Notes to Accounts of Cosyn Ltd.

Mar 31, 2024

Note -1 :

The Security Deposit of ? 12,00,000/- paid for 99 years use of trade mark "CITYMAN " in 1992 to M/s. S.S. Agencies, a firm in which the Managing director and their relatives are interested. The Company is not using the Trademark hence, the security deposit paid towards the Trademark is shown at Cost

Note - 2 :

(1) Inventories of? 73,271.40/-(in 000’s ) is expected to be recovered after more than 12 months.

(2) The company has purchased a property at Panangad, Ernakulam, Kerala for residential township development. The company has to buy further land to get advantages of better access to the site and higher realisation at the time of sale.

(i) The Company has only one class of shares referred to as equity shares having par value of Rs 10 each.

(ii) Each shareholder is eligible for one vote per share held.

(iii) Dividends are to be approved in the General Meetings based on and not exceeding the recommendation of the Board of Directors.

(iv) ln the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.

(v) Each Share holder has a right to inspect the statutory registers of the company as per the provisions of the companies act, 2013.

(vi) Each and every share holder has a right to participate in the share holders'' meetings as and when called by the company subject to provisions of the Companies Act, 2013.

(e) Shares reserved for issue under options & contracts/commitments for sale of shares /disinvestment, including the terms & amounts - NIL

NOTE - 3 : Retained earnings

The cumulative gain or loss arising from the operations which is retained by the Company is recognised and accumulated under the heading of retained earnings. At the end of the year, the profit/(loss) after tax is transferred from the statement of profit and loss to the retained earnings account.

Net of capital subsidy of Rs.958000/- received from Department of Industries, Government of Karnataka.

NOTE - 4:

The above loan is from Mr. Santhosh Joseph Karimattom, Managing director, Rs. 13,67,58,262/- as at 31^stMarch, 2024 and as at 31^st March,2023 (Rs. 13,39,44,456/-). The above loan is an interest free loan and the same is payable on demand.

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which

recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ‘Micro, Small and Medium Enterprises Development Act, 2006’ (‘the MSMED Act’). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2024 has been made in the financial statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the MSMED Act is not expected to be material. The Company does not have any principal or interest dues to micro and small enterprises as at 31 March 2024: Nil ( 31 March 2023: Nil)

The rental agreement between the Company and the landlord is for a period of 11 months, hence the lease qualifies as a short term lease as per Ind AS 116 and hence the lease payments are recorded on actual basis in the statement of profit and loss.

22.Contingent liabilities and capital commitments
Particulars	As at	As at
	31st March 2024	31 March 2023
Contingent Liabilites Income Tax Dispute	-	¦
Capital commitments Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for	-	-

26. Expenditure on corporate social responsibility activities

Since the Company does not meet the criteria specified in Section 135 of the Companies Act, 2013, the Company is not required to spend any amount on activities related to corporate social responsibility for the year ended March 31,2024.

27. Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses and for which discrete financial information is available. The operating segments’ operating results are reviewed by the Chief Operating Decision Maker (Board of Directors) to make decisions about

resources to be allocated to the segments and assess their performance. The Company’s business activities fall within one component (namely, "development, rental and maintenance of serviced residence"). However, the Company has not commenced its operations as at the year end.

29. Financial risk management

The Company has exposure to following risks arising from financial instruments- market risk [refer (a) below]

- credit risk [refer (b) below]

- liquidity risk [refer (c) below]

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment.

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, which will affect the Company’s income or the value of its holdings of financial instruments.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

Majority of the transactions entered into by the Company are denominated in INR. Accordingly, the Company does not have any currency risk.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company have borrowings during the year from its Directors, which is also interest free. Hence, the Company is not exposed to significant interest rate risk as at the respective reporting dates.

Price risk

Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices of investments. The Company has no exposure to equity securities price risk and is not exposed to commodity price risk.

b) Credit risk

Credit risk is the potential financial loss resulting from the failure to settle its financial and contractual obligations, as and when they fall due, The company does not have any receivable during the year.

The Company establishes an allowance account for impairment that represents its estimate of losses in respect of trade and other receivables. The allowance account is used to provide for impairment losses. Subsequently when the Group is satisfied that no recovery of such losses is possible, the financial asset is considered irrecoverable and the amount charged to the allowance account is then written off against the carrying amount of the impaired financial asset.

