Notes to Accounts of Key Corp Ltd.

Mar 31, 2024

fix) Provisions

Provisions are recognized when the enterprise has a present obligation (legal or constructive] as
a result of past events, 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 expense relating to any provision is presented in the statement of profit and loss net of any
reimbursement

(x) Revenue Recognition

fa) All income and expenses are accounted for on accrual basis, except otherwise stated.

fb) Interest Income

Interest income is recognized by applying the Effective Interest Rate [EIR) to the gross carrying
amount of financial assets other than credit-impaired assets and financial assets classified as
measured at Fair Value through Profit & loss account (FVTPL).

The EIR in case of a financial asset is computed:

i. As the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to tiie gross carrying amount of a financial asset.

ii. By considering all the contractual terms of the financial instrument in estimating the cash
flows.

iii. Including all fees received between parties to the contract that are an integral part of the
effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows is recognized in interest
income with the corresponding adjustment to the carrying amount of the assets.

fc) Dividend Income

Dividend income is recognized

a. When the right to receive the payment is established,

b. it is probable that the economic benefits associated with the dividend will flow to the entity and

c. the amount of the dividend can be measured reliably

CERTIFIED lO HE A TV.UE COP>

(d} Fees & Commission Income

Fees and commissions are recognized when the Company satisfies the performance obligation, at
lair value oi me consideration received nr receivable, unless included in the effective interest
calculation.

fe) Net gain on Fair value changes

Any differences between the fair values of financial assets classified as lair value through the profit
or loss, held by the Company on the balance sheet date is recognized as an unrealized gain / loss. In
cases where there is a net gain in the aggregate, the same is recognized in "Net gains on fair value
changes "under Revenue from operations and if there is a net loss the same is disclosed under
Expenses” in the statement of Profit and Loss.

Similarly, any realized gain or loss on sale of financial instruments measured at FVTPL and debt
instruments measured at FVOC1 is recognized in net gain / loss on fair value changes.

^ ^ Vas loWowed the prudential norms for income recognition and provisioning for

non-performing assets as prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.

fxi) Retirement and other employee benefits

falShort term employee benefit

All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits. These benefits include short term compensated absences such as paid
annual leave which is accounted for as per Service Rules and charged to the Statement of Profit &
Loss account. The undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees is recognized as an expense during the period.
Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are recognized
in the period in which the employee renders the related service.

(blnostiemployment employee benefits

[a) Provisions for Retirement benefits for Gratuity are made as per The Payment of Gratuity Act

1972. ''

(b) Contribution to Provident Fund is recognized when due.

(xii) Taxation

Tax expense for the period comprises current and deferred tax. Tax is recognized in statement of
profit & loss except to the extent that it relates to items recognized in the comprehensive income or
in equity in which case, the tax is also recognized in other comprehensive income or equity.

CERTIFIED TO IIF A TRUE COPY

fa) Current Tax

Current tax assets and liabilities for the current and prior years are measured at the

evaluates p«i«onTtterf„Vhrtat7em™ " ‘“T^{% 1}" ^ P^iodioally

regulations are subject to ^interP^rttation mid cstabli^l]cTprovisions^tw¹here''^!app_r^^,p₎!|^¹te^a^^1iCa^^{R tax}
(b) Deferred fav

bases of aSs and Abilities and'' ^arisl"^{8 bet}™«" ¹e lax

^tax (^{and laws}J that have been enacted or substantial ''nj-ome ^{tax ls} determined using

experled to apply when the related deferred income tax asseUsreaf H '' “ c^⁰"''"^{8 daK a,ld are}
liability is settled. income tax asset is i eahzod or the deferred income tax

- ¦—-—«,

and losses. Deferred tax assets are reviewed at each ™ r !^ltlh” ^,hose temporary differences
that ,t IS no longer probable that the related tax benefit Jill be realized “^{1 red}“^{Ced 1}° ^{lhe ment}

-forceabie right to offset

the same tax, ... entity, or on different tax entire TT, ™^{d lly ,hc} samL''^tax authority on

and assets „„ a net bas.s or their tax assets and liabifife a^Xds^mt™'' ¹â€œ

(^c) floods Servirn Tpv

the goods and se.-e«s^a“e^aZed r^nxceVt" "^{1 rec}°⁸"^ized «•« of

authority, in . . - _: , paid''is re f ^ ^Sm''''^{CeS iS not reC0Vf>}rable from the taxation

part of the expe-r -»= ,, applicable. ^{CUgmZe di> part ofthe cost}°facquisition of the asset or as

probable that an outflow of resources will be required to settle the obligation. A contingeni
liability also arises in extremely rare cases where there is a liability that cannot be recognizee
because it cannot be measured reliably.

