1.18 Provisions and contingent liabilities

a. Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and the
amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is recognised
as interest expense.

The measurement of provision for restructuring includes only direct expenditure arising from the
restructuring, which are both necessary entailed by the restructuring and not associated with the
ongoing activities of the Company.

b. Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle, or a reliable
estimate of the amount cannot be made.

1.19 Employee benefits

a. Short-term obligations

Liabilities for salaries and wages, including other monetary and non-monetary benefits that are expected
to be settled wholly within 12 months after the end of the period in which the employees render the
related service are recognised in respect of employees' services up to the end of the reporting period
and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.

b. Other long-term employee benefit obligations

The Company has liabilities for compensated absences which are not expected to be settled wholly
within 12 months after the end of the reporting period in which the employees render the related service.
They are therefore measured at the present value of expected future payments to be made in respect
of services provided by employees up to the end of the reporting period using the projected unit credit

method. The benefits are discounted using the appropriate market yield at the end of the reporting
period that have terms approximating to the terms of the related obligations. Re-measurements as a
result of experience adjustments and changes in actuarial assumptions are recognised in the statement
of profit and loss.

The obligation is presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

c. Post-employment obligations (Defined Benefit Obligations)

The Company operates the following post-employment schemes:

• Defined benefit plans - Gratuity and Provident Fund

• Defined contribution plans such as Superannuation Fund and Employee State Insurance
Corporation (ESIC).

Defined Benefit Plans

The liability or asset recognised in the balance sheet in respect of defined benefit provident fund and
gratuity plans is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using
the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting
the estimated future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation. The net interest
cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit
and loss.

Remeasurement gains and losses arising from experience adjustments, changes in actuarial assumptions
and return on plan assets (excluding interest income) are recognised in the period in which they occur,
directly in other comprehensive income. They are included in retained earnings in the statement
of changes in equity and in the balance sheet. Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments are recognised immediately in statement of
profit or loss as past service cost.

During the previous year Company has formed gratuity fund exclusively for gratuity payment to the
employees. The gratuity liability amount is contributed to the approved gratuity fund formed. The
gratuity fund has been approved by Income Tax authorities.

Defined contribution plans

The Company pays Superannuation Fund and ESIC contributions to publicly administered funds as per
local regulations. The Company has no further payment obligation once the contribution has been
made. The Company's contribution to Superannuation Fund and ESIC is recognised on accrual basis in
the Statement of Profit and Loss.

Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The
Company recognises termination benefits at the earlier of the following dates: (a) when the Company
can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a
restructuring that is within the scope of Ind AS 37 and involves the payment of termination benefits. In
the case of an offer made to encourage voluntary redundancy, the termination benefits are measured
based on the number of employees expected to accept the offer. Benefits falling due more than 12
months after the end of the reporting period are discounted to present value.

1.20 Segment reporting

The Company's Managing Director and CEO is identified as Chief Operating Decision Maker ('CODM') of the
Company and CODM reviews and allocates resources for consolidated business i.e., Network Systems products
and services and accordingly, it is a single operating segment.

1.21 Contributed equity

Equity shares are classified as equity

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.

1.22 Earnings per share

a. Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to equity holders of the Company

• by the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year and excluding treasury shares.

b. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:

• the after-income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

• the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

1.23 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per
the requirement of Schedule III, unless otherwise stated.

1.24 Measurement of PBITDA

The Company has elected to present profit before finance cost, tax and depreciation and amortization
(PBITDA) as a separate line item on the face of the statement of profit and loss account. The Company measures
PBITDA on the basis of profit from continuing operations. In its measurement, the Company does not include
depreciation and amortization expense, finance cost and tax expense.

2. Critical estimates and judgements and key sources of estimation uncertainty:

In the application of the Company's accounting policies, which are described in note 1 above, the management of
the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.

In the following areas the management of the Company has made critical judgements and estimates

a) Revenue recognition

• The Company's contracts with customers could include promises to transfer multiple goods and services
to a customer. The Company assesses the goods / services promised in a contract and identifies distinct
performance obligations in the contract. Identification of distinct performance obligation involves
judgement to determine the deliverables and the ability of the customer to benefit independently from
such deliverables. Each revenue component is recognised based on the policy noted in Note no 1.11
above.

