Notes to Accounts of Kaycee Industries Ltd.

Mar 31, 2025

1.3.15 Provisions and contingent liabilities

A provision is recognized when the company has a present obligation resulting from past events
and it is probable that an outflow of resources will be required to settle the obligation for which a
reliable estimate can be made. Provisions are based on management’s best estimate of the
amount required to settle the obligation at the balance sheet date. Provisions are reviewed at
each balance sheet date and adjusted to reflect revision in estimates.

A contingent liability is 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 or a present obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the obligation. A contingent liability also
arises in extremely rare cases where there is a liability that cannot be recognized because it
cannot be measured reliably. The Company does not recognize a contingent liability but discloses
its existence in the financial statements. Contingent assets are neither recognized nor disclosed
in the financial statements.

1.3.16 Exceptional Items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the
ordinary activities of the company is such that its disclosure improves the understanding of the
performance of the company, such income or expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying to the financial statement.

1.3.17 Non-current assets held for sale/ distribution to owners and discontinued operations

The Company classifies non-current assets and disposal of group of assets as held for sale/
distribution to owners if their carrying amounts will be recovered principally through a sale/
distribution rather than through continuing use. Actions required to complete the sale/ distribution
should indicate that it is unlikely that significant changes to the sale/ distribution will be made or
that the decision to sell/ distribute will be withdrawn. Management must be committed to the
sale/distribution expected within one year from the date of classification.

Non-current assets held for sale/for distribution to owners and disposal of group of assets are
measured at the lower of their carrying amount and the fair value less costs to sell/ distribute.

Assets and liabilities classified as held for sale/distribution are presented separately in the balance
sheet.

Property, plant and equipment and intangible assets once classified as held for sale/ distribution
to owners are not depreciated or amortised.

A disposal of group of assets qualifies as discontinued operation if it is a component of an entity
that either has been disposed of, or is classified as held for sale, and:

• Represents a separate major line of business or geographical area of operations,

• Is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations

Or

• Is a subsidiary acquired exclusively with a view to resale

Discontinued operations are excluded from the results of continuing operations and are presented
as a single amount as profit or loss after tax from discontinued operations in the statement of
profit and loss.

1.3.18 Financial Instrument

Financial assets and financial liabilities are recognized when the Company becomes a party to
the contractual provisions of the instruments.

Financial assets

A) Initial recognition and measurement

On initial recognition, financial assets are recognised at fair value except trade receivables
which are recognized at transaction price as they do not contain a significant financing
component. In case of financial assets which are recognised at fair value through profit and
loss (FVTPL), its transaction costs are recognised in the statement of profit and loss. In other
cases, the transaction costs are attributed to the acquisition value of the financial asset.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets are classified, at initial recognition, as financial assets measured at fair value
or as financial assets measured at amortised cost.

B) Subsequent Measurement

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

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the Financial Asset give rise to cash flows on specified dates that

represent solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised
cost using the Effective Interest Rate (EIR) method.

b) Financial Assets measured at Fair Value Through Other Comprehensive Income
(FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling Financial
Assets and the contractual terms of the Financial Asset give rise on specified dates to
cash flows that represents solely payments of principal and interest on the principal
amount outstanding.

C) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial asset is measured at fair value through profit and loss unless it is measured at
amortised cost or at fair value through other comprehensive income on initial recognition.
The transaction costs directly attributable to the acquisition of financial assets at fair value
through profit and loss are immediately recognised in the Statement of Profit and Loss.

Financial assets are reclassified subsequent to their recognition, if the Company changes its
business model for managing those financial assets. Changes in business model are made
and applied prospectively from the reclassification date which is the first day of immediately
next reporting period following the changes in business model in accordance with principles
laid down under Ind AS 109 - Financial Instruments.

D) Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in
Statement of Profit and Loss, except for those equity investments for which the Company
has elected to present the value changes in ‘Other Comprehensive Income’. However, dividend
on such equity investments are recognised in Statement of Profit and loss when the Company’s
right to receive payment is established.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) The Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all of the risks
and rewards of the asset, nor transferred control of the asset, the Company continues to recognise

the transferred asset to the extent of the Company’s continuing involvement. In that case, the
Company also recognises an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured
at the lower of the original carrying amount of the asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank balance

b) Financial assets that are debt instruments and are measured as at FVTOCI

c) Lease receivables under Ind AS 116

d) Trade receivables or any contractual right to receive cash or another financial asset that result
from transactions that are within the scope of Ind AS 115

e) Loan commitments which are not measured as at FVTPL

f) Financial guarantee contracts which are not measured as at FVTPL

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables; and

• All lease receivables resulting from transactions within the scope of Ind AS 116

The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance
on portfolio of its trade receivables. The provision matrix is based on its historically observed default
rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At
every reporting date, the historical observed default rates are updated and changes in the forward¬
looking estimates are analysed. On that basis, the company estimates the following provision matrix at
the reporting date:

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses’
in the P&L.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e.,
financial assets which are credit impaired on purchase/ origination.

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each reporting period.