(xv) Recent 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. Foi
the year ended March 31, 2024 MCA has not notified any new standards or amendments to the
existing standards applicable to the company.

In terms of our separate report For and on behalf of Key Corp Limited

Of even date attached CIN: L65921UP1985PLC007547

For V.P. ADITYA & CO. K.B. Agarwal G.D. Maheshwari

Chartered Accountants (DIN: 00339934) (DIN: 00235209)

(FRN: 000542C) (Chairman) (Executive Director)

(CA SURENDRA KAKKAR) Ms. Namrata Shukla R.N. Singh

Partner (C.P. No. 59175) (Chief Financial Officer)

M. No: 071912 (Company Secretary)

Place: Kanpur
Date: 27.05.2024

CERTIFIED TO EE A TRUE COPV

For Key C&rp Ltd.

(V. K. banday)

Joint SfccrotJiry

1

2Z7¹:'' '' ^: With the ~ °^f2 ‘-eluded. The net amount of

2

payables in the ^ V, '' ^{2 taXat,}°" ^author^ ^is ‘eluded as part of receivables or

(xiii) Earning - -- - ¦

The Compan .

Earnings per _: ^{U et carnmgs per share in} accordance with Ind AS 33 on

fxiv) Continy. - • _ •...

A contingent h • ir» « » aam- , ,

confirmed!. .....- _M|||| ; - .1^“°" "if ^a™« &™, past events whose existence will be

the control ^{one Qr mnrc} uncertain future events bevund

*-» - ¹ - -sen, obligation that is no, recognised because it i/not

-------- CB»Tlf:irrs ir, .... .

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Mar 31, 2015

1. (i) LONG-TERM PROVISIONS :

(ii) The Accounting Standard-15 "Employee benefits", prescribed by the Central Government, has become applicable to the company in its entirety as our company is listed Company.

In formulating the accounting policy regarding employee benefits, we were motivated by the fact that average number of employees during the financial year, were 19 i.e. less than 50.

In similar circumstances, unlisted companies have been permitted to calculate and account for the accrued liability under the head "Gratuity", by some other rational method. Provisions of The Payment of Gratuity Act, 1972 gives one such method. This is based on the assumption that such benefits are payable to all employees at the end of the accounting year.

The management still feels that the size of the company does not make it feasible to provide Gratuity by way of actuarial valuation. Hence, it is decided to continue with the same accounting policy.

2. DEFERRED TAX ASSETS / (LIABILITIES) (NET):

(a) Deferred tax is calculated and determined in accordance with the requirements of Accounting Standard - 22 "Accounting for Taxes on Income" and is subject to the concept of prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods. Deferred tax assets are reviewed for their carrying values at each balance sheet date and recognised only if there is 'reasonable certainty' that they will be realised in future. As at 31.03.2015 the recognised deferred tax liability/asset is as follows:-

(b) Net Deferred Tax Assets/(Liabilityj Rs. 440594/- (Previous Year Rs. 523325/-)

3. ADDITIONAL NOTES :

(i) (a) The company follows the Reserve Bank of India guidelines applicable to Non Banking Financial Companies regarding assets classification, provisioning and income recognition on non performing assets and accounting for Investments.

(b) Information required to be disclosed in terms of paragraph 13 of Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is as under

4. In the financial year 2014-15, the Company has operated in only one business segment, hence compliance of AS-17 regarding "Segment Reporting" is not necessary.

5. Related party transactions:

There are no related party as described in Clauses (a) to (e) of paragraph 3 of the Accounting Standard-18 "Related party disclosures" issued by the Institute of Chartered Accountants of India.

6. CONTINGENT LIABILITIES:

CONTINGENT LIABILITY NOT PROVIDED FOR (2014-15) (2013-14)

Claims against the Company not acknowledged as debt Rs. NIL Rs. NIL

7. The figures have been rounded off to the nearest rupee.

8. Last year's figures have been regrouped and re-arranged wherever necessary to conform to the figures of the current year.