Cash at bank are placed with financial institutions which are regulated.

As at the reporting date, there is no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying value of each financial asset on the Balance Sheet.

Cash and cash equivalents (including bank balances and fixed deposits with banks):

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Liquidity is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing the liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Management of the Company in accordance with practice and limits set by the Company. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The company not exposed to liquidity risk, the directors of the Company are well capable of funding the regular and future expansion requirement of the company.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Transfers between Level 1, Level 2 and Level 3

There were no transfers between Level 1, Level 2 or Level 3 during the year ended 31 March 2024 and 31 March 2023 respectively.

31. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company''s policy is to maintain share capital at its minimum Management monitors the return on capital.

In order to maintain or adjust the capital structure, the company may issue new shares or sell assets to reduce debt. Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet)

The company evaluates the performance based earning before interest, tax, depreciation and amortisation:

32. Additional Regulatory Information

(i) The title deeds to land and building as disclosed under Property, Plant and Equipment are held in the name of the Company.

(ii) There are no proceedings that have been initiated or pending against the Company for holding any any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

(iii) The Company has no borrowings from banks or financial institutions on the basis of security of current

assets, hence for the year ended March 2024, the Company is not required to file any quaterly statements or returns with Banks and Financial Institutions.

(iv) The Company has not availed any borrowings from banks or financial institutions on the basis of security of

current assets for the year ended March 2024.The quarterly return and statements filed by the company with Banks or Financial Institutions are in agreement with the books of accounts.

(v) The Company has not been declared as a willful defaulter by any bank or financial institution or any other

lender

(vi) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013

or section 560 of the Companies Act, 1956.

(vii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the

statutory period.

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

(ix) Scheme of Arrangements

There are no scheme of arrangements that have been approved by the competent authority in terms of Section 230 to 237 of Companies Act,2013

(x) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year

ended March 2024.

(xi) Utilisation of Borrowed Funds and Share premium

(A)The Company has not 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(s) or entity(ies), 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).

(B) The Company has not received any fund from any party(s) (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.

The Company declares that the Relevant Provisions of the FEMA Act ,1999 and Companies Act have been Complied with and are not in violation of the Prevention of Money-Laundering Act ,2002.

Point (A) - The variance is on account of increase value of work in progress.

Point (B) - The variance is on account of increase in the employee cost & additional borrowers from director.

34. Other Notes

Previous year figures have been regrouped and reclassified wherever necessary to make them comparable to current year figures.

Confirmations in respect of some of the receivables/sundry creditors have been received. Where ever confirmations in respect of these are not received, they are subject to confirmations/reconciliations or adjustments if any.

The notes referred to above form an integral part of these financial statements

---

Mar 31, 2018

1. CORPORATE INFORMATION:

COSYN LIMITED is incorporated in April, 1994 for carrying out the activities of offering a full range of software outsourcing services from end to end development of new software and web solutions, Enterprise Application Services, re-engineering and enhancement of legacy applications, application integration and maintenance, BPO / ITES services for Utilities, E-Governance, BFSI, Retail and DMS. The Company is carrying its activities from its registered office situated at # 6-185/10, Opp Telephone Bhavan, Saifabad, Hyderabad - 500 004

Basis of Preparation of Financial Statements:

For all periods up to and including the year ended 31stMarch,2017 the Company prepared its Financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These Financial statements for the year ended 31stMarch, 2018 have been prepared in accordance with Indian Accounting Standards (“Ind-AS”) consequent to the notification of the Companies (Indian Accounting Standards) Rules, 2015 (the Rules) issued by the MCA. These are the First Ind-AS Financial statements of the Company, wherein the Company has restated its financial statements for the year ended 31stMarch, 2017 also as per Ind-AS. The Financial statements have been prepared on historical cost basis.

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Preparation of the financial statements requires management to make judgments, estimates and assumptions, as described below, that affect the reported amounts and the disclosures. The Company based its assumptions and estimates on parameters available when the financial statements were prepared and reviewed at each Balance Sheet date. Uncertainty about these assumptions and estimates could result in outcomes that may require a material adjustment to the reported amounts and disclosures.

