Notes to Accounts of Monotype India Ltd.

Mar 31, 2024

L. Provisions and contingencies

Provisions are recognised when the Company has a present obligation as a result of a past event, 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 timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the Financial Statements.

M. Employee Benefits

i) Shortterm employee benefits:

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees renderthe services.

ii) The Company is exempted from Payment of Gratuity Act, 1972 in view of its strength of employees being less than threshold limit attracting the applicability of the said statute and as such no provision has been made for the said liability. Leave encashment is not provided on actuarial basis in view of employees being less than 10 and same is charged on actual basis.

N. Earnings Per Share

i) Basic Earnings per share:

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year. The weighted average number of equity shares outstanding during the financial year and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

ii) Diluted Earnings per share:

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

O. Critical Estimates and Judgments.

The preparation of the financial statements required the Management to exercise judgment and to make estimates and assumptions. These estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period.

The areas involving critical estimates or judgements are:

i. Estimated useful life of Tangible Assets

The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.

ii. Estimation of Current Tax Expense and Income Tax Payable / Receivable

The calculation of Company''s tax charge necessarily involves a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these items may give rise to material adjustment to taxable profits/losses.

iii. Impairmentof Financial Assets

At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables.

iv. Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

v. Contingent liabilities

At each balance sheet date basis, the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However, the actual future outcome may be differentfrom thisjudgement.

vi. Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

I. Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are

(a) recognised and measured at fair value and,

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the Indian accounting standard. An explanation of each level is as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. Forexample, listed equity instruments that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (forexample, traded bonds, over-the- counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

II. Valuation techniques used to determinefairvalue

Significant valuation techniques used to value financial instruments include: • the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

o Use of quoted market price or dealer quotes for similar instruments o Using discounted cash flow analysis.

The fair values computed above for assets measured at amortised cost are based on discounted cash flows using a current borrowing rate. They are classified as level 2 fair values in the fairvalue hierarchy due to the use of unobservable inputs.

26 Financial Risk Management

The Company has exposure to thefollowing risks arising from financial instruments:

• Credit risk;

• Liquid ity risk; and ¦ Market risk

A. Credit risk

Cred it risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The company is exposed to credit risk from its operating activities (primarily for trade receivables and loans) and from its financing activities (deposits with banks and otherfinancial instruments).

Credit risk management

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the cred it worthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company’s maximum exposure to credit risk as at 31 March,2023 and 2024 is the carrying valueof each class of financial assets

i Trade and other receivables

Credit risk on trade receivables is limited based on past experience and management''s estimate.

ii Cash and Cash Equivalents

The Company held cash and bank balance with credit worthy banks of Rs. 8,12,286.47 at 31 st March 2024, and (Rs. 44,666/- at March 31,2023). The credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks where credit risk is largely perceived to be extremely insignificant.

B. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities-trade payables and borrowings.

Liquidity risk management

The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash flow could undermine the Company’s credit rating and impair investor confidence.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the year ended 31 st March, 2024 and 31 st March, 2023. This was the result of cash delivery from the business. Cash flow from operating activities provides the funds to service the financing of financial liabilities on a day-to-day basis. The Company’s treasury department regularly monitors the rolling forecasts to ensure it has sufficient cash on-going basis to meet operational needs. Any short term surplus cash generated by the operating entities, over and above the amount required for working capital management and other operational requirements, are retained as cash and cash equivalents (to the extent required).

C. Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments.

i. Currency Risk

The functional currency of the Company is Indian Rupee. Currency risk is not material, as the Company does not have any exposure in foreign currency.

ii. Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the i nterest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

According to the Company interest rate risk exposure is only for floating rate borrowings. Company does not have any floating rate borrowings on any of the Balance Sheet date disclosed in this financial statements.

iii Price Risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in quoted instruments.

a Fairvalue sensitivity analysisforfixed rate Instruments

The Company does not account for any fixed rate financial assets or financial liabilities at fair value through Profit or Loss. Therefore, a change in interest rates at the reporting date would not affect Profit or Loss.

b Cash flow sensitivity analysis for variable rate Instruments

The company does not have any variable rate instrument in Financial Assets or Financial Liabilities. The company is exposed to price risk from its investment in equity instruments classified in the balance sheet at fa ir value through other comprehensive income.

27 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

• maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-today needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

The management monitors the return on capital as well as the level of dividends to

shareholders. The Company will take appropriate steps in order tomaintain, or if

necessary adjust, its capital structure.

30 Additional Regulatory Information

(i) The Company does not have any immovable property, hence no disclosure regarding title deeds of Immovable Property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) is required to be disclosed.

