Notes to Accounts of Danlaw Technologies India Ltd.

Mar 31, 2025

p. Provisions

i) General

Provisions are recognised 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. When the Company expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognised as a separate asset, but only when
the reimbursement is virtually certain. The expense relating to a provision is presented in the
statement of profit and loss net ofany reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage oftime is recognised as a finance cost.

q. Employee benefits

i) Short-term employee benefit obligations

Liabilities for wages and salaries including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees'' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.

ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service. They are therefore measured as
the present value of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period using the projected unit credit method. The
benefits are discounted using the appropriate market yields at the end ofthe reporting period that
have terms approximating to the terms of the related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have
an unconditional right to defer settlement for at least twelve months after the reporting period,
regardless ofwhen the actual settlement is expected to occur.

Hi) Post employment benefits

Defined Contribution plan

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company
has no obligation, other than the contribution payable to the provident fund. The Company
recognizes contribution payable to the provident fund scheme as an expense, when an employee
renders the related service. If the contribution payable to the scheme for service received before
the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognized as a liability after deducting the contribution already paid. If the contribution already
paid exceeds the contribution due for services received before the balance sheet date, then excess
is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction
in future payment or a cash refund.

Defined benefit plan

The Company operates a defined benefit gratuity plan in India, which requires contributions to be
made to a separately administered fund.

The cost of providing benefits under the defined benefit plan is determined using the projected unit
credit method.

Remeasurements, comprising ofactuarial gains and losses, the effect ofthe asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the balance sheet with a corresponding debit or credit to retained earnings through
OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in
subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:

? The date ofthe plan amendment or curtailment, and

? The date that the Company recognises related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation as an expense
in the statement of profit and loss:

? Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and

? Net interest expense or income

r. Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net oftax, from the proceeds.

s. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no
longer at the discretion of the entity, on or before the end of the reporting period but not distributed
at the end of the reporting period.

t. Earnings per share

i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the company

• By the weighted average number of equity shares outstanding during the financial year,
adjusted for bonus elements in equity shares issued during the year and excluding treasury shares

ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

u. Provisions, contingent liabilities and contingent assets:

Provision: A provision is recognized 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.

Contingent Liability: 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.

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

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument ofanother entity.

i) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset. Purchases or sales of financial assets that require delivery of assets within a
time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

? Debt instruments at amortised cost

? Debt instruments at fair value through other comprehensive income (FVTOCI)

? Debt instruments, derivatives and equity instruments at fair value through profit or loss
(FVTPL)

? Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets
are subsequently measured at amortised cost using the effective interest rate (ElR) method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the
profit or loss. The losses arising from impairment are recognised in the profit or loss. This category
generally applies to trade and other receivables.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and
selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in the other comprehensive
income (OCI). However, the Company recognizes interest income, impairment losses & reversals
and foreign exchange gainor loss in the P&L. On derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding
FVTOCI debt instrument is reported as interest income using the EIR method.

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so
reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting
mismatch''). The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

Equity investments

Equity investments in Subsidiaries, Associates and joint ventures are measured at cost as per Ind AS
27.

All other equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as at FVTPL. For all other equity instruments, the Company
may make an irrevocable election to present in other comprehensive income subsequent changes
in the fair value. The Company makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts
from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative
gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ''pass¬
through'' arrangement; and either (a) the Company has transferred substantially all the risks and
rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the
risks and rewards ofthe asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor retained substantially all ofthe risks and rewards
of the asset, nor transferred control of the asset, the Company continues to recognise the
transferred asset to the extent ofthe Company''s continuing involvement. In that case, the Company
also recognises an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured
at the lower ofthe original carrying amount ofthe asset and the maximum amount of consideration
that the Company could be required to repay.

ii) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, or as derivatives, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement offinancial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments entered
into by the Company that are not designated as hedging instruments in hedge relationships as
defined by Ind AS 109. Gains or losses on liabilities held for trading are recognised in the profit or
loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans
and borrowings are subsequently measured at amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss. This category generally applies to borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.

