented in the Statement of Assets and Liabilities and
lease payments have been classified as financing cash flows

Variable rents that do not depend on an index or rate are
not included in the measurement of the lease liability
and the right-of-use asset. The related payments are
recognized as an expense in the Statement of Profit and
Loss in the period in which the event or condition that
triggers those payments occurs.

3.9 Provisions, Contingent Liabilities and
Contingent Assets

a. Provisions

Provisions are recognised when the Company has a present
obligation as a result of a past event and it is probable that
an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The
amount recognised as a provision is the best estimate of
the consideration required to settle the present obligation
at the end of the reporting period, taking into account
the risks and uncertainties surrounding the obligation.
When the effect of time value is material, the amount is
determined by discounting the expected future cash flows.

b. Contingent liabilities

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

c. Contingent Asset

A contingent asset is generally neither recognised
nor disclosed.

The Company as a lessee

The Company''s lessee activity consists of leases formally identified within respective leasing arrangements for office spaces. Most
of the lease contracts are made under usual terms and conditions, which means they include options to extend the lease by a
defined amount of time and escalation clauses in line with general office rental market conditions. On renewal, the terms of the
leases are renegotiated.

For Ind AS 116, the Company has applied the below practical expedients:

(1) The Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

(2) The Company has applied the exemption not to recognise right-of-use-assets and liabilities for leases with less than 12 months
of lease term on the date of transition and low value assets.

(b) Rights, preferences and restrictions attached to the equity shares: Equity Shares

The Company has a single class of equity shares having a par value of Rs 10 each. Each holder of the equity share, as
reflected in the records of the Company, is entitled to one vote in respect of each share held for all matters submitted to
vote in the shareholders'' meeting.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing annual general meeting except interim dividend where approval of the
Board of Directors is considered sufficient.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of 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.

Notes:

a) Term Loan from Bank - Canara Bank Credit Support to COVID-19 loan is against hypothecation of Stocks, Book debts, and
Current Assets. Repayable by 72 instalments of 126.02 Lacs each

b) Loan from SIDBI under the Privileged Customer Scheme PCS-Gold for acquisition of Plant & machinery by extension of
First Charge by way of hypothecation of all movables (save and except stock & book debts) including plant, equipment,
machinery, furniture, fixture, computers, spares, tools etc. acquired, with extension of charge on deposit of TDR of 173.14
lakhs, Repayable by 54 instalments after a moratorium of 6 months of 11.86 lacs each

c) Loan from SIDBI under SPEED Scheme for Purchase of Equipment for Enterprises Development from Original Equipment
manufacturers (OEMs), is against First Charge by way of hypothecation of all the movables including plant, equipment,
machinery, machinery spares, tools, accessories, furniture, fixtures, computers etc. acquired to be acquired under the
project scheme and Extension of Lien on Deposit of Term Deposit Receipt TDR of 173.14 lakh and additional TDR 181.50
- Repayable by 54 instalments of 16.05 lacs each

30 FINANCIAL RISK MANAGEMENT

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

The Company''s principal financial liabilities, comprises lease liabilities, trade and other payables. The Company''s principal financial
assets include security deposits, trade and other receivables and cash and bank balances.

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk and foreign currency risk. The Company''s
primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial
performance. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(i) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk arises from cash
held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The
maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty
credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into
account their financial position, past experience and other factors.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Customer credit
risk is subject to the Company''s policies, procedures and controls and any changes in the foreign policy of the export customer.
Outstanding trade receivables are monitored at regular intervals. Impairment analysis is performed at each reporting date on
individual customer basis.

Cash and cash equivalents and other bank balances

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due. The Company''s Accounts and corporate treasury department is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by senior management.

The Company does not face a significant liquidity risk with regard to its financial liabilities as the current assets are sufficient
to meet the obligations related to financial liabilities as and when they fall due.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual
undiscounted payments.