Financial liabilities

Classification as debt or equity

Debt and equity instru ments issued by a company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial
liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds
received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognised
and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale,
issue or cancellation of the Company’s own equity instruments.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments entered
into by the Company that are not designated as hedging instruments in hedge relationships as
defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading
unless they are designated as effective hedging instruments.

b) Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in
own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L.
However, the Company may transfer the cumulative gain or loss within equity. All other changes
in fair value of such liability are recognised in the statement of profit or loss. The Company has
not designated any financial liability as at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment
when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised
initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance
of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative
amortisation.

Derecognition

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

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Derivative financial instruments and hedge accounting
Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts, interest rate
swaps and forward commodity contracts, to hedge its foreign currency risks, interest rate risks and
commodity price risks, respectively.

Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities when the fair value is negative.

The purchase contracts that meet the definition of a derivative under Ind AS 109 are recognised in the
statement of profit and loss. Commodity contracts that are entered into and continue to be held for the
purpose of the receipt or delivery of a non-financial item in accordance with the Company’s expected
purchase, sale or usage requirements are held at cost.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to
profit or loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged
forecast transaction subsequently results in the recognition of a non-financial asset or non-financial
liability.

1.3.19 Recent Accounting pronouncements

‘Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
On March 31, 2025, MCA has not notified any new standards or amendments to the existing
standards applicable to the company.

1.4. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods

Judgements

In the process of applying the Company’s accounting policies, management has made the following
judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below.

The Company based its assumptions and estimates on parameters available when the financial statements
were prepared.

Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company.

Such changes are reflected in the assumptions when they occur.

The key sources of estimation uncertainty at the end of the reporting period, that may have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are given below :-

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible,
but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

Impairment of non-Financial Assets

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’s 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 group of assets.

When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These
budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless
an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average
growth rate for the products, industries, or country or countries in which the entity operates, or for the
market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the
statement of profit and loss, except for properties previously revalued with the revaluation surplus taken
to OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous
revaluation surplus.

The preparation of financial statements involves estimates and assumptions that affect the reported
amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the
reported amount of revenues and expenses for the reporting period.

Employee benefit plans

Defined contribution plans

Contribution paid/ payable to defined contribution plans comprises provident fund for certain employees
governed under the scheme are recognised in the profit or loss each year when employees have rendered
services entitling them to the contributions. Under this plan, the Company makes Provident Fund
contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company
is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company
has recognised Rs.20.73 lakhs (Year ended 31 March, 2024 Rs.17.78 lakhs) for Provident Fund
contributions (including Pension fund / EDLI contributions) in the Statement of Profit and Loss. The
contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

The Company’s Gratuity Scheme for its employees is a defined benefit retirement plan. The cost
of providing benefits is determined using the projected unit credit method, with actuarial valuations
being carried out at the end of the year. Defined benefit costs are categorised as follows: 1)
service cost (including current service cost, 2) past service cost, as well as gains and losses on
curtailments and settlements); 3) net interest expense or income; 4) re-measurement

The Company presents the first 3 components of defined benefit costs in profit or loss in the line
item Note no 28 ‘Employee benefits expense’. Curtailment gains and losses are accounted for as
past service costs. Net interest is calculated by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset. Re-measurement, comprising actuarial gains
and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan
assets (excluding net interest), is reflected immediately in the balance sheet with a charge or
credit recognised in other comprehensive income in the period in which they occur. Re¬
measurement recognised in other comprehensive income is reflected immediately in retained
earnings and is not reclassified to profit or loss.

ii. Leave encashment

The undiscounted amount of short-term employee benefits expected to be paid in exchange for
the services rendered by employees are recognised during the year when the employees render
the service. These benefits include performance incentive and compensated absences which
are expected to occur within twelve months after the end of the period in which the employee
renders the related service. The cost of such compensated absences is accounted as under:

Short term employee benefits:- The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered by employees are recognised during
the year when the employees render the service. These benefits include compensated absences
which are expected to occur within twelve months after the end of the period in which the employee
renders the related service. The cost of such compensated absences is accounted as under: i) in
case of accumulated compensated absences, when employees render the services that increase
their entitlement of future compensated absences; and ii) in case of non-accumulating
compensated absences, when the absences occur.

Long term employee benefits:- Compensated absences which are not expected to occur within
twelve months after the end of the period in which the employee renders the related services are
recognised as an actuarially determined liability at the present value of the obligation at the
balance sheet date.

Gratuity

The following table sets out the funded status of the defined benefit schemes and the amount
recognised in the financial statements:

ii Leave Encashment:

The valuation is done as per the parameters and measurements suggested under Ind AS
19 (Ind AS 19) As per Para 158 of Ind AS 19, disclosure for other long term employee
benefits are not mandatory and hence the same has not been disclosed.

Leave encashment liability which are not expected to occur within 12 months after the
end of the period in which employee renders the related services are recognised as a
liability at the present value of the defined benefit obligation as at the balance sheet date
based on actuarial valuation by an independent actuary using the Projected Unit Credit
Method. Obligation is measured at the present value of estimated future cash flows using
a discounted rate that is determined by reference to market yields at the Balance Sheet
date on Government Bonds where the currency and terms of the Government bonds are
consistent with the currency and estimated terms.

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Mar 31, 2024

1.3.15 Provisions and contingent liabilities

A provision is recognized when the company has a present obligation resulting from past events and it is probable that an outflow of resources will be required to settle the obligation for which a reliable estimate can be made. Provisions are based on management s best estimate of the amount required to settle the obligation at the balance sheet date Provisions are reviewed at each balance sheet date and adjusted to reflect revision in estimates.

