Pep Technologies - Annual Report - FY21

DIRECTORS’ REPORT
Dear fellow shareowners,
Your Board of Directors hereby presents the Sixth Annual Report along with Audited Financial Statements of the
Company for the financial year ended March 31, 2021.
FINANCIAL SUMMARY AND HIGHLIGHTS:
Year ended March 31, Year ended March 31,

Particulars
2021 (INR) 2020 (INR)
Revenue from Operations 66,51,38,777 40,30,40,803
Other Income 7,46,729 0
Total Revenue 66,58,85,506 40,30,40,803
Total Expenses 74,88,05,655 45,81,53,439
Profit/ (Loss) before Tax (8,29,20,149) (5,51,12,636)
Less: Current Tax 0 0
Less: Deferred Tax 0 13,056
Profit/(Loss) after Tax (8,29,20,149) (5,51,25,692)
Profit/(Loss) per equity share: Basic & Diluted (3,297.29) (2,206.79)
THE STATE OF THE COMPANY’S AFFAIRS
The Indian economy was impacted by an unprecedented health crisis in FY 2020-21 with the corona virus (Covid-19)
spreading across the country. In response to the pandemic, both the Central and State Governments had taken
several proactive preventives and mitigating measures starting with progressive tightening of international travel,
issue of advisories for the members of the public, setting up quarantine facilities, contact tracing of persons infected
by the virus and various social distancing measures. The Central Government imposed a strict 21-day nationwide
lockdown from March 25, 2020, under the Disaster Management Act, 2005, with subsequent extensions and
relaxations, to contain the spread of Covid-19 while ramping up the health infrastructure in the country. The
lockdown measures, imposed to control the spread of Covid-19 pandemic in India, ubiquitously affected
employment, business, trade, manufacturing, and services. Over the past year, India had emerged to be one of the
worst COVID affected nation globally. However, through very innovative steps taken by your Company, your
Company overcame the challenges effectively, and could record the performance, bettering its performance by over
1.5 times, which has been captured in the above table.
A crux of major highlights of financial performance during the reporting period under review based on financial
statements is provided in the above table for the immediate attention of the shareholders.
The Company is trying to increase its clientele base and is anticipating better growth in the future. The Directors are
taking all the necessary steps to explore new opportunities to enhance its presence in profitable emerging markets
and thereby maximizing the profits for the stakeholders. Development of new products and continuous exploration
of viable products also helped the Company to remain afloat, & gain good market share.
SHARE CAPITAL
During the FY 2020-21 and till date of signing of this report, your Company increased its authorized share capital on
two occasions as under:
 At the Extraordinary General Meeting held on 10th August 2020, the authorized share capital of the Company
was increased to Rs. 10,20,000/- (Rupees Ten Lakhs Twenty Thousand) only divided in to 32,000 (Thirty Two
Thousand) Equity Shares of Rs. 10/- (Rupees Ten) only each and 70,000 (Seventy Thousand) Preference Shares
of Rs. 10/- (Rupees Ten) only each.
 At the Extraordinary General Meeting held on 30th June 2021, the authorized share capital of the Company
was increased to Rs. 18,20,000/- (Rupees Eighteen Lakhs Twenty Thousand) only divided in to 77,000 (Seventy
Seven Thousand) Equity Shares of Rs. 10/- (Rupees Ten) only each and 1,05,000 (One Lakh Five Thousand)
Preference Shares of Rs. 10/- (Rupees Ten) only each.
As on March 31, 2021, the authorized share capital of the Company stood at Rs. 10,20,000/- (Rupees Ten Lakhs
Twenty Thousand) only divided in to 32,000 (Thirty Two Thousand) Equity Shares of Rs. 10/- (Rupees Ten) only each
and 70,000 (Seventy Thousand) Preference Shares of Rs. 10/- (Rupees Ten) only each.
As on March 31, 2021, the issued, subscribed, and paid-up capital of the Company stood at Rs. 7,75,010 (Rupees
Seven Lakh Seventy Five Thousand and Ten) only divided into 25,280 (Twenty Five Thousand Two Hundred and
Eighty) Equity Shares of Rs. 10/- (Rupees Ten) only each and 52,221 (Fifty Two Thousand Two Hundred and Twenty
One) Preference Shares of Rs. 10/- (Rupees Ten) only each.
At the time of signing of this report, the authorized share capital of the Company at Rs. 18,20,000/- (Rupees Eighteen
Lakh Twenty Thousand) only divided in to 77,000 (Seventy Seven Thousand) Equity Shares of Rs. 10/- (Rupees Ten)
only each and 1,05,000 (One Lakh Five Thousand) Preference Shares of Rs. 10/- (Rupees Ten) only each and the
issued, subscribed, and paid-up capital of the Company stood at Rs. 9,36,360 (Rupees Nine Lakh Thirty Six Thousand
and Three Hundred and Sixty) only divided into 25,280 (Twenty Five Thousand Two Hundred and Eighty) Equity
Shares of Rs. 10/- (Rupees Ten) only each and 68,356 (Sixty Eight Thousand Three Hundred and Fifty Six) Preference
Shares of Rs. 10/- (Rupees Ten) only each.
ALLOTMENT OF EQUITY & PREFERENCE SHARES
During the reporting year under review and up to date, your Directors had made the following issuance and
allotment of Equity Shares and convertible preference shares, in respect of which the below disclosures have been
made in pursuance of SS-4, i.e., Secretarial Standard on Board’s Report:
Particulars Details of Issue

a. Date of Issue 09-Mar-2020 04-Sep-2020 04-Sep-2020 28-May-2021
b. Date of Allotment 17-Apr-2020 09-Sep-2020 09-Sep-2020 17-Jun-2021
c. Method of Allotment Preferential Preferential Preferential Preferential
Issue Issue Issue Issue
d. Issue Price Rs. 8,302 Rs. 9,517 Rs. 28,551 Rs. 9,517
e. Conversion Price Rs. 8,302 Rs. 28,551 Rs. 28,551 Rs. 28,551
f. Number of shares allotted or to be
allotted in case the right to options is 241 Nos. of 23,217 Nos. 300 Nos. of 16,135 Nos.
exercised by all the holders of such Series A1 CCPS Series B CCPS Equity Shares Series B1 CCPS
securities
g. No. of shares or securities allotted to
the promoter group (incl. shares None None None None
represented by depository receipts)
h. In case, shares or securities are issued
for consideration other than cash, a
confirmation that price was Not Applicable Not Applicable Not Applicable Not Applicable
determined on the basis of a valuation
report of a registered valuer
ISSUANCE OF SHARES FOR CONSIDERATION OTHER THAN CASH
There has been no issuance of shares for consideration other than cash during the period from 1st April 2020 till
31st March 2021. Status quo continues up to date.
BONUS SHARES
There has been no issuance of bonus shares during the period from 1st April 2020 till 31st March 2021 and till the
date of signing of this report.
ISSUE OF EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS
Your Company did not issue shares with differential voting rights during the year from 1st April 2020 to 31st March
2021 and till the date of signing of this report. Accordingly, the disclosure of details of shares with differential rights
with respect to voting as per sub rule 4 of rule 4 of the Companies (Share Capital and Debentures) Rules, 2014 Section
43 of the Companies Act, 2013 did not arise.
ISSUE OF SWEAT EQUITY SHARES
There has been no issuance of sweat equity shares during the period from 1st April 2020 till 31st March 2021 and
till the date of signing of this report as specified in Section 54 of the Companies Act, 2013 read with Rule 8 of the
Companies (Share Capital & Debentures) Rules, 2014.
ISSUE OF SHARES UNDER EMPLOYEE STOCK OPTION SCHEMES
Particulars For the FY 2020-21 For the FY 2019-20

Options granted during FY Options granted during FY
2020-21 : 122 2019-20 : 112
(a) options granted
Total Options granted as on Total Options granted as on
March 31, 2021 : 569 March 31, 2020 : 447
Options vested during FY Options vested during FY 2019-
2020-21 : 223 20 : 168
(b) options vested
Total Options Vested as on Total Options Vested as on
March 31, 2021 : 391 March 31, 2020 : 168
(c) options exercised Nil Nil
(d) the total number of shares arising as a
Nil Nil
result of exercise of option
(e) options lapsed Nil Nil
(f) the exercise price Rs. 10/- Rs. 10/-
(g) variation of terms of options Nil Nil
(h) money realized by exercise of options Nil Nil
(i) total number of options in force 569 447
(j) employee wise details of options granted
to:
(i) key managerial personnel * NA NA
No. of No. of
Name of the Name of the
Options Options
Employee Employee
(ii) any other employee who receives a grant granted granted
of options in any one year of option Dr. Chandramowli Mr. Harminder
61 112
amounting to five percent or more of Ganesh Sahni
options granted during that year Dr. Nitin S
61
Deshpande
122 112
*
The provisions governing appointment of key managerial personnel specified in Section 203 of the said Act are not
applicable to the Company
SHARES HELD IN TRUST FOR THE BENEFIT OF EMPLOYEES
The shares of the Company are not held in trust. Therefore, provisions pertaining to employees not exercising voting
rights directly in respect of shares to which the scheme relates but are exercised by the Trust, as provided in Proviso
to Section 67(3) of the Companies Act, 2013 read with Rule 16(4) of Companies (Share Capital and Debentures)
Rules, 2014 are not applicable to your Company
ISSUE OF DEBENTURES, BONDS OR ANY NON-CONVERTIBLE SECURITIES
Your Company has not issued any Debentures, Bonds or Non-Convertible Securities during the period from 1st April
2020 till 31st March 2021.
After the closure of reporting period under review and till the date of signing of this report, the following allotments
were made:
Series A Secured, Redeemable Unrated, and Unlisted Non-Convertible Debentures (“Series A NCD”):
No. of Issue price per Series