(ii) During the year, the Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets).

(iii) The company does not hold any intangible assets during the year March 31,2024.

(iv) No proceedings have been initiated during the year or are pending against the Company as at March 31,2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(v) No Loans or Advances in the nature of loans has been granted to promoters, Directors, KMPsand the related parties (as defined under Companies Act, 2013) during the year.

(vi) (vi) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vii) The Company has not borrowed any amount from banks or financial institutions on the basis of security of current assets.

(viii) As per the information available with us, the Company did not have any transactions with companies struck off during thefinancial year.

(ix) Following Ratios to be disclosed:-

Other Notes to Accounts

32. Micro, Small and Medium Enterprises

The Company has no dues to Micro, Small and Medium enterprises as at 31stMarch, 2024, on the basis of information provided by the parties and available on record. Further, there is no interest paid / payable to micro and small enterprises during the said financial year.

34. Segment Information

Company is engaged in the business of Trading in Shares and incidental activities thereto which, in the context of Ind AS 108 on Operating Segments, constitutes a single reportable segment.

35. Balance written off during the Year

i. The Goods and Service tax (GST) have been written off during the year as per Management Estimates and tax opinions obtained stating that the said amount is not payable.

36. The Company has a sum of Rs. 7,70,35,646.19 payable to a Broker, i.e. Guiness Securities Limited (GSL).

This amount remains unpaid towards the Broker because the Broker has pledged shares without our consent which were purchased through him that are worth more than the liability. The Securities and Exchange Board of India (SEBI), acting as the market regulator, has revoked the registration certificate of Guiness Securities Limited (GSL) due to multiple offences. These offences include, but are not limited to, the misappropriation of client securities, diversion of proceeds by misappropriating securities to related parties, failure to report data under enhanced supervision to stock exchanges, falsification of books of account, insolvency, non-settlement of client funds and securities.

37. Balance Confirmation

The debit and credit balances for Unsecured Loans (Loan from Companies & Loan from Related Parties), Advances, Debtors, Creditors and other Balances are subject to confirmation and reconciliation.

38. Dues/Outstanding Demand pertaining to Previous Assessment Years

Any Dues and/or Outstanding demands pertaining to any previous Financial Years, preceding the financial year under audit that are served after the end of the financial year under audit are disclosed in the Financial Statements of the year in which such communication or Demand Notice/Order have been served.

39. Prior Year Comparatives

Previous year figures have been regrouped, re-arranged or reclassified wherever necessary to conform to the current year classification. Figures in brackets pertain to previous year.

For B M Gattani & Co. For MONOTYPE INDIA LIMITED

Chartered Accountants (CIN : L72900MH1974PLC287552)

ICAI FRN : 113536W

Balmukund N Gattani (Naresh Jain) (Suryakant Kadakane)

Proprietor Whole Time Director & CFO Director

Membership No. 047066 DIN: 00291963 DIN: 02272617

UDIN : 24047066BKABIJ4522

Date: 28/05/2024 (Prerna Mehta)

Place: Mumbai Company Secretary

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Mar 31, 2017

1. Hon''ble Calcutta High Court vide order dated 9^th December, 2014 had approved the scheme for amalgamation of Mono herbicides Ltd, Gateway Distributor Limited, Unicorn Vyapar Limited, Subhankar Vinimay Limited, Swagatam Tradevin Limited and Lotus Financial Management Private Limited with Monotype India Limited. At the time of Merger, Swagatam Tradevin Limited had Preference Shares of Monotype India Limited in its Stock in Trade and the same was transferred as stock in Trade in books of Monotype India Ltd. In Current Financial Year, Company have corrected treatment of Stock in trade & Preference Share Capital (i.e Eliminating Intercompany holding) in its books and corresponding impact of the same has been given in Amalgamation Adjustment Reserve and subsequently balance of Amalgamation Adjustment Reserve have been transferred to General Reserve.

2. Segment Information

As per the definition of ''Business Segment'' and ''Geographical Segment'' contained in Accounting Standard 17 “Segment Reporting”, the management is of the opinion that the Company''s operation comprise of Trading in Shares and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

3. Related Party Transaction

Disclosure in accordance with Accounting Standard-18 - Related Party transactions during the year

I) Companies/ Firms in which Director, Director''s relatives are Directors/Shareholders/Partners Companies

Truce Multitrade Ltd. BT Divine Power & Mining Corporation Ltd.

Elan Capital Advisors Pvt. Ltd. Pranjali Infrastructure Pvt. Ltd.