• The Company uses judgement to determine an appropriate standalone selling price for a performance
obligation. The Company allocates the transaction price to each performance obligation on the basis of
the relative standalone selling price of each distinct goods or service promised in the contract. Where
standalone selling price is not observable, the Company uses the expected cost plus margin approach
to allocate the transaction price to each distinct performance obligation.

• The Company exercises judgement in determining whether the performance obligation is satisfied
at a point in time or over a period of time. The Company considers indicators such as how customer
consumes benefits as services are rendered.

• Contract fulfilment costs are expensed as incurred.

b) Estimation of defined benefit obligation

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit
obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation
involves making various assumptions that may differ from actual developments in the future. These include
the determination of the discount rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.

c) Useful lives of property, plant and equipment and intangible assets

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

d) Recognition of deferred tax assets

Deferred tax assets are recognized for based on estimated future taxable rate on all deductible temporary
differences, unused tax losses and carry forward tax credits only if it is probable that future taxable amounts
will be available to utilize those temporary differences, tax losses and tax credits. The management assumes
that taxable profits will be available while recognising deferred tax assets.

e) Expected credit loss on trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk
has been managed by the Company through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course
of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the
impairment loss. The Company uses a provision matrix and forward-looking information and an assessment
of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for
trade receivables. Additionally, Company makes specific provision in relation to disputed receivables based on
periodic credit evaluation (refer note 30).

f) Estimation of provisions & contingent liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing
the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of
the financial settlement. Because of the inherent uncertainty in this evaluation process, actual liability may be
different from the originally estimated as provision or contingent liability (refer note 35 and note 38).

g) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Assessing whether a contract contains a lease requires significant judgement. Significant judgement is also
required in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods
covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or
not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an
economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option
to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period
of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being
evaluated or for a portfolio of leases with similar characteristics [refer note 3(c)].

3(c)(1) The Company as lessee

The Company as lessee acquired on lease Leasehold land. The total lease term is 95 years, remaining lease term is
59 years as on March 31, 2025. This has been included under leasehold premises & equipment disclosed below. The
Company does not have an option to purchase the land at the end of the lease term. Further Company has also
taken premises on lease along with certain equipment for term of 5 years to 10 years.

- Also Company has taken motor vehicle on lease which have lease term varying from 2 years to 5 years.

- The effective interest rate for lease liabilities is from 8.00% to 9.95%.

The Company is restricted from assigning and subleasing the leased assets.

(iii) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 10 /- per share. Each holder of equity
shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

The Board of directors have recommended dividend of ' 1.00 per equity share for the year ended
March 31,2025. The dividend proposed by the Board of Directors is subject to the approval of the shareholders
in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining
assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.

Nature and purpose of reserves:

General reserve

General Reserve is used to transfer profits from retained earnings for appropriation purposes. The amount can
be utilised in accordance with the provision of the Companies Act, 2013.

Retained earnings

The same reflects surplus/ (deficit) after taxes in the Statement of Profit and Loss. The amount that can be
distributed by the Company as dividends to its equity shareholders is determined based on the balance in this
reserve and also considering the requirements of the Companies Act, 2013.

Reserve for FVTOCI Equity Instruments

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments
measured at fair value through other comprehensive income, net of amounts reclassified to retained earning
when those assets have been disposed off.

Note on Dividend :-

*For financial year ended March 31, 2024, the Board of Directors had recommended a dividend of 22%
(March 31, 2023: 20%) which was ' 2.20 (March 31, 2023: ' 2.00) per equity share of ' 10/- each, which was
approved by shareholders in the Annual General Meeting of the Company held on June 25, 2024.