Date of
Sl. No Name of the allottee Series A A NCD including
allotment
NCD premium (Rs.)
1. Blacksoil Capital Private Limited 100
15-Sep-2021 5,00,000
2. Blacksoil India Credit Fund 100
ISSUE OF WARRANTS
Your Company has not issued any warrants. Hence, parameters recommended to be disclosed in the Directors’
Report as per Secretarial Standard-4 are not applicable.
CREDIT RATING OF SECURITIES
During the year under review, there was no situation for the Company to obtain the credit rating of securities.
DIVIDEND
No interim dividend was declared during the period 1st April 2020 till 31st March 2021.
After holistic consideration of the relevant circumstances, your Directors do not recommend any Dividend on Equity
Shares for the financial year ended 2020-21 as they are of the opinion that your Company would require funds for
development and expansion.
BUY-BACK OF SHARES
There has been no instance of buy-back of shares during the period 1st April 2020 till 31st March 2021 and till the
date of signing of this report.
TRANSFER OF AMOUNT TO GENERAL RESERVES
Your Company does not propose to transfer of any portion of its current profits to the reserves, even voluntarily.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND
No unpaid/unclaimed dividend is lying in the unpaid dividend account in respect of the last seven years. There has
been no instance of transferring/due to be transferring unpaid/unclaimed dividend to Investor Education and
Protection Fund (IEPF) within the meaning of the provisions of Section 125 of the Companies Act, 2013 and the IEPF
(Accounting, Audit, Transfer and Refund) Rules, 2016.
There has been no instance of dividend unclaimed for seven consecutive years or more. No shares of the Company
are also bound to be transferred to the IEPF during the year under review, and till the date of signing of this report.
DETAILS OF BOARD OF DIRECTORS OR KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR HAVE RESIGNED
There were no changes in the composition of the Board of Directors of your Company during the Financial Year 2020-
21.
As on the closure of financial year ended March 31, 2021, and at the time of signing of this report, the Board consists
of:
Sl. No. Name of the Director Designation DIN Date of Appointment

1. Abhishek Goenka Director 06747730 30/09/2019
2. Harminder Sahni Director 00576755 29/09/2018
3. Tarun Sharma Director 07264165 14/09/2015
4. Vikas Lachhwani Director 02898317 11/02/2016
The provisions governing appointment of key managerial personnel specified in Section 203 of the Companies Act,
2013 and independent Directors as specified in Section 149(6) are not applicable to the Company.
Further, your Company has no information to provide to the shareholders under Section 168(1) of the Companies
Act, 2013 about resignation of Directors.
Moreover, being a private limited company, the provisions of Section 197 of the Companies Act, 2013 dealing with
overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of
profits are not applicable to your Company, and hence, disclosures specified in Schedule V of the Companies Act,
2013 are not applicable.
During the reporting year under review, the Company paid Rs. 53,78,412/- to Mr. Tarun Sharma, Director of the
Company and Rs. 53,78,412/- to Mr. Vikas Lachhwani, Director of the Company.
MEETINGS OF THE BOARD OF DIRECTORS
During the year under review, the Board of Directors met seven times on April 17, 2020, August 4, 2020, August 10,
2020, August 25, 2020, September 9, 2020, December 19, 2020 and March 5, 2021.
ATTENDANCE OF THE DIRECTORS IN THE BOARD MEETINGS
Date of Board Meeting Abhishek Goenka Harminder Sahni Tarun Sharma Vikas Lachhwani
April 17, 2020 Absent Absent Present Present
August 4, 2020 Present Present Present Present
August 10, 2020 Absent Absent Present Present
August 25, 2020 Absent Absent Present Present
September 9, 2020 Absent Absent Present Present
December 19, 2020 Present Present Present Present
March 5, 2021 Absent Present Present Present
Further, in exigencies, the Company had passed few resolutions through circulation.
BOARD COMMITTEES
Your Company was not required to constitute Audit Committee as per the provisions of Section 177 of the Companies
Act, 2013 and therefore, details to be specified in the Board’s Report under Sub-Section (8) thereof about disclosure
of composition of Audit Committee and instances of disapproval of recommendations of the Audit Committee by
the Board and reasons for such disapproval are not applicable to the Company.
Moreover, your Company had not constituted any other Committees of the Board, namely, Remuneration/
Compensation Committee, Investor Grievances Protection Committee, Corporate Social Responsibility, etc., as
circumstances to constitute never arose in the Company during the year and up to date.
POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION
The provisions of Section 178(1) of the Act relating to constitution of Nomination and Remuneration Committee is
not applicable to your Company and hence, no policy has been formulated on Directors’ appointment and
remuneration including criteria for determining qualifications, positive attributes, independence of a Director and
other matters provided under Section 178(3) of Companies Act, 2013. Accordingly, your Company has no disclosure
of salient features of the policy and changes therein, if any, along with the web address where such policy has been
displayed to be disclosed in this Directors’ Report.
BOARD EVALUATION
The disclosures specified under Section 134(3)(p) of Companies Act, 2013 dealing with the disclosure of statement
indicating the manner in which the formal annual evaluation has been made by the Board of its own performance
and that of its committees and individual Directors as mentioned under Rule 8 of the Companies (Accounts) Rules,
2014 is not applicable to the Company, as the Company is unlisted private company.
STATEMENT ON DECLARATION PROVIDED BY AN INDEPENDENT DIRECTOR
Your Company does not have any Independent Director and hence, making a statement on declaration given by
independent directors under Section 149(6) of the Companies Act, 2013 as required under Section 134(3)(d) is not
applicable to your Company. Also, the disclosure of a statement regarding opinion of the Board with regard to
integrity, expertise and experience (including the proficiency) of the independent directors appointed during the
year under Rule 8 (5)(iii a) of the Companies (Accounts), Rules, 2014 is not applicable to your Company.
DIRECTORS RESPONSIBILITY STATEMENT
In pursuance of Section 134(5) of the Companies Act, 2013, your Directors hereby confirm that:
I. In the preparation of the annual accounts, the applicable Accounting Standards had been followed along
with proper explanation relating to material departures;
II. The directors have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of
the company at the end of the Financial Year and of the profit and loss of the company for that period;
III. The directors have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
IV. The directors have prepared the annual accounts on a going concern basis; and
V. The directors have devised proper systems to ensure compliance with the provisions of all applicable laws
and that such systems were adequate and operating effectively.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS
Your Company has in place adequate and effective systems of internal control to commensurate with its size and
the nature of its operations. These have been designed to provide reasonable assurance with regards to recording
and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets
from unauthorized use or losses, executing transactions with proper authorization, and ensuring compliance of
corporate policies. Further, these internal control systems are helping the management to detect error and mistakes
while recording the transactions and to detect frauds etc. The Internal Control Systems adopted in the Company
ensure that Company’s assets are protected properly and safeguarded against possible misuse or loss.
INSTANCES OF FRAUD, IF ANY REPORTED BY THE AUDITORS
There have been no instances of fraud reported by the Auditors under Section 143(12) of the Companies Act, 2013
other than those which are reportable to the Central Government, during the reporting period under review.
NAMES OF THE COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR
ASSOCIATE COMPANIES
Your Company did not have any subsidiaries, associate companies or joint ventures as defined under the Companies
Act, 2013 during the Financial Year 2020-21, and up to the date of signing of this report. Further, no Company has
ceased to be a subsidiary, joint venture or associate company during the financial year 2020-21, and up to the date
of signing this report.
PUBLIC DEPOSITS
Your Company has not accepted any fixed deposit from the public within the meaning of Sections 2(31) and 73 of
the Companies Act, 2013, read with the Companies (Acceptance of Deposit) Rules, 2014 made there under during
the current fiscal and, as such, no amount of principal or interest was outstanding on the date of the Balance Sheet
and on the date of this Report.
Likewise, there were no amounts of deposits remained unpaid or unclaimed as at the end of the year, and the
question of committing default in repayment of deposits or payment of interest thereon during the year did not
arise.
Moreover, there were no deposits which were not in compliance with the requirements of Chapter V of the
Companies Act, 2013.
Further, your Company has not accepted any amount from Directors within the meaning of Rule 2(1)(c)(viii) of the
Companies (Acceptance of Deposits) Rules, 2014. Hence, disclosures specified under Rule 8(5)(v) of the Companies
(Accounts) Rules, 2014 and Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposits) Rules, 2014 are not
applicable.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT
Your Company has not granted any loans specified under Section 186 of the Companies Act 2013 during the year
2020-21 and upto the date of signing this report. Further, your Company had neither given any guarantee/security
during the period from 1st April 2020 till 31st March 2021 and up to the date of signing this report and hence the
said provision is not applicable.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
Mrs. Vaishali Gupta, (Head - Marketing) who is associated with the Company with effect from 01-10-2015 became
relative of a Director wef 19th January 2020 onwards and hence covered under related party transactions as per
Section 188 of the Companies Act, 2013 and rules framed thereunder. The Company had paid remuneration to her
as per the employment policy of the Company which is in the ordinary course of business and on arms-length basis.
This transaction has been reported in Form AOC-2, which is annexed hereto as Annexure-I.
CORPORATE SOCIAL RESPONSIBILITY
The provisions of Section 135(1) of the Companies Act, 2013 read with Rule 9 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 relating to Corporate Social Responsibility is not applicable to your Company for
FY 2020-21, and accordingly, the Company has not disclosed the particulars of the CSR policy, CSR Committee
constitution and other matters under this head.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO
The particulars as prescribed under sub-section (3)(m) Section 134 of the Companies Act, 2013, read with the
Companies (the Companies (Accounts) Rules, 2014) Rules, 2014 as amended up-to-date, are set out hereunder:
1. CONSERVATION OF ENERGY:
Conservation of energy is everyone’s duty, and your Company is determined to conserve the energy for the
preservation of natural resources and for sustainable growth. The Company is continuously striving towards
improving the energy performance wherever it can in all possible ways so that the benefits derived from it would
be available to the Company at the micro level, and to the country at the macro level. The employees are also
made aware of the advantages of conserving power and to implement it by using natural lighting and ventilation
wherever possible.
For instance, your Company’s computer terminals, air-conditioning systems, lighting, and utilities are modern
technology enabled so that optimum use of energy and power can be made. Your Company being not a major
power consumer, the expenditure made on this account constitutes a small percentage on the total cost and
hence, does not impact much. The capital investment on energy conservation equipment is nil.
2. TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION
Technology absorption is inevitable and necessary for a flourishing business. Your Company is committed
towards technology driven innovation and lays strong emphasis on inculcating an innovation driven culture
within the organization. However, the Company had not made efforts towards technology absorption, and
accordingly, achieving any benefits like product improvement, cost reduction, product development or import
substitution did not arise quantifiably.
The Company had not imported any technology during the last three years reckoned from the beginning of the
financial year, and therefore has no information to furnish under this head.
Research and Development in this field is essential to sustain in this competitive world to cater to the new
demands/requirements of the customers. Although your Company did not incur any remarkable expenditure
under the head during this Financial Year, the Company is determined to invent new products to sustain in this
competitive market and find out newer ways of attracting customers and launching new initiatives to capture
market dominance.
3. FOREIGN EXCHANGE EARNINGS AND OUTGO
Foreign Exchange earnings and outgo FY 2020-21 (INR) FY 2019-20 (INR)