2.1 During the year, Company made investment of Rs 35,61,815/- towards 55,000 Equity Shares of Cosyn LLC, Texas,USA. wholly owned subsidiary

3.1. During the financial year 2017-18, Company has taken loan of Rs 2,70,00,000/- from State Bank of India, Balanagar branch against Fixed Deposit with the same Bank Rs 3,00,00,000/-. The said loan is carrying interest @ 6.25% p.a.

4. Contingent Liabilities not acknowledged as debt:

a) Bank Guarantees

b) Income Tax (TDS)

The Company has received demand notice for Rs. 17,36,296/- towards penalty and Interest for late payment/filing of TDS return for the years from 2007- 08 to 2016-17.

The Company has filed appeals against the said notices and the Management is confident of winning the appeal. Hence no provision made in the books of account.

c) Provident Fund

The Company has received Order towards levy of Damages for the period August 2008 to December 2015 for Rs. 29,04,703/-.

The Company has filed appeal against the said Order and the Management is confident of winning the appeal. Hence no provision made in the books of account

5. Related Party Transactions:

A. Related Parties and their Relationship

(As identified and certified by the Management)

I. Subsidiary Company : a) Cosyn LLC, Texas, USA

: b) WelltoDesk Inc, Texas, USA.

II. Key Managerial Personnel (KMP) :

Ravi Vishnu : Chairman & Managing Director

Summary of the Transactions with the above Related Parties are as follows:

6. Segment Details

The Company is engaged in providing Information Technology Services which in the context of Accounting Standard - 17 issued by ICAI are considered to constitute one single segment

7. Dues to Micro, Small and Medium Enterprises:

The Company is seeking confirmation from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on confirmations received till date, the company believes that it does not have any outstanding dues towards Micro Small and Medium Enterprises. Further the company has not paid/accrued any interest under this MSMED Act.

8. Confirmations are not received in respect of the amounts relating to trade receivables, trade payables, loan & advances.

9 Previous year’s figures have been regrouped / reclassified wherever necessary to corre spond with the current year’s classification / disclosure. Figures rounded off to the nearest rupee.

---

Mar 31, 2016

1 The Term Loan of State Bank of India, Balanagar is repayable in 20 monthly equal installment of Rs 1,87,790/. The said loan is secured by hypothecation of Plant & Machinery. The said loans are further secured by equitable mortgage of land belonging to the Company and others situated at Krithika Layout, Madhapur, Hyderabad. The said loans are further secured by Personal guarantees of Ravi Vishnu and A. Bhopal Reddy, Directors of the Company.

2 During the financial year 2015-16 Bajaj Finance Limited has sanctioned Unsecured Loan for Rs. 35,70,000/-. The said loan is repayable in 36 monthly equal installment of Rs.

1,29,064/-. The said loans are secured by way of post dated cheques issued by the Company.

3 Current matures of long term borrowings have been disclosed under the head other current liabilities.

4 During the financial year 2014-15 SBI Balanagar sanctioned Cash Credit facilities for an amount of Rs. 2,00,00,000/-. Out of the sanctioned amount company utilised an amount of Rs. 1,89,55,769/- as at 31 st March, 2016. The said facilities are secured by way of hypothecation of stocks and Book Debts of the Company. The said facilities are further secured by equitable mortgage of Land belonging to the Company and Others situated at Krithika Layout at Madhapur, Hyderabad.

The said loans are further secured by Personal guarantee of Ravi Vishnu and A.Bhopal Reddy, Directors of the company.

5 During the year, Company made investment in 1000 equity shares of Cosyn LLC, Texas, USA. With the above investment Cosyn LLC, Texas became wholly owned subsidiary w.e.f. 24th August, 2015.

6 During the Financial Year 2013-14 Company incurred an amount of Rs. 1,28,90,136/for development of a software in order to facilitate and execute online billing to the consumers of Punjab State Power Corporation Limited(PSPCL).

The said project with PSPCL is spread over a period of 4 years and the software developed can be used for a period of 4 years. The expenditure of Rs. 1,28,90,136/- incurred for development of software is deferred and will be written off over a period of 4years from the Financial year 2013-14.