A contingent liability is 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 or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

1.3.16 Exceptional Items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the company is such that its disclosure improves the understanding of the performance of the company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statement.

1.3.17 Non-current assets held for sale distribution to owners and discontinued operations

The Company classifies non-current assets and disposal of group of assets as held for sale/ distribution to owners if their carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use, Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to the sale/ distribution will be made or that the decision to sell/ distribute

will be withdrawn. Management must be committed to the sale/distribution expected within one year from the date of classification.

Non-current assets held for sale/for distribution to owners and disposal of group of assets are measured at the lower of their carrying amount and the fair value less costs to sell/ distribute. Assets and liabilities classified as held for sale/distribution are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held tor sale/ distribution to owners are not depreciated or amortised.

A disposal of group of assets qualifies as discontinued operation if it is a component of an entity that either has been disposed of. or is classified as held for sale, and:

•> Represents a separate major line of business or geographical area of operations,

? Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations

Or

? Is a subsidiary acquired exclusively with a view to resale

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit and loss.

1.3.18 Financial Instrument

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets

A) Initial recognition and measurement

On initial recognition, financial assets are recognised at fair value except trade receivables which are recognized at transaction price as they do not contain a significant financing component. In case of financial assets which are recognised at fair value through profit and loss (FVTPL). its transaction costs are recognised in the statement of profit and loss. In other cases, the transaction costs are attributed to the acquisition value of the financial asset. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortised cost.

B) Subsequent Measurement

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

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise to cash flows on specified dates that represent solely

payments of principal and interest on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method

b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the principal amount outstanding.

C) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial asset is measured at fair value through profit and loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit and loss are immediately recognised in the Statement of Profit and Loss..

Financial assets are reclassified subsequent to their recognition if the Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109- Financial Instruments.

D) Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in Other Comprehensive Income''. However, dividend on such equity investments are recognised in Statement of Profit and loss when the Company''s right to receive payment is established.

Derecognition

A financial asset {or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised {i.e removed from the Company''s balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

*> The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a passthrough’ arrangement- and either (a) The Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the riahts and obliaations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e g., loans, debt securities, deposits, trade receivables and bank balance

b) Financial assets that are debt instruments and are measured as at FVTOCI

c) Lease receivables under Ind AS 116

d) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115

e) Loan commitments which are not measured as at FVTPL

f) Financial guarantee contracts which are not measured as at FVTPL

The Company follows simplified approach'' for recognition of impairment loss allowance on:

? Trade receivables or contract revenue receivables; and

•> All lease receivables resulting from transactions within the scope of Ind AS 116

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted tor forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forwardlooking estimates are analysed. On that basis, the company estimates the following provision matrix at the reporting date:

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/'' expense in the statement of profit and loss (P&L). This amount is reflected under the head ''other expenses’ in the P&L.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets. Le., financial assets which are credit impaired on purchase/ origination.

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

Financial liabilities Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs. Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company s own equity instruments.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

b) Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity All other changes in fair value of such liability are recognised in the

statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Derecognition

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

Offsetting of financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively.

Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at lair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

The purchase contracts that meet the definition of a derivative under Ind AS 109 are recognised in the statement of profit and loss. Commodity contracts that are entered into and continue to be held for the

purpose of the receipt or delivery of a non-financial item in accordance with the Company''s expected purchase, sale or usage requirements are held at cost.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability.

1.3.19 Recent Accounting pronouncements

Ministry of Corporate Affairs ("MCA’’) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.

1.4. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

The Company based its assumptions and estimates on parameters available when the financial statements were prepared.

Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company.

Such changes are reflected in the assumptions when they occur.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of non-Financial Assets

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 s 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 group of assets.

When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use. the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts. the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss, except for properties previously revalued with the revaluation surplus taken to OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation surplus.

The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses for the reporting period.

Employee benefit plans

Defined contribution plans

Contribution paid/ payable to defined contribution plans comprises provident fund for certain employees governed under the scheme are recognised in the profit or loss each year when employees have rendered

services entitling them to the contributions. Under this plan, the Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company has recognised Rs.17.78 lakhs (Year ended 31 March. 2023 Rs.17.01 lakhs) for Provident Fund contributions (including Pension fund / EDLI contributions) in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

The Company''s Gratuity Scheme for its employees is a defined benefit retirement plan. The cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of the year. Defined benefit costs are categorised as follows: 1) service cost (including current service cost, 2) past service cost, as well as gains and losses on curtailments and settlements); 3) net interest expense or income: 4) re-measurement

The Company presents the first 3 components of defined benefit costs in profit or loss in the line item Note no 28 ‘Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Re-measurement, comprising actuarial gams and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss.

ii. Leave encashment

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under:

Short term employee benefits:- The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. The cost of such compensated absences is accounted as under: i) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and ii) in case of non-accumulating compensated absences, when the absences occur.

Long term employee benefits:- Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the obligation at the balance sheet date.