At respective period / year end the financial instruments are categorized as level 1 based on the quoted prices available in the active
market and as level 3 in case the lowest level input that is significant to the fair value measurement is unobservable. The Company''s
policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

a) Mutual Funds

The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue
further units of mutual fund and the price at which issuers will redeem such units from the investors.

b) Investment in equity investments (unquoted)

The Company has measured fair value for Investment in equity investments (unquoted) based on the additional shares allotted
to the company.

Market risk

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

The analysis exclude the impact of movements in market variables on: the carrying values of post-retirement obligations
and provisions.

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 has debt obligations with floating interest rates. The Company''s investments are primarily
in floating rate interest bearing investments. Hence, the Company is not significantly exposed to interest rate risk.

31 CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to
stakeholders. The capital structure of the Company consists of equity only. The management of the Company reviews the capital
structure of the Company on annual basis. The Company is not subject to any externally imposed capital requirements. The Capital
Management policy focusses to maintain an optimal structure that balances growth and maximizes shareholder value.

32 EMPLOYEE BENEFITS

A Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries in respect of qualifying
employees towards Provident Fund, which is a defined contribution plan. The Company has no obligations other than to
make the specified contributions. The Company''s contribution is recognised as an expense in the statement of profit and loss
during the period in which the employee renders the related services.

During the year, the Company has recognised the following amounts in the Standalone Statement of profit and loss, which are
included in contribution to provident and other funds.

B Defined benefit plans

Gratuity

The employees are covered under Employee Gratuity scheme which is a defined benefit plan funded by Vinyas Innovative
Technologies (P) Ltd Group Gratuity Trust ® managed by LIC of India. The Company provides for gratuity, a defined benefit
plan (the Gratuity Plan), to its employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement
or termination of employment, of an amount based on the respective employee''s last drawn salary and years of employment
with the Company.

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to
various risks as follow -

(a) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the
ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

(b) Liquidity risk:

This is the risk that the Company is not able to meet the short -term gratuity pay-outs. This may arise due to non -availability
of enough cash /cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

(c) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed
to the risk of actual experience turning out to be worse compared to the assumption.

(d) Salary Risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants
in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used
to determine the present value of obligation will have a bearing on the plan''s liability.

(e) Withdrawals:

Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent
valuations can impact Plan''s liability.

Note:

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

2. The estimates of future increase in compensation levels, considered in the actuarial valuation, have been taken
on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the
employment market.

i) Other long-term benefits- Unfunded

The other long term employee benefits which are provided based on the actuarial valuation done using projected
unit credit method are as under:

37 ADDITIONAL REGULATORY DISCLOSURES

(i) The Company has not been declared as an wilful defaulter by any bank or financial institution or other lenders.

(ii) The Company has no transactions with Companies that has been struck off.

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year or in the
previous year.

(iv) There are no proceedings initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(v) There are no charges registration or satisfaction of charge not created with ROC beyond the time period.

(vi) There are no immovable properties not held in the name of the company.

(vii) The Company has no transactions 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),

(viii) The company has not made any revaluation to the Property, Plant and Equipment.

(ix) The company has not entered into any Scheme of arrangement.

(x) The company has not given any loans or advances to the Directors/KMP/Related Parties other than reported in the related
party transaction disclosure.

(xi) All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the
requirements of Schedule III, unless otherwise stated.

(xii) Pursuant to the notification of the new Labour Codes by the Government of India, the Company has evaluated the
consequential impact of the revised definition of wages on employee benefit obligations. Accordingly, during the half year
ended 31 March, 2026, the Company has recognised an additional liability of 1495.69 lakhs towards gratuity and 1158.29
lakhs towards leave encashment, along with the related deferred tax impact, wherever applicable. The Company continues
to monitor further developments and clarifications in relation to the new Labour Codes and assess the consequential
impact, if any.

38 Trade Receivables, Trade Payables and Advances from Customers balances are subject to balance confirmation and reconciliation,
if any.

