Notes to Accounts of Fourth Generation Information Systems Ltd.

Mar 31, 2024

1.12 Provisions, contingent liabilities and contingent assets
Provisions

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. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money and the
risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.

Contingent liabilities

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

Contingent assets

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

1.13 Revenue Recognition
Sale of goods and services

Revenue is recognized when the Company substantially satisfied its
performance obligation while transferring a promised good or service to its
customers. The company considers the terms of the contract and its
customary business practices to determine the transaction price.
Performance obligations are satisfied at the point of time when the customer
obtains controls of the asset.

Revenue is measured based on transaction price, which is the fair value of
the consideration received or receivable, stated net of discounts, returns and
value added tax. Transaction price is recognized based on the price specified
in the contract, net of the estimated sales incentives/discounts. Accumulated
experience is used to estimate and provide for the discounts/ right of return,
using the expected value method.

Unbilled revenue represents amounts recognized based on services
performed in advance of billings in accordance with contract terms and is net
of estimated allowances for uncertainties and provision for estimated losses.
Revenues from annual maintenance contracts are recognized pro-rata over
the period of the contract in which the services are rendered.

Revenue from sale of licenses, hardware and other related items are
recognized when the significant risk and rewards of ownership and title of the
product is transferred to the buyer which generally coincides with
acknowledgement of delivery. The value of sale is net of taxes.

Other Income

Interest Income

Interest Income mainly comprises of interest on Margin money deposit with
banks relating to bank guarantee. Interest income should be recorded using
the effective interest rate (EIR). However, the amount of margin money
deposits relating to bank guarantee are purely current in nature, hence
effective interest rate has not been applied. Interest is recognized using the
time-proportion method, based on rates implicit in the transactions.

1.14 Borrowing Costs

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

1.15 Tax Expenses

Tax expense consists of current and deferred tax.

Income Tax

Income tax expense is recognized in the statement of profit and loss except to
the extent that it relates to items recognized directly in equity, in which case it
is recognized in equity.

Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the reporting date, and
any adjustment to tax payable in respect of previous years.

Deferred Tax

Deferred tax is recognized using the balance sheet method, providing for
temporary differences between the carrying amounts of assets and liabilities
forfinancial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied to
the temporary differences when they reverse, based on the laws that have
been enacted or substantively enacted by the reporting date. Deferred tax
assets and liabilities are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to income taxes levied by the
same tax authority on the same taxable entity, or on different tax entities, but
they intend to settle current tax liabilities and assets on a net basis or their tax
assets and liabilities will be realized simultaneously.

1.16 Earnings per Share

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

1.17 Trade receivables

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

1.18 Trade and other payables

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

Fair value which is determined for disclosure purposes is calculated based on
the present value of future principal and interest cash flows, discounted at the
market rate of interest at the reporting date. For finance leases the market
rate of interest is determined by reference to similar lease agreements. In
respect of the company’s borrowings that floating rates of interest, their fair
value approximates carrying value.

(a) Depreciation and amortization

Depreciation and amortization are based on management estimates of the
future use full lives of the property, plant and equipment and intangible
assets. Estimates may change due to technological developments,
competition, changes in the market conditions and other factors and may
result in changes in the estimated useful life and may result in changes in the
estimated useful life and the depreciation and amortization charges.

(b) Employee benefits

The present value of the defined benefit obligations depends on a number of
factors that are determined on an accrual basis using various assumptions.
The assumptions used in determining the net cost/ (income) includes the
discount rate, wage escalation and employee attrition. Any changes in these
assumptions will impact the carrying amount of obligations. The discount rate
is based on the prevailing market yields of Indian government and securities
as at the balance sheet date for the estimated term of the obligations.

(c )Trade receivables

The credit worthiness of Trade receivables and the credit terms set are
determined on a case to case basis and the management has factored in the
uncertainties arising out of covid -19, as applicable. Based on other internal
and external sources of information as determined by the management, the
company expects to fully recover the carrying amount of trade receivables
except from certain customers and the company had made the adequate
provision on the same.

The fair value of Trade receivables are not considered to be significantly
different from their carrying values, given their generally short period to

2.27 Segment Reporting:

The Company concluded that there is only one operating segment i.e., IT and IT Enabling
Services. Hence, the same becomes the reportable segment for the Company.
Accordingly, the Company has only one operating and reportable segment, the disclosure
requirements specified in paragraphs 22 to 30 are not applicable.