SEGMENT REPORTING

Business Segments: The Company is engaged in manufacture of Electrical Installation Products. Two segments viz Manufactured products and Trading products are the reportable business segments, identified as per Ind AS 108, Segment Reporting. Segment assets and liabilities. These segments are the basis for management control and hence, form the basis for reporting. The business of each segment comprises of:

Manufacturing segment: - The Company manufactures high-end electrical equipment, indigenously designed through extensive research and development in the vital fields, offering them across the country to its clients The products are:

Other Disclosure

1. Current taxes, deferred taxes are not allocated to individual segments as they are also managed on a company basis.

2. The allocation of interest income, other income (net of expenses), and finance costs is not attributed to specific segments, as these instruments are managed on a comprehensive company-wide basis.

3. Unallocated Assets and Liabilities: Most of the assets, liabilities of the aforesaid reportable segments are interchangeable or not practically allocable and any forced allocation would not result in any meaningful segregation Accordingly, segment assets & liabilities have not been presented. This segment information is provided to and reviewed by Chief Operating Decision Maker (CODM).

Note No.39

Leases

As a lessee

Effect of adoption of new accounting standard on Leases: Ind AS 116

The company has adopted IND AS 116 Leases" from the date of incorporation of the company. Existing lease-hold building

The existing lease contract entered by the Company pertains to buildings taken on lease for the company’s factory at Ambernath which is currently on a long term lease, expiring on 11/10/2099 The Right of Use Asset has been capitalised as a Lease hold building and depreciation is charged on a straight-line basis over the estimated useful lives of the assets (i.e. 30 years). Since there are no incremental payments, in the form of lease rentals to be made to the lessor in future, corresponding lease liability has not been disclosed as of 31/3/2024. The Company does not have any lease restrictions and commitment towards variable rent as per the contract.

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

The Company has not disclosed the fair value of financial instruments measured at amortised cost as their carrying amounts are a reasonable approximation of fair value.

Note No. 43

Financial Risk management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company s risk management framework. The Company has constituted a core Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly.

A. Liquidity risk

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024 and 31st March. 2023. Cash flow from operating activities provides

the funds to service the financial liabilities on a day-to-day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

B. 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, currency risk and other price risk. Financial instruments affected by market risk include loans and borrowings and deposits.

i) 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. This risk exist mainly on account of borrowings of the Company. However, all these borrowings are at fixed interest rate and hence the exposure to change in interest rate is insignificant.

The Company availed issued working capital facility in INR based on ICICI Bank rates as a benchmark of Repo Rate 4% and Spread rate 3.25% (which is a variable interest rate debt). However, since there were no borrowings outstanding as of 31/3/2024, the impact of sensitivity to interest rates would not apply.

ii) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Hi) Price Risk

The Company is mainly exposed to the price risk due to its investment in debt mutual funds. The price risk arises due to uncertainties about the future market values of these investments.

C. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and other financial assets.

The maximum exposure to credit risk was Rs. 2232.10/- Lakhs as at March 31,2024 (Previous year : Rs. 1736.22 lakhs) primarily in the form of Receivables. Bank balances and FDs placed being the carrying amount of Financial assets.

i) Trade Receivables

The major exposure to credit risk at Ihe reporting date is primarily from receivables comprising of trade receivables. Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major trade receivables. For receivables, as a practical expedient, the Group computes expected credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.

ii) Other Financial Assets

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company''s policy. Investments of surplus funds are made only in highly marketable debt instruments with appropriate maturities to optimise the cash return on instruments while ensuring sufficient liquidity to meet its liabilities.

D) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company''s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

E) Capital Management

The Company''s objectives when managing capital are to

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• Manage its capital structure and makes adjustments in light of changes in economic condition and the requirements of the financial covenants

¦ Diversify sources of financing and spread the maturity across tenure buckets in order to manage liquidity risk.

Note No. 46

Details of unhedged foreign currency exposure

There were no unhedged foreign currency exposures as of 31/3/2024 (Previous Year: NIL)

Note No. 47

Details of loans given, investments made and guarantee given covered u/s 186(4) of the Companies Act 2013

There were no loans given or guarantees provided us 186(4) of the Companies Act. Investments as of 31^fc'' March 2024 pertain to equity shares held in Saraswat Sank totalling to Rs. 0.1 lakhs and investment in mutual funds of Rs 3.12 lakhs as of 31 Mar 2024, which was within the limit prescribed under Section 186(2) of the Act.

Note No. 52 - Corporate actions

Increase in Authorized CapitalThe Board of Directors of the company has passed a resolution in the Board meeting held on 28 May 2024 for increase in the Authorised Share Capital of the Company from Rs. 97.5 lakhs (i.e. 97,500 equity shares of Rs. 100/- each) to Rs. 400 lakhs, (i.e. 4.00.000 equity shares of Rs. 100/- each). and thereby consequent alteration to the Memorandum of Association of the Company This is subject to the approval by the shareholders of the company through the Postal Ballot.

Subdivision of equity shares The Board of Directors of the company has passed a resolution in the Board meeting held on 28^lh May 2024 for sub-division (Split) of equity shares of the Company and consequent alteration in the Memorandum of Association ("MOA”) and Articles of Association^ AOA") of the Company from a face value of Rs. 100/- per share to a face value of Rs. 10/- per equity share each, fully paid-up, ranking pari-passu in all respects, as of the Record date. This is subject to the approval by the shareholders of the company through the Postal Ballot.

