Smartivity - Signed Balance Sheet

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Smartlvity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Statement of changes in equlty for the year enderl 31 March 2021
A. Equlty share capltal
Equlty shares
Issued,subscrlbed and fully pald up (ShareofRs. 10each) No. ofshares Amount In Rs.
At 1 Aprl 2019
Increase/(decrease) durlng the year 10,079 100,790
At 31 March 2020
Increase/(decrease) during the year
10,079 100,790
At 31 March 2021
10,079 100,790
B. Convertible Prefrence share capltal:
Equity shares No. of shares | Amount in Rs.

Issued, subscribed and fully paid up (Share of Rs. 10 each)
At 1 April 2019
Increase/decrease) during the year 17,654 176,540
At 31 Mardch 2020
increase/decrease) during the year 17,654 176,540
2,529 25,290
At 31 March 2021 20,183| 201,830J
C. Other equity_
Particulars Reserve & Surplus tems of

Security Share Application Total
Retained earnings OCI
premlum Money
Balance as at 1st April 2019
(86,105,323) 184,793,790 98,683,467
Changes in accounting policy/ prior period errors
Restated balance at the beginning of the reporting perlod 184,793,790o
(86,105,323) 98,688,467
Add: Surplus during the year
Add:ind as adjustment reversed during the year (31,469 1) 48,485,998 17,016,157
Balance as at 31st March, 2020

Changes in accounting policy/ prior period errors
(117,575,164) 184,793,790 48,485,998 115,704,624
Restated balance at the beginning of the reporting period (117,575,164) 184,793,790 48,485,998 115,704,624
Add: Surplus/received during the year
Add:ind as adjustment reversed during the year
(31,349,582) 49,962,924 (48,485,998)| (29,872,656)
Balance as at31stMarch,2021 (148,924,746)| 234,756,714 85,831,968
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Accouhta
CIN: 074140DL2015PTC277272
Notes to financial statement as at 31 March 2021
3 Property, plant and equlpment
Plant &
Particulars Furniture & Lease hold Office (Amount In Rs.)
MachineryY Fixtures Improvement Computer Motor Vehicles
Equipments Total
Gross block
As at 1 Aprl 2019 17,785,856 1,489,402
Additions 7,272,070 278,393 2,950,763
L,964 22,504,414
Disposals 1,303,941
6,618 77,548
7,818,200
As at 31 March 2020
23,753,985| 57,623 265,5
Additions 282,236 1,951,366 227,388 2,762,808| 1,627,067
Disposals 28,695,547|
As at 31 March 2021 282,236
24,036,221| 1,951,366 227,388 I 2,762,808 28,977,783
Accumulated depreclation
As at 1 April 2019
Charge for the year 3,596,695 483,358
3,602,501 104,842 1,296,592 5,481,487
Deductions 359,959 78,666 696,007
As at 31 March 2020 569,768 4,737,133
36,007 197,783
Charge for the year 6,629,428 843,317L 147,501
803,558
3,083,604 288,093 L,794,816 9,415,062
Deductions 35,603 382,283 3,789,583|
As at 31 March 2021
9,713,032 1,131,410 183,104L
Net block
2,177,099 13,204,645
As at 1 April 2019 14,189,161
As at 31 March 2020 1,006,044 173,551 1,654,171
17,124,557 1,108,049| 17,022,927
As at 31 March 2021 14,323,189 819,956
79,887 L 967,992 19,280,485
44,284 585,709 15,773,138
4 Intangible assets
(Amount in Rs.)
Particulars Patent Goodwll In-House Product Computer
Total Capltal WIP
Development Software
Gross block
As at 1 Aprll 2019
1,520,411 46,648,090
Purchases/internal development 358,071 17,104,437
2,371,779 50,540,280
Disposals/Transferred to Block 17,462,508
|Ind AS adjustments
As at 31 March 2020
1,878,482 63,752,527I 2,371,779
|Purchases/internal development 44,663 7,044,021
68,002,788
Disposals/Transferred to Block 7,088,684
As at 31 March 2021
1,923,145 70,796,548| 2,371,779| 75,091,472
Accumulated deprecdation
As at 1 Aprll 2019
1,061,900 14,661,305 1,908,278 17,631,485
Amortization for the year
294,015 14,394,052 209,363 14,897,430
Deductions
Ind AS adjustments
As at 31 March 2020
1,355,915| 29,055,357L
Amortization for the year
245,534 15,613,725
2,117,641
116,441
32,528,915
15,975,700
Deductions
As at 31 March 2021
1,601,449 44,669,082 2,234,082 48,504,615
Net block
As at 1 April2019 458,511 31,986,785 463,501 32,908,796
As at 31 March 2020 522,567 34,697,170 254,138 35,473,874
As at31 March2021 321,696 26,127,466|_ 137,697 26,586,858 L
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Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes to financialstatementas at 31 March 2021
5. Financial Assets
SA. Trade receivables
Particulars As at As at
31 March 2021 31 March 2020
Trade receivables
Unsecured, considered good
Doubtful 54,430,146 53,573,722
Less: Allowance for expected credit loss

S454,430,146 53,573,722
Doubtful 4,840,177 4,280,949
4,840,177 4,280,949
Net Trade recelvables
Doubtful 49,589,969 49,292,773
49,589,969 49,292,773
Current
Non-Current_ 49,589,969 49,292,773
The activities in the allowance for

doubtful receivables is given below:
31 March 2021_ 31 March 2020
Balance at the beginning of the year
Addition during the year, net
Uncollectable receivables charged against allowance_
Balance at the end of the year
Expected credit
loss: Under the Previous GAAP, loss
provision for trade receivables was created based on credit risk assessment. Under Ind
these provisions are based on assessment of risk of default and timing of collection. AS,
The Company has applied the simplified approach to providing for expected credit losses on trade receivables as described by IFRS 9, which
requires the use of lifetime expected credit loss provision for all trade receivables.
These provisions are based on assessment of risk of default and expected timing of collection. A cumulative
68,08,327/-on March 31st, 2021. impairment provision of Rs.
The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried at
amortised cost. The
impairment methodology applied depends on whether there has been a significant increase in credit risk.
The Company assesses on aforward-looking basis theexpected credit losses associated with its assets carrled at
methodologY applied depends on whether there has been a significant increase in credit risk. amortlsed cost. The impalirment
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Accouents
Smartivitylabs Pvt Ltd
CIN: U74140DL2015PTC277272
SA. Investment
31 March 2021 31 March 2020
|Investment Non Current
Investment - Current 3,000,000
Total Investment
3,000,000
Current
Non-Current

Unsecured, considered doubtful 3,000,000
Less: Allowance for expected credit loss 3,000,000
3,000,000
SB. Loans
|Particulars As at As a
31 March 2021 31March2020
|Security deposits Non Current
Security deposits - Current
1,530,000 30,000
Total Loans and Advances
1,530,000 30,0
Current 1,530,000 30,000
Non-Current
Unsecured, considered good 1,530,000 30,000

Unsecured, considered doubtful
1,530,000 30,000
_
1,530,000 30,000
5C. Cash and cash equivalents
AS at As at
Particulars
31 March 2021 31 March 2020
Balances with banks
-In current accounts 4,029,486 11,147,362
Cash in hand
Total Cash and cash equivalents 4,029,486| 11,147,362
Current 4,029,4865 11,147,362
Non-Current
6. Inventorles
As at As at
Particulars
31 March 2021 31 March 2020
Raw materials 16,128,757.97 14,432,270.71
Work in progress 8,105,298.50 8,104,445.69
|Finished goods
Manufactured goods 7,239,986.91 7,990,848.02
Imported goods
Traded goods
31,474,043 30,527,564
Less: Provislon for slow & non moving raw materlals
Total Inventorles 31,474,043 30,527,564
Chartered
EAcoantants
DeMN Sae
|Smartlvlty labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes tofinanclalstatement as at 31 March 2021
7. Other Assets
7A. Prepald expenses
Partlculars As at As at
31 March 2021 31 March 2020
Prepaid expenses (Non current)
|Prepaid expenses (Current)
Total Prepaid expenses 48,647 87,025
48,647 |_ 87,025
78. Other assets
31 March 2021 31 March 2020

|Balances with government authority
Vat Recoverable
GST Input 91,094 ,094
TDS Refundable for A.Y. 2018-19 8,692,035 7,689,760
TDS A.Y. 2019-20
TDS A.Y. 2020-21 948,628
Advance to Suppliers
Advance to employees 3,276,968 2,201,092
TDS Recoverable from Parties 57,342
TCS on Goods Purchased 231,992 219,019
Other advances 729
Total Other assets
12,292,818 11.206,935
Current
Non-Current 12,341,465 11,293,960
8. Deferred taxes
Particulars As at AS at
31 March 2021 31 March 2020
Items leading to creation of deferred tax assets
Impact of expenditure charged to the statement of profit and loss account in the
current year but allowed for tax purposes on payment basis in subsequent years 1,258,446 1,113,047
Impact on account of brought forward depreciation of income tax and Losses

|Provision for doubtful debt & advances 30,746,983 38,736,150
Impact of lInd AS adjustments
Total deferred tax assets
32,005,429 39,849,197
Items leading to creatlon of deferred tax llabllities/(assets)
Fixed assets: impact of differences between tax depreciation and depreciation/
amortization charged in the financial statements 4,955,919 6,495,328
Impact of Ind AS adjustments
|Total deferred tax llablities/(assets)
4,955,919 6,495,328
Net deferred tax assets/(liabilitles)
27,049,510 33,353,869
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Aoco ents/
CIN: U74140DL2015PTc277272
Notes to financdal statements for the year ended 31 March 2021
5 FInanclal Assets
SA. Trade recelvables
Particulars Ind AS Ad
IGAAP Ind A
March 2021
Trade recelvables
Secured, considered good
54,430,146 54,430,146
Doubtful
54,430,146
54,430,146
Unsecured, consldered good 4,840,177 4,340,177
Doubttul
4,840,177 4,840,177
Net Trade recelvables
Unsecured, considered good 49,589,969
Doubtful 49,589,969
49,589,969 49,589,969
Current
49,589,969 49589,969
Non-Current
SB. Loans
Particulars Ind AS Adj