7. Segment Details

The Company is engaged in providing Information Technology Services which in the context of Accounting Standard - 17 issued by ICAI are considered to constitute one single segment

8. Dues to Micro, Small and Medium Enterprises:

The Company is seeking confirmation from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on confirmations received till date, the company believes that it does not have any outstanding dues towards Micro Small and Medium Enterprises. Further the company has not paid/accrued any interest under this MSMED Act.

9. Confirmations are not received in respect of the amounts relating to trade receivable, trade payables, loan & advances.

10. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure. Figures rounded off to the nearest rupee.

---

Mar 31, 2015

1. Corporate information

CSS TECHNERGY LIMITED was incorporated in April, 1994 for carrying out the activities of offering a full range of software outsourcing services from end to end development of new software and web solutions, Enterprise Application Services, re-engineering and enhancement of legacy applications, application integration and maintenance, BPO / ITES services for Utilities, E-Governance, BFSI, Retail and DMS. The Company is carrying its activities from its registered office situated at # 6-1-85/10, Opp Telephone Bhavan, Saifabad, Hyderabad - 500 004.

2 Adjustment of Depreciation

Depreciation on transition to Schedule II of the Companies Act, 2013 on tangible Fixed Assets with NIL remaining useful life.

3 Share Warrants Money

During the financial year 2012-13, 10,23,460 Share Warrants were allotted on preferential basis to promoters of the company, vide resolution dated 22.12.2012. Each holder of the said share warrant is entitled to subscribe equivalent number of equity share of Rs 10/-each at a premium of Rs 11.50 each. Out of above Share Warrants of 9,45,000 Share Warrants of Rs 10/- each were converted in to equal no.of equity shares of Rs 10/- each during the earlier years. During the current year balance 78,460 Share Warrants were converted in to equal no.of equity share of Rs 10/-each.

4 - Long Term Borrowings

During the financial year 2013-14, State Bank of India, Balanagar branch has sanctioned Term Loan for Rs 80 Lakhs. Out of the Sanctioned loan of Rs 80 Lakhs, Company utilised an amount of Rs. 44.67 Lakhs during the year.

During the year, Company utilised Term Loan from State Bank of India, Balanagar Branch, Hyderabad. The said loan is repayable in 20 monthly equal installment of Rs 1,87,790/-.

The said loan is secured by equitable mortgage of land belongs to the Directors and Others situated at Krithika Layout at Madhapur, Hyderabad.

The said loans are further secured by Personal guarantee of Ravi Vishnu and A. Bhopal Reddy, Directors of the company.

Current maturies of long term borrowings have been disclosed under the head other current liabilities.

5 Cash Credit from State Bank of India

The Company has availed working capital loan from SBI for an amount of Rs. 2,00,00,000/-. Out of the working capital loan availed, the company utilised an amount of Rs. 1,97,53,270/- as at 31st March, 2015. The said loan is secured by equitable mortgage of land belongs to the Directors & others situated at Krithika Layout at Madhapur, Hyderabad

The said loans are further secured by Personal guarantee of Ravi Vishnu and A. Bhopal Reddy, Directors of the company.

6 Un Secured Loan from Others

During the year Company has taken unsecured loan Rs 18,50,000/- from RRK Enterprise Private Limited, an associate company. The said loan is repayable on demand.

7 Deferred Revenue Expenditure

During the Financial Year 2013-14, Company incurred an amount of Rs.1,28,90,136/-for development of a software in order to facilitate and execute Online Billing to the consumers of Punjab State Power Corporation Limited(PSPCL).

The said project with PSPCL is spread over a period of 4 years and the software developed can be used for a period of 4 years. The expenditure of Rs.1,28,90,136/-incurred for development of software is deferred and will be written off over a period of 4 years from the Financial year 2013-14.

Accordingly this being the Second year, Company has written off an amount of Rs.32,22,534/- being 1/4th of the total deferred revenue expenditure incurred.

8 (a) Cash and Cash Equivalents

Out of the above Cash and Bank balances, Cash and Cash Equivalents that meet the definition of cash flow statement is Rs 32,36,327/- (Previous year Rs 28,71,960/-).