Bonus sharesThe Board of Directors in the Board meeting held on 28^;l May 2024 has recommended issue of bonus shares in the ratio of 4 equity share of Rs.10 each for every 1 existing equity shares of Rs, 10 each, which is subject to approval by the shareholders of the company through the Postal Ballot. Such bonus shares, if approved by members of the company shall rank pari-passu with the existing equity shares. The Bonus shares will be issued to the existing equity share holders of the company as on the Record date subject to approvals as may be required.

Dividend: In the Board meeting held on 28’^h May 2024, the Board of Directors of the company has recommended a normal dividend of Rs. 60/- (60%) per equity share and additional a special dividend of Rs 40/- (40%) per equity share of Rs. 100/- each for the year ended March 31, 2024 (Previous year @ 60% i.e. Rs 60 per equity share), resulting in a total dividend of Rs. 100/- per equity share. This translates

to a Final dividend of Rs. 2.0/ share post bonus shares and subdivision of shares, if the contemplated Stock Split and Bonus issues get effected before the record date fixed for the Dividend,. Total outflow for dividend shall be a sum of Rs. 63.47 lakhs (as against Rs. 38.08 lakhs in the previous year). This is subject to approval by shareholders of the Company at the ensuing Annual General Meeting of the Company.

Note: If the contemplated Stock Split and Bonus issues get effected before the record date fixed for the Dividend, such Dividend, if declared by the shareholders, will duly get adjusted and paid in proportionate to the shares as available on the record date.

Note No. 54 Other disclosures

54.1 Title deeds of Immovable Property not held in the name of the company.

The company does not possess any immovable property whose title deeds are not held in the name of the company during the financial year ended 31/03/2023 and 31/03/2024

54.2 Details of Benami Property Held

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988(45 of 1988) and rules made there under during the financial years ended 31/3/2023 and 31/3/2024.

54.3 Details of Crypto Currency or Virtual Currency

The company has not traded or invested in crypto currency or virtual currency during the financial years ended 31/3/2023 and 31/3/2024.

54.4 Undisclosed Income

The Company does not have any such transaction which is 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).

54.5 Transactions with Struck off companies.

The company has not undertaken any transactions with any company whose name is struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 in the financial years ended March 31, 2023 and March 31, 2024.

54.6 Utilisation of Borrowed funds and share premium.

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 in any other person(s) or entity (ies), including foreign entities (“Intermediaries''’) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

The Company has not received any fund from any party(s) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries ") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

54.7 Charges registered with ROC

All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2023 and March 31. 2024. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

54.8 Compliance with Companies (Restriction on number of Layers) Rules, 2017

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31,2023 and March 31, 2024.

54.9 No scheme of arrangements

There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 as per Companies Act 2013.

54.10 Bank borrowings

The company is not declared as a wilful defaulter by any bank or financial institutions or other lenders in the Financial years ended 31/03/2023 and 31/03/2024

54.11 Revaluation of Property, Plant and Equipment (including Right-of-Use Assets) or intangible assets

The company has not revalued its Property, Plant and Equipment {including Right-of-Use Assets) or intangible assets during the financial year ended 31/03/2024

54.12 Previous period figures have been regrouped / reclassified wherever necessary, to conform to current period classification

54.13 The company is maintaining its books of account in electronic mode and these books of account are accessible in India at all times and the back-up of books of account has been kept in servers physically located in India on a daily basis from the applicability date of the Companies (Accounts) Rules, 2014,

54.14 The company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software.

As per our report of even date attached For and on behalf ol the Board

For R. SUBRAMANIAN AND COMPANY LLP

Chartered Accountants 0 Rajesh Kumar Jitendra K. Vakharia

Firm Registration No.: Q04137S/S200041 Director Director

Kartlk Subraman.an f" • °^0003126> J?''^N _h °°⁰⁴⁷⁷⁷⁷ >

_Pf)rIner Coimbatore Coimbatore

Membership No. 209698

UDIN : 24209698BKAGPQ13Q4 Mohit Dubey

MUMBAI, uwpaarouwr Company Secretary

Date: 28th May 2024___Membership No A67363

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Mar 31, 2015

1. Details of Licensed and Installed Capacity, Production, Stock and Turnover.

2. Employee Benefits

With effect from 1st April 2007, the company has adopted revised Accounting Standard 15 "Employei Benefits". Pursuant to the adoption, no adjustment was required to be made to general reserve of revisei As -15 as the impact was insignificant. .

3. During the year, the company has taken physical verification of fixed assets and noted discrepancy of Rs Nil (W.D.V.) (P. Y Nil ) of Fixed Assets and the same were adjusted and discarded in the books of accounts

4. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, in the opening balance of General Reserves amounting to Rs. 1,034,379/-.

5. Disclosure of Related Parties / Transactions With Related Parties:-

Relationship Name of Related Party

Subsidiary company RDJ Construction Private Limited

Group Companies CMS Traffic Systems Limited

(Enterprise over which Director CMS Computers Limited

and/or his relatives has Jess Prasad Engg. And Metallurgical Services Pvt. Ltd

significant influence) ST Energy Solution Private Limited

CMS Engineering Services Private Limited G.G. Constructions Private Limited Datacom Computer Services Private Limited Dynamic Hydro Machines Private Limited Mailtek Services (India) Limited Netprint Solution India Private Limited New Video Private Limited CMS - Ident Pvt. Ltd.