39 The company has used an accounting software for maintaining its books of account which has a feature of recording the audit
trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software. Further,
the audit trail feature has not been tampered with and the audit trail has been preserved by the company as per the statutory
requirements for record retention.

40 Previous year''s figures have been regrouped wherever necessary, to conform to the current year''s classification.

3.2 Provisions

A provision is recognized if, as a result of a past
event; and that the company has a present
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligations. Provisions are
recognized at the best estimate of the expenditure
required to settle the present obligation at the
balance sheet date. The provisions are measured
on an undiscounted basis.

Provision in respect of loss contingencies relating
to claims, litigation, assessment, fines, penalties,
etc. are recognized when it is probable that a
liability has been incurred, and the amount can be
estimated reliably.

3.3 Contingent liabilities and contingent assets

A contingent liability exists when there is a possible
but not a probable obligation, or a present obligation
that may, but probably will not, require an outflow
of resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless
the possibility of outflow of resources is remote.
Contingent assets are neither recognized nor

disclosed in the financial statements. However,
contingent assets are assessed continually and
if it is virtually certain that an inflow of economic
benefits will arise, the assets and related income are
recognized in the period in which the change occurs.

3.4 Impairment

a. Financial assets:

Financial assets (other than at fair value) The
Company assesses at each date of balance
sheet whether a financial asset or a Company of
financial assets is impaired. Ind AS 109 (‘Financial
Instruments’) requires expected credit losses to be
measured through a loss allowance. The Company
recognises lifetime expected losses for all contract
assets and / or all trade receivables that do not
constitute a financing transaction. As a practical
expedient, the Company uses a provision matrix
to determine impairment loss allowance on trade
receivables (net of billing in excess) and Contract
assets. For all other financial assets, expected credit
losses are measured at an amount equal to the
12-month expected credit losses or at an amount
equal to the life time expected credit losses if the
credit risk on the financial asset has increased
significantly since initial recognition. The Company
provides for impairment upon the occurrence of the
triggering event.

b. Non-financial assets

Intangible assets and property, plant and
equipment

The Company assesses, at each reporting date,
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an
assets or cash-generating unit’s (CGU) fair value less
costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
Company’s of assets. When the carrying amount of
an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to
its recoverable amount.

Intangible assets and property, plant and equipment
are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows
that are largely independent of those from other
assets. In such cases, the recoverable amount is
determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the

impairment to be recognized in the statement
of profit and loss is measured by the amount by
which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An
impairment loss is reversed in the statement of profit
and loss if there has been a change in the estimates
used to determine the recoverable amount. The
carrying amount of the asset is increased to its
revised recoverable amount, provided that this
amount does not exceed the carrying amount
that would have been determined (net of any
accumulated amortization or depreciation) had no
impairment loss been recognized for the asset in
prior years.

3.5 Events after the reporting period

Adjusting events are events that provide further
evidence of conditions that existed at the end of
the reporting period. The financial statements are
adjusted for such events before authorization for
issue. Non-adjusting events are events that are
indicative of conditions that arose after the end of
the reporting period. Non-adjusting events after the
reporting date are not accounted, but disclosed.

3.6 Financial instruments

A Financial instrument is any contract that
gives rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity. Financial assets and financial liabilities are
recognised when the Company becomes a party to
the contractual provisions of the instruments.

Financial Assets: Company’s financial assets
broadly comprise the following:

(a) Current financial assets: Investments, trade
receivables, cash and cash equivalents, loans
and advances, other short term receivables

(b) Non-current financial assets:

Investments, other long-term receivables and
deposits.

Initial recognition and measurement:

Financial assets are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial
assets at fair value through Profit and loss) are added
to the fair value of the financial assets, as appropriate,
on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets
at fair value through Profit and loss are recognised
immediately in statement of profit and loss.