Foreign exchange earnings - -
Expenditure in foreign currency
Advertising and sales promotion expenses 43,073 1,26,496
Product development cost - 49,659
Web hosting and server support expenses 3,68,344 2,58,772
4. PARTICULARS OF EMPLOYEES
The statement of particulars of employees as per Rule 5(2) & (3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is not applicable to your Company.
RISK MANAGEMENT POLICY
Risk is an inherent aspect of business, especially in a dynamic economic scenario. The Company has adopted a
procedure for risk management and its minimization, which identifies all perceived risks and undertakes timely
mitigation. Risks are assessed department wise such as financial risks, legal risk, accounting frauds, marketing risk,
product viability etc. The Management of the Company also ensures that the Company is taking appropriate
measures to achieve prudent balance between risk and reward in business activities. The Company’s risk
management philosophy is to integrate the process for managing risk across the organization and throughout its
business and life-cycle to enable protection of stakeholder value and ensure an institution in perpetuity.
ESTABLISHMENT OF VIGIL MECHANISM
The provisions of section 177(9) of Companies Act, 2013 relating to establishment of vigil mechanism for directors
and employees to report genuine concerns is not applicable to your Company and hence no such mechanism has
been established. Accordingly, there are no details of establishment of such mechanism to be provided in this report
as specified in Section 177(10) of the Companies Act, 2013.
STATUTORY AUDITORS
M/s. Vishal B Srivastava and Associates, Chartered Accountants (Firm Registration No. 130036W) had resigned from
the position of Statutory Auditors on 28th July 2020. M/s. Walker Chandiok & Co LLP, Chartered Accountants (Firm
Registration No 001076N/N500013) issued by the Institute of Chartered Accountants of India, were appointed as
Statutory Auditors of the Company by the Shareholders in the Extraordinary General Meeting held on 10 August
2020 for the financial year 2019-20 to hold the office till the conclusion Fifth Annual General Meeting.
At the Fifth Annual General Meeting held on December 30, 2020, the Shareholders had appointed M/s. Walker
Chandiok & Co LLP, Chartered Accountants (Firm Registration No 001076N/N500013) issued by the Institute of
Chartered Accountants of India, as Statutory Auditors of the Company for a tenure of 5 years (2020-21 to 2024-25)
from the conclusion of the Fifth Annual General Meeting till the conclusion of the Tenth Annual General Meeting to
be held in the year 2025. Accordingly, there is no proposal of reappointment of Statutory Auditors for the approval
of shareholders in the AGM.
AUDITOR’S OBSERVATIONS AND REPLY BY THE BOARD
In respect of the Report of independent Statutory Auditors under Companies (Auditor’s Report) Order, 2016
provisions issued by the Central Government in terms of Sec. 143(11) of the Companies Act, 2013, in Paragraph
(vii)(a), your Auditors have stated that undisputed statutory dues including provident fund, employees’ state
insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, goods and services tax, value added
tax, cess and other material statutory dues, as applicable, have generally been regularly deposited to the appropriate
authorities, though there has been a slight delay in a few cases. In this regard, your Directors would state that due
to abundant business pressures, few cases of delays in payment of dues had been committed by the Company due
to corona pandemic, and your Board takes ultimate control in managing these commitments and other contractual
obligations well in time.
Your Company confirms that apart from the minor observation as above, there are no qualifications or observations
in the statutory auditors’ report to the shareholders for the year under review.
INTERNAL AUDITORS
As per section 138 of Companies Act, 2013 read with Rule 13 of Companies (Accounts) Rules, 2014, Internal Audit is
not applicable to your Company.
SECRETARIAL STANDARDS
The Secretarial Standards on Meetings of the Board of Directors (SS-1) and the Secretarial Standards on General
Meetings (SS-2) (together referred to as the Secretarial Standards), as approved by the Central Government, are
applicable to your Company. Your Directors wish to state that the Company has devised proper systems to ensure
compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and
operating effectively.
SECRETARIAL AUDIT
Being a private Limited Company, the provisions of secretarial audit, as prescribed under Section 204 of the
Companies Act, 2013 are not applicable to your Company.
EXTRACT OF ANNUAL RETURN
In accordance with the Companies Act, 2013, the annual return in the prescribed format (filled up to the extent
information is available in hand as on the date of adoption of this Board’s Report) has been uploaded to the
Company’s website as required by the statutory provisions, which is available at https://peptechnologies.in/36-2/
COST AUDIT
The provisions of Companies (Cost Records and Audit) Rules, 2014 are not applicable to your Company. Further, the
maintenance of cost records as specified by the Central Government under sub-section (1) of Section 148 of the
Companies Act, 2013 is not applicable and accordingly such accounts and records are not maintained.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working
in Company’s premises through various interventions and practices. The Company always endeavors to create and
provide an environment that is free from discrimination and harassment including sexual harassment. Your Company
has framed a policy for complaints and redressal under Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and complied with the provisions relating to the constitution of Internal
Committee under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
During the Financial Year 2020-21, the Company has not received any complaints of sexual harassment and the
Internal Committee had organized training and awareness program on prevention and redressal of sexual
harassment.
DETAILS OF CHARGE CREATION AND SATISFACTION
During 2020-21, your Company had neither registered any charges under Sec. 77 of the Companies Act, 2013 nor
had any brought forward secured loans of the earlier years. Therefore, satisfaction or full discharge of any charge
under Section 82 of the Companies Act, 2013 did not arise during the FY 2020-21 or during the current fiscal.
CHANGE IN THE NATURE OF BUSINESS, IF ANY
There was no change in activities/services of your Company during the reporting period under review.
QUALITY MANAGEMENT
Your Company is aware of the importance of absolute quality in rendering products to customers to win their
acclamations, loyalty, and ultimately leading to a Positive Branding. “Client Satisfaction” is the leading factor in
reaching the long-term goals of the Company. To achieve this end, your Company would continue to follow
philosophy of providing highest quality of products to its clients.
CODE OF BUSINESS CONDUCT, CORPORATE GOVERNANCE AND ETHICS
Your Company is committed to good Corporate Governance to ensure that all functions of your Company are
discharged in a professionally sound, accountable, and competent manner. Your Company strongly believes that
Corporate Governance protects the interests of all the stakeholders by inculcating transparent business operations
and accountability from management. During the Financial Year under review, your Board continued its pursuit of
achieving these objectives through adoption and monitoring of corporate strategies, business plans, major risks of
the business and ensuring that your Company policies and procedures satisfy its legal and ethical responsibilities.
HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT
Employees are your Company's most valuable asset and your Company's processes are designed to empower
employees and support creative approaches to create enduring value. Moreover, for the growth of an organization,
the human resources are the important resource as the Company can achieve the effective targets through these
resources. Your Company does consider the human resources as the major assets and provide all the required
facilities to them. Your Company maintained harmonious employee relations during the reporting period under
review.
MATERIAL ADVERSE EVENTS
As on the date of this Report, your Directors are not aware of any circumstance not otherwise dealt with in this
Report or in financial statements, which would render any amount stated in Accounts of the Company misleading.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION OF THE COMPANY BETWEEN THE END
OF FINANCIAL YEAR AND DATE OF THE REPORT
Lockdown scenario that prevailed in the various parts of country could have an impact on the revenue and
profitability forecast for the current Financial Year. There are no material commitments, affecting the financial
position of the Company, which have occurred during the reporting year under review and till the date of this report.
REVISION OF FINANCIAL STATEMENTS
Your Company did not revise any of its financial statements or reports of earlier years as provided in Section 131(1)
and hence, your Company has no information to provide under this Section.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/COURTS/TRIBUNALS IMPACTING THE GOING
CONCERN STATUS AND THE COMPANY’S OPERATIONS IN FUTURE
During the financial year under review, no orders have been passed by any of the regulators/courts/tribunals
impacting the going concern status and the Company’s operations in future. Hence disclosure under Rule 8(5)(vii) of
Companies (Accounts) Rules, 2014 is not applicable.
THE DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY
CODE, 2016 (31 OF 2016) DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR
During reporting period and till date, neither application was made nor proceeding pending under the Insolvency
and Bankruptcy code, 2016 and accordingly the disclosure of status of application or proceeding pending under
Insolvency and Bankruptcy code, 2016 does not arise.
THE DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME
SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS
ALONG WITH THE REASONS THEREOF
During the year under review, there was no such occasion.
ACKNOWLEDGEMENT
Your directors place on record their deep appreciation to employees at all levels for their hard work, dedication and
commitment. The enthusiasm and unstinting efforts of the employees have enabled the Company to remain as a
committed organization striving towards its success.
The Board places on record its appreciation for the support and co-operation your Company has been receiving from
its suppliers, redistribution stockists, retailers, business partners and others associated with the Company as its
business partners. It will be your Company’s endeavour to build and nurture strong links with the trade based on
mutuality of benefits, respect for and co-operation with each other, consistent with consumer interests.
The Directors also take this opportunity to thank all the investors, Shareholders, customers, vendors, Banks,
Government and Regulatory Authorities for their continued support.
For and on behalf of the Board of Directors of

PEP Technologies Private Limited
Digitally signed
Vikas Digitally signed
Tarun bySharma
Tarun by Vikas
Lachhwa Lachhwani
Date:
Sharma 2021.10.11 ni
Date: 2021.10.11
17:16:35 +05'30'
17:16:03 +05'30'
Tarun Sharma Vikas Lachhwani

Director (DIN: 07264165) Director (DIN: 02898317)
306, Lilium Building Villa R-2, Chaitanya Samrpan
Nahar Amrut Sakthi, Chandivali Kannamangala Hoskote
Andheri East, Mumbai – 400072 White Field Road, Bangalore - 560067
Maharashtra, India Karnataka, India
Place: Goa Place: Bangalore
Date: 11-10-2021 Date: 11-10-2021
Annexure-I
FORM NO. AOC-2