Computer Products and Services Pvt. Ltd.

Dominant Developers Pvt. Ltd.

Acu-Soft Technologies Pvt. Ltd.

CMS-DITL Ltd.

Computer Maintenance Service Royal Virgo Travels Systime Computers Limited CMS Universal Solution P Ltd CMS Info System Ltd.

Resergent Infotech Pvt.Ltd.

People Upliftment Foundation CMS Marshal Limited CMS Securitas Limited Money ease Capital Pvt. Ltd.

CMS I.T Services Pvt.Ltd

Key Management Personnel (KMP) Directors :

Mrs. Raju R. Grover Ms. Aarti R. Grover Mrs. Sona P. Ramchandani Mrs. Pramila Prakash Merani Mrs.Savitri Lal Butani Mr.Deepak Potdar (CFO)

Miss. Kamaleshwari Bind (CS)

6. The equity shares of the company are listed in Bombay Stock Exchange and company has paid annual listing fees to the stock exchange for the year 2014-2015.

7. During the year the Company has reviewed Accounts Receivable and reversed provision for doubtful debts Rs. 555,034. (P.Y. Provision made.Rs 348,923).

8. Segment wise Reporting as per Note No. 27.

9. In the opinion of the Board Current Assets, Loans & Advances have a value on realization in the ordinary Course of Business at least equal to the amount at which they are stated in accounts and all current liabilities have been provided for.

10. Sundry Debtors and Creditors are subject to confirmation and reconciliation if any.

11. Previous Years figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2013

1 Employee Benefits

With effect from 1st April 2007, the company has adopted revised Accounting Standard 15 "Employee Benefits". Pursuant to the adoption, no adjustment was required to be made to general reserve of revised As -15 as the impact was insignificant.

As per Accounting Standard 15" Employee Benefits", the disclosure of Employee benefits as defined in the Accounting Standard are given below:

2 During the year the Company has reviewed Accounts Receivable and made provision for doubtfull debts Rs. 513,805 (P.Y. 1,862,020).

3 Segment wise Reporting as per Note No. 27

4 In the opinion of the Board Current Assets, Loans & Advances have a value on realization in the ordinary Course of Business at least equal to the amount at which they are stated in accounts and all current liabilities have been provided for.

5 Sundry Debtors and Creditors are subject to confirmation and reconciliation if any.

6 Previous Years figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2012

Note : The Above Remuneration Paid is In Excess of Limits Prescribed U/S 309 of The Companies Act 1956 and is subject to necessary Subsequent approval.

1 Details of Licensed and Installed Capacity, Production, Stock and Turnover.

2 Employee Benefits

With effect from 1st April 2007, the company has adopted revised Accounting Standard 15 "Employee Benefits". Pursuant to the adoption, no adjustment was required to be made to general reserve of revised As -15 as the impact was insignificant.

As per Accounting Standard 15 " Employee Benefits", the disclosure of Employee benefits as defined in the Accounting Standard are given below:

The Company's Provident Fund is Exempted under section 17 of Employees' Provident Fund Act, 1952.Condition of grant of exemption stipulates that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis- a vis statutory rate.

II Defined Benefit Plans

Under both the Gratuity and Leave Encashment, The Present Value of Obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit of employee benefit entitlement and measure each unit separately to build up the final obligation.

Fare value of plan assets at the end of period Rs 12,148,262/- is funded fully with Life Insurance Corporation of India

3 During the year, the company has taken physical verification of fixed assets and noted discrepancy of Rs Nil (W.D.V.) (R Y. 0.28 Lacs) of Fixed Assets and the same were adjusted and discarded in the books of accounts - Rs. NIL in respect of the related parties have bee written off are provided during the year

- Related party relationship have been identified by the management and relied upon by the auditors

4 The equity shares of the company are listed in Bombay Stock Exchange and company has paid annual listing fees to the stock exchange for the year 2011-2012.

5 During the year the Company has reviewed Accounts Receivable and decided to written off Rs. 14.50 Lacs (RY. 9.95 Lacs) as bad debts.

6 Segment wise Reporting as per Note No. 27

7 In the opinion of the Board Current Assets, Loans & Advances have a value on realization in the ordinary Course of Business at least equal to the amount at which they are stated in accounts and all current liabilities have been provided for.

8 Sundry Debtors and Creditors are subject to confirmation and reconciliation if any.

9 Previous Years figures have been regrouped / rearranged wherever necessary.

NOTE NO. 10

1. Segments have been identified in line with the accounting standard on segment reporting (AS- 17) taking into account the organisation's product revenue.

2. The company recognise switches as primary segment.

3. Assets used in the company's business or liabilities contracted have not been identified to any of the reportable segments as assets are used interchangeably between segments.

Management believes that it is not practicable to provide segment disclosure relating to total assets and total liabilities, since a meaningful segregation of available data could be onerous.

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Mar 31, 2011

1. Background

KAYCEE INDUSTRIES LIMITED is a manufacturing and trading company in the field of industrial switches, counters, water meters, electrical components, etc.

I Defined Benefit Plans

Under both the Gratuity and Leave Encashment, The Present Value of Obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit of employee benefit entitlement and measure each unit separately to build up the final obligation.

