The Company's financial risk management is an integral pan of how to plan and execute its business strategy The Company's financial risk
management policy is set by the Boat'd. The Company's business activities expose it to a variety of financial risks, namely liquidity risk, market lisks
and credit risk I he key nsk.s and mitigating action* arc also placed before the Board of Directors of the Company I he Company's risk management
policies are established to identify and analyse the risks faced by the Company, to set appropriate nsk limits and controls and to monitor risks and
adherence to limits. Risk management policies and systems ate reviewed regularly to reflect changes in market conditions ami the Company's
activities.
Market risk is the nsk of loss of future earning*, fair values or future cash flows that may result from 311 adverse cliangc in the price of a financial
instiiiment Hie value of a financial instrument may change ns a result of changes in tin interest rates, foreign currency exchange nites. equity prices
and other market changes that affect market risk sensitive instruments Market risk is attributable to all market risk sensitive financial instruments
including investments and deposits, receivables, payables and loans.
The Company manages the risk through the Finance department tluil provides assurance that the Company's financial nsk activities 3rc governed by
appropriate policies and procedures and that financial risks arc identified, measured anil managed in accordance with the Company’s policies and risk
objectives. The Finance department activities arc designed to:
-protect the Company's financial results and position ftum financial risks
-maintain market risks within acceptable parameters, while optimising returns; and
protect the Company's financial investments, while maximising returns
The Finance depaitment provides funding fin the Company's operations, In addition to guidelines and exposure limits, a system of authorities and
extensive independent reporting covers all major areas of activity.
I A) MANAGEMENT OF LIQUIDITY RISK
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. Company’s approach to
managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses A material and
sustained shortfall in cash (low could undermine the Company's credit rating and impair investor confidence.
The Company maintained a cautious funding strategy, with a positive cash balance tor major part of the year ended 31 Match. 2025 and throughout
the period ended 31 March, 2024 This was the result of existing business model of the Company and funding arrangement from the investing
partner*.
The Company's board of directors regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus easli generated by the operating entities, over and above the amount required for working capital management and other
operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in liquid mutual funds/fixed
deposits while ensuring sufficient liquidity to meet ils liabilities
Exposure to liquidity risk
The following arc the contractual maturities of financial liabilities ui the reporting date The amounts arc gross and undiscounted, and include
estimated interest payments and exclude the impact of netting agreement*
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Trade receivables:
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risk is managed through credit
approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the
normal course of business.
Other financial assets:
The Company maintains exposure in cash and cash equivalents, term deposits with banks. Loans, Security deposits and other financial assets The
Company has concentrated its mam activities with 3 limited number of counter-parties (bank) which have secure credit ratings, to reduce Hits risk.
Individual risk limits arc 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’s Finance department
<Ct MANAGEMENT OF MARKET RISK
The Company's size and operations result in it being exposed to the following market risks thru arise from its use of financial instruments:
• Foreign currency risk;
•pnceiisk: and
The above risks may affect the Company's income and expenses, or the value of its Financial instruments The objective of the Company's
management of market risk is to maintain this risk within acceptable parameters, while optimising returns. The Company's exposure to. and
management of. these risks is explained below
<l) Foreign Currency Risk:
The Company is exposed to foreign exchange risk arising from various currency exposures on account of sale and procurement of goods and services,
primarily with respect to US Dollar
The Company's management regular review the aurency risk. However at this stage the Company has not entered into any forward exchange
contracts or other arrangement* to cover this risk as the risk is not material
Mil Interest Rate Risk:
Interest rale risk i% the risk that the fair value or future cash flows of a financial instrument will fluctuate In-cause of changes in market interest rates.
The Company's exposure to market risk fbt changes in interest rates relates to variable rate borrow ings from financial institutions The Company's
fixed rate borrowings from arc carried at amortised cost and arc not subject to interest rate risk since neither the carrying amount nor the future cash
flow will fluctuate because of a change in market interest rates
(III) Pricing Risk:
There is no material impact of pricing nsk on the financial statements and the operations ol the Company
Financial Instrument by category
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between w illing parties.The carrying amount Financial Assets and Liabilities is a reasonable approximation ol' fair value.