Reclassification offinancial assets

The Company determines classification offinancial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities. For financial assets which are debt instruments, a reclassification is made only if
there is a change in the business model for managing those assets. Changes to the business model
are expected to be infrequent. The Company''s senior management determines change in the
business model as a result of external or internal changes which are significant to the Company''s
operations. Such changes are evident to external parties. A change in the business model occurs
when the Company either begins or ceases to perform an activity that is significant to its operations.
If the Company reclassifies financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following the
change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Derivatives that are not designated as hedges

The company enters into certain derivative contracts to hedge risks which are not designated as
hedges. Such contracts are accounted for at fair value through profit or loss and are included in other
gains/(losses)

3. Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition,
will seldom equal the actual results. Management also needs to exercise judgement in applying the
Company''s accounting policies.

This note provides an overview ofthe areas that involved a higher degree of judgement or complexity,
and of items which are more likely to be materially adjusted due to estimates and assumptions turning
out to be different than those originally assessed. Detailed information about each of these estimates
and judgements is included in relevant notes together with information about the basis of calculation
for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

• Estimation of current tax expense and payable

• Estimated useful life of intangible asset

• Estimation of defined benefit obligation

Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the company and
that are believed to be reasonable under the circumstances.

DANLAW TECHNOLOGIES INDIA LIMITED
Notes forming part ofthe financial statements

(All amounts are in K lakhs, except share data and where otherwise stated)

31 Capital and Financial risk management objectives and policies

A. Capital Management

The Company''s objective for capital management is to maximise shareholders value, safeguard business continuity and support the growth of
the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic
investment plans. The funding requirements are met through equity, operating cash flows generated and loans from institutions.

B. Financial Risk Management Framework

The Company''s principal financial liabilities, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is
to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables, and cash and cash
equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk which may adversely impact the fair value of its financial instruments.
The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial
performance of the Company.

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. The
value of a financial instrument may change as a result of changes in the foreign currency exchange rates and interest rates. Future specific
market movements cannot be normally predicted with reasonable accuracy.

Foreign currency risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with
respect to US$, Euros and GBPs . Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the functional currency (INR). The risk is measured through a forecast of highly probable foreign
currency cash flows. The objective of the company is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

DANLAW TECHNOLOGIES INDIA LIMITED
Notes forming part ofthe financial statements

(All amounts are in K lakhs, except share data and where otherwise stated)

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''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt
obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings
affected with all other variables held constant, the Company''s profit before tax is affected through the impact on fixed rate borrowings, as
follows:

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of
risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been
granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist
of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows,
and by matching the maturity profiles of financial assets and liabilities. The table below summarises the maturity profile of the Company''s
financial liabilities based on contractual undiscounted payments.

There are no financial instruments of the company that are subsequently measured at fair value.

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).

The carrying values of the current financial assets and current financial liabilities are taken as fair values because of their short term nature
The fair of non current financial assets is determined by using the discounted cash flow method by the management
* The above said shortfall amount has been transferred to Unspent CSR account within 30 days from the end of the financial year. The same
will be spent on the ongaoing project with in the prescribed time period.

37 Other Statutory Information

1 There are no proceedings initiated or pending against the company as at March 31, 2025, under Prohibition of
Benami Property Transaction Act, 1988 (As amended in 2016)

2 The Company do not have any transactions with companies struck off as per Section 248 of the Companies
Act, 2013 and Section 560 ofthe Companies Act, 1956

3 No immovable property is held by the Company except building which is constructed on leased land and lease
agreements are duly executed in favour ofthe company.

4 The Company has been sanctioned working capital limits (non-fund based) in excess of five crore rupees, in
aggregate, from banks on the basis of security of current assets. The quarterly returns or statements filed by
the Company with such banks are in agreement with the books of account of the Company and found no
material discrepancies.

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

6 The company has complied with CSR provisions as per sec. 135 ofthe Companies Act, 2013

7 The Company has not declared/paid any dividend during the year

8 The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority. The Company does not have any charges or satisfaction which is yet to be registered
with Registrar of Companies beyond the statutory period.

9 The Company have not any 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 ofthe Income Tax Act, 1961.

10 The Company have 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 ofthe Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries

11 The Company have 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 ofthe company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like toor onbehalfofthe Ultimate Beneficiaries

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

Danlaw Technologies India Limited

For CSVR & ASSOCIATES

Chartered Accountants Raju S. Dandu AVRKVarma

FRN: 012121S Chairman & Wholetime Chief Financial Officer

Director
DIN:00073484

(CA.VENKATESH G.)