(Pursuant to clause (h) of sub section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules
2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties
referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arms-length
transactions under third proviso thereto
1 Details of contracts or arrangements or transactions not at arm’s length basis
(a) Name(s) of the related party and nature of relationship NA
(b) Nature of contracts/arrangements/transactions NA
(c) Duration of the contracts / arrangements/transactions NA
Salient terms of the contracts or arrangements or
(d) NA
transactions including the value, if any
Justification for entering into such contracts or arrangements
(e) NA
or transactions
(f) Date(s) of approval by the Board NA
(g) Amount paid as advances, if any: NA
Date on which the special resolution was passed in general
(h) NA
meeting as required under first proviso to section 188
2 Details of material contracts or arrangement or transactions at arm’s length basis
Mrs. Vaishali Gupta, Wife of Mr. Tarun
(a) Name(s) of the related party & Nature of relationship
Sharma, Director
(b) Nature of contracts/arrangements/transactions Remuneration
(c) Duration of the contracts / arrangements/transactions Continuous
On arm’s length basis at market rates and
Salient terms of the contracts or arrangements or
(d) terms;
transactions including the value, if any:
Rs. 29,78,412/- pa during 2020-21
(e) Date(s) of approval by the Board, if any: 17-Feb-2020
(f) Amount paid as advances, if any: -
For and On behalf of the Board of Directors of

Tarun Digitally signed Vikas Digitally signed

by Vikas
by Tarun Sharma
Date: 2021.10.11 Lachhwa Lachhwani
Sharma 17:17:05 +05'30' ni
Date: 2021.10.11
17:17:23 +05'30'
Tarun Sharma Vikas Lachhwani

Director (DIN: 07264165) Director (DIN: 02898317)
306, Lilium Building Villa R-2, Chaitanya Samrpan
Nahar Amrut Sakthi, Chandivali Kannamangala Hoskote
Andheri East, Mumbai – 400072 White Field Road, Bangalore - 560067
Maharashtra, India Karnataka, India
Place: Goa Place: Bangalore
Date: 11-10-2021 Date: 11-10-2021
Walker Chandiok & Co LLP
11th Floor, Tower II,
One International Center,
S B Marg, Prabhadevi (W),
Mumbai - 400013
Maharashtra, India
T +91 22 6626 2699
F +91 22 6626 2601
Independent Auditor’s Report
To the Members of PEP Technologies Private Limited
Report on the Audit of the Financial Statements
Opinion
1. We have audited the accompanying financial statements of PEP Technologies Private Limited
(‘the Company’), which comprise the Balance Sheet as at 31 March 2021, the Statement of Profit and
Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Companies Act, 2013 (‘Act’) in the
manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India including the Accounting Standards prescribed under Section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules, 2014 (as amended), of the state of affairs of the Company as
at 31 March 2021, its loss and its cash flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of
the Act. Our responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirements that are relevant to our audit of the financial statements in terms
of the Code of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI’) and the relevant
provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Information other than the Financial Statements and Auditor’s Report thereon
4. The Company’s Board of Directors is responsible for the other information. The other information
comprises the information included in the Annual Report, but does not include the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
Page 1 of 6
Chartered Accountants Walker Chandiok & Co LLP is registered

with limited liability with identification
Offices in Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune number AAC-2085 and has its registered
office at L-41, Connaught Circus, Outer
Circle, New Delhi, 110001, India
Independent Auditor’s Report on the Audit of the Financial Statements
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
5. The accompanying financial statements have been approved by the Company’s Board of Directors. The
Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect
to the preparation and presentation of these financial statements that give a true and fair view of the
financial position, financial performance and the cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards prescribed under
Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.
6. In preparing the financial statements, Board of Directors is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
7. Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Standards on Auditing will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
9. As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on whether the Company has in place an adequate internal financial controls with
reference to financial statements and the operating effectiveness of such controls.
Page 2 of 6

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern; and
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
10. We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
Report on Other Legal and Regulatory Requirements
11. Based on our audit, we report that the provisions of Section 197 read with Schedule V to the Act are not
applicable to the Company since the Company is not a public company as defined under Section 2(71) of
the Act. Accordingly, reporting under Section 197(16) is not applicable.
12. As required by the Companies (Auditor’s Report) Order, 2016 (‘the Order’) issued by the Central
Government of India in terms of Section 143(11) of the Act, we give in the Annexure I, a statement on the
matters specified in paragraphs 3 and 4 of the Order.
13. Further to our comments in Annexure I, as required by Section 143(3) of the Act, based on our audit, we
report, to the extent applicable, that:
a) we have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit of the accompanying financial
statements;
b) in our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books;
c) the financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with the Accounting Standards
prescribed under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules,
2014 (as amended);
e) on the basis of the written representations received from the directors and taken on record by the
Board of Directors, none of the directors is disqualified as on 31 March 2021 from being appointed
as a director in terms of Section 164(2) of the Act;
f) in our opinion and to the best of our information and according to the explanations given to us,
the provisions of Section 143(3)(i) for reporting on the adequacy of internal financial controls with
reference to financial statements and the operating effectiveness of such controls of the Company,
are not applicable; and
Page 3 of 6

g) with respect to the other matters to be included in the Auditor’s Report in accordance with rule 11
of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best
of our information and according to the explanations given to us:
i. the Company does not have any pending litigation which would impact its financial
position as at 31 March 2021;
ii. the Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses as at 31 March 2021;
iii. there were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company during the year ended 31 March 2021;
iv. the disclosure requirements relating to holdings as well as dealings in specified bank
notes were applicable for the period from 8 November 2016 to 30 December 2016, which
are not relevant to these financial statements. Hence, reporting under this clause is not
applicable.
For Walker Chandiok & Co LLP

Chartered Accountants
Firm Registration No:001076N/N500013
Digitally signed by
VIJAY KUMAR VIJAY KUMAR D JAIN
Date: 2021.09.28
D JAIN 22:45:27 +05'30'
Vijay D. Jain
Partner
Membership No:117961
UDIN:21117961AAAABB8113
Place: Mumbai
Date: 28 September 2021
Page 4 of 6

Annexure I to the Independent Auditor’s Report of even date to the members of PEP Technologies
Private Limited, on the financial statements for the year ended 31 March 2021
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial
statements of the Company and taking into consideration the information and explanations given to us and the
books of account and other records examined by us in the normal course of audit, and to the best of our
knowledge and belief, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets (Property, plant and equipment).
(b)The property, plant and equipment have been physically verified by the management during the
year and no material discrepancies were noticed on such verification. In our opinion, the
frequency of verification of the property, plant and equipment is reasonable having regard to the
size of the Company and the nature of its assets.
(c)The Company does not hold any immovable properties (in the nature of “fixed assets”).
Accordingly, the provisions of clause 3(i)(c) of the Order are not applicable.
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals
during the year, except for goods-in-transit and stocks lying with third parties. For stocks lying with third
parties at the year-end, written confirmations have been obtained by the management. No material
discrepancies were noticed on the aforesaid verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability
Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act.
Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable
(iv) In our opinion, the Company has not entered into any transaction covered under Sections 185 and 186
of the Act. Accordingly, the provisions of clause 3(iv) of the Order are not applicable.
(v) In our opinion, the Company has not accepted any deposits within the meaning of Se ctions 73 to
76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost records under sub -section (1) of
Section 148 of the Act, in respect of Company’s products. Accordingly, the provisions of clause
3(vi) of the Order are not applicable.
(vii) (a) Undisputed statutory dues including provident fund, employees’ state insurance,
income-tax, sales-tax, service tax, duty of customs, duty of excise, goods and services
tax, value added tax, cess and other material statutory dues, as applicable, have
generally been regularly deposited to the appropriate authorities, though there has
been a slight delay in a few cases. Further, no undisputed amounts payable in respect
thereof were outstanding at the year-end for a period of more than six months from the
date they become payable.
(b) There are no dues in respect of income-tax, sales-tax, goods and services tax, duty of
customs, duty of excise and value added tax that have not been deposited with the
appropriate authorities on account of any dispute.
(viii) The Company has no loans or borrowings payable to a financial institution or a bank or
government and no dues payable to debenture-holders during the year. Accordingly, the
provisions of clause 3(viii) of the Order are not applicable.
Page 5 of 6

Annexure I (Contd)
(ix) The Company did not raise moneys by way of initial public offer or further public offer (including
debt instruments) and did not have any term loans outstanding during the year. Accordingly, the
provisions of clause 3(ix) of the Order are not applicable.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported
during the period covered by our audit.
(xi) The provisions of Section 197 of the Act read with Schedule V to the Act are not applicable to the
Company since the Company is not a public company as defined under Section 2(71) of the Act.
Accordingly, provisions of clause 3(xi) of the Order are not applicable.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order
are not applicable.
(xiii) In our opinion, all transactions with the related parties are in compliance with Section 188 of the Act,
where applicable, and the requisite details have been disclosed in the financial statements, as required
by the applicable accounting standards. Further, in our opinion, the Company is not required to constitute
audit committee under Section 177 of the Act.
(xiv) During the year, the Company has made private placement of shares. In respect of the same, in our
opinion, the Company has complied with the requirement of Section 42 of the Act and the Rules framed
thereunder. Further, in our opinion, the amounts so raised were applied for the purposes for which these
securities were issued, though idle funds which were not required for immediate utilisation have been
kept as liquid funds. During the year, the Company did not make preferential allotment/ private placement
of fully/partly convertible debentures.
(xv In our opinion, the Company has not entered into any non-cash transactions with directors or persons
connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For Walker Chandiok & Co LLP

Chartered Accountants
Firm Registration No:001076N/N500013
Digitally signed by
Date: 2021.09.28
D JAIN 22:45:50 +05'30'
Vijay D. Jain
Partner
Membership No:117961
UDIN:21117961AAAABB8113
Place: Mumbai
Date: 28 September 2021
Page 6 of 6

Balance Sheet as at 31 March 2021
(Amount in ₹, except for share data, and if otherwise stated)
As at As at
Notes
31 March 2021 31 March 2020
Equity and liabilities
Shareholders' funds
Share capital 3 775,010 537,430
Reserves and surplus 4 270,424,342 119,128,669
271,199,352 119,666,099
Non-current liabilities
Long-term provisions 5 4,120,982 1,763,901
4,120,982 1,763,901
Current liabilities
Trade payables 6
- total outstanding dues of micro and small enterprises 30,985,685 1,249,318
- total outstanding dues of creditors other than micro and small enterprises 42,126,825 35,209,739
Other current liabilities 7 32,256,862 15,593,001
Short-term provisions 8 83,295 14,362
105,452,667 52,066,420
TOTAL 380,773,001 173,496,420
Assets
Non-current assets
Property, plant and equipment 9 4,457,097 1,920,078