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Mar 31, 2014

A 03) (i) LONG-TERM PROVISIONS :

(ii) TheAccountingStandard-15 "Employee benefits", prescribed by the Central Government, has become applicable to the company in its entirety as our company is listed Company In formulating the accounting policy regarding employee benefits, we were motivated by the fact that average number of employees during the financial year, were 19 ie less than 50

In similar circumstances, unlisted companies have been permitted to calculate and account for the accrued liability under the head "Gratuity", by some other rational method Provisions of The Payment of Gratuity Act, 1972 gives one such method

This is based on the assumption that such benefits are payable to all employees at the end of the accounting year

The management still feels that the size of the company does not make it feasible to provide Gratuity by way of actuarial valuation Hence, it decided to continue with the same accounting policy

A05)(i) TRADE PAYABLES:

(ii) The company has not received any memorandum (as required to be filed by the Suppliers with the notified authority under the Micro, small and medium Enterprises Development Act, 2006), claiming their status as Micro, small or medium enterprises Consequently, the amount paid / payable to these parties during the year is Nil

A10) DEFERREDTAXASSETS/(LIABILITIES)(NET):

(a) Deferred tax is calculated and determined in accordance with the requirements of Accounting Standard - 22 "Accounting for Taxes on Income" and is subject to the concept of prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods Deferred tax assets are reviewed for their carrying values at each balance sheet date and recognised only if there is ''reasonable certainty''that they will be realised in future As at 31032014 the recognised deferred tax liability/asset is as follows:-

A 12) (i) TRADE RECEIVABLES :

(ii) Balance in some accounts of trade receivables is subject to confirmation

(iii) All trade receivables are outstanding for a period less than six months from the date they are due for payment Also, no debts are due by directors or any other officers of the company either severally or jointly

A14)(i) SHORT TERM LOANS AND ADVANCES :

(ii) Balance in some accounts of short term loans and advances is subject to confirmation

A21) EARNING PER SHARE:

(i) Annualised earning per equity share has been calculated on the net profit (after taxation) of Rs.1,26,43,312/- (previous year Rs. 1,40,69,673/-) taken as the numerator divided by number of equity shares 60,00,000 (previous year 60,00,000) taken as the denominator

(B) ADDITIONAL NOTES :

(i) (a) The company follows the Reserve Bank Of India guidelines applicable to Non Banking Financial Companies regarding assets classification, provisioning and income recognition on non performing assets and accounting for Investments

(b) Information required to be disclosed in terms of paragraph 13 of Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is as under:-

NOTE TO THE BALANCE SHEET OF A NON DEPOSIT TAKING NON-BANKING FINANCIAL COMPANY

{as required in the terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007)

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Mar 31, 2013

A1) DEFERRED TAX ASSETS / (LIABILITIES) (NET) :

(a) Deferred tax is calculated and determined in accordance with the requirements of Accounting Standard - 22 "Accounting for Taxes on Income" and is subject to the concept of prudence, on timing difference being the difference between taxable income and accounting income thatoriginate in one period and is capable of reversal in one or more subsequent periods. Deferred tax assets are reviewed for their carrying values at each balance sheet date and recognised only if there is ''reasonable certainty'' that they will be realised in future. As at 31.03.2013 the recognised deferred tax liability/asset is as follows:-

(b) Deferred Tax Liability :

The Break-up of deferred tax liability into major components as on 31.03.2013 is as follows :

A 2) EARNING PER SHARE :

(i) Annualised earning per equity share has been calculated on the net profit (after taxation) of ^ 1,40,69,673/- (previous year ^ 1,11,85,883/-) taken as the numerator divided by number of equity shares 60,00,000 (previous year 60,00,000) taken as the denominator.

(B) ADDITIONAL NOTES :-

(i) (a) The company follows the Reserve Bank of India guidelines applicable to Non Banking Financial Companies regarding assets classification, provisioning and income recognition on non performing assets and accounting for investments.

(b) Information required to be disclosed in terms of paragraph 13 of Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is as under:-

NOTES :

1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance, of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial (non deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break-up/fair value/NAV in respect of unquoted investments has been disclosed irrespective of whether they are classified as long term or current in column (4) above.

B (ii) In the financial year 2012-13, the Company has operated in only one business segment, hence compliance of AS-17 regarding "Segment Reporting" is not necessary.

B (iii) Related party transactions :

There are no related party as described in Clauses (a) to, (e) of paragraph 3 of the Accounting Standard-18 "Related party disclosures" issued by the Institute of Chartered Accountants of India.

