Notes to Accounts of Citi Port Financial Services Ltd.

Mar 31, 2024

2.7 Provisions, contingent liabilities and contingent assets

a. Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect of the time value of money is material, provisions are deter¬
mined by discounting the expected future cash flows at a pre-tax rate that reflects current market assess¬
ments of the time value of money and the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

b. Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. Where there is a possible obligation or a
present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.

c. Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related
income are recognised in the period in which the change occurs.

2.8 Revenue Recognition

Income Under Ind AS 115, an entity recognizes revenue when (or as) a performance obligation is satisfied,
i.e. when ''control'' of the goods or services underlying the particular performance obligation is transferred
to the customer. Revenue towards satisfaction of a performance obligation is measured at the amount of
transaction price (net of variable consideration) allocated to that performance obligation.

(a) Interest income:

Interest income from debt instruments is recognised using the effective interest rate (EIR) method. The
effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective
interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the
financial instrument but does not consider the expected credit losses. The EIR (and therefore, the amor¬
tised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and
costs that are an integral part of the EIR. The Company recognises interest income using a rate of return
that represents the best estimate of a constant rate of return over the expected life of the instrument.

If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk,
the adjustment is booked as a positive or negative adjustment to the carrying amount of the asset in the
Balance Sheet with an increase or reduction in interest income. The adjustment is subsequently amortised
through interest income in the Statement of Profit and Loss..

(b) Other Income:

The Company recognises income on accrual basis.

2.9 Borrowing Costs:

Borrowing costs consist of interest, ancillary and other costs that the Company incurs in connection with the
borrowing of funds and interest relating to other financial liabilities. Borrowing costs also include exchange
differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly
attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur.

2.10 Tax Expenses

Tax expense consists of current and deferred tax.

a. Income Tax

Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to
items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax
payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting
date, and any adjustment to tax payable in respect of previous years.

b. Deferred Tax

Deferred tax is recognised using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax
authority on the same taxable entity, or on different tax entities, but they intend to settle current tax
liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income tax
regulations is not considered as tax expense for the Company and all such taxes are recognized in the
statement of changes in equity as part of the associated dividend payment.

2.11 Earnings Per Share

The Company presents basic and diluted earnings per share ("EPS") data for its ordinary shares. Basic
earnings per share is computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit
after tax by the weighted average number of equity shares considered for deriving basic earnings per
share and also the weighted average number of equity shares that could have been issued upon conver¬
sion of all dilutive potential equity shares.

2.12 Trade receivables

Trade receivables are initially recognized at fair value and subsequently measured at amortised cost using
effective interest method, less provision for impairment.

2.13 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the
financial year which are unpaid. The amounts are unsecured and are presented as current liabilities
unless payment is not due within twelve months after the reporting period. They are recognized initially at
fair value and subsequently measured at amortized cost using the effective interest method.

2.14 Determination of fair values

The Company''s accounting policies and disclosures require the determination of fair value, for certain
financial and non-financial assets and liabilities. Fair values have been determined for measurement and/
or disclosure purposes based on the following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. A fair
value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market partici¬
pant that would use the asset in its highest and best use.

a. Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange of non¬
monetary assets, is measured at fair value on the acquisition date. For this purpose, fair value is based on
appraised market values and replacement cost.

b. Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks acquired in a business
combination is based on the discounted estimated royalty payments that have been avoided as a result of
these brands, technology related intangibles, patents or trademarks being owned (the "relief of royalty
method"). The fair value of customer related, product related and other intangibles acquired in a business
combination has been determined using the multi-period excess earnings method after deduction of a fair
return on other assets that are part of creating the related cash flows.

c. Inventories

The fair value of inventories acquired in a business combination is determined based on its estimated
selling price in the ordinary course of business less the estimated costs of completion and sale, and a
reasonable profit margin based on the effort required to complete and sell the inventories.

d. Investments in equity and debt securities and units of mutual funds

The fair value of marketable equity and debt securities is determined by reference to their quoted market
price at the reporting date. For debt securities where quoted market prices are not available, fair value is
determined using pricing techniques such as discounted cash flow analysis.

In respect of investments in mutual funds, the fair values represent net asset value as stated by the issuers
of these mutual fund units in the published statements. Net asset values represent the price at which the
issuer will issue further units in the mutual fund and the price at which issuers will redeem such units from
the investors.

Accordingly, such net asset values are analogous to fair market value with respect to these investments, as
transactions of these mutual funds are carried out at such prices between investors and the issuers of
these units of mutual funds.

e. Derivatives

The fair value of foreign exchange forward contracts is estimated by discounting the difference between
the contractual forward price and the current forward price for the residual maturity of the contract using
a risk-free interest rate (based on government bonds). The fair value of foreign currency option and swap
contracts and interest rate swap contracts is determined based on the appropriate valuation techniques,
considering the terms of the contract.

f. Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance

leases the market rate of interest is determined by reference to similar lease agreements. In respect of the
Company''s borrowings that have floating rates of interest, their fair value approximates carrying value.

Ind AS 1 - Presentation of Restated financial information

The amendments require companies to disclose their material accounting policies rather than their signifi¬
cant accounting policies. Accounting policy information, together with other information, is material when
it can reasonably be expected to influence decisions of primary users of general purpose financial state¬
ments. The Company does not expect this amendment to have any significant impact in its standalone
financial statement.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in para¬
graphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on
initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not
expect this amendment to have any significant impact in its standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates.
The definition of a change in accounting estimates has been replaced with a definition of accounting
estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements
that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies
require items in Restated financial information to be measured in a way that involves measurement
uncertainty. The company does not expect this amendment to have any significant impact in its standalone
financial statements.