IGAAP Ind AS
March 2021
Securnty deposits - Non Current
Security deposits Current

Total Loans and Advances
Current
Non-CurTent

Unsecured, considered doubtful
Sc. Cash and cash equlvalents
Particulars Ind AS Ad
IGAAP Ind AS
March 2021
Balances with banks
In current accounts
4,029,436 4,029,4
Cash in hand
Total Cash and cash equlvalents
4,029,486 4,029,4S6
Current
4,029,436
Non-Current 4,029,486
6 nventorles
Particulars lnd AS Ad
IGAAP nd AS
Raw maerial March 2021
Work in progress
16,128.758 128,753
8,105,298 S, 105,298
Finished goods
Manutactured goods 7,239,987 .239,987
imported goods
Traded goods
Less Provisian for slow

: &non mnoving
L474,04 144043
raw materials
Total laveotorles
L44.043 3L4,043
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7B. Prepald expensess
Ind AS Ad
Particulars IGAAP Ind AS
March 2021
Prepaid expenses (Non current)
Prepaid expenses (Current)
Total Prepald expenses
48,647 43,647
48,647 48,647
7C. Other assets
Ind AS Adj
Particulars IGAAP Ind A
March 2021
Balances with government authority
VAT recoverable 91,094.00 91,094
GST Input 8,692,035.29 8,692,035
Import duty & Duty drawback
Others
Advance to Supplier 3,276,968 3,276,968
Deposite with High Court
Advance to employees
TDS Recoverable from Parties 231,992
TCS on Goods Purchased 729
Other advances
Total Other assets

12,292,818 12,060,097
Current 12,341,465 12,341,465
Non-Current
8 Deferred taxes
Particulars Ind AS Adj

IGAAP Ind AS
March 2017
tems leading to creation of deferred tax assets
Impact of expenditure charged to statement of profit & loss in the current year but 1,258,446 1,258,446
allowed for tax purpose on payment basis
Impact on account of brought forward Losses of income tax 30,746,983 30,746,983
Impact of lnd AS adjustments
Fixed impact of differences between tax
assets:
charged in the financial statements

depreciation and (4,955,919) (4,955,919)
depreciation/amortization
Total deferred tax assets
27,049,510 27,049,510
tems leadlng to creatlon of deferred tax liabilities
Fixed assets: impact of differences between tax depreciation and
depreciation/amortization charged in the financial statements
Impact of Ind AS adjustments
Total deferred tax liablities
Net deferred tax assets/(liabilities)

27,049,510 27,049,510
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Accouytants
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CIN: U74140DL2015PTC277272
Notes to financlal statement as at 31 March 2021
9. Share Capital
Particulars AS a As at
|Authorised 31 March 2021 31 March 2020
1000000 (31 March 2021: 100000) shares of Rs 10/- each
1,000,000 1,000,000
Issued, subscribed and fully pald up
(31 March 2021: 10079) equity shares of Rs 10/- each
(31 March 2021: 20183) Convertlble preference share shares of 100,790
Rs 10/- each 00,790
201,830 I76,540
302,620 277 330
a. Reconciliation of the shares outstanding at the
beginning and at the end of the reporting year
Equity shares
Issued, subscribed and fully paid up Numbers Amount In Rs. |
As at 1 Aprll 2019
|Increase/(Decrease) during the year 10,079 100,75
As at 31 March 2020
Increase/(Decrease) during the year 10,079 100,790
As at 31 March 2021
10,079 100,790
Convertible Preference Share
Issued, subscribed and fully paid up Numbers Amount in Rs.
|As at 1 April 2019
As at 31 March 2020
As at 31 March 2021 2,529 5,290
20,183 201,830
b. Terms/ rights attached to equity shares
The Company has only one class of
equity shares and one class of Preference shares
entitled to one vote per share. In the event having a par value of Rs. 10/- per share. Each holder of equity shares is
of liquidation of the
Company, after Company,
distribution of all preferential amounts. The distribution
the holders of equity shares will be entitled to
receive remaining assets of the
will be in proportion to the number of
equity shares held by the shareholders.
c. Details of shareholdersholding more than 5% equity

shares in thee Company: No. of shares held % of holding
ASHISH GUPTA
TUSHAR ARUN AMINN 2,114 20.97%
ASHWANI KUMAR 1,940 19.2
APOORV GUPTA 1,940 19.25%
RAJAT JAIN_ 1,940
19.25%
1,940 19.25%
10. Other Equity
Particulars
AS As at
31 March 2021 31 March 2020
Retalned earning
Balance as the Beginning of reporting period
Add: Surplus during the year (117,575,164)| (86,105,323
Add: other comprehensive income (31,349,582) (31,469,841)
Add:Ind as adjustment reversed during the year
Securities premlum 148,924,746) 117,575,164

Changes during the year 184,793,790o 184,793,790
49,962,924
234,756,714 184,793,790
Share Appllcation Money Pending Allotment
Changes during the year 48,485,998
(48,485,998) 48,485,998
48,485,9
Total
85,831,968 115,704,624
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Accodntants/
Saje
|Smartlvlty labs Pvt Ltd
CIN: U74140DL2015PTc277272
Notes to financlal statement as at 31 March 2021
11. Borrowings
11A. Non-current borrowings

As at As at
Particulars
31 March 2021 31 March 2020
Un Secured Loans
|Indian rupee loan from others ( Bajaj Finance) 806,1
168 1,542,484
Indian rupee loan from others ( Kotak Bank MSME Loan) 215,9 994,254
|indian rupee loan from others ( HDFC Loan) 948,090 1,205,179
Indian rupee loan from others ( RBL Loan) 1,597,993 2,118,744
|Indian rupee loan from others ( RBL MEME Loan) 447,023
Indian rupee loan from others ( Neo Growth) 880,871 1,298,423
Total Non-current borrowings

4,896,095 7,159,084
Less: Current Maturities of long Term Borowings (Refer Note 13) 2,721,463 3,758,341
Un Secured 2,174,631 3,400,743

Secured
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Accounfents
CIN: U74140DL2015PTC277272
Notes to financialstatement as at 31 March 2021
118. Current borrowings
Particulars Asat As at
31 March 2021 31 March 2020
Secured:
Cash credit from bank
Indian rupee loan from others (HDFC Loan) 199,931
Indian rupee loan from others ( RBL Loan)
Indian rupee loan from others ( Neo Growth)
Unsecured:
Loans from related parties
Other loans and Advances 193,211 216,016
Total 25,588,532 23,717,719
25,981,674 23,933,735
12. Trade payables
31 March 2021 31 March 2020
Total outstanding dues of micro enterprises & small enterprises:
7,821,721 87,238
Total outstanding dues of creditors other than micro enterrprises & small
enterprises 39,294,477 35,295,691
Total Trade payables
47,116,198 35,382,929
Current 47,116,198 35,382,929
Non-Current
Chaered
EAccouinants
-
CIN: U74140DL2015PTc277272
Notes tofinanclalstatement as at 31 March 2021
13 Other financial liabilities
As at As at
Particulars
31 March 2021 31 March 2020
Expenses Payables 414,871 726,858
Employee salary Payable 6,286,769 3,206,566
Current maturities of long-term Borrowings (refer no 11A) 2,721,463 3,758,341
Other financial liabilities 681,073
Total other financial liabilities
9,423,103 8,372,837
Current 9,423,103 8,372,837
Non current
14 Provisions
31 March 2021 31 March 2020
Provision for retirement benefits
Gratuity
Leave Encashment
Total Provisions
Current
Non current
15 Other liabilities
As at As at
Particulars 31 March 2021 31 March 2020
Other payables:
Statutory dues
TDS Payable 386,455 542,610
Others 157,818 90,153
|Advance from customers
2,694,843
Advances from Employees
Total Other liabilities

544,273 3,327,606
Current 544,273 3,327,606
Non current
16 Current Tax Liabilities
For Taxation (net of advance tax) 31 March 2021 31 March 2020
Chajtered
Aauntants
Smartivity labs PvtLtd
a N : U74140DL2015PTC277272
for the year ended 31 March 2021

INotes to financial statements
9 Share Capital
9A. Issued,subscribed and fully paid equitycapital No. of shares

Particular
Amount
10,079 100,790
At 1 April 2020
Issued during the year
10,079 100,790
At31 March 2021
98. Isued, subscrlbed and fuly pald Convertible Preference Share Capltal
No. of shares Amount