Intangible assets 10 76,133 103,588
Deferred tax assets (net) 11 - -
Long term loans and advances 12 3,323,151 1,750,500
7,856,381 3,774,166
Current assets
Inventories 13 74,067,832 42,926,739
Trade receivables 14 49,855,871 27,162,572
Cash and bank balances 15 200,835,706 76,893,304
Short term loans and advances 16 20,726,329 13,048,720
Other current assets 17 27,430,882 9,690,919
372,916,620 169,722,254
TOTAL 380,773,001 173,496,420
Significant accounting policies and other explanatory information 1 to 32

This is the Balance Sheet referred to in our report of even date.
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of
Chartered Accountants PEP Technologies Private Limited
Firm Registration No: 001076N/N500013
Digitally signed by
Date: 2021.09.28
D JAIN 22:46:13 +05'30' Tarun Digitally signed
by Tarun Sharma
Vikas Digitally signed
by Vikas
Date: 2021.09.28
Sharma 18:17:26 +05'30' Lachhwa Lachhwani
Date: 2021.09.28
ni 18:17:51 +05'30'
Vijay D. Jain Tarun Sharma Vikas Lachhwani

Partner Director Director
Membership No.: 117961 DIN: 07264165 DIN: 02898317
Place : Mumbai Place : Mumbai

Date : 28 September 2021 Date : 28 September 2021
Statement of Profit and Loss for the year ended 31 March 2021
Year ended Year ended

Notes
31 March 2021 31 March 2020
Revenue
Revenue from operations 18 665,138,777 403,040,803
Other income 19 746,729 -
Total revenue 665,885,506 403,040,803
Expenses
Purchase of traded goods and packing materials 20 274,511,816 176,088,004
Changes in inventories of traded goods and packing materials 21 -31,141,093 -35,776,301
Employee benefits expense 22 58,025,465 34,257,106
Finance costs 23 539,489 326,622
Depreciation and amortisation expense 24 483,237 836,023
Other expenses 25 446,386,741 282,421,985
Total expenses 748,805,655 458,153,439
Loss before tax (82,920,149) (55,112,636)
Tax expense
Current tax - -
Deferred tax charge - 13,056
- 13,056
Loss for the year (82,920,149) (55,125,692)
Earnings per equity share (Nominal value of shares is ₹ 10 each) 26

Basic and Diluted (in ₹) (3,297.29) (2,206.79)
Face value per share (in ₹) 10.00 10.00
This is the Statement of Profit and Loss referred to in our audit report of even
date.
Digitally signed by
D JAIN Date: 2021.09.28 Digitally signed
Tarun Digitally signed
by Tarun Sharma
Vikas by Vikas
22:46:39 +05'30' Lachhwa Lachhwani
Sharma Date: 2021.09.28
18:18:55 +05'30'
ni
Date: 2021.09.28
18:19:11 +05'30'


Cash Flow Statement for the year ended 31 March 2021

31 March 2021 31 March 2020
Cash flow from operating activities
Loss before tax (82,920,149) (55,112,636)
Adjustments for:
Depreciation and amortization expense 483,237 836,023
Bad debts written off - 501,873
Other receivables written off 207,293 506,352
Share based payment expenses 2,931,131 3,040,141
Interest income on fixed deposits (522,132) -
Operating loss before working capital changes (79,820,620) (50,228,247)
Adjustments for :
(Increase) in inventories (31,141,093) (35,776,301)
(Increase) in trade receivables (22,693,300) (24,558,154)
(Increase) in loans and advances and other assets (28,201,042) (16,890,363)
Increase in trade payables, provisions and other liabilities 55,743,329 41,351,713
Cash used in operating activities (106,112,726) (86,101,352)
Income taxes paid (1,480,271) -
Net cash used in operating activities (A) (104,632,455) (86,101,352)
Cash flow from investing activities

Purchase of property, plant and equipment (including intangibles) (2,992,801) (2,033,411)
Investment in fixed deposits (69,800,000) -
Interest received 45,387 -
Net cash used in investing activities (B) (72,747,414) (2,033,411)
Cash flow from financing activities

Proceeds from issue of shares 231,522,271 124,961,704
Net cash generated from financing activities (C) 231,522,271 124,961,704
Net increase in cash and cash equivalents (A+B+C) 54,142,402 36,826,941

Cash and cash equivalents at the beginning of the year 76,893,304 40,066,363
Cash and cash equivalents at the end of the year 131,035,706 76,893,304
Components of cash and cash equivalents (Refer note 15)

Cash in hand 149 6,465
Balances with banks
- Current accounts 131,035,557 76,886,839
131,035,706 76,893,304

This is the Cash Flow Statement referred to in our report of even date
Digitally signed by
D JAIN Date: 2021.09.28 Tarun Digitally signed
by Tarun Sharma Vikas
Digitally signed by
Vikas Lachhwani
22:47:04 +05'30' Date: 2021.09.28

Sharma 18:19:33 +05'30' Lachhwani Date: 2021.09.28
18:19:53 +05'30'


Significant accounting policies and other explanatory information as at and for the year ended 31 March 2021
3 Share capital
As at 31 March 2021 As at 31 March 2020
Number of Number of
Amount Amount
shares shares
Authorised share capital
Equity shares of ₹ 10 each 32,000 320,000 26,000 260,000
0.001% Compulsory convertible preference shares of ₹ 10 each 70,000 700,000 35,000 350,000
1,020,000 610,000
Issued, subscribed and fully paid up shares:

Equity Shares of ₹ 10 each 25,280 252,800 24,980 249,800
0.001% Compulsory convertible preference shares of ₹ 10 each 11,567 115,670 11,567 115,670
0.001% Series A Compulsory convertible preference shares of ₹ 10 each 9,352 93,520 9,352 93,520
0.001% Series A1 Compulsory convertible preference shares of ₹ 10 each 8,085 80,850 7,844 78,440
0.001% Series B Compulsory convertible preference shares of ₹ 10 each 23,217 232,170 - -
775,010 537,430
a) Reconciliation of share capital
(i) Equity Shares of ₹ 10 each

At the beginning of the year 24,980 249,800 24,980 249,800
Issued during the year 300 3,000 - -
Balance at the end of the year 25,280 252,800 24,980 249,800
(ii) Seed Compulsory convertible preference shares of ₹ 10 each

At the beginning of the year 11,567 115,670 11,567 115,670
Issued during the year - - - -
(iii) Series A Compulsory convertible preference shares of ₹ 10 each

At the beginning of the year 9,352 93,520 - -
Issued during the year - - 9,352 93,520
(iv) Series A1 Compulsory convertible preference shares of ₹ 10 each

At the beginning of the year 7,844 78,440 - -
Issued during the year 241 2,410 7,844 78,440
(v) Series B Compulsory convertible preference shares of ₹ 10 each

At the beginning of the year - - - -
Issued during the year 23,217 232,170 - -
Balance at the end of the year 23,217 232,170 - -
b) Details of shareholders holding more than 5% shares in the Company

Number of Number of
% holding % holding
shares shares
Equity shares of ₹ 10 each
Tarun Sharma 10,427 41.25% 10,427 41.74%
Vikas Lachhwani 10,426 41.24% 10,426 41.74%
20,853 82.49% 20,853 83.48%
b) Details of shareholders holding more than 5% shares in the Company (continued)
Number of Number of
shares % holding shares % holding
Preference shares
Seed Compulsory convertible preference shares of ₹ 10 each
Mohit Minerals Private Limited 986 8.52% 986 8.52%
Navjot Singh Saini 679 5.87% 679 5.87%
Parthasarathi Bandyopadhyay 654 5.65% 654 5.65%
Purvi Rohit Pugalia 602 5.20% 602 5.20%
Sejal Kaushik 602 5.20% 602 5.20%
La Moda Clothing Exports Private Limited 602 5.20% 602 5.20%
Rohit Mohan Pugalia 596 5.15% 596 5.15%
4,721 40.79% 4,721 40.79%
Series A Compulsory convertible preference shares of ₹ 10 each

RP-SG Ventures Investment Trust 4,999 53.45% 4,999 53.45%
Tejas Subramanian (Beneficial owner - Telama investment) 1,205 12.88% 1,205 12.88%
Milestone Trusteeship Services Private Limited acting as the trustee to 1,048 11.21% 1,048 11.21%
LetsVenture Mcaffeine I
Kaushal Aggarwal 915 9.78% 915 9.78%
Apurva Salarpuria 602 6.44% 602 6.44%
8,769 93.76% 8,769 93.76%
Series A1 Compulsory convertible preference shares of ₹ 10 each

Milestone Trusteeship Services Private Limited Trustee of 3,614 44.70% 3,614 46.07%
RP-SG-Venture Fund 1
Tejas Subramanian (Beneficial owner - Telama investment) 1,205 14.90% 1,205 15.36%
Sejal Kaushik 602 7.45% 602 7.67%
Milestone Trusteeship Services Private Limited acting as the trustee to 546 6.75% 546 6.96%
LetsVenture Mcaffeine I
KL Rahul 723 8.94% 723 9.22%
6,690 82.74% 6,690 85.28%
Series B Compulsory convertible preference shares of ₹ 10 each

Milestone Trusteeship Services Private Limited Trustee of 1,653 7.12% - -
RP-SG-Venture Fund 1
Amicus Capital Private Equity I LLP 19,113 82.32% - -
Amicus Capital Partners India Fund I 1,821 7.84%
22,587 97.28% - -
c) Terms/rights of shares:
(i) Equity shares
The Company has one class of equity shares having a par value of ₹ 10 each. Each holder of equity shares is entitled to one vote per share. The
dividend proposed, if any, 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 holders 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 paid up equity shares held by the shareholders.
(ii) Preference shares

