xii. Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of a past event 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. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount
cannot be made. Contingent assets are neither recognized nor disclosed in the financial statements.

xiii. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial instruments (other than financial assets and financial liabilities
at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.
Subsequently, financial instruments are measured according to the category in which they are classified.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost using the
effective interest method or fair value, depending on the classification of the financial assets.

a. Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined
at the time of initial recognition.

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and

• those measured at amortised cost

The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cashflows.

A financial asset that meets the following two conditions is measured at amortised cost unless the asset is
designated at fair value through profit or loss under the fair value option:

• Business model test: The objective of the Company’s business model is to hold the financial asset to
collect the contractual cash flows.

• Cash flow characteristic test: The contractual term of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive
income unless the asset is designated at fair value through profit or loss under the fair value option.

• Business model test: The financial asset is held within a business model whose objective is achieved
by both collecting cash flows and selling financial assets.

• Cash flow characteristic test: The contractual term of the financial asset gives rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

b. Financial assets at fair value through profit or loss (FVTPL)

Investment in equity instruments is classified at fair value through profit or loss, unless the Company
irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive
income for investments in equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost criteria or fair value through other comprehensive income
criteria are measured at fair value through profit or loss. A financial asset that meets the amortised cost
criteria or fair value through other comprehensive income criteria may be designated as at fair value through
profit or loss upon initial recognition if such designation eliminates or significantly reduces a measurement
or recognition inconsistency that would arise from measuring assets and liabilities or recognizing the gains
or losses on them on different bases.

Financial assets which are fair valued through profit or loss are measured at fair value at the end of each
reporting period, with any gains or losses arising on remeasurement recognised in profit or loss.

c. Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortised cost less
provision for impairment.

d. Cash and cash equivalents

In the Statement of Cash Flows, cash and cash equivalents includes cash in hand, cheques and balances
with bank and short term highly liquid investments with original maturities of three months or less that
are readily convertible to known amount of cash. Bank overdrafts are shown within borrowings in current
liabilities in the balance sheet and forms part of financing activities in the Statement of Cash Flows. Book
overdraft is shown within other financial liabilities in the Balance Sheet and forms part of operating activities
in the Statement of Cash Flows.

e. Impairment of financial assets:

The Company assesses impairment based on expected credit losses (ECL) model to the following:

• financial assets measured at amortised cost

• financial assets measured at fair value through other comprehensive income
Expected credit loss are measured through a loss allowance at an amount equal to:

• the twelve month expected credit losses (expected credit losses that result from those default events
on the financial instruments that are possible within twelve months after the reporting date); or

• full life time expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument).

For trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at
an amount equal to lifetime expected credit losses.

f. Derecognition of financial assets

A financial asset is derecognised only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients

• The right to receive cash flows from the asset has expired.

g. Foreign Exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency
and translated at the exchange rate at the end of each reporting period. For foreign currency denominated
financial assets measured at amortised cost or fair value through profit or loss the exchange differences
are recognised in profit or loss except for those which are designated as hedge instrument in a hedging
relationship. Further change in the carrying amount of investments in equity instruments at fair value
through other comprehensive income relating to changes in foreign currency rates are recognised in other
comprehensive income.

h. Classification of debt or equity

Debt or equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and
an equity instrument.

i. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net
of direct issue costs.

j. Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method
or at fair value through Statement of Profit and Loss.

k. Trade and other payables

Trade and other payables represent liabilities for goods or services provided to the Company prior to the end
of financial year which are unpaid.

l. Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in Statement of Profit and Loss over the period of the borrowings
using the effective interest rate method.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired.

The difference between the carrying amount of a financial liability that has been extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed,
is recognised in Statement of Profit and Loss.

m. Foreign exchange gains or losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the
end of each reporting period, the foreign exchange gains and losses are determined based on the amortised
cost of the instruments and are recognised in profit or loss.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency
and translated at the exchange rate at the end of the reporting period. For financial liabilities that are
measured as at fair value through profit or loss, the foreign exchange component forms part of the fair value
gains or losses and is recognised in Statement of Profit and Loss.

n. Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled or have expired.

q. Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the Company or the counterparty.