Subsequent measurement:

For the purpose of subsequent measurement,
financial assets are classified into following
categories:

(a) Financial assets at amortised cost Financial
assets are subsequently measured at amortised
cost, if both the below conditions are met:

(b) 1. These financial assets are held within a

business model whose objective is to hold
these assets in order to collect contractual
cash flows

2. Contractual terms of financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest
on the principal amount outstanding.
After initial recognition, these financial
assets are subsequently measured using
the effective interest rate (EIR) method,
less impairment, if any. The amortisation
of EIR and loss arising from impairment, if
any, recognised in the statement of Profit
and loss. This category generally applies to
trade and other receivables.

3. (b) Financial Assets at fair value through

other comprehensive Income (FVTOCI)
Financial assets are measured at fair
value through other comprehensive
income if both the below conditions are
met:

1. These financial assets are held within
business model whose objective
is achieved by both collecting
contractual cash flows on specified
dates and selling financial assets

2. These assets contractual cash
flows represent solely payments
of principal and interest on the
principal amount outstanding The
Company does not own any financial
asset classified at FVTOCI.

(c) Financial assets at fair value through Profit
and loss (FVTPL) This is a residual category.
Any financial assets which do not fall under
the category of financial assets measured at
amortised cost or FVTOCI are classified as
FVTPL.

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with gain or loss
arising on remeasurement recognised in statement
of Profit and loss incorporates any dividend or
interest earned on the financial assets and is
included in other Income line item.

Impairment of Financial Assets In accordance with
Ind AS 109 “Financial Instruments”, the Company
applies Expected Credit Loss (ECL) model for
measurement and recognition of loss allowance on
the following and the basis of its measurement:

Trade Receivable - For Trade receivable and other
financial assets that results from transactions that
are in scope of Ind AS 115, the Company applies the
simplified approach required in Ind AS 109, which
requires expected lifetime losses to be recognised
from initial recognition of the receivables.

Financial assets measured at amortised cost
(other than trade receivable) - In case of other
than trade receivable, the Company determines,
if there is any significant increase in credit risk of
the financial asset since initial recognition. Below
methods are followed based on the credit risk
changes:

If there are no significant changes in credit risk since
initial recognition, twelve months ECL is used to
provide the impairment loss.

If there is a significant change in credit risk, lifetime
ECL is measured for making the impairment
loss assessment. Subsequently if there is an
improvement in credit risk, the Company reverts
to recognition of impairment loss based on twelve
months ECL.

To make the assessment whether there is any
significant change in risk, the Company compares
the risk of a default occurring on the financial
instrument as at the reporting date with a risk
of default occurring on the financial instrument
as at the date of initial recognition and consider
reasonable and supportable information, that
is available without undue cost or effort, that is
indicative of significant increase in credit risk since
its initial recognition.

Lifetime ECL are the expected credit losses resulting
from all possible default events, over the expected
life of a financial assets. 12 months ECL is a portion
of lifetime ECL which result from default events that
are possible within 12 months from the reporting
period.

As a practical expedient and as permitted under
Ind AS 109, the Company uses a provision matrix
to measure lifetime ECL on its portfolio of trade
receivables. The provision matrix is prepared based
on historically observed default rates over the
expected life of trade receivables and is adjusted
for forward-looking information available. At
each reporting date, the historically observed
default rates and changes in the forward-looking
information are updated.

Derecognition of financial assets The Company
derecognises a financial asset when the contractual
rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to
another entity. On derecognition of a financial asset
in its entirety, the difference between the asset’s

carrying amount and the sum of the consideration
received and receivable and the cumulative
gain or loss that had been recognised in other
comprehensive income and accumulated in equity
is recognised in statement of profit and loss if such
gain or loss would have otherwise been recognised
in statement of profit and loss on disposal of that
financial asset.