Partner Seshagiri Rao Putrevu Gaurav Padmawar

Membership No: 239608 Director Company Secretary

DIN: 10743708 Membership No: ACS 44421

Place: Hyderabad
Date : 23-05-2025

---

Mar 31, 2024

u. Provisions, contingent liabilities and contingent assets:

Provision: A provision is recognized 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.

Contingent Liability: 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.

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

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.

i) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

? Debt instruments at amortised cost

? Debt instruments at fair value through other comprehensive income (FVTOCI)

? Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

? Equity instruments measured at fair value through other comprehensive income (FVTOCI) Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the P&L. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch''). The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

Equity investments

Equity investments in Subsidiaries, Associates and joint ventures are measured at cost as per Ind AS 27.

All other equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''passthrough'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Derivatives that are not designated as hedges

The company enters into certain derivative contracts to hedge risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss and are included in other gains/(losses)

3. Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

• Estimation of current tax expense and payable

• Estimated useful life of intangible asset

• Estimation of defined benefit obligation

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.

Note

(a) : Term Loan carry carry an interest rate of 10.40% p.a. This is primarily secured by way of hypothecation of plant & machinery and other fixed assets created out of bank finance. Personal gurantee of Mr.Raju dandu and corporate gurantee of M/S. Danlaw Systems India ltd. is given.Loan is taken.

uecl carry an mieresi raie oi ».257o p.a. i his is primarily secured by way oi riypoiriecauon oi plain. & machinery and oilier lixed assets created out of bank finance. Personal gurantee of Mr.Raju dandu and corporate gurantee of M/S. Danlaw Systems India ltd. is given.Loan is

taken

(b) : Working capital demand loan/cash credit facilities carry an interest rate of 10.40% p.a.. They are primarily secured by exisiting as well as future inventories, goods in transit, outstanding moneys, book debts,receviables,etc. Personal gurantee of Mr.Raju dandu and corporate gurantee of M/S. Danlaw Systems India ltd. is given.Loan is taken for business purpose and is repayable on demand.

(c) . The company, has taken taken external commercial borrowing from Danlaw Inc, amounting to USD 2,500,000 $. The borrowing rate for the loans is 2% 6m SOFR for FY 2023-24 and 4.5% 6m LIBOR for FY 2022-23. The term of the loan is 5 years. The repayment of the Principal amount is scheduled at the end of Year 5 i.e. the end of the loan period and interest amount is to be paid quarterly.

31 Capital and Financial risk management objectives and policies

A. Capital Management

The Company’s objective for capital management is to maximise shareholders value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity, operating cash flows generated and loans from institutions.

B. Financial Risk Management Framework

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

The Company is exposed to market risk, credit risk and liquidity risk which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

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. The value of a financial instrument may change as a result of changes in the foreign currency exchange rates and interest rates. Future specific market movements cannot be normally predicted with reasonable accuracy.

Foreign currency risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to US$, Euros and GBPs . Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the company is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

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’s exposure to the risk of changes in market interest rates relates primarily to the Company’s short-term debt obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected with all other variables held constant, the Company’s profit before tax is affected through the impact on fixed rate borrowings, as follows:

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

¹ There are no proceedings initiated or pending against the company as at March 31, 2024, under Prohibition of Benami Property Transaction Act, 1988 (As amended in 2016)

₂

The Company do not have any transactions with companies struck off as per Section 248 of the Companies Act, 2013 and Section 560 of the Companies Act, 1956

³ No immovable property is held by the Company except building which is constructed on leased land and lease agreements are duly executed in favour of the company.

4

The Company has been sanctioned working capital limits (non-fund based) in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks are in agreement with the books of account of the Company and found no material discrepancies.

₅

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

6

The company has complied with CSR provisions as per sec. 135 of the Companies Act, 2013

⁷ The Company has not declared/paid any dividend during the year

⁸ The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

9

The Company have not any 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.

¹⁰ The Company have 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

11 The Company have 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

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

Danlaw Technologies India Limited

for CSVR & ASSOCIATES

Chartered Accountants Raju S. Dandu A V R K Varma

Firm Registration No: 012121S Chairman & Wholetime Chief Financial Officer

Director DIN:00073484

(CA.VENKATESH G.)

