Notes to Accounts of OK Play India Ltd.

Mar 31, 2025

8. Provisions and Contingent Liabilities/Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) 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. Contingent
liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or
disclosed in the financial statements.

9. Use of estimates, judgments and assumptions

Estimates and assumptions used in the preparation of these financial statements and disclosures made
therein are based upon Management’s evaluation of the relevant facts and circumstances as of the date
of the financial statements, which may differ from the actual results at a subsequent date. The following
are items which are more likely to be materially adjusted due to estimates and assumptions turning out to
be different than those originally assessed. Detailed information about each of these estimates is
included in the relevant notes together with information about basis of calculation for each affected line
item in the financial statements:

• Estimation of fair value of assets and liabilities

• Estimation of variable considerations in revenue

• Prov ision for warranties

• Prov ision for employ ee benefits

• Prov ision for tax expenses

• Residual value and useful life of property, plant and equipment, intangible assets

• Valuation of inv estment

• Inventory - Net Realisable Value of an item of inventories.

• Provision for expected credit losses

10. Foreign currencies transactions and translation

a. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of
transaction. Monetary assets and liabilities denominated in foreign currencies are translated at
the functional currency closing rates of exchange at the reporting date.

b. Exchange differences arising on settlement or translation of monetary items are recognized in
Statement of Profit and Loss except to the extent of exchange differences which are regarded as
an adjustment to interest costs on foreign currency borrowings that are directly attributable to
the acquisition or construction of qualifying assets, are capitalized as cost of assets.

c. Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates at the dates of the initial transactions.

d. In determining the spot exchange rate to use on initial recognition of the related asset, expense
or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability
relating to advance consideration, the date of the transaction is the date on which the Company
initially recognises the non-monetary asset or non-monetary liability arising from the advance
consideration. If there are multiple payments or receipts in advance, the Company determines
the transaction date for each payment or receipt of advance consideration.

I I. Revenue Recognition

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have
been transferred to the buyer, recovery of the consideration is probable, the associated cost can be
estimated reliably, there is no continuing effective control or managerial involvement with the goods,
and the amount of revenue can be measured reliably.

Revenue from operations includes sale of goods and services.

a. Sale of Goods

The Company has determined that customers from the sale of goods are generally dealers and
distributors. Transfer of control, and therefore revenue recognition, generally corresponds to the date
when the goods are made available to the customer, or when the goods are released to the carrier
responsible for transporting them to the customer in the following manner:

• Domestic sales are recognised at the time of dispatch from the point of sale.

• Export sales are recognised on the date when shipped on board as per terms of sale and are
initially recorded at the relevant exchange rates prevailing on the date of the transaction.

The nature of contracts of the Company are such that no material part performance obligations would
remain unfulfilled at the end of any accounting period.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government.

b. Sale of Services

Revenue from rendering of services is recognized when the performance of agreed contractual task has

been completed.

c. Variable consideration

If the consideration in a contract includes a variable amount (like volume rebates/incentives, cash
discounts etc.), the Company estimates the amount of consideration to which it will be entitled in
exchange for transferring the goods to the customer. The variable consideration is estimated at contract
inception and constrained until it is highly probable that a significant revenue reversal in the amount of
cumulative revenue recognised will not occur when the associated uncertainty with the variable
consideration is subsequently resolved.

d. Consideration payable to the customer

Consideration payable to a customer includes cash amounts that the Company pays, or expects to pay, to
the customer. The consideration payable to a customer is accounted for as a reduction of the revenue.

e. W arranlv obligations

The Company provides warranties for general repairs of defects as per terms of the contract with
ultimate customers. These warranties are considered as assurance type warranties and are accounted for
under Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets.

I''. Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e.,
only the passage of time is required before payment of the consideration is due).

12. Interest Income

The Company recognises income on accrual basis. However, where the ultimate collection of the same
lack’s reasonable certainty, revenue recognition is postponed to the extent revenue is reasonably certain
and can be reliably measured.

13. Dividends

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is
established, and it is probable that the economic benefits associated with the dividend will flow to the
Company and that the amount of the dividend can be measured reliably.

14. Employee Benefits Expense
Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits and they are recognised in the period in which the employee renders the
related service. The Company recognises the undiscounted amount of short-term employee benefits
expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting
any amount already paid.

Post-Employ imnl Benelils

Defined contribution plans

Defined contribution plans are employee state insurance scheme and Government administered pension
fund scheme for all applicable employees and superannuation scheme for eligible employees.

Recognition and measurement of defined contribution plans

The Company recognises contribution payable to a defined contribution plan as an expense in the
Statement of Profit and Loss when the employees render services to the Company during the reporting
period. If the contributions payable for services received from employees before the reporting date
exceeds the contributions already paid, the deficit payable is recognised as a liability after deducting the
contribution already paid. If the contribution already paid exceeds the contribution due for services
received before the reporting date, the excess is recognised as an asset to the extent that the prepayment
will lead to, for example, a reduction in future payments or a cash refund.

Delined lundil plans

Provident fund scheme

The Company makes specified monthly contributions towards Employee Provident Fund scheme. The
Company has an obligation to make good the shortfall, if any.

Graiuiiv s he me

The Company operates a defined benefit gratuity plan for employees. The Company contributes to a
separate entity (a Trust), towards meeting the Gratuity obligation.

Recognition and measurement of defined benefit plans

The cost of providing defined benefits is determined using the Projected Unit Credit method with
actuarial valuations being carried out at each reporting date. The defined benefit obligations recognised
in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair
value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations
resulting from this calculation) is recognised representing the present value of available refunds and
reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined
benefit liability (asset) are recognised in the Statement of Profit and Loss. Remeasurements of the net
defined benefit liability (asset) comprising actuarial gains and losses and the return on the plan assets
(excluding amounts included in net interest on the net defined benefit liability/asset), are recognised in
Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and
Loss in the subsequent periods.

The Company presents the above liability/(asset) as current and non- current in the Balance Sheet as per
actuarial valuation by the independent actuary.

15. Tax Expenses

Tax expense is the aggregate amount included in the determination of profit or loss for the period in
respect of current tax and deferred tax.

( ''//m nt tax

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit
differs from ‘profit before tax’ as reported in the Statement of Profit and Loss because of items of
income or expense that are taxable or deductible in other years and items that are never taxable or
deductible under the Income Tax Act, 1961.

Current tax is measured using tax rates that have been enacted by the end of reporting period for the
amounts expected to be recovered from or paid to the taxation authorities.

De U rre d tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable

profil under Income I ax \cl. I 96| .

Deferred tax liabilities are generally recognised for all taxable temporary differences. However, in case
of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other
than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax
liabilities are not recognised. Also, for temporary differences if any that may arise from initial
recognition of goodwill, deferred tax liabilities are not recognised.

Deferred tax assets are generally recognised for all deductible temporary differences to the extent it is
probable that taxable profits will be available against which those deductible temporary difference can
be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in
a transaction (other than business combination) that affect neither the taxable profit nor the accounting
profit, deferred tax assets are not recognised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow the
benefits of part or all of such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which

those temporary differences are expected to be recovered or settled.

Uncertain tax positions

The management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and considers whether it is probable that a
taxation authority will accept an uncertain tax treatment. The Company reflects the effect of uncertainty
for each uncertain tax treatment by using one of two methods, the expected value method (the sum of the
probability - weighted amounts in a range of possible outcomes) or the most likely amount (single most
likely amount method in a range of possible outcomes), depending on which is expected to better predict
the resolution of the uncertainty. The Company applies consistent judgements and estimates if an
uncertain tax treatment affects both the current and the deferred tax.

Presentation of current and deferred tax

Current and deferred tax are recognised as income or an expense in the Statement of Profit and Loss,
except when they relate to items that are recognised in Other Comprehensive Income, in which case, the
current and deferred tax income/expense are recognised in Other Comprehensive Income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilities,
the same are offset if the Company has a legally enforceable right to set off corresponding current tax
assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same tax authority on the Company.

16. Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the
end of the reporting period, the impact of such events is adjusted within the Financial Statements.
Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

17. \on-cnrrenl Assets held lor sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered
principally through a sale rather than through continuing use of the assets and actions required to
complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or
that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the
management expects to complete the sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the
fair value less cost to sell. Non-current assets are not depreciated or amortised.

18. Earnings Per Share (EPS)

Basic Earnings per Share is calculated by dividing the net profit attributable to the equity shareholders
of the Company with the weighted average number of equity shares outstanding during the financial
year, adjusted for treasury shares.

