Notes to Accounts of Rapid Investments Ltd.

Mar 31, 2024

10 Provisions, Contingent liabilities, Contingent assets and Commitments:

Provisions: The Company recognizes provisions for liabilities and probable losses that have been incurred when it has a present legal or constructive obligation as a result of past events and it is probable that the Company will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a financing cost.

Contingent liability is disclosed in the case of: A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation:

A present obligation arising from past events, when no reliable estimate is possible:

A possible obligation arising from past events, unless the probability of outflow of resources is remote.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

11 Earnings per share:

Basic Earnings per share is calculated by dividing the profit from continuing operations and total profit, both attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. In case there are any dilutive securities during the period presented, the impact of same is given to arrive at diluted earning per share. Diluted earnings per share is computed using the net profit for the year attributable to the shareholder'' and weighted average number of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

12 Financial Instruments Initial Recognition

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets and ftnancial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabiltties at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognioon Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Investments and Other Financial AssetsClassification

The Company classifies its financial assets 1n the following measurement categories:

~those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and ~those measured at amortised cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cashfows Subsequent Measurement

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. The Company reclassifies debt investments when and only when its business model for managing those assets changes. Amortised Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments to principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relaaonship is recognised in profit or loss when the asset is derecognised or impaired Interest income from these financial assets Is Included In finance Income using the effective Interest rate method Subsequently, these are measured at amortised cost using the Effective Interest Method less any impairment losses.

12 Fair value measurement:

The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date. 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:

a In the principal market for the asset or liability.Or

b In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non- financial asset takes in to account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;

Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by ren assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristicsand risks of the

asset or liability and the level of the fair value hierarchy as explained above.

Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are whether observable or unobservable and consists of the following three levels:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Inputs are other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3: Inputs are not based on observable market data unobservable inputs. Fair value are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

(b) Financial Risk Management

The Board of Directors reviews the risk management policy from time to time and the said policy aims at enhancing shareholders'' value and providing an optimum risk-reward trade off. The risk management approach is based on clear understanding of variety of risk that the organization faces, disciplined risk monitoring and measurement and continuous risk assessment and mitigation measures.

A brief description of the various risks which the company is likely to face are as under:

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market conditions. Market risk comprises three types of risk: interest rate risk, credit and default risk and liquidity risk. Financial instruments affected by market risk include loans and borrowings, deposits.

(ii) Interest Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company has no outside borrowings hence its impact in negligible on the company

(iii) Credit Risk and Default Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily Loans ).Since, the recoverability of loan amount from lonees is subject to their financial health hence, credit risk in case of Company is very high.

(iv) Liquidity risk

The company''s objective is to maintain a balance between continuity of funding and flexibility through balances in cash and cash equivalnents and loans from related companies. The liquidity position of the company is good.

NOTE 33: The board of Directors of the company has decided to provide for Impairment on Loans as per IRACP Norms as issued by Reserve Bank of India and hence, no impairment reserve has been created.

Pursuant to loan purchase agreement dated 29th March, 2023 entered by Rapid Investment Limited (purchaser) and Veritas Buildtech Private Limited (seller), any loan instalment falling due and are not recovered on due date, and the loan classified as Non-Performing Asset, then the overdue principal ^{NOTE 34:} amount and interest overdue on the same will be recovered from Veritas Buildtech Private Limited. Accordingly, pursuant to the said agreement, Rs.

1541362 /- being the interest on overdue NPA account has been credited to the Profit and Loss Account as recoverable from Veritas Buildtech Private Limited and the corresponding principal amount of Rs. 13696841 /- are debited as recoverable to the account of Veritas Buildtech Private Limited. No provision is made in the books of accounts in respect of such Interest and Principal amounts transferred.