Partner Ravikumar Tamma Gaurav Padmawar

Membership No: 239608 Director Company Secretary

DIN: 05306747 Membership No: ACS 44421

Place: Hyderabad Date : 25-05-2024

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Mar 31, 2023

Research and Development :

Direct expenses incurred on R&D during the year for the development of products are treated as deferred revenue expediture. The amount shall be amortized against the revenues to be earned over a period of time, to be determined at the time of product launch. Products under development capitalized as deferred revenue expenses to the extent ofRs.249.01 lacs has been written off as impairment loss per the decision of management and Board, due to the market conditions, technology changes, cost escalations due to electonic components shortage, could not convert into commercial orders.

Note

(a) : Term Loan carry carry an interest rate of 8.00% to 10.40% p.a. This is primarily secured by way of hypothecation of plant & machinery and other fixed assets created out of bank finance. Personal gurantee of Mr.Raju dandu and corporate gurantee of M/S. Danlaw Systems India ltd. is given.Loan is

GECL carry an interest rate of 7.40% to 9.25% p.a. This is primarily secured by way of hypothecation of plant & machinery and other fixed assets created out of bank finance. Personal gurantee of Mr.Raju dandu and corporate gurantee of M/S. Danlaw Systems India ltd. is given.Loan is taken.

(b) : Working capital demand loan/cash credit facilities carry an interest rate of 8.45% to 10.40% p.a.. They are primarily secured by exisiting as well as future inventories, goods in transit, outstanding moneys, book debts,receviables,etc. Personal gurantee of Mr.Raju dandu and corporate guranteeof M/S. Danlaw Systems India ltd. is given.Loan is taken for business purpose and is repayable on demand.

(c) . The company, has taken taken external commercial borrowing from Danlaw Inc, amounting to USD 2,500,000 $. The borrowing rate forthe loans is 4.5% 6m LIBOR. The term of the loan is 5 years. The repayment of the Principal amount is scheduled at the end of Year 5 i.e. the end of the loan period and interest amount is to be paid quarterly.

29. Contingent Liabilities
Particulars	Year Ended	Year Ended
	March 31, 2023	March 31, 2022
Bank Guarantees	169.62	119.62
Total Contingent Liabilities	169.62	119.62

31 Capital and Financial risk management objectives and policies

A. Capital Management

The Company''s objective for capital management is to maximise shareholders value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity, operating cash flows generated and loans from institutions.

B. Financial Risk Management Framework

The Company''s principal financial liabilities, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

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. The value of a financial instrument may change as a result of changes in the foreign currency exchange rates and interest rates. Future specific market movements cannot be normally predicted with reasonable accuracy.

Foreign currency risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to US$, Euros and GBPs . Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the company is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

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''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments.

(ii) Defined Benefit Plan (a) Gratuity

The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan". The Gratuity Plan entitles an employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of ^ 2,000,000.

33. Lease Liabilities

The Company has adopted Ind AS 116 "Leases" with the inception of the lease being April 1, 2019 and has discounted lease payments using the incremental borrowing rate for measuring the lease liability.

The weighted average incremental borrowing rate applied to lease liabilities is 10.7%

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).

The carrying values of the current financial assets and current financial liabilities are taken as fair values because of their short term nature The fair of non current financial assets is determined by using the discounted cash flow method by the management

35. Note of Amalgamation

During the year (NCLT order dated 01st November, 2022) subsidiary of Danlaw Technologies India Limited (DTIL) "M/s.Danalaw Electronic Assembly Limited" has been amalgamated with DTIL. While preparing the financial statements, previous years figures were also restated since the appointed date being 01st April, 2020.

36 Other Statutory Information

1 There are no proceedings initiated or pending against the company as at March 31, 2023, under Prohibition of Benami Property Transaction Act, 1988 (As amended in 2016)

2 The Company do not have any transactions with companies struck off as per Section 248 of the Companies Act, 2013 and Section 560 of the Companies Act, 1956

3 No immovable property is held by the Company except building which is constructed on leased land and lease agreements are duly executed in favour of the company.

4 The Company has been sanctioned working capital limits (non-fund based) in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks are in agreement with the books of account of the Company and found no material discrepancies.

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

6 CSR provisions as per sec. 135 of the Companies Act, 2013 are not applicable to the company.

7 The Company has not declared/paid any dividend during the year

8 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

9 The Company have not any 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.

10 The Company have 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

11 The Company have 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

---

Mar 31, 2018

During the year 2017-18, the Company bought back 12,810 equity shares out of the period of five years immediately preceeding the reporting date.