Diluted Earnings per Share is calculated by dividing net profit attributable to the equity shareholders of
the Company with the weighted average number of shares outstanding during the financial year,
adjusted for the effects of all dilutive potential equity shares.

19. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement:

The Company recognises a financial asset in its Balance Sheet when it becomes party to the contractual
provisions of the instrument. All financial assets are recognised initially at fair value, plus in the case of
financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are
attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the
difference between the fair value and the transaction price is recognised as a gain or loss in the
Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted
market price in an active market for an identical asset (i.e. level 1 input) or through a valuation
technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognised as a gain
or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change
in factor that market participants take into account when pricing the financial asset.

However, trade receivables that do not contain a significant financing component are measured at
transaction price.

Subsequent measurement:

For subsequent measurement, the Company classifies a financial asset in accordance with the below

criteria:

I. The Company’s business model for managing the financial asset and

II. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

A. Financial assets measured at amortised cost

B. Financial assets measured at fair value through other comprehensive income (FVTOCI)

C. Financial assets measured at fair value through profit or loss (FVTPL)

D.

A. Financial assets measured at amortised cost:

A financial asset is measured at the amortised cost if both the following conditions are met:

a. The Company’s business model objective for managing the financial asset is to hold
financial assets in order to collect contractual cash flows, and

b. The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of

the Company. Such financial assets are subsequently measured at amortised cost using the effective
interest method.

Under the effective interest method, the future cash receipts are exactly discounted to the initial
recognition value using the effective interest rate. The cumulative amortisation using the effective
interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial asset over the
relevant period of the financial asset to arrive at the amortised cost at each reporting date. The
corresponding effect of the amortisation under effective interest method is recognised as interest income
over the relevant period of the financial asset. The same is included under other income in the Statement
of Profit and Loss.

The amortised cost of a financial asset is also adjusted for loss allowance, if any

B. Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both of the following conditions are met:

a. The Company’s business model objective for managing the financial asset is
achieved both by collecting contractual cash flows and selling the financial assets,

and

b. The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount

oiUMandiny.

This category applies to certain investments in debt instruments. Such financial assets are subsequently
measured at fair value at each reporting date. Fair value changes are recognised in the Other
Comprehensive Income (OCI). However, the Company recognises interest income and impairment
losses and its reversals in the Statement of Profit and Loss.

On Derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is
reclassified from equity to Statement of Profit and Loss.

Further, the Company, through an irrevocable election at initial recognition, has measured certain
investments in equity instruments at FVTOCI.

The Company has made such election on an instrument-by-instrument basis. These equity instruments
are neither held for trading nor are contingent consideration recognised under a business combination.
Pursuant to such irrevocable election, subsequent changes in the fair value of such equity instruments
are recognised in OCI. However, the Company recognises dividend income from such instruments in
the Statement of Profit and Loss when the right to receive payment is established, it is probable that the
economic benefits will flow to the Company and the amount can be measured reliably.

On Derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is not
reclassified from the equity to Statement of Profit and Loss. However, the Company may transfer such
cumulative gain or loss into retained earnings within equity.

C. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as
explained above. This is a residual category applied to all other investments of the Company excluding

investments in subsidiary and associate companies. Such financial assets are subsequently measured at
fair value at each reporting date. Fair value changes are recognised in the Statement of Profit and Loss.
Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is derecognized (i.e. removed from the Company’s Balance Sheet) when any of the following
occurs:

The contractual rights to cash flows from the financial asset expires;

The Company transfers its contractual rights to receive cash flows of the financial asset and has
substantially transferred all the risks and rewards of ownership of the financial asset;

i. The Company retains the contractual rights to receive cash flows but assumes a
contractual obligation to pay the cash flows without material delay to one or more
recipients under a ‘pass-through’ arrangement (thereby substantially transferring all
the risks and rewards of ownership of the financial asset);

ii. The Company neither transfers nor retains substantially all risk and rewards of
ownership and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of
the financial asset, but retains control of the financial asset, the Company continues to recognise such
financial asset to the extent of its continuing involvement in the financial asset. In that case, the
Company also recognises an associated liability. The financial asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.

On Derecognition of a financial asset, (except as mentioned in (ii) above for financial assets measured at
FVTOCI), the difference between the carrying amount and the consideration received is recognised in

the Male-mail of Piolil and I oss.

Impairment of financial assets;

The Company applies expected credit losses (ECL) model for measurement and recognition of loss
allowance on the following:

• Iradc rcccnahlcs

• Financial assets measured at amortised cost (other than trade receivables)

• Financial assets measured at fair value through other comprehensive income (FVTOCI)
In case of trade receivables, the Company follows a simplified approach wherein an amount equal to
lifetime ECL is measured and recognised as loss allowance.

In case of other assets (listed as (ii) and (iii) above), the Company determines if there has been a
significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such
assets has not increased significantly, an amount equal to 12-month ECL is measured and recognised as
loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is
measured and recognised as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a
significant increase in credit risk since initial recognition, the Company reverts to recognizing
impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with
the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted
at the original effective interest rate.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected
life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default
events that are possible within 12 months from the reporting date.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined
by a range of outcomes, taking into account the time value of money and other reasonable information
available as a result of past events, current conditions and forecasts of future economic conditions.

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

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/
expense in the Statement of Profit and Loss.

Financial Fiahililics

Initial recognition and measurement:

The Company recognises a financial liability in its Balance Sheet when it becomes party to the
contractual provisions of the instrument. All financial liabilities are recognised initially at fair value
minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL),
transaction costs that are attributable to the acquisition of the financial liability.

Where the fair value of a financial liability at initial recognition is different from its transaction price,
the difference between the fair value and the transaction price is recognised as a gain or loss in the
Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market
price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that
uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognised as a gain
or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change
in factor that market participants take into account when pricing the financial liability.

Subsequent measurement:

All financial liabilities of the Company are subsequently measured at amortised cost using the effective
interest method.

Under the effective interest method, the future cash payments are exactly discounted to the initial
recognition value using the effective interest rate. The cumulative amortisation using the effective
interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial liability over
the relevant period of the financial liability to arrive at the amortised cost at each reporting date. The
corresponding effect of the amortisation under effective interest method is recognised as interest expense
over the relevant period of the financial liability. The same is included under finance cost in the
Statement of Profit and Loss.

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 between the carrying amount of the financial liability derecognised and the
consideration paid is recognised in the Statement of Profit and Loss.

Offsetting of financial assets and financial liabilities:

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 or to realise the asset and settle the liability simultaneously.

20. Fair V alue

The Company measures financial instruments at fair value in accordance with the accounting policies
mentioned above. Fair value is the price 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. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the liability

lakes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are
categorized within the fair value hierarchy that categorizes into three levels, described as follows, the
inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority
to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest
priority to unobservable inputs (Level 3 inputs).

Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly
Level 3 — inputs that are unobservable for the asset or liability.

For assets and liabilities that are recognised in the Financial Statements at fair value on a recurring basis,

the Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting period and discloses the same.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OFESTIMATION
UNCERTAINTY

The preparation of the Company’s financial statements requires management to make judgement,
estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and
the accompanying disclosures. 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 the
future periods.

a) Properly, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected
useful life and the expected residual value at the end of its life. The useful lives and residual values of
Company’s assets are determined by the management at the time the asset is acquired and reviewed
periodically, including at each financial year end.

The lives are based on historical experience with similar assets as well as anticipation of future events,
which may impact their life, such as changes in technical or commercial obsolescence arising from
changes or improvements in production or from a change in market demand of the product or service
output of the asset.

b) Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating of
the counterparty, the amount and timing of anticipated future payments and any possible actions that can
be taken to mitigate the risk of non-payment.

c) Prov isions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a
future outflow of funds resulting from past operations or events and the amount of cash outflow can be
reliably estimated. The timing of recognition and qualification of the liability requires the application of
judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of
provisions and liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

d) 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, the Company estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an assets or Cash Generating Units (CGUs) fair value less costs of
disposal and its value in use. It is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or a group of assets. Where the

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

In assessing value in use, the estimated future cash flows are discounted to their present value using 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.

e) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risks of default and
expected cash loss rates. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Company’s past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.

f) Recognition of Deferred Tax Assets and Mobilities

Deferred tax assets and liabilities are recognised for temporary difference and unused tax losses for
which there is probability of utilization against the future taxable profit. The Company uses judgement
to determine the amount of deferred tax that can be recognized, based upon the likely timing and the
level of future taxable profit and business developments.

g) Right-of-use assets and lease liability

The Company has exercised judgement in determining the lease term as the non-cancellable term of the
lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be

exercised.