9 Contingent Liabilities not acknowledged as Debt:

2014-15 2013-14 Rs Rs

a) Bank Guarantees 2,46,55,404 1,35,72,629

10 Related Party Transactions :

A. Related Parties and their Relationship (As identified and certified by the Management)

I. Associate Company : RRK ENTERPRISE PRIVATE LIMITED

II. Key Managerial Personnel (KMP) : Ravi Vishnu : Chairman & Managing Director

III. Relatives of KMP : R. Sri Hari

11 Segment Details

The Company is engaged in providing Information Technology Services which in the context of Accounting Standard - 17 issued by ICAI are considered to constitute one single segment

12 Dues to Micro, Small and Medium Enterprises:

The Company is seeking confirmation from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on confirmations received till date, the company believes that it does not have any outstanding dues towards Micro Small and Medium Enterprises. Further the company has not paid/accrued any interest under this MSMED Act.

13 Confirmations are not received in respect of the amounts relating to trade receivable, trade payables, loan & advances..

14 Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure. Figures rounded off to the nearest rupee.

15 Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be NIL as on April,1 2014 and has adjusted an amount of Rs 1,60,16,739/- against the opening surplus balance in the statement of Profit and Loss under Reserves and Surplus.

The depreciation expenses in the statement of profit and loss for the year higher by Rs 57,10,627/- consequent to the change in the useful life of the Asset.

---

Mar 31, 2014

1. Corporate information

CSS TECHNERGY LIMITED is incorporated in April, 1994 for carrying out the activities of offering a full range of software outsourcing services from end to end development of new software and web solutions, Enterprise Application Services, re-engineering and enhancement of legacy applications, application integration and maintenance, BPO / ITES services for Utilities, E-Governance, BFSI, Retail and DMS. The Company is carrying its activities from its registered office situated at # 6-1-85/10, Opp Telephone Bhavan, Saifabad, Hyderabad - 500 004.

2. Share Warrants Money

During the financial year 2012-13 10,23,460 Share Warrants were allotted on preferential basis to promoters of the company, vide resolution dated 22.12.2012. Each holder of the said share warrant is entitled to subscribe equivalent number of equity share of Rs 10/-each at a premium of Rs 11.50 each. Out of above Share Warrants of 10,23,460, 2,85,000 Share Warrants of Rs 10/- each were converted during the financial year 2012-2013 each in to equal no.of equity shares of Rs 10/- each. During the current year, 6,60,000 Share Warrants were converted in to equal no.of equity share of Rs 10/-each.

During the current year, Company has received an amount of Rs 5,35,475/- towards 25% of balance 78,460 share warrants and the same is accounted as money received against Share Warrants.

3. - Long Term Borrowings

During the year, State bank of india, Balanagar branch has sanctioned Term Loan for an amount of Rs 80 Lakhs. The said Term Loan will be repayable in 36 monthly installments of Rs 2.22 lakh each commencing from 30.04.2014. The said loan is secured by equitable mortgage of 500 Sq.yds of land belonging to the Company and equitable mortgage of 500 Sq.yds of land belonging to Associate Company Granada Engineers Limited. Out of the sanctioned amount, an amount of Rs 33.32 Lakhs disbursed during the FY 2013-14.

The said loans are further secured by way of corporate guarantee of Associate Company Granada Engineers Limited and Personal guarantee of Ravi Vishnu and A.Bhopal Reddy Directors of the company.

4. Cash Credit from State Bank of India

The Company has availed working capital loan from SBI for an amount of Rs. 2,00,00,000/-. Out of the working capital loan availed the company utilised an amount of Rs. 1,95,06,677/- as at 31 st March, 2014. The said loans are secured by equitable mortgage of 500 Sq.yds of land belonging to the Company and equitable mortgage of 500 Sq.yds of land belonging to Associate Company Granada Engineers Limited.

The said loans are further secured by way of corporate guarantee of Associate Company Granada Engineers Limited and Personal guarantee of Ravi Vishnu and A. Bhopal Reddy Directors of the company.

5. Un Secured Loan From Others

The Company has taken unsecured loan for an amount of Rs.10,00,000 from R.Sri Hari, a relative of Managing Director of the Company.

