Repayment: Repayable On Demand

Primary Security: 100% Hypothecation of entire stock and receivables created out of bank finance (present & future)

Collateral Security:

Collateral Security:

1) Residential Flat No 401, 4th Floor, Plot No 14 & 16, Sy No 93, 94 & 95, located at S R Nagar, Hyderabad, Rangareddy, Hyderabad, Telangana -500038 (Metro), admeasuring total area: 1450 Sq. Feet, in the name of Shri V. Atchyuta Rama Raju

2) Commercial Building bearing Sy No. 619, 6th Floor, Maker Chambers, V Premises Co-op Society Ltd., Plot No.221 of Back bay reclamation, Nariman Point, Mumbai - 400021 (Metro) admeasuring total area 434 Sq.Feet in the name of M/s Reliance Tea Private Limited

3) Commercial Residential Plot No. 70, Survey No. 06, Situated at Izzat Nagar Village, Serilingampally Mandal, Ranga Reddy, Telangana - 500082 (Urban) admeasuring 450 Sq. yards in the Name of Vama Industries Limited

4) Pledge of shares of promoters of 30% (No of shares pledged 67,68,550/-)

Personal Guarantee / Corporate Guarantee :

1. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

2. Smt. V. Parvathi, Executive Director, W/o. Sri V. Atchyuta Rama Raju

3. Corporate Guarantee of M/s Reliance Tea Private Limited

Working Capital Term Loan (GECL) from State Bank of India:

Rate of Interest : 7.40%

Repayment : Moratorium period of 12 months and repayment of principal will commence after 12 months moratorium from the date of disbursement. It is repayable in 36 equated monthly instalments of Rs 4,19,445/- each commencing from Nov'21, balance of instalments being is 19 as on 31st March 2023.

Working Capital Term Loan (GECL1.0 Ext Limit) from State Bank of India:

Rate of Interest: 7.40%

Repayment: Moratorium period of 24 months and repayment of principal will commence after 24 months moratorium from the date of disbursement. It is repayable in 36 equated monthly instalments of Rs 2,58,334/- each commencing from Jan'24.

Vehicle Loan from State Bank of India:

1. Secured by hypothecation of Vehicle purchased and repayable in 84 monthly instalments of each Rs. 18,670/- commencing from March 2015, This loan is fully repaid in Feb'22 (rate of Interest: 9.70%)

2. Secured by hypothecation of Vehicle purchased and repayable in 84 monthly instalments of each Rs. 16,634/- commencing from September 2015, This loan is fully repaid in Feb'22 (rate of Interest: 9.55%)

Bank Guarantee (BG) Facility from State Bank of India:

BG Limit of Rs 1700.00 Lakhs

BG Commission Rate: Performance BG - 1.90% GST, Financial BG - 2.20% GST BG Issued will be valid till the date of expiry or till the date of revocation Security: As applicable to Cash Credit Limit, which is detailed above.

Note No 2.33: Segment Reporting

The Company concluded that there is only one operating segment i.e, IT related services. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108, to the extent applicable.

Note No 2.34: Employee BenefitContribution to provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee's qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs. 3.77 Lakhs and Rs. 6.75 Lakhs to the provident fund plan during the years ended 31st March 2023 and 2022, respectively.

Note No 2.37: Ind AS 116 - Leases

The Company has evaluated the impact of Ind AS 116 on the financials. As per the terms and conditions stipulated in the lease deeds, the termination option is available with both lessor and lessee leading to the same being treated as short term and impact charged to "Rent Expenses" (Refer Note No 2.28)

Note No 2.38: Financial Risk Management

The Company's activities expose it to a variety of financial risks, in cluding credit risk, liquidity risk and Market risk. The Company's risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company's risk assessment and management policies and processes.

a. Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.

Trade Receivables - The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The total trade and other receivables impairment loss is provided Rs. NIL as at 31st March 2023 and Rs. 16.49 lakhs at 31st March 2022. On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company took into consideration the weighted average number of delays taking into consideration deviation of receivables turnover ratio from normal credit period.

The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate. Financial assets that are neither past due nor impaired - None of the Company's cash equivalents, including deposits with banks, were past due or impaired as at 31 March 2023.

Liquidity Risks:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.

As of 31st March 2023 and 2022, the Company has utilized working capital credit limits (fund based) from banks of Rs. 575.89 Lakhs and Rs 631.74 Lakhs respectively.

As of 31 March 2023, the Company had working capital (current assets less current liabilities) of Rs. 1,491.76 Lakhs including cash and cash equivalents of Rs. 82.81 Lakhs. As of 31 March 2022, the Company had working capital of Rs. 1,690.32 Lakhs, i ncluding cash and cash equivalents of Rs. 286.51 Lakhs.

Market Risks:

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company's financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

Currency Risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The company mitigates the currency risk with natural hedge arising on export of goods and services

CAPITAL MANAGEMENT

The Company's objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity and borrowings.

Note No 2.40: Code on Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

2.41 Impact of COVID-I9

The Company has considered the possible effects that may result from the pandemic relating to Covid-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of Covid-19 on the company's financial statements may differ from that estimated as at the date of approval of these standalone financial statements.

2.43G Relationship with struck off companies

The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 2.43H Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

2.43I Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act Act, 1961, that has not been recorded previously in the books of account.

2.43J Title Deeds of Immovable Properties

The title deeds of all the immovable properties, as disclosed in Note 2.01 to the financial statements, are held in the name of the company

2.43K Valuation of Property Plant & Equipment, Intangible Asset

The company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

2.43L Loans or advances to specified persons

No loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

2.43M Details of benami property held

No proceedings have been initiated on or pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

2.43N Wilful Defaulter

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

2.43O Compliance with number of layers of companies

The company has complied with the number of layers prescribed under Section 2(87) of Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

2.43P Details of Crypto currency or virtual currency

The company has not traded or invested in Crypto Currency or virtual currency during the current or previous year

2.43Q Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities ("intermediaries") with the understanding, whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the company (Ultimate beneficiaries). The company has not received any fund from any party (Funding Party) with the understanding that the company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2.43R Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.