Where the rate implicit in the lease is taken on the basis of rate readily available in the market. This
incremental rate reflects the rate of interest that the lessee would have to pay to borrow over a similar
term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the
right-of-use asset in a similar economic environment. Determination of the incremental borrowing rate

requires estimation.

h) Defined Benefit Obligation

The costs of providing pensions and other post-employment benefits are charged to the Statement of
Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which benefit
is derived from the employees’ services. The costs are assessed on the basis of assumptions selected by
the management. These assumptions include salary escalation rate, discount rates, expected rate of

return on assets and mortality rates.

(iii) Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the company. Financial instruments that are
subject to concentrations of credit risks, principally consist of balance with banks, trade receivables, loans and advances. None of the financial instruments of the
company result in material concentrations of credit risks.

(iv) Liquidity Risk

The company manages liquidity risk through banking facilities by continuously monitoring forecast and actual cash flows.

10 Additional Regulatory Information

(i) Capital -Work- in progress (CWIP)

a) Capital Work in Progress ageing Schedule

(i) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transaction (Prohibition ) Act, 1988 (43 of 1988) and the
rules made thereunder.

(ii) As per information available with the Management, the Company does not have any transaction with companies struck off under Section 248 of the Companies Act , 2013 or
section 560 of the Companies Act, 1956.

(iii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties) , with the understanding , whether recorded in writing
or otherwise, that the Company shall, directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party (
Ultimate Beneficaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iv) There was no charge or satisfaction , which is yet to be registered with concerned Registrar of Companies, beyond the period permitted under the Companies Act, 2013.

(v) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(vi) There''s no transaction which has not been recorded in the books of accounts and disclosed or surrendered as income during the year in the tax assessments under the Income Tax
Act, 1961.

(vii) The Company is in compliance with the regulation as to the number of layers of companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the
Companies (Restoration on number of Layers) Rules, 2014.

(viii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(ix) 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, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries .

(x) Corporate Social Responsibility (CSR) liability is not applicable to the company.

As pe| ........ ..... of ev en dale at Ijclie.l

For J Madan & Associates For and on behalf of Board of Directors

''( Ii.hi.''i ed Hants i

¦ I RN. n:=9|3\,

(Rajan Handa) (Rishab Hand a )

CA Naveen Kumar Managing Director Whole Time Director & CFO

Partner DIN-00194590 DIN-08174892

M. No. 536759

UDIN:25536759BMKPVL6686

¦ M.-eim Gosw ami i

Place: New Delhi Company Secretary

Dated: 9th April, 2025 M.No. A 33472

---

Mar 31, 2024

8. Provisions and Contingent Liabilities/Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) 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. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

9. Use of estimates, judgments and assumptions

Estimates and assumptions used in the preparation of these financial statements and disclosures made therein are based upon Management’s eva luation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date. The following are items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates is included in the relevant notes together with information about basis of calculation for each affected line item in the financial statements:

• Estimation of fair value of assets and liabilities

• Estimation of variable considerations in revenue

• Provision for warranties

• Provision for employee benefits

• Provision for tax expenses

• Residual value and useful life of property, plant and equipment, intangible assets

• Valuation of investment

• Inventory - Net Realisable Value of an item of inventories.

• Provision for expected credit losses

10. Foreign currencies transactions and translation

a. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.

b. Exchange differences arising on settlement or translation of monetary items are recognized in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets.

c. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

d. In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or nonmonetary liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration.

11. Revenue Recognition

Revenue from sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from operations includes sale of goods and services.

a. Sale of Goods

The Company has determined that customers from the sale of goods are generally dealers and distributors. Transfer of control, and therefore revenue recognition, generally corresponds to the date when the goods are made available to the customer, or when the goods are released to the carrier responsible for transporting them to the customer in the following manner:

• Domestic sales are recognised at the time of dispatch from the point of sale.

• Export sales are recognised on the date when shipped on board as per terms of sale and are initially recorded at the relevant exchange rates prevailing on the date of the transaction.

The nature of contracts of the Company are such that no material part performance obligations would remain unfulfilled at the end of any accounting period.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

b. Sale of Services

Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.

c. Variable consideration

If the consideration in a contract includes a variable amount (like volume rebates/incentives, cash discounts etc.), the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

d. Consideration payable to the customer

Consideration payable to a customer includes cash amounts that the Company pays, or expects to pay, to the customer. The consideration payable to a customer is accounted for as a reduction of the revenue.

e. Warranty obligations

The Company provides warranties for general repairs of defects as per terms of the contract with ultimate customers. These warranties are considered as assurance type warranties and are accounted for under Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets.

f. Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

12. Interest Income

The Company recognises income on accrual basis. However, where the ultimate collection of the same lack’s reasonable certainty, revenue recognition is postponed to the extent revenue is reasonably certain and can be reliably measured.

13. Dividends

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, and it is probable that the economic benefits associated with the dividend will flow to the Company and that the amount of the dividend can be measured reliably.

14. Employee Benefits Expense Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognised in the period in which the employee renders the related service. The Company recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

Post-Employment Benefits

Defined contribution plans

Defined contribution plans are employee state insurance scheme and Government administered pension fund scheme for all applicable employees and superannuation scheme for eligible employees.

Recognition and measurement of defined contribution plans

The Company recognises contribution payable to a defined contribution plan as an expense in the Statement of Profit and Loss when the employees render services to the Company during the reporting period. If the contributions payable for services received from employees before the reporting date exceeds the contributions already paid, the deficit payable is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the reporting date, the excess is recognised as an asset to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund.

Defined benefit plans

Provident fund scheme

The Company makes specified monthly contributions towards Employee Provident Fund scheme. The Company has an obligation to make good the shortfall, if any.

Gratuity scheme

The Company operates a defined benefit gratuity plan for employees. The Company contributes to a separate entity (a Trust), towards meeting the Gratuity obligation.

Recognition and measurement of defined benefit plans

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognised in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognised representing the present value of available refunds and reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability (asset) are recognised in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability/asset), are recognised in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.

The Company presents the above liability/(asset) as current and non- current in the Balance Sheet as per actuarial valuation by the independent actuary.

15. Tax Expenses

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current tax

Current tax is the amount of income taxes payable in respect of taxable profit for a period.

Taxable profit differs from ‘profit before tax’ as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961.

Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be recovered from or paid to the taxation authorities.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit under Income Tax Act, 1961.

Deferred tax liabilities are generally recognised for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognised. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognised. Deferred tax assets are generally recognised for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all of such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

Uncertain tax positions

The management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company reflects the effect of uncertainty for each uncertain tax treatment by using one of two methods, the expected value method (the sum of the probability - weighted amounts in a range of possible outcomes) or the most likely amount (single most likely amount method in a range of possible outcomes), depending on which is expected to better predict the resolution of the uncertainty. The Company applies consistent judgements and estimates if an uncertain tax treatment affects both the current and the deferred tax.

Presentation of current and deferred tax

Current and deferred tax are recognised as income or an expense in the Statement of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive Income, in which case, the current and deferred tax income/expense are recognised in Other Comprehensive Income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. In case of deferred tax assets

and deferred tax liabilities, the same are offset if the Company has a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

16. Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

17. Non-current Assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets are not depreciated or amortised.

18. Earnings Per Share (EPS)

Basic Earnings per Share is calculated by dividing the net profit attributable to the equity shareholders of the Company with the weighted average number of equity shares outstanding during the financial year, adjusted for treasury shares.

Diluted Earnings per Share is calculated by dividing net profit attributable to the equity shareholders of the Company with the weighted average number of shares outstanding during the financial year, adjusted for the effects of all dilutive potential equity shares.

19. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement:

The Company recognises a financial asset in its Balance Sheet when it becomes party to the contractual provisions of the instrument. All financial assets are recognised initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the

However, trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent measurement:

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

I. The Company’s business model for managing the financial asset and

II. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

A. Financial assets measured at amortised cost

B. Financial assets measured at fair value through other comprehensive income (FVTOCI)

C. Financial assets measured at fair value through profit or loss (FVTPL)

A. Financial assets measured at amortised cost:

A financial asset is measured at the amortised cost if both the following conditions are met:

a. The Company’s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows, and

b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such financial assets are subsequently measured at amortised cost using the effective interest method.

Under the effective interest method, the future cash receipts are exactly discounted to the initial recognition value using the effective interest rate. The cumulative amortisation using the effective interest method of the difference between the initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the financial asset over the relevant period of the financial asset to arrive at the amortised cost at each reporting date. The corresponding effect of the amortisation under effective interest method is recognised as interest income over the relevant period of the financial asset. The same is included under other income in the Statement of Profit and Loss.