For financial year ended March 31, 2025, the Board of Directors have recommended a dividend of 10%
(March 31, 2024: 22%) which is ' 1.00 (March 31, 2024: ' 2.20) per equity share of ' 10/- each. This is subject to
approval at the annual general meeting by the members and liability is not recognised as at March 31,2025

Performance obligation:

Satellite communication services and internet services:

The performance obligation is satisfied over-time and payment is generally due upon link activation and acceptance
of the customer.

Equipment:

Generally performance obligation is satisfied upon delivery of equipment and payment is generally due within 30-90
days from delivery.

(i) Fair value hierarchy

Valuation technique and significant unobservable inputs:

This section explains the judgements and estimates made in determining the fair value of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the company has classified its financial instruments into the three levels
prescribed under the accounting standard. An explanation of each level follows underneath the table.

During the year there have been no transfer between level 1 and level 2.

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted price. This includes listed
equity instruments, traded bonds, mutual funds that have quoted price.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using
valuation technique which maximize the use of observable market data and rely as little as possible on entity
- specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

(ii) Valuation method used to determine fair value

a) Specific valuation technique used to value financial instruments include:

- The use of quoted market price or dealer quotes for similar instruments.

- The fair value of the remaining financial instruments is determined using discounted cash flow
analysis.

b) During the current year, there is no significant movement in the items of fair value measurements
categorised within Level 3 of the fair value hierarchy.

c) The Fair value for investment in unquoted equity share were calculated based on risk adjusted
discounted rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of
unobservable inputs including counterparty credit risk.

The carrying amounts of trade receivables, cash and cash equivalent, other bank balances, loans to employees,
other financial assets, trade payables are considered to be the same as their fair values, due to their short-term
nature.

The Fair value of loans, trade receivables, borrowings and other financial liabilities were calculated based on
cash flows discounted using a current deposit rate. They are classified as level 3 fair values in the fair value
hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques. The company uses its judgement to select a variety of methods and make assumptions that
are mainly based on market conditions existing at the end of each reporting period. For details of the key
assumptions used and the impact of changes to these assumptions see (ii) and (iii) above.

Note 30 :Financial Risk Management

The company's activities expose it to market risk, liquidity risk and credit risk.

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade/other
payables and lease liabilities. The main purpose of these financial liabilities is to support its operations. The Company's
principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from
its operations.

The Company is exposed to market risk, foreign currency risk, liquidity risk and credit risk. The Company's senior
management oversees the management of these risks. The Company's senior management is supported by a Risk
management committee that advises on financial risks and the appropriate financial risk governance framework
for the Company. The Risk management committee provides assurance to the Company's senior management that
the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks
are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative
activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience
and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily
trade receivables), deposits with bank and financial institution, Loans and deposits with third party and other
financial instruments / assets.

The company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers
reasonable and supportive forward looking information such as: adverse changes in business, changes in the
operating results of the counterparty, change to the counterparty's ability to meet its obligations etc. Financial
assets are written off when there is no reasonable expectation of recovery.

(i) Credit Risk Management
Financial assets

The Company maintains exposure in cash and cash equivalents, trade receivables, term deposits with
banks, security deposits with counterparties, loans to third parties. Individual risk limits are set for
each counter-party based on financial position, credit rating and past experience. Credit limits and
concentration of exposures are actively monitored by the Company.

The Company's maximum exposure to credit risk as at March 31,2025 and March 31,2024 is the carrying
value of each class of financial assets as disclosed in the standalone financial statements.

Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers.
Credit risk has been managed by the Company through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in
the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit
loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward¬
looking information and an assessment of the credit risk over the expected life of the financial asset to
compute the expected credit loss allowance for trade receivables.

Individual receivables which are known to be uncollectible are written off by reducing the carrying
amount of trade receivable and the amount of the loss is recognised in the statement of profit and loss.

Specific allowance for loss has also been provided by the management based on expected recovery on
individual customers.

Three customer as at March 31, 2025 and five customers as at March 31, 2024 individually contributed to
more than 5% of the total balance of trade receivables. Receivable from these customers was ' 634 Lakhs
and ' 1,172 Lakhs as at March 31, 2025 and March 31, 2024 respectively.