Particulars 17,654 176,540
At 1 April 2020
Issued during the year 2,529 25,29
At 31 March2021 20,183 201,830
9C. Detalls of Equlty shareholders holding more than 5% shares in the company
Name of the shareholder No. of shares of Holding

ASHISH GUPTA 2,114 20.97%
TUSHAR A AMIN 1,940 19.25%
ASHWANI KUMAR 1,940 19.
APOORV GUPTA 1,940 5%
RAJAT JAIN 1,940 19.256
10 Other equty
Share Application Retained Security Total

Particluars
Money earnings premlum
As at 1st April 2020 as per Ind AS
Add: Profit during the period
(31,469,841 (31,469,841)
Ind AS Adjustments: (1st April 2020)
Adjustments on account of
Security deposit discounting under Ind AS
Adjustment on account of Deffered tax asset/liability recognized on Ind AS adjustments
Impairement oftrade receivable
Ind AS Adjustments:(31st March 2021)

Add: Profit during the period (31,349,582) (31,349,582)
Add: Applicatlon Money received
Adjustments on account of
- Ind AS Adijustments from statement of profit & loss
- Ind as adjustment reversed during the year
-Other comprehensive Income

- Impairement of trade receivable
As at31 March 2021as perind AS_ 62,819,423) 62,819,423)

11 Borrowings
11A. Non-current borrowings
ParticularsS IGAAP Ind AS Ad Ind AS Ad

IndAS
Aprll 2018 March 2019
Secured Loans
Indian rupee loan from bank (HDFC Bank Umited)
Total non-CuTent borrowings

Less :Curret maturities of long term borrowings
|Net non-curent borrowtngs
secured
Unsecured
118. Current borrowing
Particulars IGAAP Ind AS Ad Ind AS Ad

Ind AS
April 2018 March 2019
Secured:
Loans repayable on demand from bank
ash credit facility from banks
199.931 199,931
Unsecured:
Loans and advances from related parties
Advances from Employees 193,211 193,211
Other loans and advances
Total current borrowings 25,588.532 25 588532
25,981,674 25,981,674
Current
Non-Current 25,981,67
25,981,674
Chafered
Accountants
12 Trade payables
Ind A dj Ind AS Ad)
IGAAP Ind AS
Particulars
-
and
Total outstanding dues of micro enterprises & small enterprises:
micro enterrprises & small
Total outstanding dues of creditors other than 47,116,198 47,116,198
enterprises
|Total Trade payables 47,116,198 47,116,198
Current 47,116,198 47,116,198
Non-Current_
13 Other financial liabilities
Ind AS Adj Ind AS Adj

Partieulars IGAAP Ind A
Expenses Payables 414,871 414,871
Payable to employees 6,286,769 6,286,769
Current maturities of long-term Borrowings
Interest accrued but not due on vehicle loan
Total other financial liabilities 6,701,640 6,701,640

Current
6,701,640 6,701,640
Non current
Provisions
Ind AS Adj Ind AS Ad

Particulars IGAAP IndIAS
Provision for retirement benefits April 2018 March 2019
Gratuity
Leave Encashment
Total Provisións
Current
|Non current
Other liabilities
Particulars GAAP Ind AS Adj Ind AS Adj

Ind AS
Statutory Dues Payable
TDS Payable
ESI &PF Payables 386,455 386,455
GST Payables 157,818 7,818
STT& VAT
Advance from customber

Total Other liablities
544,273 544,273
Current
Non current s44,273
s44,273
16 Current Tax Liabilities
Particulars As per Ind AS Ad Ind AS Ad As Per

For Taxation (net of advance tax) IGAAP Aprll 2018s March 2019 ind AS
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Charored
EWcouhents
sa
CIN: U74140DL2015PTC277272
Notes tofinanclalstatements for the yearended 31 March 2021
17 Revenue From Operations
Particulars For the year ended For the year ended

31 March 2021 31 March 2020
Sale of products (Domestic)

Finished goods 133,588,737.12
Less: Stock Transfer 132,307,242.92
Net sales 6,848,385.81 17,771,692.27
126,740,351.31 114,535,550.65
Sale of services
35,000.00
Total revenue from operations
126,740,351.31 114,570,550.65
18 Other Incomes
Capital gain on investment (MF)

Duty Drawback 139,211.200
Amount written off 238,247.00 16,616.00
Refund of Expenses 455,396.00
Other Income 584,233.63 42,215.00
Foreign Exchange Gain 65,305.44 230,587.00
Profit on sale of Assets 2,141,596.54
Total other income 17,134.00
3,484,778.61 445,763.20
Total
130,225,130 115,016,314
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Accountants
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CIN: U74140DL2015PTC277272
Notes tofinancial statements for the yearended 31 March 2021

19 Purchase &Implementation Cost
For the year ended For the year ended

Particularss 31 March 2021 31 March 2020
Traded books
Traded Imported goods/services
20 Cost of raw materials consumed

31 March 2021 31 March 2020
Inventory opening balance 14,432,271 14,013,907
Add: Purchases 46,448,855 66,487,137
Add:Import 8,443,853 5,507,294
69,324,979 86,008,338
Less Stock Transfer 6.848,386 17,771,692
Less:Inventory closing balance 16,128,758 14,432,271
Cost of raw materials consumedL 46,347,835L 53,804,375
21 Changes In Inventorles of Finished Goods and Stock-in-Trade

31 March 2021 31 March 2020
Opening Stock
Finished goods
7,990,848 3,515,160
Work in progress
8,104,446
Closlng Stock
Finished goods
Work in progress
7,239,987 7,990,848
8,105,298 8,104,446
750,008I (12,580,134)|
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Chartered
Acpbuntentssee
CIN: U74140DL2015PTC277272
Notes tofinandalstatementsfor theyearended 31 March 2021
22 Employee Benefits Expenses

Salaries, wages & bonus 30,580,831 37,591,974

Contribution to provident Fund and other funds 1,114,022 842,155
Gratuity expense
Staff welfare expenses 200,632 516,271
Total employee benefits expenses 31,895,485 38,950,400
23 Finance Cost

Particulars
31 March 2021 31 March 2020
Interest Expense 3,658,400 6,916,196
Loan processing charges 13,959 441,925
Total finance cost 3,672,359 7,358,121
24 Depredation and Amortisation Expneses

Particulars
31 March2021 31 March 2020
Depreclation of property, plant & eulpement 3,789,583 4,737,133
Amortisation of Intangible assets
15,975,700 14,897,443
Total depreclation and amortisation expneses 19,765,283 19,634,576
Anurao
Chartehed
Acourtants
Emy ciates
Ltd
Smartivity labs Pvt
CIN: U74140DL2015PTC277272
year ended 31 March 2021

Notes tofinancial statements for the
25 Other Expenses
31 March 2021 31 March 2020
Particulars
& additional Discount (net of Bad debts settled 62,223 264,550
Bad debts, advances written off
aRainst opening provision) 309
|Payment Gatway Charges 87,487 162,853
Bank Charges 125,921
Currency Fluctuation 1,600,575 115,207
|Custom Duty
Design & llustration Charges 616,791 373,155
Die expenses 2,525,659 2,422,523
|Electricity & water Expenses
Factory Management Charges 156,814 206,280
Festival expenses 6,660,497 6,480,814
Freight 80,329 309,092
|Fuel charges 201,200 547,500
Generator Exp 151,429 89,947
|Insurance charges 1,105,927 1,356,935
Job Work Charges 5,485,833
4,693,092
|Legal and professional charges 83.410
974.796
|Miscellaneous exDenses
37,379 26,274
Office expenses
959,741 239,7
Packing& Handling exp
Payment to auditor (Refer details below) (37,000) 77,000
|Postage and Courier exp 151,496 384,214
Printing& stationery 116,692 125,9
744,416
Loss on sale of asset
236,388 279,453
Production Expenses
Rates and taxes 221,098 1,095,148
Rent 5,162,677 5,789,511
Repair & maintenance 3,875,735 1,695,232
Research and devlopment exp 961,811 479,077
Selling and Marketing exp 19,717,472 16,754,111
Software charges 3,600 64,8
Telephone, Mobile & Internet Expenses 81,512 151,751
|Travelling and conveyance expenses 1,521,925 3,342,255
Commission & Brokerage 284,501
Allowance on Expected Credit losses 559,228 1,695,323
Total other expenses 52,839,382 50,968,279

Payment to auditor
For the year ended
Particulars Forthe year ended
As auditor
31 March 2021 31 March 2020
Audit fee &other assurance matter
40,000 77,000
40,000 77,000
26 Components of Other Comprehensive Income (0CI)
The disaggregation of changes in other comprehensive income by each type of equity is shown below:
During theyear ended 31st March 20200

Particulars
Re-measurment gains/(losses) on defined benefit plans
Tax impact on re-measurement gains/(losses) on defined benefit plans
During the year ended 31st March 2019_

Particulars
Re-measurment gains/(losses) on defined benefit plans
Tax impact on re-measurement gains/(losses) on defined benefit
plans
Anur
ChaChan
AcounarMts
27 Earnings pershare number of Equity shares
the year attributable to equity holders by the welghted average
Basic EPS amounts are calculated by dividing the profit for
outstanding during the year.
for the year attributable to equity holders by the welghted average number of equity shares
Diluted EPS amounts are calculated by dividing the profit dilutive potential equity
number of equlity shares that would be issued on conversion of all
outstanding during the year plus the weighted average
shares antidilutive.
into equity shares. Due to entity is In loss dilutive potential equity
seems
shares
used in the basic and dluted EPS computations

