Highness Microelectronics Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

2.13 Contingent liabilities

The company creates a provision when there is a
present obligation as a result of past event that
probably requires an outflow of resources & reliable
estimate.

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of
resources. When there is a possible obligation or a
present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or
disclosure is made. Provisions are reviewed at each
balance sheet date and adjusted to reflect the
current best estimate. If it is no longer probable that
an outflow of resources would be required to settle
the obligation, the provision is reversed.

Contingent assets are not recognized in the financial
statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of
economic benefits will arise, the asset and related
income are recognized in the period in which the
change occurs.

Accordingly, the company discloses contingent
liability for following -

The Company obtained registration under the
Employees'' State Insurance Act, the Employees''
Provident Fund Act and the Professional Tax Act with
effect from October 2024. Statutory contributions
have been deposited from that date onwards. The
Company has not recognised any liability in respect of
periods prior to October 2024, as the same has not
been quantified and reliable measurement is not
presently possible however exposure for earlier
periods cannot be ruled out. Accordingly, the same
has been disclosed as a contingent liability, without
quantification.

2.3 Cash and Cash Equivalents

Cash and cash equivalents for the purposes of cash flow
statement comprise cash in hand, cash at bank,
deposits with banks and other short-term investments
with an original maturity of three months or less.

2.4 Miscellaneous Expenditure

Preliminary expenses are charged to profit and loss
account over a period of five years.

2.5 Cash Flow Statement

Based on AS-3 Cash flows are reported using the
indirect method, whereby net profit before tax is
adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future
cash receipts or payments and items of income or
expenses associated with investing or financing cash
flows. The cash flows from operating, investing and
financing activities of the Company are segregated
based on the available Information.

2.6 Earnings Per Share

Basic EPS per share are calculated by dividing the net
profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number
of shares outstanding during the period are adjusted
for effects of all dilutive potential equity shares.

27. Closing Balance Confirmation

All the debtors, creditors, loans and advances, deposits
are subject to confirmation.

In the opinion of the management, the current assets,
loans and advances are approximately of the value
stated, if realized in the ordinary course of the business,
except otherwise stated and there is no contingent
liability other than stated above.

28. Micro, Small and Medium Enterprise
Development Act, 2006 (''the Act'')

The Company has initiated the process of
identification of ''suppliers'' registered under the Micro,
Small and Medium Enterprises Development
(''MSMED'') Act, 2006, by obtaining confirmations from
all suppliers. The Company has disclosed MSME
sundry creditors based on such confirmations
received from creditors about their status under
MSMED Act, 2006.

Disclosure of dues to Micro and Small Enterprises as
required under the MSMED Act, 2006
27. Disclosure of Deferred Tax

Deferred tax asset of Rs. 1,147.41/- (Previous period Rs.
Deferred Tax Asset of Rs. 358.37/-) is provided as per
working, being timing difference as per books and as
per Income Tax Act.

27. Ratio Analysis

As per annexure B

28.Segment Reporting

The Company is primarily engaged in a single business
segment, namely the design, development, integration,
assembly and manufacture of digital imaging solutions.

Based on the nature of business activities and the
manner in which the management reviews the
operating performance, the Company has identified
only one reportable segment in accordance with the
applicable accounting standards. Accordingly, no
separate segment information has been disclosed.

37. Additional Disclosures

i. Details of Benami Property held

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

ii. Relationship with Struck off Companies

The Company do not have any transactions with struck
off companies under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956.

iii. Registration of charges or satisfaction with Registrar
of Companies

The Company do not have any charges or satisfaction
which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

iv. Wilful defaulter

The Company has not been declared a wilful defaulter
by any bank or financial institution or other lender (as
defined under the Companies Act, 2013) or consortium
thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

v. Undisclosed Income

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

vi. Details of Crypto Currency or Virtual Currency

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

vii. Information relating to other matters :

a) Export Sales Proceeds - Trade receivables include
export sales made to a single debtor party in aircraft
industry - "Aerohaste LLC FZâ . Sales constituting
^2,61,61,168/- were made in September 2024 &
^1,54,36,080 in the month of March 25 out of which only
^1,14,88,685 was realized & balance of ^3,03,32,561/-
remains outstanding as on balance sheet date. Overdue
for sales executed in September 24 month are beyond
the timeline prescribed under the Foreign Exchange
Management Act, 1999. The management team was in
discussion with debtor party to resolve technical hurdles
in collection of receipt & expects to realize the same in
current FY. Based on positive outcome , management
discussions & internal assessment, the receivable is
carried at its full value.

b) Information with regard to other matters specified in
Schedule Ill to the Act is either nil or not applicable to the
Company for the year.

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

3.a. Terms/Rights to Equity Shares

The Company has only one class of Equity shares of Rs. 10/- share, Eash share holder of equity share is entitled to One
vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the
remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion of
the number of equity shares held by the shareholders.

3.c. *Company has allotted bonus shares in the ratio of 350:1, i.e., 350 bonus shares for every 1 equity share held, by
capitalizing reserves in Aug 2024 The total number of bonus shares issued during the year amounts to 35,00,000 equity
shares of TI0 each, aggregating to Rs. 35000 Thousands. **During FY 2025-26, pursuant to the Initial Public Offering
(IPO), the Company allotted 16,53,600 equity shares of T10 each at an issue price of T120 per share, including securities
premium of T110 per share. The Offer for Sale (OFS) portion of the IPO did not result in any change in the issued,
subscribed and paid-up equity share capital of the Company, since the shares were offered by existing shareholders.
None of the above shares are reserved for issue under options / contract / commitments for sale of shares or
disinvestment.

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