The following methods and assumptions were used to estimate the fair values
1 Fair value of trade receivables, cash, loans, other financial assets, trade payables and other financial liabilities, approximate their carrying amounts
largely due to short term maturities of these instruments.
2 Financial instruments with fixed and variable interest rales are evaluated by the Company based on parameters such as interest rates and individual
credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected kisses ol these receivables. Accordingly,
fair value of such instruments is not materially different from their carrying amounts.
17ic fair values ol security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair
values in the fair value hierarchy due to the inclusion of unobservable inputs including counter patty credit nsk.
<D| CAPITAL MANAGEMENT
Foi the purpose of the Company** capital management, CBpn.il includes issued equity capital, and all other equity reserves attributable to the equity
holders of the Company. The primary objective of the Company's capital management is to maximize the shareholder value
The Company manages its capital structutv and makes adjustments in light of changes in economic conditions, business strategies and future
commitments To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The
Company includes within net debt, borrowings less cash and cash equivalents
In accordance with Ind AS - Iy Employee Bene fils, specified under Section 133 or the Companies Act. 2013 the folio win)? disclosure* are made:
•12.1 The Company recognised ?! 19.90 lacs <previous year. ?fh>.21 lacs) for Provident Fund contributions in the Statement of Profit and Loss. The
contribution* payable to these plans by the Company are at rates specified in the rules of the schemes.
42.2 Defined benefit plans:
The Company has an funded gratuity plan for qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act. 1 ‘>72 The
benefit vests upon completion of live years ol continuous service and once vested, it is payable to employees on retirement or on termination ol
employment. In ease of death while in service, the gratuity is payable iirespective of vesting.
Actuarial gains and losses in respect of defined benefit plans arc recognised in the financial statements through other comprehensive income.
Interest risk
A decrease in the bond interest rate will increase the plan liability.
Longevity risk
The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and
ailer their employment. An increase in die life expectancy of the plan participants will increase the plan's liability.
Salary risk
Ilic present value of the defined benefit plan liability i< calculated by reference to the future salaries of plan participants. As such, an increase in the
salary of the plan participants will increase the plan's liability.
I he following table set out the unfunded status of the defined benefit schemes and the amount recognised in financial statements
Note 43: Disclosures required under Ind AS 8 for correction of prior period errors.
In accordance with Ind AS 8 Accounting Policies. Changes in Accounting Estimates and Errors, the Company has
retrospectively restated its Balance Sheet as at March 31. 2024 and April I. 2023 (beginning of the preceding period) to
rectify errors identified during the period.
43.1 Nature of prior period errors
(a) Lease accounting
In most cases, the Company's lease arrangements arc cancellable within a short notice period As these arrangements are not
enforceable beyond that period, no Right-ol-Use (ROU) asset or lease liability was recognised. However, during the period
2022-23. the Company entered into certain agreements containing non-canccllable periods, which required lease accounting
in accordance with the applicable standards. This requirement was inadvertently overlooked in the previous period and has
now been corrected in the current period. Related security deposits have also been adjusted to their fair value, with the
resulting difference recognised as part of the ROU asset.
fb) Deferred product expenditure and accounting for patents
The Company had previously capitalised certain deferred product development expenditures that did not meet the
recognition criteria under Ind AS 38. As a result of adopting an incorrect accounting treatment, these amounts were
capitalised and later written off through the profit and loss account. In the current year, the accounting treatment has been
corrected, and the amounts have been restated to reflect the appropriate treatment. These balances have been written off
retrospectively as a prior period error.
Further, in relation to patents, the Company had erroneously continued to capitalise borrowing costs even alter the
completion of development activities. The excess amounts so capitalised have been written off retrospectively, and the
related amortisation has been recomputed accordingly.
(c) Inventories
Amounts previously recorded as inventory for a training project were determined in the prior period to be obsolete or no
longer usable. Upon review, these amounts also did not meet the recognition criteria for classification as inventor)' under Ind
AS. Consequently, they have been written down retrospectively to reflect their recoverable value.
(d) Loan to Subsidiaries
Foreign exchange restatement for foreign currency denominated loans was not appropriately accounted for m prior periods
in accordance with Ind AS 21. In addition, impairment testing of these loans was not performed during those periods as
required by the applicable standards These omissions have been corrected retrospectively in the current reporting period.