The amortised cost of a financial asset is also adjusted for loss allowance, if any

B. Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both of the following conditions are met:

a. The Company’s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets, and

b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

This category applies to certain investments in debt instruments. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognised in the Other Comprehensive Income (OCI). However, the Company recognises interest income and

impairment losses and its reversals in the Statement of Profit and Loss.

On Derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is reclassified from equity to Statement of Profit and Loss.

Further, the Company, through an irrevocable election at initial recognition, has measured certain investments in equity instruments at FVTOCI.

The Company has made such election on an instrument-by-instrument basis. These equity instruments are neither held for trading nor are contingent consideration recognised under a business combination. Pursuant to such irrevocable election, subsequent changes in the fair value of such equity instruments are recognised in OCI. However, the Company recognises dividend income from such instruments in the Statement of Profit and Loss when the right to receive payment is established, it is probable that the economic benefits will flow to the Company and the amount can be measured reliably.

On Derecognition of such financial assets, cumulative gain or loss previously recognised in OCI is not reclassified from the equity to Statement of Profit and Loss. However, the Company may transfer such cumulative gain or loss into retained earnings within equity.

C. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI as explained above. This is a residual category applied to all other investments of the Company excluding investments in subsidiary and associate companies. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognised in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company’s Balance Sheet) when any of the following occurs:

The contractual rights to cash flows from the financial asset expires;

The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset;

i. The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows without material delay to one or more recipients under a ‘pass-through’ arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);

ii. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but retains control of the financial asset, the Company continues to recognise such financial asset to the extent of its continuing involvement in the financial asset. In that case, the Company also recognises an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On Derecognition of a financial asset, (except as mentioned in (ii) above for financial assets measured at FVTOCI), the difference between the carrying amount and the consideration received is recognised in the Statement of Profit and Loss.

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

• Trade receivables

• Financial assets measured at amortised cost (other than trade receivables)

• Financial assets measured at fair value through other comprehensive income (FVTOCI)

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.

In case of other assets (listed as (ii) and (iii) above), the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic conditions.

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

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the Statement of Profit and Loss.

Financial Liabilities

Initial recognition and measurement:

The Company recognises a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the instrument. All financial liabilities are recognised initially at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.

Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognised as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial liability.

Subsequent measurement:

All financial liabilities of the Company are subsequently measured at amortised cost using the effective interest method.

Under the effective interest method, the future cash payments are exactly discounted to the initial recognition value using the effective interest rate. The cumulative amortisation using the effective interest method of the difference between the initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the financial liability over the relevant period of the financial liability to arrive at the amortised cost at each reporting date. The corresponding effect of the amortisation under effective interest method is recognised as interest expense over the relevant period of the financial liability. The same is included under finance cost in the Statement of Profit and Loss.

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 between the carrying amount of the financial liability derecognised and the consideration paid is recognised in the Statement of Profit and Loss.

Offsetting of financial assets and financial liabilities:

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 or to realise the asset and settle the liability simultaneously.

20. Fair Value

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or

liability.

All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).

Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — inputs other than quoted prices included within Level 1 that are observable for

the asset or liability, either directly or indirectly

Level 3 — inputs that are unobservable for the asset or liability.

For assets and liabilities that are recognised in the Financial Statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period and discloses the same.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Company’s financial statements requires management to make judgement, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. 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 the future periods.

a) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end.

The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

b) Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

c) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and qualification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

d) 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, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an assets or Cash Generating Units (CGUs) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using 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.

e) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risks of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

f) Recognition of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are recognised for temporary difference and unused tax losses for which there is probability of utilization against the future taxable profit. The Company uses judgement to determine the amount of deferred tax that can be recognized, based upon the likely timing and the level of future taxable profit and business developments.

g) Right-of-use assets and lease liability

The Company has exercised judgement in determining the lease term as the non-cancellable term of the lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised.

Where the rate implicit in the lease is taken on the basis of rate readily available in the market. This incremental rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation.

h) Defined Benefit Obligation

The costs of providing pensions and other post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which benefit is derived from the employees’ services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

(i) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transaction (Prohibition ) Act, 1988 (43 of 1988) and the rules made thereunder.

(ii) As per information available with the Management, the Company does not have any transaction with companies struck off under Section 248 of the Companies Act , 2013 or section 560 ofthe Companies Act, 1956.

(ii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties) , with the understanding , whether

recorded in writing or otherwise, that the Company shall, directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party ( Ultimate Beneficaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iv) There was no charge or satisfaction , which is yet to be registered with concerned Registrar of Companies, beyond the period permitted under the Companies Act, 2013.

(v) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(vi) There''s no transaction which has not been recorded in the books of accounts and disclosed or surrendered as income during the year in the tax assessments under the Income Tax Act, 1961.

(vii) The Company is in compliance with the regulation as to the number of layers of companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restoration on number of Layers) Rules, 2014.

(viii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(ix) 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, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries .

(x) Corporate Social Responsibility (CSR) liability is not applicable to the company.

(xi) The Company has made divestment of interest in Isht Technologies Private Limited, Wholly-owned subsidiary of the Company w.e.f 22nd December, 2023.

As per our report of even date attached

For J Madan & Associates For and on behalf of Board of Directors

(Chartered Accountants)

(FRN. 025913N)

(Rajan Handa) (Rishab Handa )

CA Naveen Kumar Managing Director Whole Time Director & CFO

Partner DIN-00194590 DIN-08174892

M. No. 536759

UDIN:24536759BKCKNF2496

(Meenu Goswami)

Place: New Delhi Company Secretary

Dated: 9th April, 2024 M.No. A 33472

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Mar 31, 2023

(a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value ofRs 10/- per share . Each holder of equity shares is entitled to one vote per share held and is entitled to dividend , if declared at the Annual General Meeting .{ In the event of liquidation , the equity shareholders are entitled to receive remaining assets of the company ( after distrubtion of all preferential amounts, if any ) in the proportion of equity held by the shareholders }

The Board of Directors of the Company at its meeting held on 23rd July 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds (''FCCB") aggregating to USD 10 Million at par. During the financial year 2010-11 the "FCCB" ofthe face value of USD 97,60,000 had been bought back by the company at a discount of 24% to the lace value of the "FCCB" and subsequently a notice was given to the Clearing Houses, through the Trustees, requesting communication with the bondholders of the balance 24 bonds of the face value of USD 240000. However, no response has been received and no claimant has come forth on the redemption date 24th July 2012 and till date. The premium payable on the redemption of the "FCCB" has been provided for.

b) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

The amount assessed as contingent liability does not include interest that could be claimed by the counter parties.

(II) Commitments

1. The Company does not have any capital contracts remaining to be executed hence there is no capital commitment at the end of the year (Previous Year - Nil)

2. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities has been made and is adequate.

3 . All the operations of the company are considered as a single business segment for the purpose of Ind AS 108 “Operating Segments”.

Foreign Currency Sensitivity

Since the net foreign currency exposure is not substantial, the foreign currency sensitivity is not material at the reporting date.

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rate. Since the company’s borrowings which are affected by interest rate fluctuation is very insignificant to the size and operations of the company, therefore, a change in interest rate risk does not have a material impact on the company’s financial statements in relation to fair value of financial instruments.

OK PLAY INDIA LIMITED

NOTES TO STANDALONE FINANCIAL STATEMENTS

(iii) Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the company. Financial instruments that are subject to concentrations of credit risks, principally consist of balance with banks, trade receivables, loans and advances. None of the financial instruments of the company result in material concentrations of credit risks.

(iv) Liquidity Risk

The company manages liquidity risk through banking facilities by continuously monitoring forecast and actual cash flows.

Note :

# The significant change in these ratios are due to the additional borrowings raised by the Company during the year for execution of new orders

(i) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transaction (Prohibition ) Act, 1988 (43 of 1988) and the rules made thereunder.

(ii) As per information available with the Management, the Company does not have any transaction with companies struck off under Section 248 of the Companies Act , 2013 or section 560 of the Companies Act, 1956.

(iii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties) , with the understanding , whether recorded in writing or otherwise, that the Company shall, directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party ( Ultimate Beneficaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iv) There was no charge or satisfaction , which is yet to be registered with concerned Registrar of Companies, beyond the period permitted under the Companies Act, 2013.

(v) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(vi) There''s no transaction which has not been recorded in the books of accounts and disclosed or surrendered as income during the year in the tax assessments under the Income Tax Act, 1961.