The following reflects the income and share data
(31,349,582) (31,469,841)
Profit attributable to equity holders of the company
Share 10,079 10,079
|Weighted average number of equity shares used for computing Earning per
(Diluted)
Share 30,051 27,733
Weighted average number of equity shares used for computing Earning per
(Diluted)
(3,110) (3,122)
Basic EPS
Diluted EPS (1,043 (1,135)
10 10
Face Value Per Share
Anura
SChafered
Acofants
clates
CIN. MLI
CIN: U74i40oL201 5/TC277272
Nele to anclel etstemente for the veer ended 31 March 2021
28 Reletd certy
dledosures
Nemes of related parties and releted perty relationship
Rebted partdes wrhere control dsts
Moldina Comoen
UItimate Holding Company
Enterprie over hkch Key Managernal
Pernonned are able to exercee skonificant
Auenc
S Chand and Company Private limited
Vikas
Anvan Pul
expo o s e P t Ltd
chend Itemational
Kev menaaement pernonnel or thelr
reletives Aooorv Gupta (Drector)
Ashwini u rector)
Tushar A
ushar AAm
Amin
(Director
Saurabh Mtal (Director)
Canta Manindra Seneviratne (Director)
Kunal Khettar (Di
eena arun Amin (ushar Honer
Sharon ain 2a
Shikha
and
ushar wfe)
(R
Madhu an
(Rajat
Gaurav ain (Ratat lain
an Hother
Brother)
Ratat tain (head of
Releted oerty treneections Product launch department)
Thefollowna table orovdes the total
amount of trasactons that have been entered
into wkh related partes for he relevant inancial
year
Pertlculen Molding Company ultimate Holding Y management
Company Paonne or thelir
reatve Enterprses over whlch Key
1 Merch| 31 Merch 31 March
Hanagerial Personnel are ableto
(A Trensctions -2921 2020
31 March 31March Xerclse signicant lntluence
2020March
31
Sale of
2021 2021-
Total
31 March 2021 31 March 2020 31 March 2021
products (Net of return & dlecount) 31 March 2020
S.Chend end Compeny imited
Vikas Publlshina House Pvt Ltd
Arvan exports
S Chend Edutech Pvt Ltd
Lovaltv income
S. Chend and
Comoeny Umited
Vikas Publishina House Pvt Ltd
Purchases
S. Ohend and Comoen Umted
Purchas Retum
S. Chand and Comoeny Umited
VMkes Publshina House Pvt Ltd
Loan Receved
Saurabh MIttal
Loan repavment
Saurabh Mtal
(O) Outstanding balences at the vear end

Trede recelvables
AVan
s Chand
S. Chand Edutech
Pvt
LtdUmited
and Comoany
Trade pevable
S. Oand and Comoany LUmted
Directer Remunertlon Pavable

orv Gupta
Hr Amn 189,000
82.500
NrAshwini Kumar
,200 89,750 189,000
121,000 97,500 09,750
Unsecured Loen 121,000 7,S00
Hr. Apoorv Guota
Mr. Tushar AAmin_ 216,015
O Remuneratlon to key manegerlal personnel 214,01
Perticular
Aooory Guota
Rafet Jain
1 Merch 2021 31
Herch 2020
Tushar AArmin 1.057,500 1.492.500
Ashwin Kumar 451.200 200
eneanun Amin 1.594.500 2.249.750
Sharon Femandes 1.425.000 07.5000
Shilha n 360.000 .000
MadhuJein
gaurev jin 0200
103,300
40.000
Totul 211500
Note: In
in dditlon
S14.300 7042230
Note: additlon toto above
above renio rtala au Droonmde lor gretulty, e they ere determined on en ectuarlel bese for the Compeny aee who
transactlons certaln guarantees heve been given by direclon.
Chartepd
Acoountants
ates
Pey
Smartlvity Iabs Pt Ltd
CIN: U74140DL2015PTCc277272
Notes to financlal statements for the year ended 31 March 2021

to Indian Accounting Standard 19 Employee beneflts':
29. Disclosure pursuant
amounts towards deined contribuion plans as an expense and includedin the Statement of Profit and Loss.
(a) The Company has recognized the following
L Year ended March, 2021 Year ended March, 2020L
Partlculars
Provident Fund
869,429 7,310
Emplovee State Insurance Corporation 244,593 | 204,845
Labour Welfare Fund
1,114.022 842,155
b) Defined benefit plan and long term emploment benefts: Gratulty (Defined benefitplan)
In respect of Gratuity, the Company makes annual contribution to the emplovee group gratulty scheme of the life Insurance Corporation of India, funded defined benefts plan for ualilted employes.Theschemeprovidedfor lump
sum payments to vested employees at retirement, death whle in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of servce or part thereof in exces of sk months.
Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of gratuity plan:
Change inDefined Benefitobligation March 31, 2021 March 31,2020

Particulars
Opening Defined Benefit Obligation
Service Cost
Actuarial (Gain)/ Loss on Obligation
Interest Cost
Less Benefñts paid

dosing Present Valueof Defined Benefit Obligation
Expenses recognized in the Statement of Profit &Loss

Particulars March 31 2021 March 31, 2020
Current Service Cost
Interest Cost
Expected Return on Plan Assets
Net Actual (Gain )/ Loss recognized

Expenses recognized in theStatement of P&L
Expenses recognized Intheother comprehensiveincome March 31, 2020
|Particular March 31 2021
Net Actual (Gain )/ Loss recognized
Return onthe plan asset
Expenses recognized in the othercompreliensive income
Movement in the Liablty recognized InBalance Sheet.
articulars March 31, 2021 Ma 31, 2020
Opening Net Liability
Expenses as above
Contribution paid
other comprehensive income (OCL
LCosing Net LiabilityY
Experience adjustment:E
Particulars March 31,2021 March 31, 2020
EXperience adjustment on plan liability
Experience adjustment on plan asset
Net experience adjustment
ASsumptions
Particular March 31,2021 March 31, 2020
Expected return on plan assets
Salary escalaton rate
Discounting rate
Employee attrition rate
|Mortality rate
Composition of plan assets
Sensitivity analysls:
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary Increase and employee turnover. The sensitivity analysis below, have been determined based on reasonaby
possible changes of the assumptions occuring at the end of the reporting period, whlle holding all other assumptlons constant. The result of Sensitivity analysis is given below:
Parie in rate of discounting (delta effect of +/- 0.5%) ear ended March, 2021 Yearended March, 2020
Change rate
Change In of salary increase (delta effect of +/. 0.59%)
Change in rate of employee turnover (delta eifect of +/- 0.5%
These plans tvoically expose the Group to actuarial risks such as: Investment risk, interest risk, longevity risk and salaryrisk
Investment risk-The present value of the defined benefit plan liablity is calculated usinga dlscount rate which Is determined by reference to market yields at the end of the reporting period on government bonds
Interest risk -A decrease in the bond interest rate will Increase the plan liablity; however, thls will be partlally offset by an Increase In the return on the
plan debt investments.
Longevity rsk-The present value of the defined beneflit plan llability is calculated by reference to the best estimate of the mortality of plan participants both during and arter thelr employment. An Increase in the life expectancy of the
plan partddpants will Increase the plan's liability.
LOBn aSK 1hepresentvalue ofthedefined plan labilityl5 calculated by relerence tothe future salaries of plan particlpants.As such, an increasein the salaryof the plan particlpants willincroasethe plan'sliablityY
nurao
Charteyed E
Aecounant
CIN: U7414ODL2015PTC277272
Notes to financlal statenment as at 31 March 20211
30 Othercommitments 31 March 2020

Partlculars 31 March 2021
(Rupees) (Rupees)
be
Estimated amount of contracts remaining to
executed and not provided for (net advances):
of
other Commitments
31 Unhedgedforeign curreney exposure Particulars 31 March 2021 31 March 2020

(Rupees (Rupees
Trade receivables
Trade payable_
Value ofimportscalculatedon CIFbasis Particulars
31 March 2021 31 March 2020
(Rupees Rupees
Purchase of Traded goods 8,443,853 5,507,294

8,443,853 5,507,294
32 Imported andindigenousraw materlals andcomponentsconsumed 31 March 2021_ 31 March 2020

%of total consumptlon alue(Rupees) %of total consumptlon
Raw Materials
47,097,844 57.26% 41,224,242
Indigenously &Import Goods obtalned 85 80%
47 097844
of dues due
to mlcro,smali andsmall
medlum enterprlses as defined under thee MSMED Act, 2006
33 Detalls
The Amoumnt to Micro and Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such partles have
31st December 2020 are as under:
Micro and Small Enterprises as at
availa ble with the Compamy. The disclosures relating
to
been identified on the basis of information
31 March 2021 31 March 2020