On derecognition of a financial assets other than
entirely, (when the Company retains an option to
repurchase part of a transferred asset), the Company
allocates previous carried over amount of financial
asset between the part it continues to recognise
under continuing involvement , and the part it no
longer recognises on the basis of the relative fair
values of those parts on the date of transfer. The
difference between the carrying amount allocated
to the part that is no longer recognised and the
sum of consideration received for the part no
longer recognised and any cumulative gain or loss
allocated to it that had been recognised in Profit
and loss on disposal of that financial asset. A
cumulative gain or loss that had been recognised in
other comprehensive income is allocated between
the part that continues to be recognised and the
part that is no longer recognised on the basis of the
relative fair value of those parts.

Financial liabilities and Equity instruments
issued by the Company: Equity Instruments: An
equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received, net of direct issue costs.

Financial liabilities: Company’s financial liabilities
broadly comprises, Short term borrowings, Trade
payables, Liabilities for capital expenditure and
Other long term/ short term obligations

Initial recognition and measurement: Financial
liabilities are recognised when the Company
becomes a party to the contractual provisions of the
instrument. All financial liabilities are recognised
initially at Fair value.

In case of loans, borrowings and payables, net of
directly attributable transaction costs. Financial
liabilities are classified, at initial recognition, as
financial liabilities at FVTPL or at amortised cost as
appropriate.

Subsequent measurement: Financial Liabilities at
amortised cost - The carrying amounts of financial
liabilities that are subsequently measured at
amortised cost using the effective interest method.
All the financial liabilities of the Company fall
under this category. The effective interest method
is a method of calculating the amortised cost of a
financial liability and of allocating interest expense

over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash payments (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected life
of the financial liability, or (where appropriate) a
shorter period, to the net carrying amount on initial
recognition.

Financial Liabilities at FVTPL - Financial liabilities at
fair value through Profit and loss include financial
liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value
through Profit and loss. The Company does not owe
any financial liability which is classified at FVTPL.

Derecognition of financial liabilities- The Company
de-recognises financial liabilities when, and only
when, the Company’s obligations are discharged,
cancelled or have expired. The difference between
the carrying amount of the financial liability de¬
recognised and the consideration paid and payable
is recognised in statement of profit and loss.

3.7 Cash Flow Statement

Cash flows are reported using indirect method,
whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments. The cash flows from regular revenue
generating (operating activities), investing and
financing activities of the Company are segregated.

3.8 Leases

The Company as lessee

The Company’s lease asset classes primarily
consist of leases for offices. The Company assesses
whether a contract contains a lease, at inception of
a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves
the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of
the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use (‘ROU’) asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of 12 months or less (short-term
leases) and low value leases. For these short-term
and low-value leases, the Company recognizes the
lease payments in the statement of profit and loss
systematically over the term of the lease.

The ROU assets are initially recognized at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives.
They are subsequently measured at cost less
accumulated amortisation and impairment losses

ROU assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset.

If a lease transfers ownership of the underlying asset
or the cost of the right-of-use asset reflects that the
Company expects to exercise a purchase option, the
related right-of-use asset is depreciated over the
useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.

The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. The lease payments are discounted using
the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates
in the country of domicile of these leases.

Lease payments included in the measurement of
the lease liability comprise:

(a) Fixed lease payments (including in-substance
fixed payments), less any lease incentives
receivable;

(b) The amount expected to be payable by the
lessee under residual value guarantees;

(c) Payments of penalties for terminating the
lease, if the lease term reflects the exercise of
an option to terminate the lease.

The lease liability is subsequently measured by
increasing the carrying amount to reflect interest
on the lease liability (using the effective interest
method) and by reducing the carrying amount to
reflect the lease payments made.

The Company remeasures the lease liability (and
makes a corresponding adjustment to the related
right-of-use asset) whenever:

(a) The lease term has changed or there is a significant
event or change in circumstances resulting
in a change in the assessment of exercise of a
purchase option, in which case the lease liability
is remeasured by discounting the revised lease
payments using a revised discount rate.