(vii) The Company is in compliance with the regulation as to the number of layers of companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restoration on number ofLayers) Rules, 2014.

(viii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(ix) 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 intermeidary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries .

(x) Corporate Social Responsibility (C SR) liability is not applicable to the company. .

(xi) The Company has made divestment of interest in OK Play Healthcare Private Limited, subsidiary of the Company w.e.f 29th June, 2022

---

Mar 31, 2018

A. CORPORATE INFORMATION

The Company was incorporated on 19th August 1988 and is a public limited company listed on the Bombay Stock Exchange (BSE).The Company’s registered office is at 17, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana -122103.The company manufactures Plastic Molded Toys, School Furniture, Playground Equipment, Infrastructure & Automotive Products, Point-Of-Purchase Products and E-Vehicles.

B. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Company’s financial statements requires management to make judgement, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying, disclosures 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 the future periods.

a) Depreciation/amortization and useful lives of property, plant and equipment/ intangible assets.

Property, plant and equipment/intangible assets are depreciated/amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of assets annually in order to determine the amount of depreciation/ amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes. The depreciation/amortization for future periods is revised if there are significant changes from previous estimates.

b) Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

c) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and qualification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

d) 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, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGUs) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using 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.

e) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risks of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

C. FIRST TIME ADOPTION OF IND AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly, the impact of transition has been provided in the Opening Reserves as at 1st April, 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

a) Exemptions from retrospective application

(i) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transaction date except for certain class of assets which are measured at fair value as deemed cost.

(ii) Investments in subsidiary

The Company has elected to measure investment in subsidiary at cost.

(b) Terms/ rights attached to equity shares: The Company has only one class of equity shares having par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share held and is entitled to dividend, if declared at the Annual General Meeting.{In the event of liquidation , the equity shareholders are entitled to receive remaining assets of the company ( after distribution of all preferential amounts, if any ) in the proportion of equity held by the shareholders.}

1.1. Secured Term Loans are secured as below:

From Bank: Exclusive charge/equitable mortgage on the factory land and building at 17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District-Mewat, Haryana, Plant and Machinery and Assets created out of the term Loan.

Against Vehicles: Secured against hypothecation of respective vehicles:

1.2. Term Loans from banks are collaterally secured by:

a) Equitable Mortgage on the Company’s property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable Mortgage of land and building at Plot No 17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Equitable Mortgage of Company’s property at Plot No 33, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

d) Hypothecation of all Current Assets of the company.

e) First charge on other net block assets of the Company.

f) Personal Guarantees of two of the Directors of the company.

g) Pledge of 47.94 lacs Equity Shares of the company by one of the Directors.

h) Second charge on entire fixed assets of the subsidiary Company , OK Play Auto Private Limited.

i) Residual value of prime security of the subsidiary Company, OK Play Auto Private Limited.

j) Reinvestment Deposit Plan of value of Rs1.56 Crores.

k) Corporate Guarantee of the Subsidiary Company, OK Play Auto Private Limited.

1.3. Term loans, Unsecured, from other parties have been secured by third party property.

1.4. Term loans are repayable as follows:

From Bank: Payable in monthly installments upto year 2024-25.

Against Vehicles: Payable in monthly Installments extending to year 2022-23.

External Commercial Borrowing: Payable in half yearly installments upto 2018-19.

Unsecured from Other Parties: Payable in monthly/quarterly installments extending to year 2022-23.

2. 1 Working Capital Loan from Bank is secured by:

Secured against Stocks of Raw Materials, Work-in-Progress, Finished Goods, Other Stocks and Book Debts.

2. 2 Working Capital Loan from bank is collaterally secured by:

a) Equitable Mortgage on the Company’s Property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable Mortgage of land and building at Plot No 17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Equitable Mortgage of Company’s property at Plot No 33, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

d) Hypothecation of all Current Assets of the company.

e) First charge on other net block assets of the company.

f) Personal Guarantees of two of the Directors of the company.

g) Pledge of 47.94 lacs Equity Shares of the company by one of the Directors.

h) Second charge on entire fixed assets of the subsidiary Company, OK Play Auto Private Limited.

i) Residual value of prime security of the subsidiary Company, OK Play Auto Private Limited. j) Reinvestment Deposit Plan of value of Rs1.56 Crore.

The Board of Directors of the Company at its meeting held on 23rd July 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds (“FcCb”) aggregating to USD 10 Million at par. During the financial year 2010-11 the “FCCB” of the face value of USD 97,60,000 had been bought back by the company at a discount 24% to the face value of the “FCCB” and subsequently a notice was given to the Clearing Houses, through the Trustees, requesting communication with the bondholders of the balance 24 bonds of the face value of USD 2,40,000 However, no response has been received and no claimant has come forth on the redemption date 24th July 2012 and till date. The premium payable on the redemption of the “FCCB” has been provided for.

NOTE: 3 NOTES ON STANDALONE FINANCIAL STATEMENTS

1. Contingent Liabilities and Commitments, not provided for :

(I) Contingent Liabilities

a) Claims against the company not acknowledged as debt:

(i) Claims against the Company, where legal cases are under way, but not acknowledged as debts amount to Rs. 50,73,895.00 (Previous year Rs. 61,25,818.12).

(ii) Demand of penalty of Rs. Nil (Previous Year Rs. 29,37,276.00) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

b) Guarantees:

(i) Guarantees given to banks as counter guarantees for performance of contracts Rs.15,58,200.00 (Previous Year Rs. 42,00,400.00).

(ii) Letter of credit issued by banks-Nil (Previous year Rs. Nil).

(iii) Corporate Guarantee, restricted to Rs. 25.00 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

c) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

(II) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

2. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business at least equal to the amount stated therein. The provision for all known liabilities has been made and is adequate.

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

4. All the operations of the company are considered as a single business segment for the purpose of Ind AS 108 “Operating Segments”.

5. Related Party Disclosures:

(I) Relationships

(a) Key Management Personnel Justice T.R. Handa (Retd.)

Mr. Rajan Handa

Mrs. Mamta Handa Dr. Rajan Wadhera Mr Triloki Nath Verma Mr Narayan Chandra Rout Relatives

Mr. Rishab Handa Mr. Raghav Handa

(b) Subsidiary Company

OK Play Auto Private Limited

(c) Significant influence of Key Management Personnel of the company A & A Labels

Anupam Art Printer

Note: Related party relationship is as identified by the company and relied upon by the Auditors.

6. CAPITAL MANAGEMENT

The Company manages its capital to ensure that the company will be able to continue as going concern through efficient allocation of capital towards expansion of business and optimization of working capital requirements. The management of the company reviews the capital structure of the company on regular basis

The fair value of the financial assets and liabilities are included at the amount that would be received to sell on asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

- Trade receivables, cash and cash equivalents, other bank balances, loans, other current financial assets, current borrowings, trade payables and other current financial liabilities: Approximate their carrying amounts largely due to the short-term maturities of these instruments.

Foreign Currency Risk

All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

The following table shows foreign currency exposures in USD on financial instruments at the end of the reporting year.

Foreign Currency Sensitivity

Since the net foreign currency exposure is not substantial, the foreign currency sensitivity is not material at the reporting date.

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 the market interest rate. Since the company’s borrowings which are affected by interest rate fluctuation is very insignificant to the size and operations of the company, therefore, a change in interest rate risk does not have a material impact on the company’s financial statements in relation to fair value of financial instruments.

Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the company.

Financial instruments that are subject to concentrations of credit risks, principally consist of balance with banks, trade receivables, loans and advances. None of the financial instruments of the company result in material concentrations of credit risks.

Liquidity Risk

The company manages liquidity risk through banking facilities by continuously monitoring forecast and actual cash flows.

---

Mar 31, 2016

1. Secured Term Loans are secured as below:

From Banks : Secured against hypothecation of assets created from Term Loan.

Against Vehicles : Secured against hypothecation of respective vehicles.