NOTE 35: Additional Regulatory Information vide its notification dated 24th March 2021:

i The Company has not traded or invested in crypto currency or virtual currency during the current period.

ii The Company is not required to spent any amount in terms of provisions of section 135 of the Companies, Act 2013 on Corporate Social Responsibility.

iii The Company is not as wilful defaulter by ant bank or financial institution or other lenders.

iv The are no transactions with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.

v No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

vi The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

vii The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the

understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

viii The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

ix The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

NOTE 39: Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under “The Micro, Small and Medium Enterprises Development (‘MSMED'') Act, 2006”. Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

NOTE 40: In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

NOTE 41: Balance of Rs.1.98 lakhs with GST Authority is subject to reconcilliation and confirmation. Impact of the same on Profit and Loss Account is

uncertainable.The reconcilaition of turnover, Output Tax with GST returns and reconciliation of Input tax credit with GSTR-2A is under process. The effect of reconciliation , if any, will be provided once ascertained.

NOTE 42: During the year RBI revoked the suspension of Certificate of Registration (COR) issued u/s 45IA of Reserve Bank of India Act therefore, the company has started its Financial Business activities thereafter and has reclassified its Financial Statement as per Division III to Schedule III to Companies Act read with Rules thereto and accordingly previous year figures have been reclassified.

As per our report of even date attached.

For Chaturvedi Sohan & Company For and on behalf of the Board of Directors

Chartered Accountants

FRN: 118424W

(Nina Ranka) (Kanishk Ranka)

CA Sohan Chaturvedi Director Director

Partner DIN:00937698 DIN: 06968409

M.No: 030760 Place: Mumbai Place: Mumbai

Place: Mumbai (Shailendra T Singh) ( Vijay Teraiya)

Dated: 06th June 2024 Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

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Mar 31, 2014

1 Corporate Information

Rapid Investments Limited Company incorporated in India under the provisions of The Companies Act, 1956. The company is engaged in business of Investments

2 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in aJI material respects with the accounting standards notified under the Companies (Accounting Standards) Rule, 2006, (as amended) and the relevant provisions of the Companies Act, 1956- The financial statements have been prepared on an accrual basis and under the historical cost convention.

2.1 Terms/Rights attached to equity shares:

i. The Company has only one class of Equity Shares having a par value of Rs.lOA per share. Each holder of Equity

ii. They are also entitled to dividend if proposed by the Board of Directors and approved by the shareholders in the

iii. In the event of liquidation the equity shareholders are entitled to receive the remaining assets of the Company after

3 Segment Information (as -17)

The Company is engaged in only one business i.e. Non Banking Financial Services (granting of loans, making investments, etc) and as such there are no other reportable segment in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India. Therefore, Segment Information as required by Accounting Standard -17 "Segment Reporting" is not applicable.

4 Related Party Disclosures (AS-18)

Name of related parties and related party relationship:

a) Key Management Personnel: .

Nina Ranka Director

b) Other related Parties: (Companies in which directors of the company are interested)

Ken Software Technologies Ltd.

Neuvo Supertech Enterprises Pvt. Ltd

Aadar Mercantile Pvt. Ltd,

Anivarya Trading Pvt. Ltd.

5 Due to the uncertainty in the future taxable income, the Company has not recognized Deferred Tax as per Accounting standard-22 "Accounting for Taxes On income".

6 Additional Disclosures as required in terms of Paragraph 13 of Monbanking Financial (Mon-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 issued by Reserve Bank of India.

7 Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (''MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid/payable are required to be furnished.

8 While determining diminution, other than temporary, in the value of the long term quoted / unquoted investments, the strategic objective of such investments and the asset base of the investee companies have been considered, In view thereof, the decline in the market value of such investments is considered to be of a temporary nature.

9 In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary coarse of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

10 Previous year figures

The company has been reclassified previous year''s figures to confirm this year''s classification.

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Mar 31, 2013

1 Corporate Information

Rapid Investments Limited Company incorporated in India under the provisions of The Companies Act, 1956. The company is engaged in business of Investments

2 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India [Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rule, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3 Segment Information (AS-17]

The Company is engaged in only one business i.e Non Banking Financial Services (granting of loans, making investments, etc) and as such there are no other reportable segment in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India. Therefore, Segment Information as required by Accounting Standard - 17 "Segment Reporting" is not applicable.