xiv. Impairment of non-financial assets

Property, plant and equipment and other intangible assets represent a significant proportion of the asset base
of the Company. The charge in respect of periodic depreciation / amortisation is derived after determining an
estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful
lives and residual values of Company’s assets are determined at the time the asset is acquired and reviewed
periodically. The lives are based on historical experience with similar assets as well as anticipation of future
events, which may impact their life, such as changes in technology. The estimated useful life is reviewed at least
annually.

xv. Cash Flow Statement

Cash flows are reported using the indirect method, whereby loss for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.

xvi. Events occurring after the balance sheet date

Based on the nature of the event, the company identifies the events occurring between the balance sheet date
and the date on which the financial statements are approved as ‘Adjusting Event’ and ‘Non-adjusting event’.
Adjustments to assets and liabilities are made for events occurring after the balance sheet date that provide
additional information materially affecting the determination of the amounts relating to conditions existing at the
balance sheet date or because of statutory requirements or because of their special nature. For non-adjusting
events, the company may provide a disclosure in the financial statements considering the nature of the transaction.

(i) Trade receivables are non-interest bearing and are generally on terms of 0 to 30 days. Refer note 31 for details of
Company’s credit risk policy and exposure.

(ii) No trade or other receivable are due from directors or other officers of the company either severally or jointly with any

other person. Except as disclosed in Note 36 no trade or other receivable are due from firms or private companies
respectively in which any director is a partner, a director or a member.

*Note

During the year the Company has raised INR 40565.63 Lakhs in equity share capital through a preferential issue
of 23,93,959 equity shares, face value of INR 10 each and at a premium of INR 1,684.50 per share on September
21,2024 and INR 1,07,927.80 Lakhs in equity share capital through a preferential issue of 29,79,579 equity shares,
having face value of INR 10 each and at a premium of INR 3,612.25 per share on December 04, 2024.

(iv) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of INR 10 per share (March 31,2024: INR 10
each). Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion
to their shareholding.

13.1 Nature and purpose of other equity

(a) Shares based payment reserve: The share option outstanding account is used to record the value of equity-
settled share based payment transactions with employees. The amounts recorded in this account are transferred
to General reserve upon exercise of stock options by employees from 1 April 2024 onwards.

(b) Securities premium reserve: This represents premium received on issue of shares.

(c) Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to
general reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement
gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
Retained earnings is a free reserve available to the Company and eligible for distribution to shareholders, in case
where it is having positive balance representing net earnings till date.

(d) Revaluation Surplus: This reserve represents reserve created out of revaluation of other intangible assets. These
does not represent free reserve and accordingly, not available to the Company for distribution to shareholders.

(e) Money received against share warrants: Represents amount received by the Company towards issue of shares
warrants convertible into shares of the Company.

13.2 Shares held under ESOP Trust

The Company has created an Employee Stock Option Plan (ESOP) for providing share-based payment to its employees.

ESOP is the primary arrangement under which incentives are provided to certain specified employees of the Company.

The Company treats ESOP Trust as its extension and shares held by ESOP trust are treated as treasury shares.

For the details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company refer Note 35.

Terms of borrowings

(i) Term loan with outstanding balance as at 31 March, 2025 INR 1,140.70 Lakhs (31 March, 2024: INR 10,307.81 Lakhs)
is payable in structured periodic installments. The loan carries an interest rate between 8.20 % - 8.80% . The amount
payable in next 12 months of INR 531.01 Lakhs (31 March, 2024 : INR 1,458.19 Lakhs) has been shown under the head
Borrowings - Current as Current maturity of long term borrowings.

Notes:

1. The contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the
reporting date i.e. unbilled revenue. The contract assets are transferred to the receivables when the rights become
unconditional.

2. Contract liability relates to payments received in advance of performance i.e. advance from customers and deferred
sales revenue against which amount has been received from customer but services are yet to be rendered on the
reporting date either in full or in parts. Contract liabilities are recognized evenly over the period of service, being
performance obligation of the Company.

Changes in contract liabilities (excluding advance from customers) during the years ended March 31, 2025 and
March 31,2024 were as follows:-

In accordance with the practical expedient provided under Ind AS 115, the Company has not disclosed the amount
of unsatisfied performance obligation since most of the performance obligation in case of the Company are part
of a contract that has an original expected duration of one year or less and the entity recognises revenue from the
satisfaction of the performance obligation in accordance with paragraph B16 of Ind AS 115.