The Company has taken unsecured loan from Bhanu Hotels and Proprietors Pvt Ltd for an amount of Rs 20,00,000.

The said loans are repayable on demand.

6. Deferred Revenue Expenditure

During the current year, Company incurred an amount of Rs.1,28,90,136/- for development of a software in order to facilitate and execute online billing to the consumers of Punjab State Power Corporation Limited(PSPCL).

The said project with PSPCL is spread over a period of 4 years and the software developed can be used for a period of 4 years. The expenditure of Rs. 1,28,90,136/- incurred for development of software is deferred and will be written off over a period of 4years from the year in which it is incurred.

During the current year, Company written off an amount of Rs.32,22,534/- being 1/4th of the total deferred revenue expenditure incurred.

7. (a) Cash and cash equivalents

Out of the above Cash and Bank balances, Cash and cash equivalents that meet the definition of cash flow statement is Rs 28,71,960/- Previous year Rs 12,69,601/-.

8. Loans and Advances includes an amount of Rs.1,00,000 loan given to M/s.Granada Engineers Limited, a related party.

9. Contingent Liabilities not acknowledged as debt:

2013-14 2012-13 Rs Rs

a) Bank Guarantees 1,35,72,629 1,55,98,729

10. Segment Details

The Company is engaged in providing Information Technology Services which in the context of Accounting Standard - 17 issued by ICAI are considered to constitute one single segment

11. Dues to Micro, Small and Medium Enterprises:

The Company is seeking confirmation from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on confirmations received till date, the company believes that it does not have any outstanding dues towards Micro Small and Medium Enterprises. Further the company has not paid/accrued any interest under this MSMED Act.

12. Confirmations are not received in respect of the amounts relating to trade receivable, trade payables, loan & advances..

13. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure. Figures rounded off to the nearest rupee.

---

Mar 31, 2013

1. Corporate information

CSS TECHNERGY LIMITED is incorporated in April, 1994 for carrying out the activities of offering a full range of software outsourcing services from end to end development of new software and web solutions, Enterprise Application Services, re- engineering and enhancement of legacy applications, application integration and maintenance, BPO / ITES services for Utilities, E-Governance, BFSI, Retail and DMS. The Company is carrying its activities from its registered office situated at # 6-1-85/10, Opp Telephone Bhavan, Saifabad, Hyderabad – 500 004.

2. Contingent Liabilities not acknowledged as debt:

2012-13 2011-12 Rs Rs

a) Bank Guarantees 1,55,98,729 1,58,80,152

29. Related Party Transactions:

A. Related Parties and their Relationship

(As identified and certified by the Management)

I. Associate Company : Granada Engineers Limited

II. Key Managerial Personnel :

Ravi Vishnu : Chairman & Managing Director

Summary of the Transactions with the above Related Parties are as follows:

3. Segment Details

The Company is engaged in providing Information Technology Services which in the context of Accounting Standard – 17 issued by ICAI are considered to constitute one single segment

4. Dues to Micro, Small and Medium Enterprises:

The Company is seeking confirmation from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on confirmations received till date, the company believes that it does not have any outstanding dues towards Micro, Small and Medium Enterprises. Further the company has not paid/accrued any interest under the MSMED Act.

5. Confirmations are not received in respect of the amounts relating to trade receivable, trade payables, loan & advances.

6. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure. Figures rounded off to the nearest rupee.

---

Mar 31, 2012

1. Corporate information

CSS TECHNERGY LIMITED is incorporated in April, 1994 for carrying out a full range of software outsourcing services from end to end development of new software and web solutions, Enterprise Application Services, re-engineering and enhancement of legacy applications, application integration and maintenance, BPO / ITES services for Utilities, E-Governance, BFSI, Retail and DMS. The Company is carrying its activities from its registered office situated at # 6-1-85/10, Opp Telephone Bhavan, Saifabad, Hyderabad - 500 004.

2. Share Warrants Money

During the year, 5,65,000 share warrants issued to promoters and their relatives on preferential basis were converted into equal number of equity shares of Rs. 10/-each

During the Financial Year 2009-10 the company has taken Vehicle loan from HDFC Bank for an amount of Rs. 7,85,000/-. The Said loan is repayable in 48 Monthly equal installments of Rs. 19,390/- each. The company has paid 25 installments as at 31st March, 2012. The said loan is secured by way of Hypothecation of same asset on which loan is taken.