2. Term Loans from banks are collaterally secured by:

a)Equitable Mortgage on the Company''s property at 124, New Manglapuri, Mehrauli, New Delhi.

b)Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Personal guarantees of two of the Directors of the company.

f) Pledge of 47.94 lacs Equity Shares of the company by one of the Directors.

g) Second charge on entire fixed assets of the subsidiary company, OK Play Auto Private Limited.

h) Residual value of prime security of the subsidiary company, OK Play Auto Private Limited.

i) Reinvestment Deposit Plan of the value of Rs.0.84 crores.

j) Corporate Guarantee of the Subsidiary Company, OK Play Auto Private Limited, restricted to Rs.91.21 crores

3. Term Loans, Unsecured from other parties have been secured by third party property.

4. Term Loans are repayable as follows:

From Bank: Payable in monthly installments upto year 2019-20 Against Vehicles: Payable in monthly installments extending to year 2019-20 External Commercial Borrowing: Payable in half-yearly installments up to year 2018-19 Unsecured From Other Parties: Payable in monthly installments extending to year 2022-23

5. Working Capital Loan from Bank is secured by:

Secured against hypothecation of stocks of Raw Material, Work-in-process, Finished Goods & Other Stocks and book debts.

6. Working Capital Loan from bank is collaterally secured by:

a)Equitable Mortgage on the Company''s property at 124, New Manglapuri, Mehrauli, New Delhi.

b)Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Personal guarantees of two of the directors of the company.

f) Pledge of 47.94 lacs Equity Shares of the company by one of the Directors.

g) Second charge on entire fixed assets of the subsidiary company, OK Play Auto Private Limited.

h) Residual value of prime security of the subsidiary company, OK Play Auto Private Limited.

i) Reinvestment Deposit Plan of the value of Rs.0.84 crores.

7. The Board of Directors of the Company at its meeting held on 23^rd July, 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds (''FCCB'') aggregating to USD 10 million, at par.

During the financial year 2010-11, the ''FCCB'' of the face value of USD 9,760,000 had been bought back by the company at a discount of 24% to the face value of the ''FCCB'' and subsequently a notice was given to the Clearing Houses, through the Trustees, requesting communication with the bondholders of the balance 24 bonds of the face value of USD 240,000. However, no response has been received and no claimant has come forth on the redemption date of 24th July, 2012 and till date. The premium payable on the redemption of the FCCB has been provided for.

8. Contingent Liabilities and Commitments, not provided for :

(I) Contingent Liabilities

a) Claims against the company not acknowledged as debt:

(i) Claims against the Company, where legal cases are under way, but not acknowledged as debts amount to Rs.70,68,518.12 (Previous Year Rs.59,74,812.12)

(ii) Demand of penalty of Rs.29,37,276/- (Previous Year Rs.29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

b) Guarantees:

(i) Guarantees given to banks as counter guarantees for performance of contracts Rs.1,06,60,000 /- (Previous Year Rs.7,06,60,000/-).

(ii) Letter of credit issued by banks-Nil (Previous year Rs. Nil)

(iii) Corporate Guarantee, restricted to Rs.26.00 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

c) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

(II) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

9. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realization in the ordinary course of business at least equal to the amount stated therein. The provision for all known liabilities have been made and are adequate.

10 . There was a fire at the plant on the intervening night between 9th & 10th January, 2015 in which the company lost its stocks and part of the Building and Plant & Machinery. The company had incurred a loss of Rs 22.25 crores due to the fire which had been reflected in Other Expenses in the previous year. The company had filed a claim with the insurance company for the loss incurred which had been reflected in the Other Income and Other Current Assets in the previous year. During the year, the insurance company has paid the claim to the company as per its final loss assessment report. The final loss on account of fire, incurred by the company, has been reflected as Exceptional Item in the Statement of Profit and Loss for the year.

11. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

12. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard 17, ‘Segment Reporting’(AS17)), issued by the Institute of Chartered Accountants of India.

---

Mar 31, 2015

1. Secured Term Loans are secured as below:

From Banks : Secured against hypothecation of assets created from Term Loan.

Against Vehicles : Secured against hypothecation of respective vehicles.

2. Term Loans from banks are collaterally secured by:

a) Equitable Mortgage on the Company's property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable mortgage of land and building at plot no. 17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Personal guarantees of two of the directors of the company.

f) Pledge of 47.94 lacs Equity Shares of the company by one of the Directors.

g) Second charge on entire fixed assets of the subsidiary company, OK Play Auto Private Limited.

h) Residual value of prime security of the subsidiary company, OK Rlay Auto Private Limited.

i) Reinvestment Deposit Plan of the value of Rs. 0.45 crores.

3. Term Loans, Unsecured from other parties have been secured by third party property.

4. Term Loans are repayable as follows:

From Bank: Payable in monthly instalments upto year 2019-20

Against Vehicles: Payable in monthly instalments extending to year 2020-21 External Commercial Borrowing: Payable in half-yearly instalments upto year 2018-19 Unsecured From Other Parties: Payable in monthly instalments extending to year 2022-23

5. Working Capital Loan from Bank is secured by:

Secured against hypothecation of stocks of Raw Material, Work-in-process, Finished Goods & Other Stocks and book debts.

6. Working Capital Loan from bank is collaterally secured by:

a) Equitable Mortgage on the Company's property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Personal guarantees of two of the directors of the company.

f) Pledge of 47.94 lacs Equity Shares of the company by one of the Directors.

g) Second charge on entire fixed assets of the subsidiary company, OK Play Auto Private Limited.

h) Residual value of prime security of the subsidiary company, OK Play Auto Private Limited.

i) Reinvestment Deposit Plan of the value of Rs.0.45 crores.

7. The Board of Directors of the Company at its meeting held on 23rd July, 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds ('FCCB') aggregating to USD 10 million, at par. During the financial year 2010-11, the 'FCCB' of the face value of USD 9,760,000 had been bought back by the company at a discount of 24% to the face value of the 'FCCB' and subsequently a notice was given to the Clearing Houses, through the Trustees, requesting communication with the bondholders of the balance 24 bonds of the face value of USD 240,000. However, no response has been received and no claimant has come forth on the redemption date of 24th July, 2012 and till date. The premium payable on the redemption of the FCCB has been provided for.

8. Contingent Liabilities and Commitments, not provided for:

(I) Contingent Liabilities *

a) Claims against the company not acknowledged as debt:

(i) Claims against the Company, where legal cases are under way, but not acknowledged as debts amount to Rs 59,74,812.12.

(ii) Demand of penalty of Rs. 29,37,276/- (Previous Year Rs. 29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

b) Guarantees:

(I) Guarantees given to banks as counter guarantees for performance of contracts Rs.706,60,000 /- (Previous Year Rs. 706,60,000/-).

(ii) Letter of credit issued by banks-Nil (Previous year Rs. Nil)

(iii) Corporate Guarantee, restricted to Rs. 19.48 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

c) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

9. Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

10. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities have been made and are adequate.

11. There was a fire at the plant on the intervening night between 9th & 10th January, 2015 in which the company lost its stocks and part of the Building and Plant & Machinery. The company has incurred a loss of Rs 22.25 crores due to the fire which have been reflected in Other Expenses. The company has filed a claim with the insurance company for the loss incurred which has been reflected in the Other Income and Other Current Assets. The insurance company has yet to give a copy of the final loss assessment report.

12. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

13. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard 17, 'Segment Reporting'(AS17)), issued by the Institute of Chartered Accountants of India.

14. Related Party Disclosures:

(I) Relationships

(a) Key Management Personnel

Justice T.R. Handa (Retd.) Mr. Rajan Handa Mrs. Mamta Handa Dr. Rajan Wadhera Relatives Mrs. Usha Handa

(b) Subsidiary Company

OK Play Auto Private Limited

(c) Significant influence of key management personnel of the company Rave India (A Printing unit of Rave Scans Pvt Ltd)

A&A Labels Anupam Art Printer

Note: Related party relationship is as identified by the company and relied upon by the Auditors.

---

Mar 31, 2014

1. Secured Term Loans are secured as below:

From Banks : Secured against hypothecation of assets created from Term Loan.

Against Vehicles : Secured against hypothecation of respective vehicles.

2. Term Loans from banks are collaterally secured by:

a) Equitable Mortgage on the Company''s property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Personal guarantees of two of the directors of the company.

f) Pledge of Equity Shares of the company of the value of Rs. 10 crores by one of the directors.

g) Residual value of prime security of the subsidiary company, OK Play Auto Private Limited.

h) Equitable Mortgage of third party property.

3. Term Loans, Unsecured from other parties have been secured by third party property.

4. Term Loans are repayable as follows:

From Bank: Payable in monthly instalments upto year 2016-17 Against Vehicles: Payable in monthly instalments extending to year 2020-21 External Commercial Borrowing: Payable in half-yearly instalments upto year 2018-19 Unsecured From Other Parties: Payable in monthly instalments extending to year 2022-23

5. Working Capital Loan from Bank is secured by:

Secured against hypothecation of stocks of Raw Material, Work-in-process, Finished Goods & Other Stocks and book debts.