Cinch Multitrade Pvt. Ltd. Divine Power & Mining Corporation Ltd.

Pranjali Services Pvt. Ltd. 52 Weeks Entertainment Ltd.

Four Lions Films Pvt. Ltd. Pranjali (India) Pvt Ltd.

Venus Intergrated Textile Park Pvt Ltd Adrina Realties Pvt. Ltd LLP

Innocent Investment Consultants LLP Sandeep Ispat Traders LLP

ii) Key management personnel

Naresh Jain (Whole Time Director) Harsh Jain (CFO and Director)

Rohitash Bhomia (Resigned w.e.f 13/08/2016) Pradeep Gupta (Company Secretary)

iii) Relatives of Key management personnel

Karishma Jain (Daughter of Whole Time Director)

4. Contingent Liability to the extended not provided for

Central Excise Liability under dispute Rs, 16,34,3 7/- (P.Y Rs, 16,34,397 /-).

5. Prior Year Comparatives

Previous year''s figures have been regrouped, rearranged or recanted wherever necessary to confirm to this year''s classification. Figures in brackets pertain to previous year.

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Mar 31, 2016

2. Other Notes on Accounts:

1) Contingent Liabilities in respect of : As at As at

31.03.2016 31.03.2015

(Rs.) (Rs.)

Central Excise Liability under dispute 16,34,397 16,34,397

2) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and advances which falls under management''s policy for bad and doubtful debts as taken in the previous years.

3) All Debit and Credit balances are subject to confirmation and reconciliation.

4) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the auditors.

5) Related Parties Disclosures in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India:-

6) The Company operates in one segment and hence no separate disclosure of segment-wise information has been made as per Accounting Standards (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India.

7) The financial statements for the year ended 31st March, 2016 have been prepared as per the requirement of the Schedule III to the Companies Act, 2013. The previous year''s figures have been accordingly regrouped / classified to confirm to the year''s classification.

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Mar 31, 2014

1) Contingent Liabilities in respect of: As at As at 31.03.2014 31.03.2013

Central Excise Liability under dispute 16,34,397 16,34,397

2) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and advances which falls under management''s policy for bad and doubtful debts as taken in the previous years.

3) Debit and Credit balances are subject to confirmation and reconciliation.

4) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the auditors.

5) The Company operates in one segment and hence no separate disclosure of segment-wise information has been made as per Accounting Standards (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India.

6) In view of the revision to the Schedule VI as per notification issued by the Central Government, the financial statement for the year ended 31st March, 2014 have been prepared as per the requirement of the Revised Schedule VI to the Companies Act, 1956. The previous year''s figures have been accordingly regrouped / classified to confirm to the year''s classification.

The accompanying notes are an integral part of the financial statements

Note:Previous Year figures has been regrouped/rearranged wherever considered necessary.

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Mar 31, 2013

1) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and advances which falls under management''s policy for bad and doubtful debts as taken in the previous yea''

2) Debit and Credit balances are subject to confirmation and reconciliation.

3) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the audito''

4) Related Parties Disclosures in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India :- Related Parties and description of relationship

a. Promoter Company : Swagatam Tradevin Limited

b. Nature of transaction with the related party

Promoter Company : Swagatam Tradevin Limited Unsecured Loan Taken : 56,084/- Amount Outstanding at year end : 3,56,084/- Previous Year Balance : 3,00,000

5) The Company operates in one segment and hence no separate disclosure of segment- wise information has been made as per Accounting Standards (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India.

6) In view of the revision to the Schedule VI as per notification issued by the Central Government, the financial statement for the year ended 31st March, 2013 have been prepared as per the requirement of the Revised Schedule VI to the Companies Act, 1956. The previous year''s figures have been accordingly regrouped/classified to confirm to the year''s classification.

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Mar 31, 2012

I. Terms/rights attached to equity shares

The Company’s authorised capital consists of two classes of shares, referred to as equity shares and preference shares, having par value of Rs. 10/- and Rs. 100/- each respectively. Each holder of equity shares is entitled to one vote per share. The Preference shareholders have a preferential right over equity share holders , in respect of repayment of capital and payment of dividend. However, no such preference shares have been issued by the Company during the years ended 31st March,2011 & 31st March,2012.The Preference Shares shall be redeemed at par at the end of 20 years from the date of allotment, i.e. 30.03.2018.The Company has the option to however, redeem the shares at par at any time after the expiry of an initial period of 60 months from the date of allotment, i.e. after 30.03,2003 by giving the shareholders three month notice of its intention to do so.

1. Contingent liabilities in respect of :

As at As at 31.03.2012 31.03.2011 (Rs.) (Rs.)