(Rupees)_ Rupees)
Descrlptlon 7,821.721 87,238

amount remalnlng unpald
0) Princlpal due thereon
() Interest in terms of Section 16 of Micro, Small and
Medium
(un) Interest pald by the Company in making payment (which have been
Interest due and payable for the period pf delay
(iv) Interest accrued and remaining unpald
(v) due and payable even in the suceeding years,
until such
(vi) Further Interest remalning 7,821,721 87,238
Operating Lease The total lease rentals recognized as an expense during the year under the above lease
The Company has not taken premises for office use under cancella ble operating lease greements.
the lease agreements. There are no sub leases.
Rs. 0). There are no restrictions Imposed by
agreements aggregates to Rs. /- (31 March 2021:
31 March 2020
35 Expendliture In forelgn currency (accrual basis)
31 March 2021
(Rupees) Rupees)
Travelling expense
and exhibition 8,443,853 5,507,294
Advertlsement, publicity
Import of goods/services
843,853 S,507,294
Royalty
36 Earnlngs In forelgn currency (Rupees) RupeeS

47489,761 32578,729
Exports of F.O.B.value 47 489,761| 32 578,729
Total
urag
Ja
Charte/edC
Accougtants/9
DeMY
37 Financlal Instruments - Accounting classificatlons and falr value measurements
The fair value of the assets and Iabilties are included at the amount at which the Instrument could be exchanged In a current transaction between wiling parties, other than in forced or
liquidation sale.
The following methods and assumptions were used to estimate the falr values:
Fair Value of cash and short-term deposits, trade and other short term recalva bles, trade payables, other current labiltles, and other financlal instruments approxlmate thelr cárrying amounts
largely due to the short term maturltles of these Instruments.
Financial instruments with fixed and varlable Interest rates are evaluated by the company based on parameters such as Interest rates and indivldual credit worthiness of the counterparty. Based
on this evaluation, allowances are taken to the account for the expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair value of fi nanclal Instruments by valuatlon technlque:
Level Quoted (unadjusted) prlces in actve markets for ldentlcal assets or labilities
Other technlques for whichallInputs which have a significant effect on the recorded fair value are observable, either directy or indirectly
Level-I
techniques which use Inputs that have a significant effect on the recorded flr value that are not based on observable market data
Level-l
Carrying amount Carrying amount
As at 31st 2021 As at 31st 2020

Finandial assets at amortised cost
Trade recevables 49,589,969 49,292,773
Cash and Bank balances 4,029,486 11,147,362
Loans 1,530,000 30,000
Total
55,149,455 60,470,135
Financial liabilities at amortised cost
Bortowing5
Trade payables
28,156,305 27,334,478
35,382,929
47,116,198
Other financial liabilities 9,423,103 8,372,837
Total 84,695,606 1,090,244
Finandal assets at amortised cost

As at 31st 2021 As at 31st 2020
Trade recevables 49,589,968.53 49,292,773.01

Cash and Bank balances 4,029,486.27 11,147,362.31
|Loans 1,530,000.00 30,000.00
Security Deposit with others
Total 55,149,455 60,470135

Financal liabilities at amortised cost
Borrowings
Trade payables
25,981,673.71 23,933,734.71
47,116,198.45 35,382,929.00
Other financial liabilties 9,423,102.71 8,372,837.18
Total 82,520,975 67,689,501

38 Previous Figures
Previous year figures have been regrouped/ reclassifled, where necessary, to confirm to thls year's classlfication.
nuy
rag
Ja
Charter
Acuntyhts8
37 Financlal Instruments- Accounting class/ficatlons and falr value measurements
The falr value of the assets and liablitles are Included at the amount at which the Instrument could be exchanged In a current transactlon between wlling parties, other than in forced or
liquldation sale.
The following methods and assumptions were used to estimate the fair values:
Fair Value of cash and short-term deposits, trade and other short term recelvables, trade payables, other current liablities, and other financlal instruments approximate thelr carrylng amounts
largely due to the short term maturlties of these Instruments.
Financlal instruments with fixed and varlable Interest rates are evaluated by the company based on parameters such as Interest rates and Indlvidual credit worthiness of the counterparty. Based
on this evaluation, allowances are taken to the account for the expected losses of these recelvables.
The company uses the following hierarchy for determining and disclosing the falr value of fi nancial instruments by valuation technique:
Level- Quoted (unadjusted) prlces In active markets for ldentlcal assets or llabilitles
Other techniques for which allinputs which have a signficant effect on the recorded fair vatue are observable, either drecty or indirecty
Level-
techniques which use inputs that have a significant efect on the recorded falr value that are not based on observable market data
Level

Financal aassets at amortlsed cost As at31st 2021 As at 31st 2020
Trade recelvables
Cash and Bank balances 49,589,969 49,292,773
4,029,486 11,147,362
Loans 1,530,000 30,000
Total
55,149,455 60,470,1355
Financial liabllitles at amortised cost
Borrowing 28,156,305
Trade payables 27,334,478
Other financial liabillties 47,116,198 35,382,929
9,423,103 8,372,837
Total
84,695,606 71,090,244
Financdal assets at amortised cost As at 31st 2021 As at 31st 2020
Trade recelivables 49,589,968.53

Cash and Bank balances 49,292,773.01
4,029,486.27 11,147,362.31
Loans
Security Deposit with others 1,530,000.00 30,000.00
Total 55,149,455
Financlal liabllitles at amortised cost
60,470,135
Borrowings 25,981,673.71
Trade payables 23,933,734.71
Other financlal liabilities 47,116,198.45 35,382,929.00
9,423,102.71 8,372,837.18
Total
82 520,975 D 67,689,501
Prevlous Figures
Previous year figures have been regrouped/ reclassified, where necessary, to confirm to this year's classification.
nur
Ja
/ Charten
Acecunthts
ociates
CIN: U74140DL2015PTC277272
39 Standards issued but not yet effectlve

The amendments to standards that are issued, but not yet effectve, up to the date of ssuance of the Company's financial statements are dsclosed
below. The Company intends to adopt these standards, If applicable, when they become effective.
The Ministry of Corporate Affairs (MCA) has issued the Companles (Iindian Accounting Standards) Amendment Rules, 2017 and Companies(Indian
Accounting Standards) Amendment Rules, 2018 amending the following standard:
Ind AS 115, Revenue from Contract with Customers

Ind AS 115 establishes a single comprehensive model for entitles to use in accounting for revenue arlsing from contracts with customers. Ind AS 115S
will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS 11 Construction contracts. The effective date for adoption of Ind
AS 115 is financlal periods beginning on or after April 1, 2018.
The core principl of 1Ind AS 115 Is that entity should recognise revenue to deplct the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled lin exchange for those goods or services. Under Ind AS 115, an entity
recognize revenue when (or as) a performance obligation is satisfied, l.e. when 'control' of the goods or services underlying the particular
performance obligation is transferred to the customer
The standard permits two possible methods of transition:

Retrospective approach- under this approach the standard will be applied restrospectively to each prlor reporting perlod presented In accordance
with Ind AS 8-Accounting Polices, Changes in Accounting Estimates and Errors.
Retrospective with cumulative effect of initially applying the standard recognizedatthe date of Intial applicatilon (Cumulative catch - upapproach)
The company is currently evaluating the impact that the adoption of this new standard wll have on its financial statements
Anura
Ja
Chartere
Accountabt
sa1
|Smartivity labs Pvt Ltd Applicable Rate 26.000%
CIN: U74140DL2015PTC2n272
Deferred Tax Calculation as per Ind AS 12 as at 31.03.2021
Description of Asset/Liability Book base ax basee Temporary Difference

Deferred tax asset/|Deferred
(liability) as per ind
tax asset/|Deferred taxasset/
(ability) as per (Tiability) to be Description
AS Indian GAAP further booked under
Assets
Property, Plant and Equipment and Intangible Assets_ 42,359,995 23,298,767 (19,061,228 4955,919)| 4,955,919)
Intangible assets under Development
|Non Current Assets-Financial assets Loans (Discounting of security deposit)
Other non-curent assets (Prepaid portion of securitydeposit)

Inventories 31474,04331,474,043
Financalassets--Loans (current) 1,550,000 550,000
Trade Receivables 49,589,969 54,430,146 4,840,1777| 1,258,446 1,258,446 L
|Cash and cash equivalents 4,029,486 4,029,486
Other cuTent assets 12,341,465 | 12.341,465S
Liabilities
Borrowings (Non Current) 2,174,631 2174.631
Provisions (Non Current
BorrowingES (Current 25,981,674 25,981,674
Trade payables (CurTent)_ 47116,19847,116,198
Other finandal liabilities 9,423,103 9423,103
Other curentliabilities 544,274 _544,274
Provisions (Current)_
Losses 118,257,626 30,746,983 30,746983 |
27,049,510 27,049,5100
25,791,064
Deferred tax asset/ (liability) as per Ind AS as on 31.03.2021 27,049,510
Deferred tax asset/ (liability) as per Ind AS as on 31.03.2020 33,353,869
Deferred tax (expense)/income to be booked as per Ind as

(6,304,359)
(gain)/ loss on defined benefit plans
DTA on (gain}/ loss on defined benefit plans
Net DTA except DTA on (gain)/ loss on defined benefit plans 6,304,359)
Chatered
Accodnt nts
aSoe
CIN: U74140DL2015PTC277272
the Income Tax Act, 1961 in respect of each asset or block of asset as the case may be.
Particulars of Depreciation allowable as per
WDV as on 01-04- Addition during the year Deductions during Depreciation WDV as on 31-03-
Total Amount
S No. Particulars Rate of Dep. More than 180 days Less than 180 days the year allowable
20
Fixed Assets 2,092,349

