1. A. Background and nature of operations:

Globalspace Technologies Limited (the Company) was incorporated in Mumbai, India on December 22, 2010 under the ‘Companies Act, 1956’. The Company’s business activity is that of providing technology enabled business enhancement solutions. The Company made an initial public offer (‘IPO’) in India in August, 2017 and its shares are listed on the SME Platform of BSE Limited.

B. Basis of preparation of financial statements:

i. The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GaAp). The Company has prepared these financial statements to comply in all material respects withthe accounting standards prescribed under Section 133 of the Companies Act, 2013 (‘Act’) and other provisions of the Act (to the extent notified). The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles. The Company follows the mercantile systems of accounting and recognises income and expenditure on an accrual basis except stated otherwise.

ii. The preparation of the financial statements in conformity with the Indian GAAP requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting periods. These estimates are based upon the Management’s best knowledge of current events and actions. Actual results could differ from these estimates.

2.1 Terms/rights attached to equity shares

Each holder of equity shares is entitled to one vote per equity share. They are entitled to receive dividend proposed by the Board of Directors and approved by shareholders in General Meeting.

During the year ended March 31, 2018, the amount of per share dividend recognised as distribution to equity shareholders was Rs.Nil (Rs.Nil).

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

2.1.1 Pursuant to resolution pased by the members of the Company at the Extraordinary General Meeting (EGM) held on July 30, 2016, the authorised share capital of the Company has been increased from Rs.15,000,000 divided into 1,500,000 equity shares of Rs.10 each to ‘90,000,000 divided into 9,000,000 equity shares of Rs.10 each.

2.1.2 Pursuant to resolution pased by the members of the Company at the Extraordinary General Meeting (EGM) held on September 26, 2016, the authorised share capital of the Company has been increased from Rs.90,000,000 divided into 9,000,000 equity shares of Rs.10 each to Rs.120,000,000 divided into 12,000,000 equity shares of Rs.10 each.

2.1.3 The Company has issued 77,499 equity shares on May 30, 2016 at a price of Rs.140 per share (premium of Rs.130 per share) aggregating to Rs.10,849,860V through a rights Issue in the ratio of 1:10.

2.1.4 The Company has issued 27,194 equity shares on July 1, 2016 at a price of Rs.140 per share (premium of Rs.130 per share) aggregating to Rs.3,807,160 through a rights issue in the ratio of 1:10.

2.1.5 6,984,280 bonus shares were issued in the ratio of 11:2 by capitalising free reserves on July 4, 2016.

2.1.6 The Company has issued 168,452 equity shares on November 3, 2016 at a price of Rs.108 per share (premium of ‘98 per share) aggregating to ‘18,192,816 through A preferential allotment.

2.1.7 The Company has issued 3,034,000 equity shares on August 3, 2017 at a price of Rs.66 per share (premium of Rs.56 per share) aggregating to Rs.200,244,000 through an IPO.

3.1 Details of secured loans

Primary security: Hypothecation of servers, Pcs, tablets or any such Items lying in the premises, in transit or elsewhere, book debts and other receivables.

3.1.1 Collateral security: Office premises located at unit No 605, Rupa Solitaire, Millenium Business Park, Mahape, Navi Mumbai 400 710 and also personal guarantee of directors viz. Krishna Murari Singh and Beauty Singh.

(Flat No. 1001, Grow More Towers, Kharghar, Panvel - 410210 and E-701, Panchavati Plaza Sector- 5 Ghansoli , Navi Mumbai - 400701 belonging to the directors of the Company and also personal guarantee of directors viz. Krishna Murari Singh, Dhiraj Sharma and Siddhartha Xavier jointly aggregating to ‘50,000,000 (‘50,000,000).

3.1.2 Rate of Interest - 9.00% per annum (12.70% per annum)

Primary security: Hypothecation of servers, Pcs, tablets or any such Items lying in the premises, in transit or elsewhere, book debts and other receivables.

3.2 Details of unsecured loans

3.2.1 Loans from related parties are repayable on demand and are interest free.

4.1 Disclosure under the Micro ,Small and Medium Enterprises Development Act, 2006 :

Amounts due to Micro and Small Enterprises are disclosed on the basis of and to the extent of information available with the Company regarding status of the suppliers, which are as follows :

G. Notes:

a). Related party relationships are as identified by the Company on the basis of information available and relied.

b). No amount has been written off or written back in respect of debts due from or to related parties.

In assessing the Company’s post retirement liabilities, the Company monitors mortality assumptions and uses up-to-date mortality tables. The base being the Indian Assured Lives Mortality (2006-08) Ultimate table.

The estimates of future salary increase, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The liability towards leave compensated absences amounts to Rs.13,51,633 (Rs.8,93,336 )

5 Amounts outstanding for related parties

a. There are no outstanding forward exchange contracts as at the year end.

b. The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

6 The Company was earlier known as:

Globalspace Tech Private Limited upto September 28, 2016 Globalspace Technologies Private Limited upto November 13, 2016

7 The Company has completed the Initial Public offering (IPO) of fresh issue of 3,034,000 equity shares of ‘ l0 each at an issue price of Rs.66 per share.

The equity shares of the Company were listed on Bombay Stock Exchange (BSE)-SME platform effective August 7, 2017.

Balance funds of Rs.3,81,73,048, pending utilisation are parked in bank fixed deposits.

Expenses incurred by the Company aggregating to Rs.2,976,602, in connection with IPO have been adjusted towards securities premium account.

8 Business Segment

The Company has considered business segment as the primary segment for disclosure. The Company is primarily engaged in the business of providing technology enabled business enhancement solutions which in the context of Accounting Standard 17 "Segment Reporting" is considered the only business segment.

Geographical Segment

The activities of the Company are entirely within India where the conditions prevailing are uniform. Accordingly, separate geographical segment disclosure is not considered necessary.

9 Current years figures are stated in bold prints and previous year’s figures are re-stated/ re-grouped wherever considered necessary and are also stated in brackets.