(b) A lease contract is modified and the lease
modification is not accounted for as a separate
lease, in which case the lease liability is
remeasured based on the lease term of the
modified lease by discounting the revised lease
payments using a revised discount rate at the
effective date of the modification.

Lease liability and ROU assets have been separately
presented in the Statement of Assets and Liabilities
and lease payments have been classified as
financing cash flows

Variable rents that do not depend on an index or
rate are not included in the measurement the lease
liability and the right-of-use asset. The related
payments are recognized as an expense in the
Statement of Profit and Loss in the period in which
the event or condition that triggers those payments
occurs.

3.9 Provisions, Contingent Liabilities and Contingent
Assets

a. Provisions

Provisions are recognised when the Company has
a present obligation as a result of a past event
and it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. The amount
recognised as a provision is the best estimate of
the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When the effect of time value is
material, the amount is determined by discounting
the expected future cash flows.

b. Contingent liabilities

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

c. Contingent Asset

A contingent asset is generally neither recognised
nor disclosed.

Notes:

a) Term Loan from Bank - Canara Bank Credit Support to COVID-19 loan is against hypothecation of Stocks, Book debts, and Current
Assets. Repayable by 72 instalments of Rs.26.02 Lacs each

b) Loan from SIDBI Sub-ordinated Debt under Growth Capital & Equity assistance Scheme is against First Charge by way of hypothecation
of all the machinery acquired and Second Charge by way of hypothecation of all the movable assets - Repayable by 54 instalments of
Rs.3.67 lacs each

c) Loan from SIDBI under the Previleged Customer Scheme PCS-Gold for acqusistion of Plant & machinery by extension of First Charge
by way of hypothecation of all movables (save and except stock & boook debts) including plant, equipt, machinery, furniture, fixture,
computers, spares, tools etc. acquired, with extension of charge on depsoit of TDR of Rs 73.14 lakhs, Repayable by 54 instalments after
a moratorium of 6 months of Rs.1.86 lacs each

d) Loan from SIDBI under SPEED Scheme for Purchase of Equipment for Enterprises Development from Original Equipment manufacturers
(OEMs), is against First Charge by way of hypothecation of all the movables including plant, equipment, machinery, machinery spares,
tools, accessories, furniture, fixtures, computers etc. acquired to be acquired under the project scheme and Extension of Lien on Deposit
of Term Deposit Receipt TDR of Rs.73.14 lakh and additional TDR Rs 81.50 - Repayable by 54 instalments of Rs.6.05 lacs each

(ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages
its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company’s
Accounts and corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management.

The Company does not face a significant liquidity risk with regard to its financial liabilities as the current assets are sufficient to meet
the obligations related to financial liabilities as and when they fall due.

Note on Valuation Methodology

a) Mutual Funds

The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units
in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and
the price at which issuers will redeem such units from the investors.

b) Investment in equity investments (unquoted)

The Company has measured fair value for Investment in equity investments (unquoted) based on the additional shares allotted to the
company.

29 Financial risk management

The Company’s management has overall responsibility for the establishment and oversight of the risk management framework.

The Company’s principal financial liabilities, comprises lease liabilities, trade and other payables. The Company’s principal financial assets
include security deposits, trade and other receivables and cash and bank balances.

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and foreign currency risk. The Company’s primary
focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The
Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(i) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company’s receivables from customers. Credit risk arises from cash held with banks and
financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to
credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses
in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past
experience and other factors.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Customer credit risk is subject to
the Company’s policies, procedures and controls and any changes in the foreign policy of the export customer. Outstanding trade receivables
are monitored at regular intervals. Impairment analysis is performed at each reporting date on individual customer basis.

Cash and cash equivalents and other bank balances

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks.

Market risk

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

The analysis exclude the impact of movements in market variables on: the carrying values of post-retirement obligations and provisions.
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 has debt obligations with floating interest rates. The Company’s investments are primarily in floating rate
interest bearing investments. Hence, the Company is not significantly exposed to interest rate risk.