Excise liability under dispute 16,34,397 16,34,397

The above figures represent the amount as on 31.03.1999, since the updated figures as on 31.03.2012 are not available.

2. The operations of the manufacturing units of the Company at Bangalore has been suspended from 01.08.1999 subsequently closed and disposed off. Further, the marketing and other Offices of the Company have also been closed and have become non operational. Earlier the various credit balances details

retrieved prior to the suspension of operations and such other adjustments as considered necessary by the management are taken on the basis of available records. The balances compiled was not reconciled with the primary and secondary records since various supporting and other related details were not accessible and these records could not be made available for verification.

3. There are no dues due to the small scale and ancillary industrial undertakings.

4. As the manufacturing units of the company at Bangalore had been closed, the management is exploring possibilities of other business activities. Pending utilization of funds in other business activities, these have been deployed temporarily in Shares & Securities / Loans and Advances. In the opinion of the management, the company as such has not undertaken any activity meant for Non-Banking Financial Companies as its business operations, requiring adherence to the requirement of various directions issued by Reserve Bank of India for Non-Banking Financial Companies.

5. The accumulated losses of the company are in excess of its net worth. The management is exploring possibility of other business activities for the company, and accordingly, the accounts have been prepared on the basis that the Company is a going concern.

a. The above related party information has been disclosed to the extent such parties have been identified by the management on the basis of information available. This has been relied upon by the Auditors.

6. The operations of the Company had been closed since 01-08-1999 (Refer Note no. 12.B.2 ), therefore the surplus funds are deployed in deposits and investments and that is the only reportable segment as specified in Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

Preference shares being non-cumulative the Earning Per Share has been computed without considering the dividend on preference shares. Accordingly, the Earning Per Share of previous year has been shown on the same basis.

7. a. Provision for current tax has not been made due to losses during the year.

b. The company has significant amount of carry forward losses and depreciation under the Income Tax Act. However, as a matter of prudence deferred tax assets arising on account of the same has not been created by the management.

8. Previous year figures:

During the year ended 31st March 2012, Revised Schedule VI notified under the Companies Act, 1956 became applicable to the Company, for preparation and presentation of its Financial Statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements .However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

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Mar 31, 2010

1. Contingent liabilities in respect of: As at As at

31.03.10 31.03.09

Excise liability under dispute 16,34,397 16,34,397

The above figures represent the amount as on 31.03.1999, since the updated figures as on 31.03.2010 are not available.

2. The operations of the manufacturing units of the Company at Bangalore had been suspended from 01.08.1999 subsequently closed and disposed off. Further, the marketing and other Offices of the Company have also been closed and have become non operational. Earlier The various credit balances details retrieved prior to the suspension of operations and such other adjustments as considered necessary by the management are taken on the basis of available records. The balances compiled was not reconciled with the primary and secondary records since various supporting and other related details were not accessible and these records could not be made available for verification.

3. There are no dues due to the small scale and ancillary industrial undertakings.

4. As the manufacturing units of the company at Bangalore had been closed, the management is exploring possibilities of other business activities. Pending utilization of funds in other business activities, these have been deployed temporarily in Shares & Securities / Loans and advances. In the opinion of the management, the company as such has not undertaken any activity meant for Non-Banking Financial Companies as its business operations, requiring adherence to the requirement of various directions issued by Reserve Bank Of India for Non-Banking Financial Companies.

5. The accumulated losses of the company are in excess of its net worth. The management is exploring possibility of other business activities for the company, and accordingly, the accounts have been prepared on the basis that the Company is a going concern.

6. Related party disclosure in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India:

a. Names of Related parties and description of relationship Associate Company - Jalan Chemical Industries Private Limited

b. Nature of transaction with the related party Associate Company:

Payment of Unsecured Loan - Rs. 12,50,000/-

Unsecured Loan Taken - Rs. 80,000/-

Amount outstanding at year-end - Rs. 22,46,886/-

c. The above related party information has been disclosed to the extent such parties have been identified by the management on the basis of information available. This has been relied upon by the Auditors.

7. The operation of the company had been closed since 01-08-1999 (Refer Note No. 2 of Notes on Accounts), therefore the surplus funds are deployed in deposits and investments and that is the only reportable segment as specified in Accounting Standard 17 issued by The Institute of Chartered Accountants of India.

8. a. Provision for current tax has been made as per the provisions of the Income Tax Act, 1961.

b. The Company has significant amount of carry forward losses and depreciation under the Income Tax Act. However as a matter of prudence deferred tax assets arising on account of the same has not been created by the management.