Notes to Accounts of ERP Soft Systems Ltd.

Mar 31, 2024

The Company has issued only one class of Equity Shares having per value of Rs 10/-each. Each holder of Equity Share is entitled to one vote per share.The Company declares dividends in India Rupees.The Dividend proposed By the Board of Director is subjects to the approval by the Shareholders at the Annual General Meeting.

Dividend

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the sharholders in the ensuing Annual General Meeting expect in case of interim dividend. The remittance of dividends outside India is governed by Indian Law on foreign exchange and is subject to applicable distribution taxes.

20. Investments in the Balance Sheet comprises of short term surplus funds invested in liquid schemes of Mutual Funds which are measured at fair value through Profit and loss.

21. The Company has 100% Subsidiary in US namely Libertycom, LLC

22. Contingent Liabilities: There are no Contingent liabilities as on date.

23. Disclosure of related parties and related party transactions:

Transaction during the year

Key Managerial Personnel

25. There are no dues to Small Scale Industries which is outstanding for more than 30 days at the Balance Sheet Date computed on unit wise basis. The above information regarding Small Scale undertaking has been determined to the extent such parties have been identified on the basis of information available with the Company and have been relied upon by the Auditors.

26. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

27. Title deeds of immovable properties

The company does not own any immovable property during the current and previous financial year.

28. Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

29. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder for the year ended 31 March 2024

30. Borrowing secured against current assets

The Company has not borrowed any money from banks on the basis of security of current assets. The filing of quarterly returns or statements of current assets by the Company with banks do not arise.

31. Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or other lender.

32. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year

33. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

34. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

35. Utilisation of borrowed funds and share premium

No funds have been 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 or entity, 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). The Company has not received any fund from any party (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

36. Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

37. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

38. Corporate Social Responsibility (CSR)

The Company does not meet the criteria specified under Section 135 of the Act require constituting a Corporate Social Responsibility Committee and formulate a Policy for this purpose.

39. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

41. Previous year''s figures have been regrouped wherever necessary.

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Mar 31, 2023

n. Provisions, Contingent liabilities, Contingent Assets

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not recognized for future operating losses. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

O . Employee Benefits

There are no permanent employees eligible for retirement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

p . Earnings per share

Basic earnings per share are calculated by dividing the profit after tax or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period. In case there are any dilutive securities during the period presented, the impact of the same is given to arrive at diluted earnings per share.

q. Estimation of uncertainties relating to the global health pandemic COVID-19

The Company, to the extent possible,has considered the risks that may result from uncertainty relating to COVID -19 pandemicand its impact on the carrying amounts of trade receivables,Investments,Financial instruments and effectiveness of its hedges. Based on the Company''s analysis of the current indicatorsof the future economic condition on its business and estimates used in its financial statements, the company does not foresee any material impact in the recoverability of the carrying value of the assets. The risk assessment is a continuous process and the company will continue to monitor the impact of the changes in future economic conditions on its business.

r. Classification of Assets and Liabilities into current and NonCurrent

The Company presents its assets and liabilities in the Balance Sheet based on current /non-current classification.

An asset is treated as current when it is:

a) expected to be realized or intended to be sold or consumed in normal operating cycle;

b) held primarily for the purpose oftrading;

c) expected to be realized within twelve months after the reporting period; or

d) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reportingperiod.

All other assets are classified as non-current.

A liability is treated as current when:

a) It is expected to be settled in normal operatingcycle;

b) It is held primarily for the purpose oftrading;

c) It is due to be settled within twelve months after the reporting period; or

d) Thereisnounconditionalrighttodeferthesettlementoftheliabilityforat leas ttwelve months after the reporting period.

All other liabilities are classified asnon-current.

Based onthe nature of products and the time between the acquisition of assets for processing and the irrealization incash and cash equivalents, the Company has

ascertaineditsoperatingcyclebeingaperiodwithintwelvemonthsforthepur pose of current and non-current classification of assets andliabilities.

s. Current Assets and Loans and Advances

In the opinion of the Management, Current Assets, Loans & Advances have a value on Realization in the ordinary course of business at least equal to the amount at which they are stated.

t. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in note. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and,if material, their effects are disclosed in the notes to the financial statements.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Information about such estimates and judgments are included in the relevant notes together with the basis of calculation for relevant line item in the financial statements. Estimates and judgments 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.

u. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible for capitalization.

Other borrowings costs are expensed in the period in which they are incurred.

v. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest two decimal places of lakhs as per the requirement of Schedule III, unless otherwise stated.

26. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

27. Title deeds of immovable properties

The company does not own any immovable property during the current and previous financial year.

28. Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

29. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder for the year ended 31 March 2023

30. Borrowing secured against current assets

The Company has not borrowed any money from banks on the basis of security of current assets. The filing of quarterly returns or statements of current assets by the Company with banks do not arise.

31. Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or other lender.

32. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year

33. Relationship with struck off companies

The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

34. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

35. Utilisation of borrowed funds and share premium

No funds have been 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 or entity, 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). The Company has not received any fund from any party (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

36. Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

37. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

38. Corporate Social Responsibility (CSR)

The Company does not meet the criteria specified under Section 135 of the Act require constituting a Corporate Social Responsibility Committee and formulate a Policy for this purpose.

39. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

For Vijayaraghavan & Associates For and on behalf of the board of Directors of

Chartered Accountants ERP Soft Systems Limited

Regn No : 05699S

Sd/- Sd/-

^Sd/- D.Sarojanamma K.Parvathi Reddy

^{P B Vijayaraghavan} Director Managing Director

^Partner DIN: 05208974 DIN: 00827258

M.No 015103

Sd- Sd-

Place: Chennai Shivangi Choudhry Ila Raveendra Babu

Date: 29.05.2023 Company Secretary Chief Financial Officer

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Mar 31, 2016

NOTES ON ACCOUNTS:

1. Contingent Liabilities: There are no Contingent liabilities as on date.

2. The Company has Subsidiaries in US namely Libertycom, LLC

3. Segment information:

Currently company is fully into IT Services and entire revenues come from United States.

4. CIF value of import in respect of capital goods: Nil.

Expenditure and Earnings in Foreign Currency: Earnings - $ 48,600 & Expenditure - Nil (Previous Year: Earnings -$ 16,111 & Expenditure -Nil)

5. Additional information pursuant paragraphs 5(iB) & (iii) of part II of

schedule of III of the companies Act, 2013 is not applicable to the Company.

6. Figures for the previous year are regrouped and rearranged, wherever necessary.

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Mar 31, 2015

1. Contingent Liabilities: There are no Contingent liabilities as on date.

2. The Company has Subsidiaries in US namely Liberty.com, LLC

3. Segment information:

Currently company is fully into IT Services and entire revenues come from United States.

4. CIF value of import in respect of capital goods: Nil.

Expenditure and Earnings in Foreign Currency: Earnings - $16111 & Expenditure - Nil (Previous Year: Nil)

5. Additional information pursuant paragraphs 5(iB) & (iii) of part II of schedule of III of the companies Act, 2013 is not applicable to the Company.

6. Figures for the previous year are regrouped and rearranged, wherever necessary.

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Mar 31, 2014

1. Contingent Liabilities: There are no Contingent liabilities as on date.

2. The Company has Subsidiaries in US namely Libertycom, LLC

3. Segment information:

Currently company is fully into IT Services and entire revenues come from United States.

4. CIF value of import in respect of capital goods: Nil.

Expenditure and Earnings in Foreign Currency: Nil (Previous Year: Nil)

5. There were no employees in respect of remuneration of Rs. 24, 00,000/- or more per annum or Rs.2, 00,000/- or more per month, if employed for part of the year.

6. Additional information pursuant paragraphs 3, 4C and 4D of part II of schedule of VI of the companies Act, 1956 is not applicable to the Company.

7. Figures for the previous year are regrouped and rearranged, wherever necessary.

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Mar 31, 2013

1.BACKGROUND AND NATURE OF OPERATIONS

ERP Soft Systems Limited ("ERP Soft") was incorporated in India with limited liability on December 16, 1994. The Company is principally engaged in the business of providing information technology solutions and business process outsourcing services. ERP Soft is headquartered in Chennai, India.

2. SEGMENT INFORMATION

Currently company is fully into IT Services and entire revenues come from United States.

3. Names of related parties and description of relationship

Principal shareholders D. Sreelatha

D. Sivakumar Reddy

D. Kowsalyamma

K. Parvathi

D. Sarojanamma

K. Navaneethamma

G Satish

K. Sivkumar Reddy

K. Chandana

G. Nagaraju

Subsidiaries Libertycom LLC

Key Managerial Personnel K. Parvathi, Managing Director

4. The confirmation from debtors, creditors and parties are pending from respective parties.

5. The previous year''s figures have been reclassified or regrouped where ever found necessary to confirm to groupings and classifications of current year

6 Foreign exchange inflows are Rs.224.39 lacs and outflow is Nil during the year.

7 Information required under paragraphs 4 & 5 of Part-II schedule VI to the Companies Act, 1956 is not applicable due to the nature of the business carried on during the year.

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Mar 31, 2012

1. SEGMENT INFORMATION

Business segments are defined as a distinguishable component of an enterprise that is engaged in providing related services and that is subject to risks. This information is reviewed and evaluated regularly by the management in deciding how to allocate resources and in assessing the performance.

The Company is organized geographically and by business segment. For management reporting purposes the Company is primarily organized its business segment into "IT services and BPO services."

IT services and BPO services comprise of software development, Enterprise management Services, Support services, customized software implementations and IT and Business consulting.

SEGMENT REVENUE AND EXPENSE:

Revenue is generated through providing IT and BPO services to the customers.

SEGMENT ASSETS AND LIABILITIES

Segment assets include all operating assets used by a segment and consist principally of debtors and fixed assets.