The Company has different classes of compulsory convertible preference shares (CCPS) viz. (Seed CCPS, Series A CCPS, Series A1 CCPS and Series
B CCPS) having a par value of ₹ 10 each.
The Preference shares holders shall be entitled to voting rights on a pro rata basis with the equity Shares of the Company on a fully diluted basis.
The holder of each preference share shall be entitled to fixed, non-cumulative preferential dividend at the rate of 0.001% per annum for all the
preference shares till such time that the preference shares are outstanding. In addition, the preference share holders shall be entitled to participate in
any dividend distribution to holders of equity shares on an as if converted basis.
(iii) Conversion terms:

Seed Compulsory convertible preference shares
Each Seed CCPS shall compulsorily convert into equity shares of the Company upon the occurence of any of the following events:
(i) Listing of the equity shares of the Company under a Qualified IPO or IPO (Public Offering); or
(ii) Expiry of 19 (nineteen) years and 11 (eleven) months from the date of the issuance and allotment;
The holder of each Seed CCPS has the option to convert all or part of its holdings into equity shares any time prior to expiry of the above mentioned
period.
Each Seed CCPS shall be converted into 1 (one) equity shares of the Company.
Series A Compulsory convertible preference shares

Each Series A CCPS shall compulsorily convert into equity shares of the Company upon the occurence of any of the following events:
The holder of each Series A CCPS has the option to convert all or part of its holdings into equity shares any time prior to expiry of the above
mentioned period.
Each Series A CCPS shall be converted into 1 (one) equity shares of the Company.
Series A1 Compulsory convertible preference shares

Each Series A1 CCPS shall compulsorily convert into equity shares of the Company upon the occurence of any of the following events:
The holder of each Series A1 CCPS has the option to convert all or part of its holdings into equity shares any time prior to expiry of the above
mentioned period.
Each Series A1 CCPS shall be converted into equity shares determined at a conversion ratio calculated based on an initial conversion price as per the
following:
(i) In the event that the next Qualified Fundraise occurs within a period of 18 months from the date of allotment of the series A1 CCPS (the "Outer
Date") the series A1 CCPS would be convert at the lower of:
(a) the price calculated on the basis of the pre-money valuation at which shares are issued in such next qualified fundraise less discount of 2.25% for
each month between the date of issuance of the series A1 CCPS and the date of the next qualified fundraise; or
(b)the price calculated on the basis of the pre-money valuation at which shares are issued in such next qualified fundraise less a discount of 14%.
ii) In the event that the next qualified fundraise does not occur before the outer date, or if there is breach of the terms of issuance of the series A1
CCPS ( unless waived by the single largest holder of the series A1 CCPS ), the holder of the series A1 CCPS would be entitled to convert these
instruments at a conversion price of INR 8,302.
Series B Compulsory convertible preference shares
Each Series B CCPS shall compulsorily convert into equity shares of the Company upon the occurence of any of the following events:
The holder of each Series A CCPS has the option to convert all or part of its holdings into equity shares any time prior to expiry of the above
mentioned period.
Each Series B CCPS shall have a convertion ratio of 3:1 i.e every 3 Series B CCPS shall be converted into 1 (one) equity shares of the Company.
d) The Company has neither issued bonus shares or shares without payment in cash nor has there been any buy back of shares from the date of
incorporation till 31 March 2021.
e) Shares reserved for issue under options

Refer note 30 for shares required to be issued under the employee stock option plan (ESOP) of the Company.
As at As at
31 March 2021 31 March 2020
4 Reserves and surplus
Securities premium
Balance at the beginning of the year 210,713,958 68,124,726
Add: Premium on issue of shares 231,284,691 142,589,232
Balance at the end of the year 441,998,649 210,713,958
Deficit in the Statement of Profit and Loss

Balance at the beginning of the year (94,625,430) (39,499,738)
Add : Loss for the year (82,920,149) (55,125,692)
Balance at the end of the year (177,545,579) (94,625,430)
Share options outstanding account (Refer note 30)

Balance at the beginning of the year 3,040,141 -
Add: expenses for the year 2,931,131 3,040,141
Balance at the end of year 5,971,272 3,040,141
270,424,342 119,128,669
5 Long-term provisions
Provision for gratuity (Refer note 27b) 4,120,982 1,763,901
4,120,982 1,763,901
6 Trade payables
- Total outstanding dues of micro and small enterprises 30,985,685 1,249,318
- Total outstanding dues of creditors other than micro and small enterprises 42,126,825 35,209,739
73,112,510 36,459,057
6.1 Note:
The disclosure pursuant to Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) are as follows:
The principal amount and the interest due thereon remaining unpaid to any supplier
as at the end of each accounting year
- Principal amount 30,985,685 1,249,318
- Interest thereon, included in finance cost - -
The amount of interest paid by the buyer in terms of section 16 of the Micro, Small - -
and Medium Enterprises Development Act, 2006, along with the amounts of the
payment made to the supplier beyond the appointed day during each accounting year
The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under Micro, Small and Medium Enterprises
Development Act, 2006.
The amount of interest accrued and remaining unpaid at the end of each accounting - -
year; and
The amount of further interest remaining due and payable even in the succeeding - -
years, until such date when the interest dues as above are actually paid to the small
enterprise for the purpose of disallowance as a deductible expenditure.
Disclosure of payable to vendors as defined under the 'Micro, Small and Medium Enterprises Development Act, 2006' is based on the
information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received
from them on requests made by the Company.
7 Other current liabilities

Statutory dues 2,529,443 7,035,532
Advance from customers 49,596 9,944
Payable to employees 4,939,170 1,213,600
Provision for sales return 3,119,688 -
Other accrued liabilities 21,618,965 7,333,925
32,256,862 15,593,001
8 Short-term provisions
Provision for gratuity (Refer note 27b) 83,295 14,362
83,295 14,362
9 Property, plant and equipment
Gross block Computers Office Furniture and Plant and Total

equipments fixtures machinery
Balance as at 1 April 2019 349,423 40,718 - - 390,141
Additions 116,257 10,947 1,761,107 109,500 1,997,811
Disposals - - - - -
Balance as at 31 March 2020 465,680 51,665 1,761,107 109,500 2,387,952
Additions 1,411,738 314,781 439,345 826,937 2,992,801
Disposals - - - - -
Balance as at 31 March 2021 1,877,418 366,446 2,200,452 936,437 5,380,753
Accumulated depreciation
Balance as at 1 April 2019 256,830 3,164 - - 259,994
Depreciation charge 54,875 11,108 135,612 6,285 207,880
Reversal on disposal of assets - - - - -
Balance as at 31 March 2020 311,705 14,272 135,612 6,285 467,874
Depreciation charge 304,233 38,032 100,155 13,362 455,782
Reversal on disposal of assets - - - - -
Balance as at 31 March 2021 615,938 52,304 235,767 19,647 923,656
Net block
Balance as at 31 March 2020 153,975 37,393 1,625,495 103,215 1,920,078
Balance as at 31 March 2021 1,261,480 314,142 1,964,685 916,790 4,457,097
10 Intangible assets
Gross block Mobile Trademark Total

Application
Balance as at 1 April 2019 824,587 80,000 904,587
Additions - 35,600 35,600
Disposals - - -
Balance as at 31 March 2020 824,587 115,600 940,187
Additions - - -
Disposals - - -
Accumulated amortisation
Balance as at 1 April 2019 206,147 2,309 208,456
Amortisation charge 618,440 9,703 628,143
Reversal on disposal of assets - - -
Amortisation charge - 27,455 27,455
Reversal on disposal of assets - - -
Net block
Balance as at 31 March 2020 - 103,588 103,588
Balance as at 31 March 2021 - 76,133 76,133
As at As at
31 March 2021 31 March 2020
11 Deferred tax assets (Net)
Deferred tax liabilities
On depreciation and amortisation 27,880 6,374
Deferred tax assets
Provision for gratuity 1,058,132 406,867
Brought forward business losses/Unabsorbed depreciation 42,232,572 21,132,680
Deferred tax assets (Net) * - -
* The Company has not recognised deferred tax assets on timing differences towards unabsorbed depreciation, carry forward of tax losses,
provision for gratuity etc. as at 31 March 2021, on the basis of prudence, as there is no virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which such deferred tax assets can be realised.
12 Long term loans and advances

Unsecured, considered good
Security deposits 1,842,880 1,750,500
Advance tax 1,480,271 -
3,323,151 1,750,500
13 Inventories (Valued at lower of cost and net realisable value)

Packing materials 10,007,662 8,750,595
Traded goods 64,060,170 34,176,144
(including goods-in-transit of ₹ 11,184,215 [2020: ₹ 4,551,111])
74,067,832 42,926,739
14 Trade receivables
Outstanding for a period exceeding six months from the due date for payment
Unsecured, considered doubtful 8,082,452 391,057

Others:
Unsecured, considered good 41,773,419 26,771,515
49,855,871 27,162,572
15 Cash and bank balances
Cash and cash equivalents

Cash in hand 149 6,465
Balances with banks
-Current account 131,035,557 76,886,839
Other bank balances
Deposits with original maturity of more than 3 months but less than 12 months 69,800,000 -
200,835,706 76,893,304
16 Short term loans and advances

Advance to suppliers 2,269,133 2,411,658
Security deposits 261,240 483,674
Balance with government authorities 17,830,181 10,048,306
Prepaid expenses 237,775 45,082
Advance to employees 128,000 60,000
20,726,329 13,048,720
17 Other current assets
Interest accrued on fixed deposits with bank 437,585 -
Receivables from agents 26,993,297 9,690,919
27,430,882 9,690,919

31 March 2021 31 March 2020
18 Revenue from operations

Sale of products 665,138,777 403,040,803
665,138,777 403,040,803
19 Other income
Interest on fixed deposit with banks 522,132 -
Miscellaneous income 224,597 -
746,729 -
20 Purchase of traded goods and packing materials

Purchase of traded goods 165,430,498 160,141,170
Purchase of packing materials 109,081,318 15,946,834
274,511,816 176,088,004
21 Changes in inventories of traded goods and packing materials

Opening balance
Traded goods 34,176,144 4,890,263
42,926,739 7,150,438
Closing balance
Traded goods 64,060,170 34,176,144
74,067,832 42,926,739
(31,141,093) (35,776,301)
22 Employee benefits expense

Salaries, wages and bonus 49,646,081 27,760,758
Contribution to provident and other funds (Refer note 27a) 1,651,553 785,212
Gratuity (Refer note 27b) 2,426,014 1,778,263
Share based payment expenses (Refer note 30) 2,931,131 3,040,141
Staff welfare expenses 1,370,686 892,732
58,025,465 34,257,106
23 Finance costs
Interest on delayed payment of statutory dues 539,489 326,622
539,489 326,622
24 Depreciation and amortisation expense