40% 5,230,872 5,230,872 3,138,523
COMPUTER EQUIPMENT
716,949 107,5 609,4
2 OFFICE EQUIPMENT 15% 716,949 ,829,008 10,505,494
15% 12,052,266 282,236 12,334,502
3 PLANT & MACHINERY 10,625,325 2,652,327 7,972,998
25% 10,580,662 12,631 32,032
INTANGIBLE ASSET 119,150 1,072,346
FURNITURE AND FIXTURES 10% 1,,191,4 1,191,495|
12,631.00 314,268.00 30,099,142.99 6,800,375.51 23,298,767.48

Current Year Total 29,772,243.99 -39,075,315.35 9,303,071.36 29,772,243.99
30,899,044.35 7,761,934.00 414,337.00
Previous Year
An
Chaered
Accoyintants
Computation of Income Tax
S.NO Particular Amount
Net Profit/loss as per profit and loss account (25,045,223
Add:- Depriciation as per companies act 19,765,283
Less-Depriciation as perincometax act 6,8 376
Add-Interest and panelties and expenses disallowed 582,404
Add-Disallowance of Expenditure of 30% in case of TDS not dedcuted
Add-Expected credit loss (not allwed to deducted as perincome tax) 559,228
Add- Cash payment exceeding Rs. 20,000/-
Add-Cash payment exceeding Rs.Penalty Paid/-
Less:-Expenses allowed(notallowed capitalization as perincome tax) 7,044,021
Less:- Short Term Capital Gain
Income U/h PGBP(A) (17,982,704
Short Term Capital Gain(B)_
GROSS TAXABLE INCOME{A+B) (17,982,704
Less- Deduction under Section 80C (Tution fees, investment etc)
Less- Deduction under Section 80 D(Medical insurance)
Less- Deduction under section 80 TTA(Interest on saving bank)
(17,982,704)
Net Taxable Income
Tax Payable on Profit chargeableto tax
Less- Advance taX paid
Less-TOS Receivable
income Tax Payable

Anureo
Cherseed
Aceounsants
S o j e
SMARTIVITY LABS PVT. LTD.
CIN: U74140DL2015PTC277272
Notes to financial statements for the year ended 31 March 2021
(Amounts inIndian Rupees, unless otherwise stated)
1. Corporate information
Smartivity Labs Private Limited (the company) is a private company incorporated under the
provisions of the Companies Act, 2013.
These are stand

alone financial statements and, accordingly, these Indian
Accounting Standard (Ind
AS) financial statements incorporate amounts and disclosures related to the Company only.
2. Significant accounting policies

2.1 Basis of
preparation
The financial statements of the
Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015.
The financial statements have been
prepared on a historical cost convention, except for Certain
financial assets and liabilities measured at fair value (refer accounting policy regarding financial
instruments).
The financial statements are presented in INR
(Indian Rupees) and all values are rounded to the
nearest Rupee, except when otherwise indicated.
2.2 Summary of significant accounting policies
a.) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.
An asset is classified as current when it is:

Expected to be realised or intended to sold or consumed in normal operating cycle
Held primarily for the purpose of trading
Expected to be realised within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is clas_ified as current when:

I t is expected to be settled in normal operating cycle
I t is held primarily for the
purpose of trading
I t is due to be settled within twelve months after the
reporting period, or
There is no unconditional right to defer the settlement
after the
of the liability for at least twelve months
reporting period
The Company classifies all other
liabilities as non-current. Anur
Charte
Accounlants
sesocla
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between
the acquisition of assets for
in cash and cash
equivalents. The Company has identified twelve months processing and their realisation
as its
purpose of classification of its assets and liabilities as current operating cycle for the
and non-current.
b.) Foreign currencies
Functional and presentational

currency
The Company's financial statements are presented in INR, which is also the
currency. Functional currency is the Company's functional
currency of the primary economic environment in which an
operates and is normally the currency in which the entity
entity primarily and generates
cash. expends
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company at the functional currency
spot rates at the date the transaction first
qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional
currency spot rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or
loss
c) Fair value measurement
The Company measures certain financial instruments at fair value at each reporting 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
I n the principal marketfor the asset or liability, or

I n 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.
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Chaperad
Acooyhtants
eMY
A fair value measurement of a non-financial asset
takes into account a market
generate economic benefits by using the asset in its highest and best use or
participant's ability to
market by selling it to another
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,
and
maximising the use of relevant observable
inputs
minimising the use of unobservable inputs.
All and liabilities for which fair value is measured
assets
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
Level3Valuation 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 financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting priod.
External valuers are involved for valuation of significant assets such as valuation of
unquoted
investments and significant liabilities such as contingent. consideration, where ever
applicable.
Involvement of external valuers is decided upon annually by the Company's management. Selection
criteria include market knowledge, reputation, independence and whether professional standards are
maintained.
At each reporting date, the Company's management analyses the movements in the values of assets
and liabilities which are required to be re-measured or re-assessed as per the Company's accounting
policies. For this analysis, the Company's management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation computation to contracts and other relevant
documents.
d.) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is received.
Revenue 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.
The specific recognition criteria described below must also be met before revenue is recognised.
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Charerod
Accuniants
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer. Revenue from the sale of goods is measured at the fair value of the
consideration received or receivable, net of sales returns, turnover discounts and cash discounts.
The provision for anticipated returns, turnover discount and cash discount is primarily made on
estimated basis based on historical trends, wherever applicable.
Job Work
Revenue from Job work is recognized when printing and binding job is complete and accepted by the
customer and all significant risk and rewards relating to job work are transferred to customer
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.
Interest income
Interest income is recognized on time proportion basis taking into account the amount outstand ing and
the rate applicable. Interest income is included under the head "other income" in the statement of
profit or loss.
For all financial instruments measured at amortised cost and other interest-bearing financial assets,
interest income is recorded using the effective interest rate (EIR). The EIR is the rate that exactly
discounts the estimated future cash receipts over the expected life of the financial instrument or a
shorter period, where appropriate, to the net carrying amount of the financial asset. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the
contractual terms of the financial instrument (for example, prepayment, extension, call and similar
options) but does not consider the expected credit losses.
Dividend income to receive dividend is established by the

Dividend income is recognized when the company's right
reporting date.
e.) Income taxes

Income taxes consist of current taxes and changes in deferred tax liabilities and assets.
Current income tax

payable the taxable income for the year as determined in
Current tax is the amount of tax on
tax rates and the provisions of the Income

Tax Act, 1961 and other
accordance with the applicable
applicable tax laws.
liabilities measured at the amount expected to be recovered from or

income tax assets and
are
Current
and tax laws used to compute the amount are those that are
paid to the tax authorities. The tax rates
enacted or substantively enacted at the reporting date in the countries where the Company operates
and generates taxable income.
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Charterá
A c c o u p i a n t .
Current income tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Current tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate
Deferred tax
bases of
Deferred tax is provided using the liability method on temporary differences between the tax
at the reporting date.
assets and liabilities and their carrying amounts for financial reporting purposes
Deferred tax liabilities are recognised for all taxable temporary differences, except:
an asset or
When the deferred tax liability arises from the initial recognition of goodwill or
transaction that is not a business combination and, at the
time of the transaction,
liability in a
affects neither the accounting profit nor taxable profit or loss

investments in subsidiaries,
In respect of taxable temporary differences associated with
of the reversal of the temporary
associates and interests in joint arrangements, when the timing
in
differences can be controlled and it is probable that
the temporary differences will not reverse
the foreseeable future.
differences, the carry forward of

Deferred tax assets are recognised for all deductible temporary
extent that it
Deferred tax assets a r e recognised to the
unused tax credits and any unused tax losses.
differences,
available against which the deductible temporary
is probable that taxable profit will be
credits and unused tax losses can be utilised, except:
and the carry forward of unused tax
from the initial

the deductible temporary difference arises
When the deferred tax asset relating to
business combination and, at the
a transaction that is not a
recognition of an asset or liability in or loss
neither the accounting profit nor taxable profit
time of the transaction, affects
associated with investments in subsidiaries,

I n respect temporary differences
of deductible assets are recognised only
to the
associates and interests in joint
arrangements, deferred tax
and
will r e v e r s e in the foreseeable future
extent that it is probable
that the temporary differences
be utilised.
which the temporary differences can
taxable profit will be available against
under the Income-tax Act, 1961

where the company is entitled to a tax holiday
In the situations no
tax jurisdictions where it operates,
in India or tax laws prevailing in the respective
enacted which reverse durings
in respect of timing differences
deferred tax (asset or liability) is recognized income is subject to the
deduction
to the exten the company's gross total
the tax holiday period, differences which reverse after
period. Deferred tax in respect of temporary
during the tax holiday differences originate.
in which the temporary
period is recognized in the period has become
the tax holiday deferred tax assets to the extent that it
restricts recognition of deferred
However, the company available against which such
that sufficient future taxable income will be
reasonably certain differences which
of deferred taxes, the temporary
assets can be realized.
For recognition
tax
to reverse first.
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originate first are considered