6. Working Capital Loan from bank is collaterally secured by:

a) Equitable Mortgage on the Company''s property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Personal guarantees of two of the directors of the company.

f) Pledge of Equity Shares of the company of the value of Rs. 10 crores by one of the directors.

g) Residual value of prime security of the subsidiary company, OK Play Auto Private Limited.

h) Equitable Mortgage of third party property.

7. The Board of Directors of the Company at its meeting held on 23rd July, 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds (''FCCB'') aggregating to USD 10 million, at par. During the financial year 2010-11, the ''FCCB'' of the face value of USD 9,760,000 had been bought back by the company at a discount of 24% to the face value of the ''FCCB'' and subsequently a notice was given to the Clearing Houses, through the Trustees, requesting communication with the bondholders of the balance 24 bonds of the face value of USD 240,000. However, no response has been received and no claimant has come forth on the redemption date of 24th July, 2012 and till date. The premium payable on the redemption of the FCCB has been provided for.

8. Contingent Liabilities and Commitments, not provided for :

(I) Contingent Liabilities

a) Claims against the company not acknowledged as debt:

(i) Demand of penalty of Rs. 29,37,276/- (Previous Year Rs. 29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

b) Guarantees:

(i) Guarantees given to banks as counter guarantees for performance of contracts Rs.706,60,000/- (Previous Year Rs. 106,60,000/-).

(ii) Letter of credit issued by banks-Nil (Previous year Rs. 272,86,102/-)

(iii) Corporate Guarantee, restricted to Rs. 19.48 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

c) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

(II) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

9. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities have been made and are adequate. However, the balances of parties are subject to confirmation.

10. Advertisement expenses of Rs 392,13,964/- standing as deferred revenue expenditure in the previous year have been written off during the year as the benefit of the same has been received.

11. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

12. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard

17, ''Segment Reporting''(AS17)), issued by the Institute of Chartered Accountants of India.

13. Related Party Disclosures:

(I) Relationships

(a) Key Management Personnel Justice T.R. Handa (Retd.)

Mr. Rajan Handa

Mrs. Mamta Handa Dr. Rajan Wadhera Relatives Mrs. Usha Handa

(b) Subsidiary Company

OK Play Auto Private Limited

(c) Significant influence of key management personnel of the company Sacred Exim Limited

14. Note: Related party relationship is as identified by the company and relied upon by the Auditors.

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Mar 31, 2013

1. Contingent Liabilities and Commitments, not provided for :

(I) Contingent Liabilities

a) Claims against the company not acknowledged as debt:

(i) Demand of penalty of Rs. 29,37,276/- (Previous Year Rs. 29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

b) Guarantees:

(i) Guarantees given to banks as counter guarantees for performance of contracts Rs.106,60,000 /- (Previous Year Rs. 163,63,000/-). (ii) Letter of credit issued by banks Rs.272,86,102 /- (Previous year Rs. 199,60,878/-) (iii) Corporate Guarantee, restricted to Rs. 19.48 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

c) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

(II) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

2. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities have been made and are adequate. However, the balances of parties are subject to confirmation.

3. Advertisement expenses in the nature of deferred revenue expenditure would be written off over the years when the benefit would be received.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

5. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard 17, ''Segment Reporting''(AS17)), issued by the Institute of Chartered Accountants of India.

6. Related Party Disclosures: (I) Relationships

(a) Key Management Personnel Justice T.R. Handa (Retd.) Mr. Rajan Handa Mrs. Mamta Handa Dr. Rajan Wadhera

Relatives

Mrs. Usha Handa

(b) Subsidiary Company

OK Play Auto Private Limited

(c) Significant influence of key management personnel of the company Sacred Exim Limited

Note: Related party relationship is as identified by the company and relied upon by the Auditors.

---

Mar 31, 2012

1.1 Secured Term Loans are secured as below:

From Banks : Secured against hypothecation of assets created from Term Loan.

Against Vehicles : Secured against hypothecation of respective vehicles.

1.2 Term Loans from banks are collaterally secured by:

a)Equitable Mortgage on the Company's property at 124, New Manglapuri, Mehrauli, New Delhi.

b)Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Negative lien on the property of land at Bawal Industrial Estate, Phase II, Haryana

f) Personal guarantees of two of the directors of the company.

g) Pledge of Equity Shares of the company of the value of Rs. 10 crores by one of the directors.

1.3 Term Loans, Unsecured from other parties have been secured by third party property and by pledge of equity shares by a director.

1.4 Term Loans are repayable as follows:

From Bank: Payable in monthly instalments upto year 2016-17 Against Vehicles: Payable in monthly instalments extending to year 2014-15 External Commercial Borrowing: Payable in half-yearly instalments upto year 2018-19 Unsecured From Other Parties: Payable in monthly instalments extending to year 2022-23

2.1 Working Capital Loan from Bank is secured by:

Secured against hypothecation of stocks of Raw Material, Work-in-process, Finished Goods & Other Stocks and book debts.

2.2 Working Capital Loan from bank is collaterally secured by:

a)Equitable Mortgage on the Company's property at 124, New Manglapuri, Mehrauli, New Delhi.

b)Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Negative lien on the property of land at Bawal Industrial Estate, Phase II, Haryana

f) Personal guarantees of two of the directors of the company.

g) Pledge of Equity Shares of the company of the value of Rs. 10 crores by one of the directors.

3.1 The Board of Directors of the Company at its meeting held on 23rd July, 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds (‘FCCB') aggregating to US $ 10 million, at par.

The bondholders have an option to convert these bonds into equity shares at an initial conversion price of Rs. 140/- per share at a fixed exchange rate ( Rs. 40.34 = US $ 1). The conversion price may be reset on the first, second and third anniversaries of the Bonds. The reset conversion price cannot be lower than Rs. 98.15 or the applicable reset floor price as prescribed by SEBI from time to time. The conversion price will be subject to certain adjustments as detailed in the offering circular such as dilution, bonus, dividends, right issue etc. Unless previously redeemed, repurchased or converted, the company will redeem these bonds at 146.25 percent of the principal amount on 24th July, 2012. As at 31st March, 2012 none of the ‘FCCB' have been converted into equity shares but ‘FCCB' of the face value of USD 9,760,000 had been bought back by the company at a discount of 24% to the face value of the ‘FCCB' and the balance of ‘FCCB' outstanding as on 31st March, 2012 have been included in Other Current Liabilities.

The company expects that the bond holders would opt for conversion rather than redemption and hence, in that case no premium would be payable and on that basis the same is not provided for.

Maximum premium amount payable at current exchange rates is Rs.57,80,913/-.

4.1 Potential equity shares on conversion of the Foreign Currency Convertible Bonds into equity shares, at the option of the bond holders, are having an anti-dilutive effect and are therefore ignored in calculating diluted earnings per share.

Note : 1 Notes on Financial Statements

1. Contingent Liabilities and Commitments, not provided for:

(I) Contingent Liabilities

a) Claims against the company not acknowledged as debt:

(i) Demand of penalty of Rs. 29,37,276/- (Previous Year Rs. 29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

b) Guarantees:

(i) Guarantees given to banks as counter guarantees for performance of contracts Rs.163,63,000 /- (Previous Year Rs. 146,23,000/-).

(ii) Letter of credit issued by banks Rs. 199,60,878 /- (Previous year Rs. 201,70,159/-)

(iii) Corporate Guarantee, restricted to Rs. 19.48 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

c) Other money for which the company is contingently liable:

(i) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

(II) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

1. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities have been made and are adequate. However, the balances of parties are subject to confirmation.

2. Advertisement expenses in the nature of deferred revenue expenditure would be written off over the years when the benefit would be received.

3. Expenses on issue of Foreign Currency Convertible Bonds are being written off over five financial years.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

5. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard 17, ‘Segment Reporting'(AS17)), issued by the Institute of Chartered Accountants of India.

6. Related Party Disclosures:

(I) Relationships

Key Management Personnel

Justice T.R. Handa (Retd.)

Mr. Rajan Handa

Mrs. Mamta Handa

Dr. Rajan Wadhera

Relatives

Mrs. Usha Handa

Note: Related party relationship is as identified by the company and relied upon by the Auditors.

---

Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. Nil).

2. Contingent Liabilities not provided for :

(i) Demand of penalty of Rs. 29,37,276/- (Previous Year Rs. 29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

(ii) Guarantees given to banks as counter guarantees for performance of contracts Rs. 146,23,000/- (Previous Year Rs. 113,50,000/-).