Depreciation on Property, plant and equipment (Refer note 9) 455,782 207,880
Amortisation on intangible assets (Refer note 10) 27,455 628,143
483,237 836,023

31 March 2021 31 March 2020
25 Other expenses
Power and fuel 156,393 70,882

Rent (Refer note 29) 11,657,704 6,502,858
Repairs and maintenance - Others 65,404 76,998
Contract labour 15,450,085 4,368,617
Advertising and sales promotion expenses 255,146,495 184,156,666
Warehousing and product delivery charges 89,681,938 47,972,143
Commission charges 29,411,172 14,760,433
Web hosting and server support expenses 12,253,295 7,320,953
Product development cost 4,038,677 1,764,935
Insurance 562,252 64,918
Professional charges 22,210,989 9,441,071
Auditor's remuneration (Refer note 25.1) 750,000 500,000
Bad debts written off - 501,873
Other receivables written off 207,293 506,352
Printing and stationery 1,554,347 762,270
Rates and taxes 1,209,198 1,562,906
Travelling and conveyance 737,698 1,490,641
Office expenses 1,129,258 572,185
Miscellaneous expenses 164,543 25,284
446,386,741 282,421,985
25.1 Auditor's remuneration

Statutory audit fees 750,000 500,000
Total 750,000 500,000
26 Earnings per share

The amount considered in ascertaining the Company’s earnings per share constitutes the net loss after tax. The number of shares used in
computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in
computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and
also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.

Particulars
31 March 2021 31 March 2020
Net loss attributable to equity shareholders (₹) (82,920,149) (55,125,692)
Weighted average number of shares outstanding during the year - Basic 25,148 24,980
Face value per share 10.00 10.00
Earnings/(loss) per share - Basic (3,297.29) (2,206.79)
Note: The effect of convertible preference shares and employee stock options on EPS is anti-dilutive in nature and hence diluted EPS is same as basic.
27 Employee benefit plans:
a. Defined contribution plan

The amount recognised as an expense during the year ended 31 March 2021 towards provident and other funds is ₹ 1,651,553 (31 March 2020:
₹ 785,212).
b. Defined benefit plan
(i) Gratuity (Unfunded)
Defined Benefit Plans: The Company provides for gratuity benefit under a defined benefit retirement scheme (the “Gratuity Scheme”) as laid
out by the Payment of Gratuity Act, 1972 of India covering eligible employees. Liabilities with regard to the Gratuity Scheme are determined by
actuarial valuation carried out using the Projected Unit Credit Method by an independent actuary.
The following table set out the status of the gratuity plan as required under Accounting Standard (AS) - 15 Employee benefits and the
reconciliation of opening and closing balances of the present value of the defined benefit obligation:
Present value of defined benefit obligation As at As at

31 March 2021 31 March 2020
Present value of the obligation at beginning of the year 1,778,263 -
Current service cost 2,220,730 695,627
Past service cost - 1,082,636
Interest cost 128,924 -
Actuarial loss on obligation 76,360 -
Benefits paid - -
Present value of the obligation at the end of the year 4,204,277 1,778,263
Expense recognised in the statement of profit and loss Year ended Year ended
31 March 2021 31 March 2020
Current service cost 2,220,730 695,627
Interest cost 128,924 -
Actuarial loss/(gain) 76,360 -
Past service cost - 1,082,636
Total expense 2,426,014 1,778,263
Movement in liability recognised in the balance sheet As at As at

31 March 2021 31 March 2020
Liability at the beginning of the year 1,778,263 -
Expense as recognised in the statements of profit and loss 2,426,014 1,778,263
Benefits paid - -
Liability at the end of the year 4,204,277 1,778,263
As at As at
Current and non current classification 31 March 2021 31 March 2020
Current 83,295 14,362
Non-current 4,120,982 1,763,901
Actuarial assumptions As at As at
31 March 2021 31 March 2020
Discount rate (p.a.) ** 6.90% 6.90%
Salary escalation rate (p.a.) *** 10.00% 10.00%
Retirement age 60 years 58 years
Mortality rate Indian Assured Indian Assured Lives
Lives Mortality Mortality (IALM) (2012-
(IALM) (2012- 2014) Ult.
2014) Ult.
** The discount rate is based on the market yields of Government bonds as at the balance sheet date.
*** The estimates of future salary increases is assumed keeping in view the inflation rate on a long-term basis.
Experience adjustment: Year ended Year ended

31 March 2021 31 March 2020
Actuarial loss /(gain) on obligations 76,360 -
Details of present value of obligation, plan assets and experience adjustments:
31 March 2021 31 March 2020
Present value of obligation 4,204,277 1,778,263
Fair value of plan assets - -
Deficit 1,778,263 1,778,263
Experience adjustments:
On plan liabilities:- (gain) / loss 76,360 -
On plan assets:- gain / (loss) - -
Company has adopted Accounting Standard 15 "Employee Benefits" for the first time in the year 2019-20. Hence, the disclosures pertaining to
earlier years are not required
28 Related party disclosures

In accordance with the requirements of Accounting Standard (AS) 18, 'Related Party Disclosures' as specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014 (as amended), the names of the related party where control exists/able to exercise
significant influence along with the aggregate transactions and year end balances with them as identified and certified by the management are as
follows:
a. Names of related parties and description of relationship (with whom transactions have taken place)
Description of relationship Name of related parties

(i)Key management personnel Mr. Tarun Sharma - Director
Mr. Vikas Lachhwani - Director
(ii)Relatives of Key management personnel Mrs. Vaishali Gupta (w.e.f. 19 January 2020)
b. Transactions with related parties

Particulars
31 March 2021 31 March 2020
Remuneration *
Mr. Tarun Sharma 5,378,412 5,306,469
Mr. Vikas Lachhwani 5,378,412 4,968,578
Mrs. Vaishali Gupta 2,978,412 875,570
Reimbursement of expenditure
Mr. Tarun Sharma 279,085 585,556
Mr. Vikas Lachhwani 275,809 376,568
Mrs. Vaishali Gupta 47,775 97,249
c. Balances with related parties (as at year-end)

Particulars
31 March 2021 31 March 2020
Amount payable
Mr. Tarun Sharma 359,383 -
Mr. Vikas Lachhwani 397,927 320,000
Mrs. Vaishali Gupta 147,989 160,000
* The remuneration to KMP does not include provision for gratuity determined on actuarial basis
29 Leases
The Company has entered into operating lease agreements for office facilities and such leases are basically cancellable and non-cancellable in
nature.
Lease rent expense recognised in the Statement of Profit and Loss for the year ended 31 March 2021 in respect of operating leases is ₹
11,657,704 (for the year ended 31 March 2020 - 6,502,858)
Certain non-cancellable operating leases extend upto a maximum of two years from their respective dates of inception. Maximum obligations
on long term non-cancellable operating leases in accordance with the rentals stated in the respective agreements are as under:
As at As at
Particulars
31 March 2021 31 March 2020
Not later than 1 year 2,011,560 5,886,000
Later than 1 year but not later than 5 years - -
Later than 5 years - -
30 Employee Stock Option Plan

The Company has implemented employee share-based payment plans for the key employees of the Company. All the options issued by the
Company are equity share based options which have to be settled in equity shares only. The shares to be allotted to employees under the
Employee Stock Option Plan (ESOP) will be through fresh issue of equity shares by the Company.
For ESOP, the Company has followed the Guidance Note on Accounting for Employee Share-based Payments, issued by the ICAI. The
Company has elected to account for employee share-based payments using the intrinsic value method.
(i) Description of the share based payment plan is as follows:
Plan ESOP 2018
Grant date 16 October 2018 01 May 2019 01 May 2020
Number of options 335 112 122
Exercise price (₹) 10 10 10
Vesting Period: 2 years 2 years 2 years
Value of shares as on grant date (₹) 8,302 8,302 27,599
(ii) Movement in shares options during the current year `

The following reconciles the shares options outstanding at the beginning and the end of the year:
31 March 2021 31 March 2020
Numbers Weighted average Numbers Weighted average

ESOP Plan
of options exercise price of options exercise price
Balance at beginning of year 447 10 335 10

Granted during the year 122 - 112 10
Forfeited during the year - - - -
Exercised during the year - - - -
Expired during the year - - - -
Surrendered during the year - - - -
Balance at the end of the year 569 10 447 10
Exercisable at the end of the year 391 - 168 -
(iii) The vesting pattern of the ESOP has been provided as below:
Year of vesting ESOP Plan 2018

F.Y. 2019-20 168
F.Y. 2020-21 223
F.Y. 2021-22 116
F.Y. 2022-23 62
(iv) Share based payment expenses / Share options outstanding account arising from employee share-based payment plans
Particulars 2020-21 2019-20

Share based payment expenses 2,931,131 3,040,141
Share options outstanding account 5,971,272 3,040,141
31 Expenditure in foreign currency

31 March 2021 31 March 2020
Advertising and sales promotion expenses 43,073 126,496
Product development cost - 49,659
Web hosting and server support expenses 368,344 258,772
411,417 434,927
32 In March 2020, the World Health Organisation declared Covid-19 a global pandemic. Consequent to this, Government of India
declared a nation-wide lockdown from 24 March 2020. Subsequently, the nation-wide lockdown was lifted by the Government of
India, but regional lockdowns continue to be implemented in areas with significant number of Covid-19 cases. The Company has
assessed the impact of this pandemic on its business operations and has considered all relevant internal and external information
available up to the date of approval of these financial statements, to determine the impact on the Company’s revenue from
operations for foreseeable future and the recoverability and carrying value of assets. The impact of Covid-19 pandemic on the
overall economic environment being uncertain may affect the underlying assumptions and estimates used to prepare Company’s
financial statements, which may differ from that considered as at the date of approval of these financial statements. The Company
continues its business activities, in line with the guidelines issued by the Government authorities and take steps to strengthen its
liquidity position. The Company does not anticipate any challenges in its ability to continue as going concern or meeting its
financial obligations. As the situation is unprecedented, the Company is closely monitoring the situation as it evolves in the future.
Digitally signed by
Date: 2021.09.28
D JAIN 22:47:39 +05'30' Tarun Digitally signed Vikas Digitally signed
by Vikas
by Tarun Sharma
Lachhwan Lachhwani
Sharma Date: 2021.09.28
18:22:10 +05'30' i
Date: 2021.09.28
18:22:32 +05'30'


