2.11 Provisions and contingent liabilities

Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The expense relating to any provision is presented in the statement of profit and loss net
of any reimbursement. If the effect of the time value of money is material, provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognized
as other finance expense.

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the obligation. A contingent liability also
arises in extremely rare cases where there is a liability that cannot be recognized because it cannot
be measures reliably. The Company does not recognize a contingent liability but discloses its
existence in the financial statements.

2.12 Earnings per Share

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

2.13 Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operative leases. The company's significant leasing arrangements are in
respect of operating leases of office premises. The leasing arrangements are for a period of 11
months generally and are either renewable or cancelable by mutual consent and on agreed terms.
Payments made under operating leases are charged in the Statement of Profit and Loss.

2.14 Segment Reporting

The accounting policies adopted for segment reporting are in conformity with the accounting
policies adopted for the Company. Revenue and expenses have been identified to segments on the
basis of their relationship to the operating activities of the segment.

b. Fair Value of Financial Assets and Liabilities.

The following details are comparison by class of the carrying amounts and fair value of the Company
financial instruments, those with carrying amounts that are reasonable approximations of fair values:

The management assessed that cash and cash equivalents, other bank balances, trade receivables, security
deposits received, receivable from related parties, inter corporate loan from related party, trade payables and
security deposits paid approximate their carrying amounts largely due to the short-term maturities of these
instruments.

The management assessed that the fair value of the borrowings are not materially different from the carrying
value presented. The fair value of the financial assets and liabilities is included at the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
measurement date.

c. Financial risk management

The Company’s activities expose it to a variety of financial risks; market risk, credit risk and liquidity
risk. The Company’s overall risk management programme focuses to minimize potential adverse
effects on the Company’s financial performance. The financial instruments of the Company comprise
borrowings from banks/other lenders, cash and cash equivalents, bank deposits, trade receivables and
other assets, trade payables and other financial liabilities and payables.

I. Market risk

Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate
because of volatility of prices in the financial markets. Market risk can be further segregated into Interest
rate risk and Foreign exchange risk:

i. Interest rate 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. The Company has no significant interest¬
bearing assets other than investment in bank deposits. The Company’s income and operating
cash flows are substantially independent of changes in market interest rates. As the Company’s
borrowing carries fixed rate of interest and these debts are carried at amortized cost, there is no
interest rate risk to the Company.

ii. Foreign exchange risk

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates.

II. Credit risk

Company’s revenue is derived from sales to its off-shore subsidiaries, hence there is no potential risk of
default. The company maintains banking relationships with only credit worthy banks, which it reviews
on an ongoing basis. The maximum exposure to credit risk for bank deposits and bank balances at the
reporting date is the fair value of the amount disclosed. Trade receivables that are due for more than 180
days are considered past due. These receivables have been considered as fully recoverable based on the
evaluation of terms implicit in the contracts with customers and other pertinent factors. The ageing analysis
of trade receivables as at the reporting date is as follows:

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable
mentioned above. The Company does not hold any collateral as security.

III. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and
maintaining adequate credit facilities.The Company believes that the net cash flows expected to be
generated from the operations shall be sufficient to meet the operating and finance costs.

i. Segment Reporting

Software related Development services, products and Information Technology enabled services are
considered as one business segment. The Company is primarily engaged in the said business, the
activities as such are governed by the same sets of risk and return. Therefore they have been grouped
as single segment as per IND AS - 108 dealing with segment reporting. Secondary segment reporting
is based on geographical location of the customers.

j. Taxation

Current tax is reckoned based on the current year’s income and tax payable in accordance with the
prevailing tax laws. The total provision for tax during the current year is ? 33.57 Lakhs (Including Earlier
Years), (Previous Year: ? 22.74 Lakhs).

In accordance with Indian Accounting Standard 22 on Accounting for Taxes on Income, the Company
has computed Deferred Tax Asset amounting to ? 0.68 Lakhs (Previous Year - Deferred Tax Asset
? 1.30 Lakhs) on account of timing difference in relation to depreciation as per books vis.a.vis Tax
Laws.

k. Dues to Micro and Small Enterprises

The information required to be disclosed under the Micro, Small and Medium Enterprises Development

Act, 2006 has been determined to the extent such parties have been identified on the basis of
information available with the company. As on date there are no such dues to MSME.

I) Leases

a. Operating Lease: The Company has operating lease for office premises. These lease

arrangements operate for a period 11 months. The said leases are renewable for further period on
mutually agreeable terms and also includes escalation Clause.

b. Finance Lease: The Company has no finance leases.

m. Contingent liabilities and commitments

There are no contingent liabilities as at the Balance Sheet date.

31. OTHER STATUTORY INFORMATION

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

b. The Company does not have any transactions with companies, which are struck off.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

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

e. The Company has not been declared willful defaulter by any bank or financial institution or government
or any government authority.

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

• 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

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

g. 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 Group
shall:

• 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

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

h. The Company does not have any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the financial 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).

32. With effect from April 1,2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for every
company, which uses accounting software for maintaining its books of account, to use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each
change made in books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled. The Company uses Quick Books accounting software to maintain its books of
accounts which has a feature of recording Audit Trail (Edit Log) facility and the same has operated throughout
the year for all relevant transactions recorded in the software. Further no instances of audit trail feature being
tampered with was noted in respect of software. Audit trail has been preserved by the Company as per the
statutory requirements for record retention.

33. Amount has been rounded off to nearest lakh and previous year have been rearranged, regrouped and
recast wherever necessary. Figure 0.00 represent amount below Rs 500/- rounded off.

34. Previous year’s figures have been rearranged, regrouped and recast wherever necessary to confirm to this
year’s classification.

As per our Report of even date attached for and on behalf of the Board

for Ramu & Ravi

Chartered Accountants
ICAI FRN No. 006610S

K.V.R. Murthy (Partner) Veena Gundavelli Geetanjali Toopran Santosh Kumar D

ICAI Membership No. 200021 Managing Director Whole Time Director & CFO Company Secretary

UDIN: 25200021BMOLTM9709 DIN: 00197010 DIN:01498741 ACS 31332

Place: Secunderabad
Date: May 28, 2025