B (iv) CONTINGENT LIABILITIES :

CONTINGENT LIABILITY NOT PROVIDED FOR (2012-13) (2011-12)

Claims against the Company not acknowledged as debt Rs. NIL ^NIL

B (v) The figures have been round off to the nearest rupee.

B (vi) Last year''s figures have been regrouped and re-arranged wherever necessary to conform to the figures of the current year.

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Mar 31, 2012

(i) The Accounting Standard-15 "Employee benefits", prescribed by the Central Government, has become applicable to the company in its entirety as our company is listed on Stock Exchanges.

In formulating the accounting policy regarding employee benefits, we were motivated by the fact that average number of employees during the financial year, were 19 i.e. less than 50.

In similar circumstances, unlisted companies have been permitted to calculate and account for the accrued liability under the head "Gratuity", by some other rational method. Provisions of The Payment of Gratuity Act, 1972 gives one such method. This is based on the assumption that such benefits are payable to 'all employees at the end of the accounting year.

The management still feels that the size of the company does not make it feasible to provide Gratuity by way of actuarial valuation.Hence.it decided to continue with the same accounting policy.

(ii) The company has not received any memorandum (as required to be filed by the Suppliers with the notified authority under the Micro small and medium Enterprises Development Act, 2006), claiming their status as Micro, small or medium enterprises. Consequently, the amount paid / payable to these parties during the year is Nil.

(ii) Provision for Tax is made in accordance with the requirements of the Income Tax Act, 1961

(ii) The net asset value of the investments in mutual fund as on 31.03.2012 is Rs. 11,55,12,503/- (previous year Rs. 11,42,03,933/-)

(iii) In the opinion of the management diminution of Rs. 56.23 lacs in the value of investments is a temporary market phenomenon and the company has adequate general reserve to meet any contingency.

10) DEFERRED TAX ASSETS / (LIABILITIES) (NET) :

(a) Deferred tax is calculated and determined in accordance with the requirements of Accounting Standard - 22 "Accounting for Taxes on Income" and is subject to the concept of prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods. Deferred tax assets are reviewed for their carrying values at each balance sheet date and recognised only if there is 'reasonable certainty' that they will be realised in future. As at 31.03.2012 the recognised deferred tax liability/asset is as follows:-

(d) Net Deferred Tax Assets / (Liability) Rs. 2,53,365/- (Previous Year Rs.1,08,533/-)

(e) The net deferred tax recognised in the profit and loss account is Rs.3,69,778/- (Previous Year Rs. 1,24,215/-).

(ii) Balance in some accounts of long term loans and advances is subject to confirmation.

(ii) Balance in some accounts of trade receivables is subject to confirmation.

(iii) All trade receivables are outstanding for a period less than six months from the date they are due for payment. Also, no debts are due by directors or any other officers of the company either severally or jointly.

1) EARNING PER SHARE :

(i) Annualised earning per equity share has been calculated on the net profit (aftei taxation) of Rs. 1,11,85,883/- (previous year Rs. 1,12,62,015/-) taken as th« numerator divided by number of equity shares 60,00,000 (previous year 60,00,000] Taken as the denominator.

(ii) There is no diluted earning per share in the company.

2) (a) The company follows the Reserve Bank of India guidelines applicable to Non Banking Financial Companies regarding assets classification, provisioning and income recognition on non performing assets and accounting for investments.

(b) Information required to be disclosed in terms of paragraph 13 of Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is as under:-

1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance, of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial (non deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break-up/fair value/ NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (4) above.

3) In the financial year 2011-12, the Company has operated in only one business segment, hence compliance of AS-17 regarding "Segment Reporting" is not necessary.

4) Related party transactions :

There are no related party as described in Clauses (a) to, (e) of paragraph 3 of the Accounting Standard-18 "Related party disclosures" issued by the Institute of Chartered Accountants of India.

5) CONTINGENT LIABILITIES :

CONTINGENT LIABILITY NOT PROVIDED FOR (2011-12) (2010-11)

Claims against the Company not acknowledged as debt Rs. NIL Rs. NIL

6) The figures have been rounded off to the nearest rupee.

7) Last year's figures have been regrouped and re-arranged wherever necessary to conform to the figures of the current year, and in consonance to the requirements of revised Schedule VI which became applicable w.e.f. 01 -04-2011.