Significant accounting policies and other explanatory information as at and for the year ended 31 March
2021
Company Overview
PEP Technologies Private Limited (the 'Company') is a private limited company (CIN No.
U74999MH2015PTC268424) domiciled in India and incorporated under the provisions of the Companies
Act, 2013 (the 'Act') on 14th September, 2015. The Company is primarily engaged in trading of caffeine
based cosmetic and allied products.
1. Basis of preparation
The financial statements have been prepared in accordance with the generally accepted accounting principles
(GAAP) in India under the historical cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the Accounting Standards prescribed under Section 133 of
the Companies Act, 2013 (the “Act”), read with Rule 7 of Companies (Accounts) Rules, 2014 (as amended)
and other relevant provisions of the Act.
All assets and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle and other criteria set out in the Schedule III to the Act. Based on nature of products, the
Company has ascertained its operating cycle as 12 months for the purpose of current and non-current
classification of assets and liabilities.
2. Significant accounting policies
a. Use of estimates
The preparation of the financial statements in conformity with GAAP requires management to make
judgements, estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to contingent assets and liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of such estimates include
provisions for doubtful debts, future obligations under employee retirement benefit plans, provision for
obsolete inventory, deferred tax asset and the useful lives of property, plant and equipment and
intangible assets.
Management believes that the estimates made in the preparation of financial statements are prudent and
reasonable. Actual result could differ from these estimates. Any revision to accounting estimates is
recognised prospectively, in the period in which revisions are made.
b. Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured. The following specific recognition criteria must also be met
before revenue is recognized:
Sale of products
Revenue from sale of product is recognised when the significant risks and rewards of ownership in goods
have been transferred to the buyer and the seller retains no effective control of the goods transferred to
a degree usually associated with ownership and no significant uncertainty exists regarding the amount of
the consideration that will be derived from the sale of goods.
c. Property, plant and equipment (Tangible assets)
Property, plant and equipment are stated at acquisition cost less accumulated depreciation and
impairment losses, if any. Acquisition cost comprises of purchase price and directly attributable cost of
bringing the asset to its working condition for its intended use.
Subsequent expenditure related to an item of asset is added to its book value only if it increases the
future benefits from the existing asset beyond its previously assessed standard of performance.
2021
Losses arising from the retirement of, and gains or losses arising from disposal of Property, plant and
equipment, which are carried at cost, are recognised in the statement of profit and loss.
d. Intangible assets
Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated
impairment losses, if any.
e. Depreciation and amortisation
Depreciation on property, plant and equipment is provided under the straight line method over the
useful life of the assets as specified under Part C of Schedule II of Companies Act, 2013. Depreciation
is calculated pro-rata from / to the date of addition / deletion.
Trademark’s are amortised over a period of 10 years.
f. Impairment of assets
Assessment is done at each reporting date as to whether there is any indication that an asset may be
impaired. If any such indication exists, an estimate of the recoverable amount of the asset is made. Assets
whose carrying value exceeds their recoverable amount are written down to the recoverable amount.
Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use.
Value in use is the present value of estimated future cash flows expected to arise from the continuing
use of an asset and from its disposal at the end of its useful life. Assessment is also done at each reporting
date as to whether there is any indication that an impairment loss recognised for an asset in prior
accounting periods may no longer exist or may have decreased.
g. Other income
Interest income is recognised on a time proportion basis taking into account the amount outstanding
and the rates applicable.
h. Inventories
Inventories are valued at lower of cost and net realisable value; cost is determined using first in first out
(FIFO) method. Cost comprise all cost of purchase and other costs incurred in bringing the inventories
to their present location and condition
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs
of completion and estimated cost necessary to make the sales.
i. Foreign currency transactions and translation
The reporting currency of the Company is Indian Rupee.
Initial recognition
Transactions denominated in foreign currencies are recorded at the rates of exchange prevailing on the
date of the transaction.
Conversion
Monetary assets and liabilities denominated in foreign currency are converted at the rate of exchange
prevailing at the reporting date. Non-monetary items which are measured in terms of historical cost
denominated in foreign currency are reported using the exchange rate at the date of the transaction.
Exchange differences
All exchange differences arising on settlement / translation of foreign currency monetary items are
recognized in the statement of profit and loss and related assets and liabilities are accordingly restated
adopting the year and rates.
2021
j. Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the
leased term, are classified as operating leases. Operating lease payment are classified as an expense in the
statement of profit and loss on a straight-line basis over the lease term.
k. Retirement and other employee benefits
Salary, bonus and other short term employee benefits are recognised as an expense during the period in
which the services are received by the Company. Contribution to the recognised provident fund and
employees’ state insurance scheme (ESIC) which is defined contribution scheme, is charged to the
statement of profit and loss.
Gratuity
Provision for gratuity is based on actuarial valuation of liability, certified by an actuary.
The Company provides for gratuity, a defined benefits plan (the “Gratuity Plan”) covering eligible
employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan, which is unfunded,
provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee’s salary and the tenure of employment.
The Company’s liability is actuarially determined using the Projected Unit Credit method at the end of
each year. Actuarial losses/gains are recognised in the statement of profit and loss in the year in which
they arise.
l. Provisions and contingencies
Provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to their present value and are determined
based on management estimate of the amount required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose
existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company.
m. Taxes on income
Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred
income taxes reflect the impact of timing differences between taxable income and accounting income
for the year including reversal of timing differences of earlier years. Deferred tax is measured based on
the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax assets
are recognised only to the extent there is reasonable certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised. If the Company has carry forward
unabsorbed depreciation and tax losses, deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be realised against future taxable
profits. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent it
has become reasonably certain or virtually certain, as the case may be, that future taxable income will be
available against which such deferred tax assets can be realised.
2021
n. Share-based compensation / payments
Measurement and disclosure of the employee share-based payment plans is done in accordance with
Guidance Note on Accounting for Employee Share-based Payments, issued by the Institute of Chartered
Accountant of India (ICAI). The Company uses intrinsic value method of accounting for its employee
share based compensation plan.
o. Borrowing costs
Borrowing cost that are not related to qualifying assets are charged to Statement of Profit and Loss.
p. Segment reporting
The activities of the Company comprise of only one business segment i.e., “trading of cosmetic and
allied products”. The Company operates in only one geographical segment i.e. India. Hence, the
Company's financial statements are reflective of the information required by Accounting Standard 17,
“Segment Reporting” notified under the Act.
q. Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and cash in hand. The Company considers all highly
liquid investments with an original maturity of three months or less from date of purchase, to be cash
equivalent.
r. Earnings per share
Basic earnings per share are computed by dividing net profit/(loss) after tax by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing net profit/(loss) after tax as adjusted for dividend,
interest and other charges to expense or income relating to the dilutive potential equity shares, by the
weighted average number of shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on conversion of all dilutive potential
equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares
would decrease the net profit per share.

Pep Technologies - Annual Report - FY21

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Pep Technologies - Annual Report - FY21

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DIRECTORS’ REPORT

Dear fellow shareowners,

FINANCIAL SUMMARY AND HIGHLIGHTS:

Year ended March 31, Year ended March 31,

THE STATE OF THE COMPANY’S AFFAIRS

ALLOTMENT OF EQUITY & PREFERENCE SHARES

Particulars Details of Issue

ISSUE OF EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS

ISSUE OF SWEAT EQUITY SHARES

ISSUE OF SHARES UNDER EMPLOYEE STOCK OPTION SCHEMES

Particulars For the FY 2020-21 For the FY 2019-20

ISSUE OF DEBENTURES, BONDS OR ANY NON-CONVERTIBLE SECURITIES

No. of Issue price per Series

CREDIT RATING OF SECURITIES

TRANSFER OF AMOUNT TO GENERAL RESERVES

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Sl. No. Name of the Director Designation DIN Date of Appointment

MEETINGS OF THE BOARD OF DIRECTORS

ATTENDANCE OF THE DIRECTORS IN THE BOARD MEETINGS

STATEMENT ON DECLARATION PROVIDED BY AN INDEPENDENT DIRECTOR

DIRECTORS RESPONSIBILITY STATEMENT

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

INSTANCES OF FRAUD, IF ANY REPORTED BY THE AUDITORS

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

CORPORATE SOCIAL RESPONSIBILITY

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO

2. TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION

3. FOREIGN EXCHANGE EARNINGS AND OUTGO

Foreign Exchange earnings and outgo FY 2020-21 (INR) FY 2019-20 (INR)

RISK MANAGEMENT POLICY

ESTABLISHMENT OF VIGIL MECHANISM

AUDITOR’S OBSERVATIONS AND REPLY BY THE BOARD

EXTRACT OF ANNUAL RETURN

DETAILS OF CHARGE CREATION AND SATISFACTION

CHANGE IN THE NATURE OF BUSINESS, IF ANY

CODE OF BUSINESS CONDUCT, CORPORATE GOVERNANCE AND ETHICS

HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

MATERIAL ADVERSE EVENTS

REVISION OF FINANCIAL STATEMENTS

During the year under review, there was no such occasion.

For and on behalf of the Board of Directors of

Tarun Sharma Vikas Lachhwani

FORM NO. AOC-2

For and On behalf of the Board of Directors of

Tarun Digitally signed Vikas Digitally signed

Tarun Sharma Vikas Lachhwani

Independent Auditor’s Report

To the Members of PEP Technologies Private Limited

Report on the Audit of the Financial Statements

Basis for Opinion

Chartered Accountants Walker Chandiok & Co LLP is registered

Auditor’s Responsibilities for the Audit of the Financial Statements

Chartered Accountants Walker Chandiok & Co LLP is registered

Report on Other Legal and Regulatory Requirements

Chartered Accountants Walker Chandiok & Co LLP is registered

For Walker Chandiok & Co LLP

Chartered Accountants Walker Chandiok & Co LLP is registered

Chartered Accountants Walker Chandiok & Co LLP is registered

For Walker Chandiok & Co LLP

Chartered Accountants Walker Chandiok & Co LLP is registered

TOTAL 380,773,001 173,496,420

Property, plant and equipment 9 4,457,097 1,920,078