Other than trade receivables and financial assets

Management believes that the parties from which the receivables are due have strong capacity to
meet the obligations and risk of default is negligible or nil and accordingly no significant provision for
expected credit loss has been recorded.

Credit risk from balances with bank and financial institutions is managed by the Company's treasury
department in accordance with the Company's policy.

(B) Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. The Company's objective is to maintain a balance between continuity of funding and flexibility
through the use of bank overdrafts. The Company manages its liquidity risk by ensuring, as far as possible, that
it will always have sufficient liquidity to meet its liabilities when due through rolling cash flow forecast. Also,
the Company has unutilized credit limits with banks.

(C ) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowings, trade payables, deposits, investments, trade receivables, other financial assets and
derivative financial instruments.

(i) Foreign currency risk

Company is exposed to foreign exchange risk arising from direct transactions in foreign currency and
also indirectly through transactions denominated in foreign currency though settled in functional
currency (INR), primarily with respect to the US Dollar (USD). Foreign currency risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the
company's functional currency (INR). The Company enters into derivative financial instruments such as
foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on
foreign currency exposures.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms
of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the
derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted
up to the point of settlement of the resulting receivable or payable that is denominated in the foreign
currency.

(ii) Interest rate risk

The Company's main interest rate risk arises from long-term borrowings with variable rates, which
expose the company to cash flow interest rate risk.

(a) Interest rate risk exposure

Borrowings of the Company as at March 31, 2025 and March 31, 2024 are nil and hence
Company is not expose to interest rate changes at the end of the reporting period.

(iii) Price risk

The Company doesn't have any financial instruments which are exposed to change in price.

Note 31 : Capital Management & Gearing Ratio
Risk Management

The Company's objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The
Company's policy is to keep the gearing ratio around 50%. The Company includes within net debt, interest bearing
loans and borrowings, less cash and bank balances as detailed in the notes below.

The Company's capital management is intended to create value for shareholders by facilitating the meeting of its
long-term and short-term goals.

Its capital structure consists of net debt (borrowings as detailed in notes below) and total equity.

Loan covenants

Under the terms of the major borrowing and facilities, the Company was required to comply with the following
financial covenants.

Exclusive charge over the VSAT's related assets with minimum security cover of 1.35x at all times. During the
previous year ended March 31, 2024 Company has repaid loans fully and balance payable as on March 31, 2025 and
March 31, 2024 is nil.

Company has regularly filed statements with banks from whom loans are taken and there are no deviation from
books of accounts. (refer note 41).

The Company operates the following funded/unfunded defined benefit plans:

Provident Fund (funded):

The Company makes Provident Fund contributions to defined benefit plans for eligible employees.
Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to
fund the benefits. The contributions as specified under the law are paid to the provident fund set up as
a trust by the Company. The Rules of the Company's provident fund administered by the Trust requires
that if the Board of Trustees are unable to pay interest at the rate declared by Central Government under
para 60 of the Employees' Provident Fund Scheme, 1952 then the shortfall shall be made good by the
Company. Having regard to the assets of the fund and the return on the investments, the Company does
not expect any shortfall in the foreseeable future.

In terms of guidance note issued by the Institute of Actuaries of India, the Actuary has provided a
valuation of Provident fund liability based on the assumptions listed and determined that there is no
shortfall as at March 31,2025 and March 31, 2024, respectively.

Provident Fund Assessment as per recent Supreme court Judgment:

Recent Supreme Court judgement in case of Vivekananda Vidyamandir and Others (February 2019) lays
down principles to exclude a particular allowance from the definition of "basic wages" for the purposes
of computing the deduction towards provident fund contributions. A review petition have been filed
against the said order by other Companies and await clarification from Provident Fund Commissioner/
Supreme Court. Based on the initial assessment and recently concluded inspections by Provident Fund
authorities, management does not expect any material impact on the financial statements.