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Mar 31, 2011

I) CONTINGENT LIABILITIES:

CONTINGENT LIABILITY NOT PROVIDED FOR (2010-11) (2009-10)

Claims against the Company not acknowledged as debt Rs. NIL Rs. NIL

ii) The Company follows the Reserve Bankof India guidelines applicable to Non Banking Financial Companies regarding Assets Classification, Provisioning and Income Recognition on non performing as sets and Accounting of lnvestments.

iii)The Accounting Standard-15" Employee benefits",prescribed by the Central Government,has become applicable to the company inteentirety as our company is listed on Stock Exchanges.lnformulating heaca unting poBcy regarding employee benefits,we were motivated by the fact that average number of employees during the financial year,remained 20i.e.less than 50.

In similar circumstances.unlisted companies have been permitted to calculate and account for the accrued liability under the head "Gratuity", by some other rational method. Provisions of The Payment of Gratuity Act,1972 gives one such method.This is base dont he assumption that such benefits are payable to all employees at the end of the accounting year.

The management still feels that the size of the company does not make it feasible to provide Gratuity by way of actuarial valuation. Hence, it decided to continue with the same accounting policy.

iv) In the financial year 2010-11, the Company has operated in only one business segment,hence compliance of AS-17 regarding "SegmentReporting" is not necessary.

v) Balance in some accounts of Receivables and Loans & Advances are subject to confirmation.

vi) Related party transactions :There are no related party as described in clauses (a) to (e) of paragraph 3 of the Accounting Standard-18 "Related party disclosures" issued by the Institute of Chartered Accountants of India.

vii) Earning per share (EPS) : Annualised earning per equity share have been calculated on the net profit (after taxation) of Rs. 1,12,62,015/- (previous year Rs.1,37,85,110/-) and the snumber of equity shares 60,00,000 (previous year 60,00,000).

ix) The company has not received any memorandum (as required to be filed by the Suppliers with the notified authority under the Micro, small and medium Enterprises Development Act, 2006), claiming their status as Micro, small or medium enterprises. Consequently, the amount paid/payable to these parties during the year is Nil.

x) The figures have been rounded off to the nearest rupee.

xi) Last year's figures have been regrouped and re-arranged wherever necessary to conform to the figures of the current year.

xii) Schedule '1' to '14' form an integral part of the accounts and have been duly authenticated.

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Mar 31, 2010

I) CONTINGENT LIABILITIES:

CONTINGENT LIABILITY NOT PROVIDED FOR (2009-10) (2008-09)

Claims against the Company not acknowledged as debt Rs NIL Rs. 400000.00

ii) The Company follows the Reserve Bank of India guidelines applicable to Non-Banking Financial Companies regarding Assets Classification, Provisioning and Income Recognition on non performing assets and Accounting Investments.

iii) The Accounting Standard-15 "Employee benefits", prescribed by the Central Government, has become applicable to the company in its entirety as our company is listed on Stock Exchanges.

In formulating the accounting policy regarding employee benefits, we were motivated by the fact that average number of employees during the financial year, remained 20 i.e. less than 50.

In similar circumstances, unlisted companies have been permitted to calculate and account for the accrued liability under the head "Gratuity", by some other rational method. Provisions of The Payment of Gratuity Act, 1972 gives one such method. This is based on the assumption that such benefits are payable to all employees at the end of the accounting year.

The management still feels that the size of the company does not make it feasible to provide Gratuity by way of actuarial valuation. Hence, it decided to continue with the same accounting policy.

iv) In the financial year 2009-10, the Company has operated in only one business segment, hence compliance of AS-17 regarding "Segment Reporting" is not necessary.

v) Balance in some accounts of Receivables and Loans & Advances are subject to confirmation.

vi) Related party transactions:

There are no related party as described in Clauses (a) to, (e) of paragraph 3 of the Accounting Standard- 18 "Related party disclosures" issued by the Institute of Chartered Accountants of India.

vii) The company has not received any memorandum (as required to be filed by the Suppliers with the notified authority under the Micro, small and medium Enterprises Development Act, 2006), claiming their status as Micro, small or medium enterprises. Consequently, the amount paid/payable to these parties during the year is Nil.

viii) The figures have been rounded off to the nearest rupee.

ix) Last years figures have been regrouped and re-arranged wherever necessary to conform to the figures of the current year.

x) Schedule 1 to 14 form an integral part of the accounts and have been duly authenticated.