(iii) Letter of credit issued by banks Rs. 201,70,159/- (Previous year Rs.112,99,036/-)

(iv) Corporate Guarantee, restricted to Rs. 19.48 crores, given as security for the credit limits sanctioned by a bank to the subsidiary company, OK Play Auto Private Limited.

(v) Security, in the form of charge on the properties and Residual value of Block assets, present and future, after netting the prime security for term loans, provided to a bank for the credit limits sanctioned by it to the subsidiary company, OK Play Auto Private Limited.

3. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities have been made and are adequate. However, the balances of parties are subject to confirmation.

4. Amounts shown under the head 'Secured Loans' have been secured as below:-

(i) Term Loans

From Banks : Secured against hypothecation of assets created from Term Loan. Against Vehicles : Secured against hypothecation of respective vehicles.

(ii) Working Capital Loans:

From Banks : Secured against hypothecation of stocks of Raw Material, Work-in-process, Finished Goods & Other Stocks and book debts.

Term Loans and Working Capital Loans from banks are collaterally secured by:

a) Equitable Mortgage on the Company's property at 124, New Manglapuri, Mehrauli, New Delhi.

b) Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

c) Hypothecation of all the Current Assets of the company.

d) First charge on other net block assets of the company.

e) Negative lien on the property of land at Bawal Industrial Estate, Phase II, Haryana

f) Personal guarantees of two of the directors of the company.

g) Pledge of Equity Shares of the company of the value of Rs. 10 crores by one of the directors.

5. 'Term Loan from others' shown under Unsecured Loans in Schedule 'C' – Loan Funds has been secured by third party property and by pledge of equity shares by a director.

6. In respect of the Domestic Factoring Facility availed by the company, the discounting charges have been provided as per the terms of the sanction letter. However, the factoring company has charged excess discounting charges of Rs. 1,69,365.52 during the year, to which the company disagrees and hence has not provided the same. Accordingly the profits of the company would have been lower by the said amount had the company accepted the excess charges of the factoring company.

7. Advertisement expenses in the nature of deferred revenue expenditure would be written off over the years when the benefit would be received.

8. The Board of Directors of the Company at its meeting held on 23rd July, 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds ('FCCB') aggregating to US $ 10 million, at par. The bondholders have an option to convert these bonds into equity shares at an initial conversion price of Rs. 140/- per share at a fixed exchange rate ( Rs. 40.34 = US $ 1). The conversion price may be reset on the first, second and third anniversaries of the Bonds. The reset conversion price cannot be lower than Rs. 98.15 or the applicable reset floor price as prescribed by SEBI from time to time. The conversion price will be subject to certain adjustments as detailed in the offering circular such as dilution, bonus, dividends, right issue etc. Unless previously redeemed, repurchased or converted, the company will redeem these bonds at 146.25 percent of the principal amount on 24th July, 2012. As at 31st March, 2011 none of the 'FCCB' have been converted into equity shares. However, during the year, 'FCCB' of the face value of USD 9,760,000 have been bought back by the company at a discount of 24% to the face value of the 'FCCB' and the balance of 'FCCB' outstanding as on 31st March, 2011 have been included and disclosed in Schedule 'C'- Loan Funds under the sub-heading 'Unsecured'.

The company expects that the bond holders would opt for conversion rather than redemption and hence, in that case no premium would be payable and on that basis the same is not provided for. Maximum premium amount payable at current exchange rates is Rs.50,39,156/-.

9. Expenses on issue of Foreign Currency Convertible Bonds are being written off over five financial years.

10. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

11. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard 17, 'Segment Reporting'(AS17)), issued by the Institute of Chartered Accountants of India.

12. Related Party Disclosures:

(I) Relationships

Key Management Personnel

Justice T.R. Handa (Retd.)

Mr. Rajan Handa

Mrs. Mamta Handa

Dr. Rajan Wadhera

Relatives

Mrs. Usha Handa

Note: Related party relationship is as identified by the company and relied upon by the Auditors.

13. Previous year's figures have been regrouped wherever necessary to make them comparable with the current year.

---

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for amount to Rs. Nil (Previous Year Rs. 4,40,00,000/-).

2. Contingent Liabilities not provided for :

(i) Demand of penalty of Rs.29,37,276/- (Previous Year Rs. 29,37,276/-) under the Central Excise Act is in dispute and pending before the Central Excise & Service Tax Appellate Tribunal.

(ii) Guarantees given to banks as counter guarantees for performance of contracts Rs.113,50,000/- (Previous Year Rs. 91,95,733/-).

(iii) Letter of credit issued by banks Rs.112,99,036/- (Previous year Rs. Nil).

3. In the opinion of the Management, the Current Assets, Loans and Advances shown in the Balance Sheet have a value on realisation in the ordinary course of business atleast equal to the amount stated therein. The provision for all known liabilities have been made and are adequate. However, the balances of parties are subject to confirmation.

4. Amounts shown under the head ‘Secured Loans have been secured as below:-

(i) Term Loans

From Banks : Secured against hypothecation of assets created from Term Loan.

Against Vehicles : Secured against hypothecation of respective vehicles.

(ii) Working Capital Loans:

From Banks : Secured against hypothecation of stocks of Raw Material, Work-in-process, Finished Goods & Other Stocks and book debts, except Harita Seating Systems Ltd.

From others: Secured against hypothecation of book debts of Harita Seating Systems Ltd. and additionally secured by the personal guarantee of a director of the company.

Term Loans and Working Capital Loans from banks are collaterally secured by:

a) Equitable mortgage of land and building at plot no.17-18, Rojka Meo Industrial Estate, Tehsil Nuh, District Mewat, Haryana.

b) Hypothecation of all the Current Assets of the company.

c) First charge on all the other net block assets of the company.

d) First charge on the Companys property at 124, New Manglapuri, Mehrauli, New Delhi.

e) Negative lien on the property of land at Bawal Industrial Estate, Phase II, Haryana

f) Personal guarantees of two of the directors of the company.

5. Term Loan from others shown under Unsecured Loans in Schedule C - Loan Funds has been secured by third party property and by pledge of equity shares by a director.

6. In respect of the Domestic Factoring Facility availed by the company, the discounting charges have been provided as per the terms of the sanction letter. However, the factoring company has charged excess discounting charges of Rs. 46,51,209.60 to which the company disagrees and hence has not provided the same. Accordingly the profits of the company would have been lower by the said amount had the company accepted the excess charges of the factoring company.

7. Advertisement expenses in the nature of deferred revenue expenditure would be written off over the years when the benefit would be received.

8. A vehicle had been imported in an earlier year from Volkswagen AG through the managing director as per agreement between him and the company. As the vehicle is hypothecated to a bank, it will be registered in the name of the company after satisfaction of the loan.

9. The Board of Directors of the Company at its meeting held on 23rd July, 2007 issued zero coupon unsecured Foreign Currency Convertible Bonds (‘FCCB) aggregating to US $ 10 million, at par. The bondholders have an option to convert these bonds into equity shares at an initial conversion price of Rs. 140/- per share at a fixed exchange rate (Rs. 40.34 = US $ 1). The conversion price may be reset on the first, second and third anniversaries of the Bonds. The reset conversion price cannot be lower than Rs. 98.15 or the applicable reset floor price as prescribed by SEBI from time to time. The conversion price will be subject to certain adjustments as detailed in the offering circular such as dilution, bonus, dividends, right issue etc. Unless previously redeemed, repurchased or converted, the company will redeem these bonds at 146.25 percent of the principal amount on 24th July, 2012. As at 31st March, 2010 none of the FCCB have been converted into equity shares and the balance of FCCB outstanding as on 31st March, 2010 have been included and disclosed in Schedule C - Loan Funds under the sub-heading Unsecured.

The company expects that the bond holders would opt for conversion rather than redemption and hence, in that case no premium would be payable and on that basis the same is not provided for. Maximum premium amount payable at current exchange rates is Rs.20,80,13,538/-.

10. Expenses on issue of Foreign Currency Convertible Bonds are being written off over five financial years.

11. The Company has not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been furnished.

12. All the operations of the company are considered as a single business segment for the purpose of Accounting Standard 17, Segment Reporting (AS17), issued by the Institute of Chartered Accountants of India.

13. Related Party Disclosures:

(I) Relationships

Key Management Personnel

Justice T.R. Handa (Retd.)

Mr. Rajan Handa

Mrs. Mamta Handa

Dr. Rajan Wadhera

Relatives

Mrs. Usha Handa

Note: Related party relationship is as identified by the company and relied upon by the Auditors.

14. Previous years figures have been regrouped wherever necessary to make them comparable with the current year.