In the year 2017-18, the Company had approved proposal for buy back of its equity shares at a price not exceeding Rs.65/- per equity share for an aggregate amount not exceeding Rs.4,83,63,900 which is 20% of its maximum buy back size. The Company bought back and extinguished 12,810 equity shares for a total consideration of Rs.8,32,650/-.

1. Managerial Remuneration

The following managerial remuneration was paid as per board of director’s decision and approved by shareholders.

There are no financial instruments of the company that are subsequently measured at fair value.

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).

The carrying values of the current financial assets and current financial liabilities are taken as fair values because of their short term nature The fair of non current financial assets is determined by using the discounted cash flow method by the management

NOTE 2 - Loan Receivable - Affiliate:

The loan receivable from Danlaw, Inc., an affiliate of the Company, is unsecured with interest at 1.12% per annum. Interest of $2,084 has been accrued at March 31, 2018. The loan balance has been received in full as of the report date.

NOTE 3 - Income Taxes:

The provision for Federal income tax for 2018 and 2017 is based on taxable income at statutory rates. The provision or benefit for state income tax is based on taxes assessed at statutory rates. Management has reviewed the Company’s tax positions and concluded that there are no significant uncertain tax positions that are required to be recognized in the financial statements. The Company does not have any unrecognized tax benefits which would impact the effective income tax rate. The total amount of interest and penalties relating to income taxes was not material.

The Company files income tax returns with various federal and state tax jurisdictions. Tax returns filed with the Internal Revenue Service for the years 2015 - 2017 are subject to examination. Tax returns filed with the various states for the years 2014 - 2017 are subject to examination.

As of December 31, the component of the Federal income tax expense is as follows:

NOTE 4 - Related Party Transactions:

The Company is related by common ownership to Danlaw Technologies India, Ltd. and by common management to Danlaw, Inc. The following schedule summarizes transactions and outstanding balances with the related entities:

N OTE 5 - Retirement Plan:

The Company maintains a 401(k) Profit Sharing Plan available to all employees meeting certain age and service requirements. The plan allows employees to contribute up to 15% of their salary to the plan, subject to Internal Revenue Code limitations. The Company may elect to match a portion of the employees’ contributions to the plan and may contribute additional amounts at its discretion. There were no employer contributions for the years ended March 31, 2018 and 2017.

---

Mar 31, 2015

1.1.1 Taxes on Income as per Accounting Standard 22

a) In accordance with the Accounting Standard (AS)22 relating to "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, an amount of Rs.2,31,948/- has been recognized as Deferred Tax Asset accrued during the year. Thus net Deferred Tax Asset of .2,31948/- charged in the Profit & Loss Account.

1.1.2 Disclosure under Macro, Small and Medium Enterprises Development Act, 2006 There are no Micro, Small Scale Business Enterprises to whom the Company owes dues, which are outstanding for more than45daysasatMarch31,2015. This information as 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.

1.1.3 The Company has overdraft facility with HDFC Bank Ltd to the extent of Rs.2.70 crores against the security of Company's term deposits of Rs.3.00 crores with them.

The Transactions with related parties have been carried at arm's leng price and also supported by the documentation reflecting the arm's leng transaction

1.1.4 Disclosure of Depreciation as per the Companies Act 2013

Useful life of various assets was revised in accordance with Schedule II of the Companies Act 2013. The change in useful life resulted in the completion of useful life certain fixed assets before 31.03.2014. The written down value of the assets after retaining the salvage value was transferred to the opening balance of retained earnings in the current year in the amount or Rs. 45,84,746/-

1.1.5. Depreciation

Certain Assets which were old and not in use having net book value Nil have been retired.

1.1.6 Notes on accounts

The previous year's figures have been regrouped, reclassified / restated, wherever necessary, to conform to the current year's classification.

---

Mar 31, 2014

Contingent Liabilities:

Bank Guarantees 15,65,011 9,54,503

---

Mar 31, 2013

1.1.1 Contingent Liabilities:

Bank Guarantees 9,54,503 3,44,417

1.1.2 Disclosure under Macro, Small and Medium Enterprises Development Act, 2006 There are no Micro, Small Scale Business Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as 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.

1.1.3 The Company has overdraft facility with HDFC Bank Ltd to the extent of Rs.2.70 crores against the security of Company''s term deposits of Rs.3.00 crores with them.

1.1.4 Notes on accounts

The previous year''s figures have been regrouped, reclassified / restated, wherever necessary, to conform to the current year''s classification.