2. During the year, the company has taken physical verification of fixed assets and noted discrepancy of Rs 0.28 lacs (W.D.V.) (P. Y. 0.11 Lacs) of Fixed Assets and the same were adjusted and discarded in the books of accounts

3. Disclosure of Related Parties / Transactions With Related Parties:-

Relationship Name of Related Party

Holding companies Money Ease Capital Private Limited CMS Traffic Systems Limited

Subsidiary companies RDJ Construction Private Limited

Group Company Jess Prasad Engg. And Metallurgical Services Pvt. Ltd. (Enterprise over which CMS Energy Systems Private Limited Director and/or his CMS Engineering Services Private relatives has Limited significant influence) G.G. Constructions Private Limited

Datacom Computer Services Private Limited

CMS Computers Limited

Systime Global Solutions Pvt. Ltd.

CMS Info Systems Pvt. Ltd.

CMS Securitas Limited

Dynamic Hydro Machines Private Limited

Mailtek Services (India) Limited

Netprint Solution India Private Limited

New Video Private Limited

CMS-ldentPvt. Ltd.

Systime Computers Limited

Computer Products and Services Pvt. Ltd.

VersaPos Group Inc USA

Dorminant Developers Pvt. Ltd.

Acu-Soft Technologies Pvt. Ltd.

Cable Network Systems Pvt. Ltd.

CMS-DITL Ltd.

CMS Netprint (Private) Limted Sri Lanka

Suburbia Realtors Private Limited

Systime Computer Corporation, USA

Systime Global Systems Pte Ltd.,. Singapore

Systime Global Systems Pte Ltd., Australia

Systime Global Systems Japan Ltd., Japan

Systime ME FZCO, Dubai.

CSI Solutions Ltd., U.K.

VersoPosl NC.USA

CMS Global Solutions Ltd., U.K.

Leadline Security Systems Private Limited

Unmatched Systems Private Limited

Dominant Systems Private Limited

Radiant Security Services Private Limited

Computer Maintenance Service

Resergent Infoteck Private Limited

Royal Virgo Travels

Key Management Personnel Mrs. Raju R. Grover (KMP)

Ms. Aarti R. Grover

Mr. Aaloke Ghosh

4. The equity shares of the company are listed in Bombay Stock Exchange and company has paid annual listing fees to the stock exchange for the year 2010-2011.

5. Balance Sheet Abstract and Company's Business Profile as per Annexure to Schedule No. 14

6. During the year the Company has reviewed Accounts Receivable and decided to written off Rs. 9.95 Lacs (P.Y. 1.18 Lacs) as bad debts.

7. Segment wise Reporting as per Annexure to Schedule No. 14.

8. In the opinion of the Board Current Assets, Loans & Advances have a value on realization in the ordinary Course of Business at least to the amount at which they are stated and all current liabilities have been provided for.

9. Sundry Debtors and Creditors are subject to confirmation and reconciliation if any.

10. Previous Years figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2010

1 Background

KAYCEE INDUSTRIES LIMITED is a manufacturing and trading company in the field of industrial switches, counters, water meters, electrical components, etc.

2 Earning per share

Basic and diluted earnings per share are calculated by dividing the net profit/ loss for the year by the weighted average number of equity shares outstanding during the period.

3 Provisions

A provision is recognized when the company has a present obligation resulting from past events and it is probable that an outflow of resources will be required to settle the obligation for which a reliable estimate can be made. Provisions are based on managements best estimate of the amount required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect revision in estimates. The company has decided to provide Bad and doubtful debts if debtors remain outstanding over and above one years

4 Income Tax

A tax expense comprises current and deferred taxes. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with The Income Tax Act, 1961. Deferred Income Tax Reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

The differed tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted at the balance sheet date.

Deferred taxes assets are recognized and carried forward for all deductible timing differences only if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The deferred tax liability is arising due to timing difference on depreciation charged where as deferred tax assets arising mainly on account of Leave encashment & Gratuity.

5 Estimated value of contracts (Net of Advances) to be executed on capital account and not provided for Rs. 0.66 Lacs (Previous year Rs. 5.34 Lacs).

6 Duties & Penalties to the tune of Rs. NiL Lacs (Prev. Year NIL lacs) have been levied by the Superintendent of Excise. Company has not provided contingent liability of Rs 12.88 Lacs against Sales Tax Assessment for year 2000-2001 and Rs.3.96 Lacs against Central Excise assessment for year 2007-2008.

7 Pakistan unit of the Company continues to be under the control of Pakistan Government. It has not been possible to establish any communication with the said unit so far. Therefore, statement of Assets and Liabilities as at 30th June 1964 based on the last reports received have been incorporated in the Balance sheet as pre devaluation rate of rate of exchange as per Schedule 7.

8 Details of Licensed and Installed Capacity, Production, Stock and Turnover.

9 The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/Payable under this act have not been given.

10 Employee Benefits

With effect from 1st April 2007, the company has adopted revised Accounting Standard 15 "Employee Benefits". Pursuant to the adoption, no adjustment was required to be made to general reserve of revised As -15 as the impact was insignificant.

The Companys Provident Fund is Exempted under section 17 of Employees Provident Fund Act, 1952.Condition of grant of exemption stipulates that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis- a vis statutory rate. II Defined Benefit Plans Under both the Gratuity and Leave Encashment, The Present Value of Obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit of employee benefit entitlement and measure each unit separately to build up the final obligation.