Gratuity (funded):

The Company has a funded defined benefit gratuity plan. The Company's defined benefit gratuity plan is
a final salary plan for employees, which requires contributions to be made to a separately administered
fund.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, every employee who
has completed five years or more of service gets gratuity on departure at 15 days salary (last drawn salary)
for each completed year of service. The gratuity liability amount is contributed to the approved gratuity
fund formed exclusively for gratuity payment to the employees. The gratuity fund has been approved
by respective Income Tax authorities. The liability in respect of gratuity and other post employment
benefits is calculated using the Projected Unit Credit Method and spread over the period during which
the benefit is expected to be derived from employees' services.

The following table sets out the status of the defined benefit scheme and the amount recognised in the
standalone financial statements:

Compensated absences which are accumulated and not expected to be availed after the end of the
reporting period in which the employee renders the related service are recognised as a liability at the
present value of the defined benefit obligation as at the balance sheet date. Compensated absences is
recognised as a liability based on actuarial valuation of the defined benefit obligation as at the balance
sheet date.

a) An amount of ' 40 Lakhs (March 31, 2024: ' 34 Lakhs) has been charged to the Statement of Profit
and Loss for the year ended March 31, 2025 towards Compensated absences.

b) Provision for compensated absences has been made on the basis of actuarial valuation carried out
as at the Balance sheet date.

c) Net liability recognised for compensated absences in the Balance Sheet as at March 31, 2025 is
' 116 Lakhs (March 31,2024 : ' 112 Lakhs).

^Application filled by plaintiffs with Small Causes Court, Mumbai, claiming from Company mesne profit of ' 560 lakhs
and interest thereon. Based on valuation report obtained by the Company from an independent valuer, Company
has made provision of ' 166 lakhs and accrued interest thereon. Balance has been disclosed as contingent liability.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments/decisions
pending at various forums / authorities.

The above figures for contingent liabilities do not include amounts towards certain additional penalties/interest
that may devolve on the Company in the event of an adverse outcome as the same is subjective and not capable of
being presently quantified. Unless otherwise stated below, the management believes that, based on legal advice, the
outcome of these contingencies will be favourable and that a loss is not probable, further outflow of resources is not
probable in either cases.

The Company does not have any contingent assets at the balance sheet date.

Note 46: The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post¬
employment benefits received Presidential assent in September 2020. The Code has been published in the
Gazette of India. Certain sections of the Code came into effect on May 3, 2024. However, the final rules/
interpretation have not yet been issued. Based on a preliminary assessment, the entity believes the impact of
the change will not be significant.

Note 47: The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software, except that audit trail feature is not enabled at the database level for the
year and also for certain master fields (Asset Master, Customer Master and Vendor Master) changes made using
privileged/ administrative access rights related to the SAP application and/or the underlying SQL database.
However this was enabled for changes made using privileged/ administrative access rights related to the SAP
application and/or the underlying SQL database from April 10, 2024. Further no instance of audit trail feature
being tampered with was noted in respect of other software. Additionally, the audit trail of prior year has been
preserved as per the statutory requirements for record retention.

Note 48: Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

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

(iv) The Company have neither received nor given any fund from or to any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as
amended).

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

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

(viii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of
the Ultimate Beneficiaries.

Note 49: Events after the reporting period

The Company has evaluated subsequent events from the balance sheet date through April 24, 2025 the date at
which the financial statements were available to be issued, and determined that there are no material items to be
disclosed other than those disclosed above.

Note 50: Approval of Standalone Financial Statements

The Standalone financial statements were approved for issue by the Board of Directors on April 24, 2025.

As per our report of even date

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors

Firm Registration Number : 101049W/E300004 Nelco Limited

Chartered Accountants CIN: L32200MH1940PLC003164

A. S. Lakshminarayanan P. J. Nath

Chairman Managing Director & CEO

(DIN: 08616830) (DIN: 05118177)

Aniket Sohani Malav Shah Ritesh Kamdar

Partner Chief Financial Officer Company Secretary & Head - Legal

Membership No. 117142 (ICAI M. No: 102314) (ICSI M. No: A20154)

Place: Mumbai Place: Mumbai

Date : April 24, 2025 Date : April 24, 2025