30. Capital management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders.
The capital structure of the Company consists of equity only. The management of the Company reviews the capital structure of the Company
on annual basis. The Company is not subject to any externally imposed capital requirements. The Capital Management policy focusses to
maintain an optimal structure that balances growth and maximizes shareholder value.

31. Employee Benefits

A. Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries in respect of qualifying employees
towards Provident Fund, which is a defined contribution plan. The Company has no obligations other than to make the specified
contributions. The Company’s contribution is recognised as an expense in the statement of profit and loss during the period in which
the employee renders the related services.

During the year, the Company has recognised the following amounts in the Standalone Statement of profit and loss, which are included
in contribution to provident and other funds.

B Defined benefit plans
Gratuity

(ii) Gratuity: The employees are covered under Employee Gratuity scheme which is a defined benefit plan funded by Vinyas Innovative
Technologies (P) Ltd Group Gratuity Trust ® managed by LIC of India. The Company provides for gratuity, a defined benefit plan (the
Gratuity Plan), to its employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of
employment, of an amount based on the respective employee’s last drawn salary and years of employment with the Company.

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various
risks as follow -

(a) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost
of providing the above benefit and will thus result in an increase in the value of the liability.

(b) Liquidity risk:

This is the risk that the Company is not able to meet the short -term gratuity pay-outs. This may arise due to non -availability of
enough cash /cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

(c) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk
of actual experience turning out to be worse compared to the assumption.

(d) Salary Risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in
future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine
the present value of obligation will have a bearing on the plan’s liability.

(e) Withdrawals:

Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations
can impact Plan’s liability.

36. ADDITIONAL REGULATORY DISCLOSURES

(i) The Company has not been declared as an wilful defaulter by any bank or financial institution or other lenders.

(ii) The Company has no transactions with Companies that has been struck off.

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year or in the previous year.

(iv) There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(v) There are no charges registration or satisfaction of charge not created with ROC beyond the time period.

(vi) There are no immovable properties not held in the name of the company.

(vii) The Company has no transactions 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),

(viii) The company has not made any revaluation to the Property, Plant and Equipment.

(ix) The company has not entered into any Scheme of arrangement.

(x) The company has not given any loans or advances to the Directors/KMP/Related Parties other than reported in the related party
transaction disclosure

(i) All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirements of
Schedule III, unless otherwise stated.

37. Trade Receivables, Trade Payables and Advances from Customers balances are subject to balance confirmation and reconciliation, if any.

38. The company has used an accounting software for maintaining its books of account which has a feature of recording the audit trail (edit log)
facility and the same has been operated throughout the year for all transactions recorded in the software. Further, the audit trail feature has
not been tampered with and the audit trail has been preserved by the company as per the statutory requirements for record retention.

39. Previous year’s figures have been regrouped wherever necessary, to conform to the current year’s classification.

In terms of our report attached

For P Chandrasekar LLP for and on behalf of the Board of Directors of

Chartered Accountants Vinyas Innovative Technologies Limited

Firm registration number: 000580S/S200066

ARUN R NARENDRA NARAYANAN T R SRINIVASAN AMITAVA MUJUMDAR SUBODH M R

_{Partner Managing Director Director Chief Financial Officer} ^{Company Secretary &}

Compliance Officer

Membership Number: 208425 DIN: 00396176 DIN: 00379256 M. No. : A43878

Place: Bengaluru Place: Mysuru

Date: 29-05-2025 Date: 29-05-2025

3.8 Provisions, Contingent Liabilities and Contingent Assets

a. Provisions

Provisions are recognised when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When the effect of time value is material, the amount is determined by discounting the expected future cash flows.

b. Contingent liabilities

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

c. Contingent Asset

A contingent asset is generally neither recognised nor disclosed.