(c) Investments
Previously, investments in certain non-operating entities were not subjected to impairment testing. These investments have
now been reassessed, and impairment testing has been performed. Based on the results, the impaired portion has been
written down, and the carrying amount has been revised to reflect its fair value in accordance with the requirements of Ind
AS 109.
(0 Trade Receivables
In prior periods, foreign exchange revaluation for receivables denominated in foreign currencies was not performed. This
omission has been corrected in the current period, with receivables now adjusted to reflect the appropriate foreign exchange
restatement. In addition, the Expected Credit Loss (ECL) provision, which had not been recognised earlier, has been
reassessed and recorded retrospectively.
Lease Liability in a Sale and Leaseback - Amendments In Ind AS 116
The amendment .specifies the requirements that a seller-lessee uses m measuring the lease liability arising in a sale and leaseback
transaction to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use asset it retains
The amendment is effective for annual reporting periods beginning on or after April 01. 2024 and must be applied retrospectively to sale
and leaseback transactions entered into after the date of initial application oflnd AS 116.
The amendment has no impact on the standalone financial statements.
b. The company has not traded or invested in Crypto currency or Virtual Currency during the period (previous year - Nil)
c. The company has not received any funds from any person entities, for the purpose of directly or indirectly lending/ investing.' providing
guarantee/ security to a another person1' entity, by or on behalf of the person/ entity from whom such amount is received during the
period (previous year • Nil)
d. The company hus nut advanced/ loaned/ invested funds to any person entity for the purpose of directly or indirectly lending investing/
providing guarantee security to a third person/ entity, by or on behalf of the company in contravention of the Act
c. flic company docs not have any borrowings which arc not utilised for the purposes specified
*'• The Company has taken loans from banks Financial Institutions i FI) on the basis of security of current assets like inventories. The
periodic returns or statements of current assets tiled by the C ompany with banks or financial institutions arc in agreement with the books
of accounts.
Note 48 : Disclosure pursuant to section 186 of the Companies Act, 2013
The details of loans, guarantees and investments undei Section 186 of the Companies Act. 2013 read with the Companies (Meetings of
Hoard and its Powers) Rules. 2014 arc as follows:
a. The Company has not revalued its Properly, Plant and Equipment (including Right-of-Use Assets) 'Intangible Assets during the year
(previous yeat - Nil)
b. The company is not holding benanti property under the Benantt Transactions (Prohibition) Act, l C>SS (45 of 1988)
c. The company is not wilfiil defaulters under guidelines on wilful defaulters issued by the Reserve Bank of India
d. The company has no relationship and transactions with struck off companies
c. Tthc company has not made any delay in registration of Charges during the period.
f. The company has complied with the number of layers prescribed under section 2(87) of the companies Act 2013
g. The company has not entered in scheme of arrangement under section 230 to 237 of Companies Act 2013 during the period
h There are no transactions not recorded in the books of accounts, which arc disclosed during the Income tax assessment-'search survey
Note 52 : Impact on Code on Social Security. 2020
The Indian Parliament lias approved the Code on Social Security. 2020 which would impact the contributions by die Company towards
Provident Fund and Gratuity. The Ministry of Labour an<l Employment has released draft rules for die Code on Social Security, 2020 on
13 November, 2020. and has invited suggestions from stakeholders which arc under active consideration by the Ministry. The Company-
will assess the impact and its evaluation once the subject rules arc notified and will give appropriate impact in its financial statements in
the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
Note 53 : Reclassification note
Previous period’s figures have been re-grouped / re-classified, lo the extent necessary, to conform to current period's classifications (in
addition to restatement done as per Note no. ; 3). All the numbers have been rounded off to nearest lacs.
As per our audit report of even date For and on behalf of the Board of Directors
For G. Joseph & Associates KERALA AYURVEDA LIMITED
Chartered Accountants
Firm Regn. No. 00631 OS
Raphael Sharon Dr. Anil Kumar I'tknrsh Singh
Partner Director Director
M.No. 233286 DIN: 00226353 DIN: 9244896
VivekSundar KT George Priyanka Cangwar
Date: 26th May 2025 CEO CFO Company Secretary
Place: Athuni Mem No. - FI2378
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