11 During the year, the company has taken physical verification of fixed assets and noted discrepancy of Rs 0.11 lacs (W.D.V.) (P. Y. NIL Lacs) of Fixed Assets and the same were adjusted and discarded in the books of accounts

12 Disclosure of Related Parties / Transactions With Related Parties:-

Relationship Name of Related Party

Holding companies Money Ease Capital Private Limited CMS Traffic Systems Limited

Group Company Jess Prasad Engg. And Metallurgical Services Pvt. Ltd.

(Enterprise over which Director CMS Energy Systems Private Limited and/or his relatives has CMS Engineering Services Private Limited significant influence) G.G. Constructions Private Limited Datacom Computer Services Private Limited CMS Computers Limited Systime Global Solutions Pvt. Ltd. CMS Info Systems Pvt. Ltd. CMS Marshall Limited CMS Securitas Limited Dynamic Hydro Machines Private Limited Mailtek Services (India) Limited Netprint Solution India Private Limited New Video Private Limited CMS - Ident Pvt. Ltd. Maxcool Technology Pvt. Ltd RDJ Constructions Pvt. Ltd. Systime Computers Limited Computer Products and Services Pvt. Ltd. Sea Shell Properties Pvt. Ltd. VersaPos Group Inc USA Dorminant Developers Pvt. Ltd. Acu-Soft Technologies Pvt. Ltd. Cable Network Systems Pvt. Ltd. CMS-DITL Ltd.

Key Management Personnel (KMP) Mr. R. D. Grover Mrs. Raju R. Grover Mr. V. K. Prasad

Relatives of KMP Ms. Aarti R. Grover

13 The equity shares of the company are listed in Bombay Stock Exchange and company has paid annual listing fees to the stock exchange for the year 2010-2011.

14 Balance Sheet Abstract and Companys Business Profile as per Annexure to Schedule No. 14

15 During the year the Company has reviewed Accounts Receivable and decided to written off Rs. 1.18 Lacs(P.Y. 21.87 Lacs) as bad debts.

16 Segment wise Reporting as per Annexure to Schedule No. 14.

17 In the opinion of the Board Current Assets, Loans & Advances have a value on realization in the ordinary Course of Business at least to the amount at which they are stated and all current liabilities have been provided for.

18 Sundry Debtors and Creditors are subject to confirmation and reconciliation if any.

19 Previous Years figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2003

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF :

i) Guarantees given by Banks in favour of third parties for which Company has issued counter-guarantees Rs. Nil (Previous Year Rs. 2.46 lacs)

ii) Duties & Penalties to the tune of Rs. 2.61 lacs have been levied by the excise department against which appeals have been filed before the appalate authorities and full amount has been paid under Protest.

2. Pakistan unit of the Company continues to be under the control of Pakistan Government. It has not been possible to establish any communication with the said unit so far. Therefore, statement of Assets and Liabilities as at 30th June, 1964 based on the last reports received have been incorporated in the Balance sheet at pre devaluation rate of exchange as per Schedule 7.

3. MANAGERIAL REMUNERATION:

b) Due to inadequate profit and Mr. Nareshchandra Jain ceases to be Managing Director w.e.f. 2.7.2002 no commission is being paid.

4. TAXATION AND DEFFERED TAXATION :

Provision for income tax has been made during the year

Company has deffered tax assets of Rs 25.39 lacs (Net) as on 31st March 2003, however the same has not been recognised in view of uncertainty of quantum of future profits.

5. The Company has not received any information from any of the suppliers as covered under small scale and ancillary undertakings Act, 1993 of their being a small scale industrial unit. Hence the amount due to small scale industrial units outstanding and interest thereon for more than thirty days as on 31st March 2003, are not ascertainable.

6. As per the rules of the Company the accumulated earned leave are allowed to be availed by the employees even after the close of the financial year of the Company, and this policy is being followed consistently.

7. Related Parties Disclosure :-

-No amount in respect of the related parties have been written off / back are provided during the year.

-Related party relationship have been identified by the management and relied upon by the auditors.

-There is no corresponding figures for the previous year.

8. The equity shares of the company are listed in Bombay Stock Exchange and company has paid annual listing fees to the stock exchange for the year 2003-2004.

9. Material in process includes material costing Rs. 51.53 lacs lying with the company for more than two years. The market value of the same is not assertainable.

10. Balance Sheet Abstract and Companys Business Profile as per Annexure to Schedule No.ll

11. Cash flow for the year ended 31st March 2003 as annexure to Schedule No.ll.

12. Segmentwise Reporting as per Annexure to Schedule No. 11.

13. In the opinion of the Board Current Assets, Loans & Advances have a value on realisaton in the ordinary Course of Business at least to the amount at which they are stated and all current liabilities have been provided for.

14. Sundry Debtors and Creditors are subject to confirmation and reconciliation.

15. Other expenses includes prior period items of Rs. NIL & Previous years Rs. 0.07 lacs.

16. Company has given advances of Rs. 1,07,400/- to suppliers for moulds which are outstanding for considerable time and in opinion of the management the advance for the moulds will be recovered in due course of time.

17. Previous Years figures have been regrouped/rearranged wherever necessary.