Chartred
EAccoyhtants
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
f.) 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
Capital work in progress, plant and equipment are stated at cost, net of accumulated depreciation
and/or accumulated impairment losses, if any. Such cost includes the cost of replacing parts of the
property, plant and equipment and borrowing costs for long-term construction projects if the
recognition criteria are met.
When significant parts of property, plant and equipment are required to be replaced at intervals, the
Company recognises such parts as individual assets with specific useful lives and depreciates them
accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement if the recognition criteria are satisfied.
All other repair and maintenance costs are recognised in the profit or loss as incurred. The present
value of the expected cost for the decommissioning of the asset after its use, is included in the cost of
the respective asset if the recognition criteria for a provision are met.
An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognising of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in the income statement
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when the asset is derecognised.
Chartered%
CcDunants/S
Depreciation
Depreciation on property, plant and equipment, other than leasehold improvements, have been
provided on basis of companies act 2013, on the written down value method, using rates determined
based on management's technical assessment of useful economic life of the assets.
Followings are the estimated useful lives of various category of assets used.
Category of assets Useful life as adopted by Useful life as per Schedule II
management
Plant and equipment 15years 15 years
Furniture and fixture 10 years 10years
Intangible Assets 5 years
5 years
Office Equipment 5 years 5 years
Other (Specify Nature) 6 years 6 years
Leasehold improvements are amortised over economic useful life or unexpired period of lease
whichever is less. Assets costing 5,000 or less are
depreciated entirely in the year of purchase.
Second hand machinery purchased during the year is depreciated considering its useful life based
upon management's assessment is 15 years.
The Company, based on technical assessment made by technical expert and management estimate,
depreciates certain items of plant and machinery, vehicles, computers and building over estimated
useful lives wihich are different from useful life prescribed in Schedule lI to the Companies Act, 2013.
The management believes that these estimated useful lives are realistic and reflect fair
approximation of the period over which the assets are likely to be used.
An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its useor
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit
or loss when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively, if appropriate.
g) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortisation and accumulated
impairment losses if any, internally generated intangible assets, excluding capitalised development
costs, are not capitalised and expenditure is recognised in the statement of profit or loss when it is
incurred.
Anur Ja
Charter
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Gains or losses arising from de-recognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the
statement of profit or loss when the asset is derecognised.
Research and development costs
Research costs are expensed as incurred. Development expenditure incurred on an individual

project is recognized as an intangible asset when the company can demonstrate all the following:
The technical feasibility of completing the intangible asset so that it will be available for use or
sale. Its intention to complete the asset
Its ability to use or sell the asset. How the asset wil generate future economic benefits
The availabilityof adequate resources to complete the development and to use or sel the asset
The ability to measure reliably the expenditure attributable to the intangible asset during
development.
Following the initial recognition of the development expenditure as an asset, the cost model is
applied requiring the asset to be carried at cost less any accumulated amortization and accumulated
impairment losses. Amortization of the asset begins when development is complete and the asset is
available for use. It is amortized on a straight line basis over the period of expected future benefit
from the related project. Amortization is recognized in the statement of profit and loss. During the
period of development, the asset is tested for impairment annually.
Amortisation
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over their useful economic lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with ä finite useful life are
reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are accounted for by changing the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The amortisation expense on
intangible assets with finite lives is recognised in the statement of profit or loss in the expense
category consistent with the function of the intangible assets.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment
is
annually, either individually or at the cash-generating unit level. The assessment of indefinite life
reviewed annually to determine whether the indefinite life continues to be supportable. If not, the
change in useful life from indefinite to finite is made on a prospective basis.

Urao
Jal
Chartehed
EAcoountants/
A summary of the policies applied to the Company's intangible assets is as follows:
Intangible assets Useful lives Amortization method Internally
used generated or
Software acquired
(5 years) Amortized on WDV Acquired
Patent
method.
method.
Development Cost (5 years) Amortized on WDV Acquired
Bar Code
method,
method.
Testing/Patent (5 years) Amortized on WDV | Acquired
Tally ERP method.

method.
h.) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of

qualifying
capitalised as part of the cost of the asset. All other borrowing costs are expensed in the
asset are
period in which they are incurred. Capitalisation of borrowing costs is suspended and charged to the
Statement of profit and loss during extended
period when active development activity of the
qualifying assets is interrupted.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. It also includes exchanges differences to the extent regarded as an adjustment to
the borrowing costs.
i.) Leases
The determination of whether an

arrangement is (or contains) a lease i based on the substance of
the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of
the arrangement is dependent on the use of a specific asset or assets and the
arrangement conveys a
right to use the asset or assets, even if that right is not explicitly specified in an
arrangement.
Company as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that
transfers substantially all the risks and rewards incidental to ownership to the Company is classified
as a finance lease. An operating lease is a lease other than a finance lease.
Operating lease payments are recognised as an expense in the statement of profit and loss on a
straight-line basis over the lease term.
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( 8 / C h a r t e d
2Aacounta
) Inventories
Inventories are valued at the lower of cost and net realisable valu
Costs incurred in bringing each product to its present location and condition is accounted for as
follows:
Raw materials: cost includes cost of

purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost is determined on
First in first out (FIFO)
basis.
Finished goods and work in progress: cost includes cost of direct materials and labour
and a
proportion of mamufacturing overheads based on the normal operating capacity, but excluding
borrowing costs. Cost is determined on First in first out (FIFO) basis.
Net realisable value is the estimated

selling price in the ordinary course of business, less estimated
costs of completion and the estimated costs
necessary to make the sale.
k.) Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an
asset's or cash-generating unit's (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets. When 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
a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. In determining fair value less costs of disposal, recent market transactions
are taken into account. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether
there is an indication that previously recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company estimates the asset's or CGU's recoverable amount.
A previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the statement of profit or loss unless the asset is carried at a revalue amount, inwhi
case, the reversal is treated as a revaluation increase.
nuragJai
Chatered
EAcointants/
DeMY
Goodwill is tested for impairment annually and when circumstances indicate that the carrying value
may be impaired.
Impairment is determined for goodwill by assessingthe recoverable amount of each CGU

(or group
of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its
carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be
reversed in future periods.
1) 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

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, transaction costs that are attributable to the acquisition
of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
Debt instruments at amortised cost

Debt instruments at fair value through other comprehensive income (FVTOCI)
Debt instruments, derivatives and equity instruments at fair value through profit or lo_s (FVTPL)
Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Debt instruments at amortised cost

A debt instrument' is measured at the amortised cost if both the following conditions are met:
.The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and
Contractual terms of the asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using
the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the profit or loss. The losses arising from impairment
are recognised in the profit or loss.
Debt instrument at FVTOCI

A debt instruments is classified as at the FVTOCI if both of the following criteria are met:
The objective of the business model is achieved both by collecting contractual cash flows and
selling the financial assets, and
The asset's contractual cash flows represent SPPI.
Anui
Ja
u r a o
Chagred
Acouhtants
dlates
Debt instruments included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in the other comprehensive
income (OCI). However, the Company recognizes interest income, impairment losses & reversals and
foreign exchange gain or loss in the P&L. On de-recognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding
FVTOCI debt instrument is reported as interest income using the EIR method.
Debt instruments at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to classify a debt instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. Hovwever, such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch).
Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.
Equity investments
All equity instruments in scope of Ind AS 109 are measured at fair value. Equity instruments which
are held for trading and contingent consideration recognised by an acquirer in a business
combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments,
the company may make an irrevocable election to present subsequent changes in the fair value in
other comprehensive income. The group makes such election on an instrument-by-instrument basis.
The classification is made on initial recognition and is irrevocable.
If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCl. There is no recycling of the amounts
from OCI to P&L, even on sale of investment. However, the company may transfer the cumulative
gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
when:
assets) is primarily derecognised (i.e. removed from the Company's standalone balance sheet)
The rights to receive cash flows from the asset have expired, or
.The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a thitd party
under a
Company has transferred substantially all the risks
pass-through' arrangement; and either (a) the
and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
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Ja
Charted
Accounants
VE
Continuing involvement that takes the form of a
the lower of the original guarantee over the transferred asset is
carrying amount of the asset and the maximum measured at
that the Company could be amount of consideration
required to repay.
Impairment of financial assets
In accordance with Ind-AS
109, the Company applies expected credit loss (ECL)
measurement and model for
recognition of impairment loss on the following financial assets and
exposure: credit risk
Financial assets that are measured at
amortised cost e.g., loans, debt securities, deposits, trade
receivables and bank balance
Financial assets that are measured as at
FVTOCI
Lease receivables under
Ind-AS 17.
Contract assets and trade receivables under
Ind-AS 18.
Loan
commitments which measured as at FVTPL.
are not
Financial guarantee contracts which are not
measured as at FVTPL
The Company follows 'simplified approach' for recognition of
Trade receivables, and impairment loss allowance on:
Security Deposits.
For recognition of impairment loss on other financial assets and
risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to
provide
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.
for
If, in a
subsequent period, credit quality. of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to
impairment loss allowance based on 12-month ECL.
recognising
Lifetime ECL are the expected credit losses resulting from all
possible default events over the
expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which
results from default events on a financial instrument that are
possible within 12 months after the
reporting date.
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 EIR. When estimating the cash flows, an entity is required to consider:
All contractual terms of the financial instrument (including prepayment extension, call and similar
options) over the expected life of the financial instrument. However, in rare cases when the
expected life of the financial instrument cannot be estimated reliably, then the entity is required
to use the remaining contractual term of the financial instrument.
Cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
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(SChany
ECL impairment loss allowance (or reversal) recognized during the
period is recognized as
income/expense in the statement of profit and loss (P&L). This amount is reflected under the head
other expenses' in the P&L. The balance sheet presentation for various financial instruments is
described below:
The balance sheet presentation for various financial instruments is described below:
a) For financial assets measured as at amortised cost and lease receivables: ECL is presented
as an allowance, i.e. as an integral part of the measurement of those assets in the balance shet.
The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the
Company does not reduce impairment allowance from the gross carrying amount.
bLoan commitments and financial guarantee contracts: ECL is presented as a provision in the
balance sheet, i.e. as a liability.
cDebt instruments measured at FVTOCI: Since financial assets are already reflected at fair
value, impairment allowance is not further reduced from its value. Rather, ECL amount is
presented as 'accumulated impairment amount' in the OCI.
For assessing increase in credit risk and impairment loss, the Company combines financial
instruments on the basis of shared credit risk characteristics with the objective of facilitating an
analysis that is designed to enable significant increases in credit risk to be identified on a timely
basis.
The Company does not have any purchased or originated credit-impaired (POC) financial assets, i.e.
financial assets which are credit impaired on purchase/ origination.
Financial liabilities
Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
in
profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments
an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables and loans and borrowings
including bank overdrafts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and
Financial
financial liabilities designated upon initial recognition as at fair value through profit loss.
or
liabilities are classified as held for trading if they are incurred