The Company has recognized revenue of INR 16,396.08 Lakhs (March 31,2024: INR 9,446.36 Lakhs) which is
equal to the contracted price and there are no adjustments made to the contract price.

(b) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example: foreign exchange
forward contracts) is determined using valuation techniques which maximize the use of observable market data and
rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

There are no transfer of levels during the year.

The fair values lease liabilities were calculated based on cash flows discounted using a incremental borrowing rate.

As of March 31,2025 and March 31,2024, the fair value of trade receivables, cash and cash equivalent and other bank
balances, other current financial assets and liabilities, trade payables approximate their carrying amount largely due to
the short term nature of these instruments. For other financial assets and liabilities that are measured at amortised cost,
the carrying amounts approximate the fair value.

31. Financial risk management

The Company’s principal financial liabilities comprise of trade and other payables. The main purpose of these financial
liabilities is to provide finance to the Company to support its operations. The Company’s principal financial assets include
deposits, trade and other receivables, and cash and other bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company’s senior management ensures that the Company’s financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company’s policies and risk objectives.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss.

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of its cash
and cash equivalents and receivables. To reduce credit risk, the Company performs ongoing credit evaluations of its
customers and limits the amount of credit extended when deemed necessary. Generally, the Company requires no
collateral from its customers. The Company maintains an allowance for potential credit losses, but historically has not
experienced any significant losses related to individual customers or groups of customers.

The Company’s cash and cash equivalents are deposited with financial institutions and invested in bank deposits that
the Company believes are of high credit quality.

On account of adoption of Ind AS 109, the Company uses expected credit loss (ECL) model to assess the impairment
loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.
The provision matrix takes into account available external and internal credit risk factors such as Company’s historical
experience for customers.

(B) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and
liquidity requirements. The Company closely monitors its liquidity position and maintains adequate source of financing,
if required, through the use of short term bank deposits, demand loans, commercial credit cards and cash credit facility.
Processes and policies related to such risks are overseen by senior management.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks,
such as equity price risk and commodity price risk. Financial instruments affected by market risks majorly includes
foreign currency receivables and payables. The Company has in place appropriate risk management policies to limit the
impact of these risks on its financial performance. The Company ensures optimization of its cash through fund planning
and robust cash management practices.

(a) Interest risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. A majority of the financial assets and liabilities are non interest bearing or fixed
interest bearing instruments.

32. Capital management

For the purposes of the Company’s capital management, Capital includes equity attributable to the equity holders of the
Company and all other equity reserves. The primary objective of the Company’s capital management is to ensure that it
maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and
makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain
or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The
Company is not subject to any externally imposed capital requirements.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. Total borrowings includes all long and short-term borrowings as disclosed in Note 14 to the
financial statements. Equity comprises all components of equity.

40. Other Statutory Information:-

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

2. The Company does not have any charges pending satisfaction with ROC beyond the statutory period.

3. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or,

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

4. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or,

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

5. The Company do not have any transactions with companies struck off.

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

7. The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961).

42. The figures of the previous year have been re-classified according to current year classification wherever required.

43. New Standards, Interpretations and Amendments adopted by the Company-

Ministry of Corporate Affairs(“”MCA””) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st Mach 2025, MCA has notifies
amendments to IND AS 116- Lease, relating to sale and leaseback transactions, which is applicable to a company w.e.f. 1st
April 2024. The Company has reviewed the new pronouncements and based on its evolution has determined that it is not
likely to have any significant impact in its financial statements._

As per our report of even date For and on behalf of the board of directors

For GSA & Associates LLP E2E Networks Limited

ICAI Firm Registration No.: 000257N/N500339

Sd/- Sd/- Sd/-

Tanuj Chugh Tarun Dua Srishti Baweja

Partner Managing Director Whole Time Director

Membership No.: 529619 DIN: 02696789 DIN: 08057000

Place: New Delhi Place: New Delhi Place: New Delhi

Date: April 17, 2025 Date: April 17, 2025 Date: April 17, 2025

Sd/- Sd/-

Megha Raheja Ronit

Whole-time Director & CFO Company Secretary

Membership No.: A59215

Place: New Delhi Place: New Delhi

Date: April 17, 2025 Date: April 17, 2025