---

Mar 31, 2012

1.1.1 Contingent Liabilities:

Bank Guarantees 3,44,417 98,26,200

1.1.2 Disclosure under Macro, Small and Medium Enterprises Development Act, 2006 There are no Micro, Small Scale Business Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information as 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.

1.1.3 Notes on accounts

The previous year's figures have been regrouped, reclassified / restated, wherever necessary, to conform to the current year's classification.

---

Mar 31, 2011

The previous year's figures have been regrouped, reclassified / restated, wherever necessary, to conform to the current year's classification.

1.2.1 Contingent liabilities

The Company has outstanding counter guarantees of Rs.98,26,200/- as at March 31, 2011, to various banks, in respect of guarantees given by the said banks in favor of bodies corporate to the extent of Rs.96,23,084/- and Rs.2,03,116/- to government authorities. The counter guarantees outstanding as at the previous year-end was Rs. 93,19,557/- and Rs.2,61,465/- respectively.

1.2.2 Quantitative details

The information as required under paragraphs 3, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956 are not applicable to this company.

1.2.3 Taxes on Income as per Accounting Standard 22

a) In accordance with the Accounting Standard (AS) 22 relating to “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India, an amount of Rs.3.75 lakhs has been recognized as Deferred Tax Asset accrued during the year and Rs.27.45 Lakhs as Deferred Tax Liability on time barred carry forward loss. Thus Net Deferred Tax Liability of Rs.23.70 Lakhs charged in Profit & Loss Account

1.2.4 Secured Loans:

Overdraft facility from The Dhanalakshmi Bank Ltd is secured against the fixed deposits of the Company.

1.2.6 Related Party transactions

The Company had transactions with the following related parties:

Danlaw Inc., USA (DI) in which Mr. Raju S Dandu is CEO; Danlaw Technologies Inc., USA, (DTI) which is 100% Subsidiary of Danlaw Technologies India Ltd; Danlaw Systems India Ltd., in which Mrs. Lakshmi Dandu wife of Mr. Raju S Dandu is director; Mr. Raju S Dandu, Chairman & Managing Director (CMD); Mr. D S N Raju, brother of Raju S Dandu, and Mrs. D Lakshmi, wife of Mr. D S N Raju.

1.2.7 Segment reporting

The company's sales are basically related to providing software development services delivered to customers situated at USA. Hence the primary and secondary segment reporting is based on the software development services to USA only.

1.2.8 Disclosure under Macro, Small and Medium Enterprises Development Act, 2006

There are no Micro, Small Scale Business Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2011. This information as 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.

---

Mar 31, 2010

The previous years figures have been regrouped, reclassified / restated, wherever necessary, to conform to the current years classification.

1.1.1 Contingent liabilities

The Company has outstanding counter guarantees of Rs.95,81,022/- as at March 31, 2010, to various banks, in respect of guarantees given by the said banks in favor of bodies corporate to the extent of Rs.93,19,557/- and Rs.2,61,465/- to government authorities. The counter guarantees outstanding as at the previous year-end was Rs. 80,18,856/- and Rs.1,92,525/- respectively.

1.1.2 Quantitative details

The information as required under paragraphs 3, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956 are not applicable to this company.

1.1.3 Taxes on Income as per Accounting Standard 22

a) In accordance with the Accounting Standard (AS) 22 relating to "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, an amount of Rs.14.29 lakhs has been recognized in Profit & Loss Account as Deferred Tax Asset accrued during the year.

1.1.4 Secured Loans:

Overdraft facility from The Dhanalakshmi Bank Ltd is secured against the fixed deposits of the Company.

1.1.5 Related Party transactions

The Company had transactions with the following related parties:

Danlaw Inc., USA (DI) in which Mr. Raju S Dandu is CEO; Danlaw Technologies Inc., USA, (DTI) which is 100% Subsidiary of Danlaw Technologies India Ltd; Danlaw Systems India Ltd., in which Mrs. Lakshmi Dandu wife of Mr. Raju S Dandu is director; Mr. Raju S Dandu, Chairman & Managing Director (CMD); Mr. D S N Raju, Director; and Mrs. D Lakshmi, wife of Mr. D S N Raju.

1.1.6 Segment reporting

The companys sales are basically related to providing software development services delivered to customers situated at USA. Hence the primary and secondary segment reporting is based on the software development services to USA only.

1.1.7 There are no dues to small Scale Industrial undertakings outstanding above Rs. one lack and exceeding 30 days.