The Company has availed working capital loan from SBI for an amount of Rs. 2,00,00,000/. Out of the working capital loan availed the company utilised an amount of Rs. 1,99,26,953/- as at 31 st March, 2012. The said loans are secured by equitable mortgage of 500 Sq.yds of land belonging to the Company and equitable mortgage of 500 Sq.yds of land belonging to associate company Granada Engineers Limited.

The said loans are further secured by way of corporate guarantee of associate company Granada Engineers Limited and Personal guarantee of Ravi Vishnu and A. Bhopal Reddy Directors of the company.

4.1 Out of the above, the balances to meet the definition of cash and cash equivalents is Rs. 71,97,318/-. (As at 31 st March 2011 Rs 84,15,356/-)

5. Contingent Liabilities not acknowledged as debt:

2011-12 2010-11 Rs Rs

a) Bank Guarantees 1,58,80,152 1,23,36,768

6. Segment Details

The Company is engaged in providing Information Technology Services which in the context of Accounting Standard -17 issued by ICAI are considered to constitute one single segment

7. Dues to Micro, Small and Medium Enterprises:

The Company is seeking confirmation from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on confirmations received till date, the company believes that it does not have any outstanding dues towards Micro, Small and Medium Enterprises. Further the company has not paid/accrued any interest under the MSMED Act.

8. Confirmations are not received in respect of the amounts relating to trade receivable, trade payables, loan & advances.

9. The revised schedule VI has became effective from 1 April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure. Figures rounded off to the nearest rupee.

---

Mar 31, 2010

1. Contingent Liabilities not provided for 2009-10 2008-09 Rs Rs

a) Bank Guarantees 1,81,46,419 1,35,99,370

2. Secured Loans

a) State Bank of India is continuing to support the working capital requirements of the company byway of cash credit facility, which they have sanctioned in March 2008, and term loan to the company. The said loans are secured by hypothecation of all current assets and pledge of fixed assets of the company. The said loans are further secured by equitable mortgage of 500 Sq.yds of land belonging to the Company and equitable mortgage of 500 Sq.yds of land belonging to Granada Engineers Limited.

The said loans are further secured by the corporate guarantee of Granada Engineers Ltd and Personal guarantee of Ravi Vishnu and A. Bhopal Reddy.

b) ICICI Bank and Kotak Mahindra Bank have sanctioned equipment I vehicle loan and the said loan is secured by the hypothecation of the assets so purchased and personal guarantee of Ravi Vishnu and A. Bhopal Reddy.

3. Dues to Micro, Small and Medium Enterprises:

The company has put in place a suitable system for identifying the vendors coming under the preview of the Micro, Small and Medium Enterprises Development Act, 2006. Since the company has not received any information, in this regard, from the vendors, disclosure relating to amounts unpaid as at the last year end together with interest paid / payable underthisAct could not be ascertained.

4. Managerial Remuneration

5. Related Party Disclosures (As identified and certified by the Management)

a) Associate Company Granada Engineers Limited

b) Key Managerial Personnel

i) Ravi Vishnu Chairman & Managing Director

ii) A. Bhopal Reddy Whole Time Director

6. Segment Reporting:

The company engaged in providing Information Technology Enabled Services, which in the context of Accounting Standard-17 issued by ICAI are considered to constitute one single segment.

7. The sundry debtors outstanding for more than Six months include an amount of Rs. 18,37,65,466 outstanding for more than 2 years, the recovery of which may be doubtful. However, the management is confident of recovering the same and opined that no provision is required and most of them are Government and reputed organizations.

8. In accordance with AS 22 Accounting for Taxes on Income, the deferred tax liability as at 31 st March, 2010 comprises the following:

9. Earnings Per Share

10. Account balances of sundry debtors / creditors, Loans and Advances are subject to confirmation.

11. Additional information pursuant to the provisions of Paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 are not applicable to the Company.

12. Previous year figures have been regrouped and reclassified wherever necessary to conform to current years classification. Figures have been rounded off to the nearest rupee.