Note on Valuation Methodology

a) Mutual Funds

The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

b) Investment in equity investments (unquoted)

The Company has measured fair value for Investment in equity investments (unquoted) based on the additional shares allotted to the company.

33 Financial risk management

The Company’s management has overall responsibility for the establishment and oversight of the risk management framework.

The Company’s principal financial liabilities, comprises lease liabilities, trade and other payables. The Company’s principal financial assets include security deposits, trade and other receivables and cash and bank balances.

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and foreign currency risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(i) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Customer credit risk is subject to the Company’s policies, procedures and controls and any changes in the foreign policy of the export customer. Outstanding trade receivables are monitored at regular intervals. Impairment analysis is performed at each reporting date on individual customer basis.

Cash and cash equivalents and other bank balances

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company’s Accounts and corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company does not face a significant liquidity risk with regard to its financial liabilities as the current assets are sufficient to meet the obligations related to financial liabilities as and when they fall due.

Market risk

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

The analysis exclude the impact of movements in market variables on: the carrying values of post-retirement obligations and provisions. 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 has debt obligations with fixed interest rates. The Company’s investments are primarily in fixed rate interest bearing investments. Hence, the Company is not significantly exposed to interest rate risk.

34 Capital management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders. The capital structure of the Company consists of equity only. The management of the Company reviews the capital structure of the Company on annual basis. The Company is not subject to any externally imposed capital requirements. The Capital Management policy focusses to maintain an optimal structure that balances growth and maximizes shareholder value.

B Defined benefit plans

Gratuity

(ii) Gratuity: The employees are covered under Employee Gratuity scheme which is a defined benefit plan funded by Vinyas Innovative Technologies (P) Ltd Group Gratuity Trust® managed by LIC of India. The Company provides for gratuity, a defined benefit plan (the Gratuity Plan), to its employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, of an amount based on the respective employee''s last drawn salary and years of employment with the Company.

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow -

(a) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

(b) Liquidity risk:

This is the risk that the Company is not able to meet the short -term gratuity pay-outs. This may arise due to non -availability of enough cash /cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

(c) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

40 ADDITIONAL REGULATORY DISCLOSURES

(i) The Company has not been declared as an wilful defaulter by any bank or financial institution or other lenders.

(ii) The Company has no transactions with Companies that has been struck off.

(iii) The Company has not traded or invested in crypto currency or virtual currency during the financial year or in the previous year.

(iv) There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(v) There are no charges registration or satisfaction of charge not created with ROC beyond the time period.

(vi) There are no immovable properties not held in the name of the company.

(vii) The Company has no transactions 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),

(viii) The company has not made any revaluation to the Property, Plant and Equipment.

(ix) The company has not entered into any Scheme of arrangement.

(x) The company has not given any loans or advances to the Directors/KMP/Related Parties other than reported in the related party transaction disclosure

(i) All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirements of Schedule III, unless otherwise stated.

41 Trade Receivables, Trade Payables and Advances from Customers balances are subject to balance confirmation and reconciliation, if any.

42 The Company, in respect of financial year commencing on 1 April 2023, has used accounting software for maintaining its books of account which have the feature of recording audit trail (edit log) facility and the same has been enabled throughout the year for all relevant transactions recorded in the software.

43 Previous year''s figures have been regrouped wherever necessary, to conform to the current year’s classification.

In terms of our report attached

For P Chandrasekar LLP for and on behalf of the Board of Directors of

Chartered Accountants Vinyas Innovative Technologies Limited

Firm registration number: 000580S/S200066

P CHANDRASEKARAN NARENDRA NARAYANAN T R SRINIVASAN

Partner Managing Director Director

Membership Number: 026037 DIN: 00396176 DIN: 00379256

Place: Bengaluru Date: 29-05-2024

AMITAVA MUJUMDAR SUBODH M R

Chief Financial Officer Company Secretary & Compliance Officer

M. No. : A43878

Place: Mysuru Date: 29-05-2024