Segment liabilities include advance from customer, accrued employee cost and other current liabilities.

While most such assets and liabilities can be directly attributed to individual segments, the carrying amount of certain assets and liabilities used jointly by two or more segments is allocated to the segment on a reasonable basis.

2. Names of related parties and description of relationship

Principal shareholders

D. Sreelatha

D. Sivakumar Reddy

D. Kowsalya

K. Parvathi

D. Sarojanamma

K. Radha Krishna Reddy

K. Navaneethamma G Satish

K. Sivkumar Reddy

K. Chandana

G. Nagaraju

Relationship Family members/ relatives

Subsidiaries Libertycom LLC

Key Managerial Personnel K. Parvathi, Managing Director

3. The confirmation from debtors, creditors and parties are pending from respective parties.

4. The previous years figures have been reclassified or regrouped where ever found necessary to confirm to groupings and classifications of current year

5 Foreign exchange inflows are Rs.34.57lacs and outflow is Nil during the year.

6 Information required under paragraphs 4 & 5 of Part-II schedule VI to the Companies Act, 1956 is not applicable due to the nature of the business carried on during the year.

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Mar 31, 2011

1. BACKGROUND AND NATURE OF OPERATIONS

ERP Soft Systems Limited ("ERP Soft") was incorporated in India with limited liability on December 16, 1994. The Company is principally engaged in the business of providing information technology solutions and business process outsourcing services. ERP Soft is headquartered in Chennai, India.

2. SEGMENT INFORMATION

Business segments are defined as a distinguishable component of an enterprise that is engaged in providing related services and that is subject to risks. This information is reviewed and evaluated regularly by the management in deciding how to allocate resources and in assessing the performance.

The Company is organized geographically and by business segment. For management reporting purposes the Company is primarily organized its business segment into "IT services and BPO services."

IT services and BPO services comprise of software development, Enterprise management Services, Support services, customized software implementations and IT and Business consulting.

SEGMENT REVENUE AND EXPENSE:

Revenue is generated through providing IT and BPO services to the customers.

SEGMENT ASSETS AND LIABILITIES

Segment assets include all operating assets used by a segment and consist principally of debtors and fixed assets.

Segment liabilities include advance from customer, accrued employee cost and other current liabilities.

While most such assets and liabilities can be directly attributed to individual segments, the carrying amount of certain assets and liabilities used jointly by two or more segments is allocated to the segment on a reasonable basis.

3. Names of related parties and description of relationship

Principal shareholders D. Sreelatha

D. Sivakumar Reddy

D. Kowsalya

K. Parvathi

D. S.Reddy

D. Sarojanamma

K. Radha Krishna Reddy

K. Navaneethamma

G Satish

K. Sivkumar Reddy

K. Chandana

G. Nagaraju

Subsidiaries Libertycom LLC

Key Managerial Personnel K. Parvathi, Managing Director

4. The confirmation from debtors, creditors and parties are pending from respective parties.

5. The previous years figures have been reclassified or regrouped where ever found necessary to confirm to groupings and classifications of current year

6 Foreign exchange inflows are Rs.26.43 lacs and outflow is Nil during the year.

7 Information required under paragraphs 4 & 5 of Part-II schedule VI to the Companies Act, 1956 is not applicable due to the nature of the business carried on during the year.

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Mar 31, 2010

1. BACKGROUND AND NATURE OF OPERATIONS ERP Soft Systems Limited ("ERP Soft") was incorporated in India with limited liability on December 16, 1994. The Company is principally engaged in the business of providing information technology solutions and business process outsourcing services. ERP Soft is headquartered in Chennai, India.

2. SEGMENT INFORMATION

Business segments are defined as a distinguishable component of an enterprise that is engaged in providing related services and that is subject to risks. This information is reviewed and evaluated regularly by the management in deciding how to allocate resources and in assessing the performance.

The Company is organized geographically and by business segment. For management reporting purposes the Company is primarily organized its business segment into “IT services and BPO services.”

IT services and BPO services comprise of software development, Enterprise management Services, Support services, customized software implementations and IT and Business consulting.

3. Names of related parties and description of relationship

Principal shareholders D. Sreelatha

D. Sivakumar Reddy

D. Kowsalya

K. Parvathi

D. S.Reddy

D. Sarojanamma

K. Radha Krishna Reddy

K. Navaneethamma

G. Balasubramaniam G Satish

K. Sivkumar Reddy

K. Chandana

G. Nagaraju

Subsidiaries Libertycom LLC Key Managerial Personnel K. Parvathi, Managing Director

4. The confirmation from debtors, creditors and parties are pending from respective parties.

5. The previous years figures have been reclassified or regrouped where ever found necessary to confirm to groupings and classifications of current year

6 Foreign exchange inflows are Rs.75.17 lacs and outflow is Nil during the year.

7 Information required under paragraphs 4 & 5 of Part-II schedule VI to the Companies Act, 1956 is not applicable due to the nature of the business carried on during the year.