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

loans
This is the category most relevant Company. After initial recognition, interest-bearing
to the
and borrowings are subsequently measured at amortised cost using the
EIR method. Gains and
as through the ElR
losses are recognised in profit or loss when the liabilities are derecognised as well
amortisation process. Amortised cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the

EIR. The ElIR amortisation is included
as finance costs in the statement of profit and loss. This category generally applies to borrowings.
Financial guarantee contracts

contracts that require a payment to
Financial guarantee contracts issued by the Company are those
the specified debtor fails to make a
be made to reimburse the holder for a loss it incurs because
contracts
terms of a debt instrument. Financial guarantee
payment when due in accordance with the
for transaction costs that are directly
are recognised initially as a liability at fair value, adjusted
the liability is measured at the higher of
attributable to the issuance of the guarantee. Subsequently,
the amount of loss allowance determined as per impairment
requirements of Ind-AS 109 and the
amount recognised less cumulative
amortisation.
De-recognition
the liability is discharged or cancelled
A financial liability is derecognised when the obligation under the same lender on
or expires. When an existing
financial liability is replaced by another from
terms of an existing liability are substantially
modified, such an
substantially different terms, or the and the recognition
as the de-recognition of the original liability
exchange or modification is treated
in the statement of
the respective carrying amounts is recognised
of a new liability. The difference in
profit or loss
Re-classification of Financial Assets

liabilities on initial recognition. After
classification of financial assets and
The Company determines
which are equity instruments and
reclassification is made for financial assets
initial recognition, no reclassification is made only if
which are debt instruments, a
financial liabilities. For financial assets to the business model are
model for managing those assets. Changes
there is a change in the business determines change in the business
to be infrequent. The Company's senior management
expected which are significant to the Company's operations.
or internal changes
model as a result of external the
in the business model occurs when
are evident to external parties. A change
Such changes the
ceases to perform an activity
that is significant to its operations. If
Company either begins or reclassification prospectively from the
reclassifies financial as_ets, it applies the
Company following the
of the immediately next reporting period
reclassification date which is the first day losses
restate any previously recognised gains,
in business model. The Company does not
change
or interest.
Cincluding impairment gains or losses) ure Ja
SChanbd
Accouants
Oftsetting of Financtial Instruments
Financial assets and tinancial liabilities are otset and
the net amount is
unconsolidated balance sheet it there is a currently enforceable reported in the
amounts and there is an intention to settle on a net
legal right to offset the
recognised
basis, to realise the assets and settle the
liabilities
simultaneously.
m.)Retirement and other employee benefits
Retirement benefit in the form of

provident fund is a defined contribution scheme. The has
no
obligation, other than the contribution payable to the provident fund. The CompanyCompany
contribution payable to the provident fund scheme as recognizes
an expense, when an
related service. employee renders the
If the contribution
payable to the scheme for service received before the balance sheet date exceeds
the contribution
already paid, the deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the contribution
due for services received before the balance
sheet date, then excess is recognized as an asset to the
extent that the will lead
pre-payment to, for example, a reduction in future
payment or a cash refund.
The Company operates a defined benefit
gratuity plan in India, which requires contributions to be
made to a separately administered fund. The cost of
providing benefits under the defined benefit
plan is determined using actuarial valuation at each reporting date.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset
amounts included in net interest on the net defined benefit
ceiling, excluding
liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the balance sheet with a corresponding debit or credit to retained earnings through
OCI in the period in which they cur. Re-measurements are not reclassified to
profit or loss in
subsequent periods.
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-
term employee benefit. The Company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the
reporting date.
n.) Provisions
Provisions are recognised 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.
The expense relating to a provision is presented in the statement of profit or loss net of any
reimbursement.
anure
sChand
Accoughan
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax
rate that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.
o.) Contingencies
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the ocurrence or non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The company does not recognize a contingent liability but discloses its existence
in the financial statements.
P.) Decommissioning liability
The company records a provision for decommissioning costs of a leased facility. Decommissioning
costs are provided at the present value of expected costs to the settle the obligation using estimated
cash flow and recognised as part of the cost of the particular asset. The cash flow are discounted at a
current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of
the discount is expensed as incurred and recognised in the statement of profit and loss as a finance
cost. The estimated future costs of decommissioning are reviewed annually and adjusted as
appropriate. Changes in the estimated future costs or in the discount rate applied are added or
deducted from the cost of the asset.
q.) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk
of changes in value.
For the purpose statement of cash flows, cash and cash equivalents consist of cash at bank and in
hand and short term investments with an original maturity of three months or less.
r.)Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the net profit or loss for the period attributable to
equity shareholders of the company including convertible preference share which mandatorily
converted into equity shares in the future period by the weighted average number of equity &
convertible preference shares outstanding during the year. n u r
S Charred
Accouhtents
Aates
as dajustec Cnarges o expenSe or income relating to the dilutive potential
equity shares by the weighted average number of equity shares outstanding during the year as
adjusted for the effects of all dilutive potential equity shares.
FOR M/s AWADHESH ANURAG JAI & ASSoCIATEs

Chartered Accountants
F.RNo. 011512C
Firp NEAS71B
8LChrtired
Acobunbants
CA Jarsota
(Partner)
Membership No. 404490
Place: New Delhi
Dated: 17th June, 2021

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1

A. Equlty share capltal

Equity shares No. of shares | Amount in Rs.

Particulars Reserve & Surplus tems of

Balance as at 31st March, 2020

SA. Trade receivables

Less: Allowance for expected credit loss

The activities in the allowance for

Unsecured, considered good

Less: Allowance for expected credit loss 3,000,000

Unsecured, considered good 1,530,000 30,000

7A. Prepald expenses

31 March 2021 31 March 2020

Impact on account of brought forward depreciation of income tax and Losses

SA. Trade recelvables

Particulars Ind AS Adj

Security deposits Current

Unsecured, considered good

Sc. Cash and cash equlvalents

Less Provisian for slow

Total Other assets

Particulars Ind AS Adj

charged in the financial statements

Net deferred tax assets/(liabilities)

c. Details of shareholdersholding more than 5% equity

Securities premlum 148,924,746) 117,575,164

11A. Non-current borrowings

Total Non-current borrowings

Un Secured 2,174,631 3,400,743

Total Other liabilities

For Taxation (net of advance tax) 31 March 2021 31 March 2020

for the year ended 31 March 2021

9A. Issued,subscribed and fully paid equitycapital No. of shares

No. of shares Amount

Name of the shareholder No. of shares of Holding

Share Application Retained Security Total

Impairement oftrade receivable

Ind AS Adjustments:(31st March 2021)

-Other comprehensive Income

As at31 March 2021as perind AS_ 62,819,423) 62,819,423)

11A. Non-current borrowings

ParticularsS IGAAP Ind AS Ad Ind AS Ad

Total non-CuTent borrowings

|Net non-curent borrowtngs

Particulars IGAAP Ind AS Ad Ind AS Ad

Ind AS Adj Ind AS Adj

Total other financial liabilities 6,701,640 6,701,640

Ind AS Adj Ind AS Ad

Particulars GAAP Ind AS Adj Ind AS Adj

Advance from customber

Particulars As per Ind AS Ad Ind AS Ad As Per

Particulars For the year ended For the year ended

Sale of products (Domestic)

Capital gain on investment (MF)

Notes tofinancial statements for the yearended 31 March 2021

For the year ended For the year ended

20 Cost of raw materials consumed

Particulars For the year ended For the year ended

Particulars For the year ended For the year ended

For the year ended For the year ended

Salaries, wages & bonus 30,580,831 37,591,974

For the year ended For the year ended

For the year ended For the year ended

year ended 31 March 2021