Recent pronouncements:

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
March 31, 2024, MCA has not notified any new standards or amendments to the existing standards appli¬
cable to the Company.

As per the report of even date attached For and On behalf of the Board

For NSVR & Associates LLP Citiport Finanacial services limited

Chartered Accountants

Firm Regn. No.008801S/S200060

^Sd/- Sd/- Sd/-

^R.^Srinivasu Enjamuri Pardha Saradhi Himabindu Ramavath

Fortner Managing Director Director

^Memtier^{ship N}°.²²⁴°33 DIN : 07531047 DIN: 10045536

UDIN: 24224033BKCRDZ9867

Sd/- Sd/-

Place: Hyderabad Raja Sekhar Katta Priya Jain

D_ate_: 24.05.2024 Chief Financial Officer Company secretary

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Mar 31, 2014

1. (a) Rights, preferences and restrictions attached to shares:

The company has one class of equity shares having a par value of Rs.10/- each. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity sharesholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2. Note : Segment Reporting

The company''s operations consist one line of activity year by year. The Company is primarily operating in India which is considered as a single geographical segment. Hence there are no reportable segments under Accounting Standard - 17, issued by Institute of Chartered Accountants of India, during the year under report.

The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

3. Note:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is: Nil (Nil)

4. Note:

In the opinion of the Board, current assets, loans and advances are stated at a value which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

5. Note:

Additional information pursuant to Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed.

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Mar 31, 2013

1 Note : Segment Reporting

The company''s operations consist one line of activity year by year. The Company is primarily operating in India which is considered as a single geographical segment. Hence there are no reportable segments under Accounting Standard – 17, issued by Institute of Chartered Accountants of India, during the year under report. The cond itions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

2 Note:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is: Nil (Nil)

3 Note:

In the opinion of the Board, current assets, loans and advances are stated at a value which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

4 Note:

Additional information pursuant to Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed.

* Provision for Standard Assets has been made @ 0.25% on standard assets as per Reserve Bank of India direction, vide its notifcation no. DNBS.223/CGM (US) - 2011 dated 17.01.2011

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Mar 31, 2012

1 Note : Segment Reporting

The company's operations consist one line of activity year by year. The Company is primarily operating in India which is considered as a single geographical segment. Hence there are no reportable segments under Accounting Standard - 17, issued by Institute of Chartered Accountants of India, during the year under report. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

2 Note:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is: Nil (Nil)

3 Note:

In the opinion of the Board, current assets, loans and advances are stated at a value which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

4 Note:

Additional information pursuant to Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed.

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Mar 31, 2010

1. All amounts in the financial statements are presented in Rupees as otherwise stated. Figures in brackets represent corresponding previous year figures in respect of Profit & Loss items and in respect of Balance Sheet date of previous year. Figures for the previous year have been regrouped / rearranged wherever considered necessary to confirm to the figures presented in the current year.

2. Contingent Liabilities not provided for;

Particulars 2009-10 2008-09

Bank Guarantees Nil Nil

Corporate Guarantees Nil Nil

Letter of Credit Nil Nil

Demands against the company not acknowledgedas debts and not provided for in respect of which the Company has filed appeal

-Income Tax

-Sales Tax Nil Nil

Claims against the Company not acknowledged as debts Nil Nil

8. Based on the information available with the Company, there are no dues outstanding in respect of Micro, Small and Medium enterprises at the balance sheet date. No amounts were payable to such enterprises which were outstanding for more than 45 days. Further, no interest during the year has been paid or payable in respect thereof. The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Com- pany. This has been relied upon by the auditors.

9. In the opinion of the Board, current assets, loans and advances are stated at a value which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

10. The companys operations consist one line of activity year by year. The Company is primarily operating in India which is considered as a single geographical segment. Hence there are no reportable segments under Accounting Standard - 17, issued by Institute of Chartered Accoun- tants of India, during the year under report. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

11. Reporting on Related parties; In accordance with the Accounting Standard - 18 issued by Insti- tute of Chartered Accountants of India, Name of related parties and description of relationship.

Relationship Name of the Personnel / Entity

Key Management Personnel Suraj Thammineni, Prattipati Parthasarathi, Minjur Doraisamy Ethirajan, Anil Kumar Talasila, Ratan Kishan Musurnur

Relative of Key Management Personnel Nil

Enterprises own or significantly Phat Phish India Private Ltd, Talus Infra Ventures influenced by Key Management Private Ltd, Seven Hills Wellness Pvt Ltd, Personnel or their relatives Golden Valley Holdings Ltd, Northgate Technologies Ltd, Social Media India Ltd, Andhra Electronics Ltd, Citizen Communication Ltd, Manjeet Chemicals Private Ltd, Madhuha Designer Wear Private Ltd, Infrastructure and Developers Private Ltd.

12. There was no impairment loss on fixed assets on the basis of review carried out by the manage- ment in accordance with Accounting Standard - 28 issued by Institute of Chartered Accountants of India. Further during the review of assets of the company, those assets which were found to be having nil market value will be provided as per the adopted policy.

13. Debit and Credit balances of parties are subject to confirmation by the respective parties.

14. Additional information pursuant to provisions of Para 3, 4C and 4D of Part - II of Schedule VI of Companies Act, 1956 - Not Applicable.