4 Related Party Disclosures (AS -18)

Name of related parties and related party relationship:

a) Key Management Personnel:

Nina Ranka Director

5 Details of dues to Micro and Small Enterprises as defined under the MSMBD Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development [''MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

6 While determining diminution, other than temporary, in the value of the long term quoted / unquoted investments, the strategic objective of such investments and the asset base of the investee companies have been considered. In view thereof, the decline in the market value of such investments is considered to be of a temporary nature.

7 In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

8 Previous year figures

The company has reclassified previous year''s figures to confirm this year''s classification.

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Mar 31, 2012

1.1 Terms/Rights attached to equity shares:

i. The Company has only one class of Equity Shares having a par value of X5I- per share. Each holder of Equity Shares is entitiled to one vote per share.

ii. They are also entitled to dividend if proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

iii. In the event of liquidation the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their share holding.

2 Segment Information (AS - 17)

The Company is engaged in only one business i.e Non Banking Financial Services (granting of loans, making investments, etc.) and as such there are no other reportable segment in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India. Therefore, Segment Information as required by Accounting Standard - 17 "Segment Reporting" is not applicable.

3 Due to the uncertainty in the future taxable income, the Company has not recognized Deferred Tax as per Accounting standard-22 "Accounting for Taxes On Income".

4 The Company believes that no impairment of assets arises during the year as per the recommendations of Accounting Standard - 28 Impairment of Assets, issued by the Institute of Chartered Accountants of India.

5 Additional Disclosures as required in terms of Paragraph 13 of NonBanking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 issued by Reserve Bank of India.

6 Details of dues to Micro and Small Enterprises as defined under the MSMEO Act, 2006 Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development ('MSMED') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

7 While determining diminution, other than temporary, in the value of the long term quoted / unquoted investments, the strategic objective of such investments and the asset base of the investee companies have been considered. In view thereof, the decline in the market value of such investments is considered to be of a temporary nature.

8 In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

9 Previous year figures

Till the period ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31 March, 2012 the revised Schedule VI notified ur.der the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year's figures to confirm to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

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Mar 31, 2010

A. AMOUNTS DUE TO SMALL SCALE INDUSTRIAL UNDER TAKINGS:

As at 31st March 2019, there are no Small Scale Industrial undertakings to which the Company owes a sum for more than thirty days. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, 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 given

B. Sundry Debtors, Loans and Advances, and Sundry Creditors are subject to reconciliation and confirmation from parties.

C. Related Party Transactions :-

Associate Company

Ken Software Technologies Ltd. Ken Technologies Ltd.

Key Managerial Personnel Kanishk Ranka

D. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the institute of Chartered Accountants of India, the company has accounted for deferred tax during the year. The company has significant unabsorbed depreciation under the Income Tax Act, 1961. As a matter of prudence, deferred tax asset has not been recognized.

E. Additional information pursuant to the provisions of paragraph 3 ft 4 of part II of Schedule VI to the Companies Act, 1956, to the extent "applicable and as certified by the management is as under:-

Expenditure in foreign currency - Nil

F. Previous year figures have been regrouped / recast wherever necessary to confirm to the Current years classifications.

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Mar 31, 2009

A. AMOUNTS DUE TO SMALL SCALE INDUSTRIAL UNDER TAKINGS;

As at 31st March 2009, there are no Small Scale Industrial undertakings to which the Company owes a sum for more than thirty days. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, 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 given

B. Sundry Debtors, Loans and Advances, and Sundry Creditors are subject to reconciliation and confirmation from parties.

C. Related Party Transactions :-

- Associate Company

Ken Software Technologies Ltd.

Ken Technologies Ltd.

D. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the institute of Chartered Accountants of India, the company has accounted for deferred tax during the year. The company has significant unabsorbed depreciation under the Income Tax Act, 1961. As a matter of prudence, deferred tax asset has not been recognized.

E. Additional information pursuant to the provisions of paragraph 3 ft 4 of part II of Schedule VI to the Companies Act, 1956, to the extent applicable and as certified by the management is as under: -

Expenditure in foreign currency - Nil

F. Previous year figures have been regrouped / recast wherever necessary to confirm to the Current years classifications.

As per our report of even date attached herewith.