2.28 Employee benefits:

Gratuity benefits

In accordance with applicable laws, the Company has a defined benefit plan which
provides for gratuity payments (the “Gratuity Plan") and covers certain categories of
employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible
employees at retirement or termination of their employment. The amount of the payment
is based on the respective employees last drawn salary and the years of employment with
the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial
valuation, based upon which the Company makes contributions to the Life Insurance
Corporation of India (LIC).

Leave Encashment

The Company provides for accumulation of compensated absences by certain categories of its
employees. These employees can carry forward a portion of the unutilized compensated
absences and utilize them in future periods or receive cash in lieu thereof as perthe Company''s
policy. The Company records a liability for compensated absences in the period in which the
employee renders the services that increases this entitlement

Contribution to Provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution
plan. Both the employee and employer each make monthly contributions to a government
administered fund equal to 12% of the covered employee''s qualifying salary. The Company has
no further obligations under the plan beyond its monthly contributions.

Contribution to Superannuation schemes

Certain categories of employees of the Company participate in superannuation, a defined
contribution plan administered by the Life Insurance Corporation of India. The Company makes
annual contributions based on a specified percentage of each covered employee''s salary. The
Company has no further obligations under the plan beyond its annual contributions.

The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk
and Market risk. The Company''s risk management assessment and policies and processes are
established to identify and analyze the risks faced by the Company, to set appropriate risk limits
and controls, and to monitor such risks and compliance with the same. Risk assessment and
management policies and processes are reviewed regularly to reflect changes in market
conditions and the Company''s activities. The Board of Directors, risk management committee
and the Audit Committee is responsible for overseeing the Company''s risk assessment and
management policies and processes.

a. Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company''s
receivables from customers and investment securities. Credit risk is managed through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business. The
Company has the following categories of financial assets that are subject to credit risk
evaluation:

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability
threshold, needs to spend at least 2% of its average net profit for the immediately preceding
three financial years on corporate social responsibility (CSR) activities. The areas for CSR
activities are eradication of hunger and malnutrition, promoting education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief,
COVID-19 relief and rural development projects. A CSR committee has been formed by the
company as per the Act. The funds were primarily utilized through the year on these
activities which are specified in Schedule VII of the Companies Act, 2013:

Capital Management

The Company''s objective for capital management is to maximize shareholder wealth,
safeguard business continuity and support the growth of the Company. The Company
determines the capital management requirement based on annual operating plans and
longterm and other strategic investment plans. The funding requirements are met through
equity, borrowings and operating cash flows required.

2.37 Other statutory information:

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

a. The Company does not have any transactions with struck off
companies.

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

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

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

i. 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

ii. Provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

e. The Company has not received any fund from any person(s) or
entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the
Company shall:

i. 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

ii. Provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

f. The Company has not entered in to any 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 TaxAct, 1961 (such as, search or survey or any other relevant
provisions of the Income TaxAct, 1961).

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

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

i. No Scheme of Arrangements has been approved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013,
during the year.

j. The Company does not have any borrowings from banks or financial
institutions against security of its current assets.

For NSVR & ASSOCIATES LLP., For and on behalf of the Board of Directors of

Firm Registration Number: 08801S/S200060 FOURTH GENERATION INFORMATION SYSTEMS LTD

Chartered Accountants ^ 2^

_hl o_Dimiwaoi i C. N. Somasekhara Reddy T. Srivenkata Ramana

pA.N SRiNiVASU _{Managing Djrector} * _Director

uv. ono^o DIN: 02441810 DIN:03195303

Membership No. 209453

UDIN:23209453BGYBSG9997 Sd/- Sd/~

Venkateswara Prasad Ratakonda Harshvardhan Barve

Place: Hyderabad CFO (KMP) Company Secretary

Date : 30-05-2024 PAN: ADCPR2646E PAN; BLPPB8543N

---

Mar 31, 2014

1. Terms/rights attached to equity shares The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held.

---

Mar 31, 2013

1. Contingent Liabilities: Nil

2. Figures have been rounded off to the nearest rupee.

3. Previous year figures have been regrouped, reclassified and recast wherever necessary to conform to current year''s classification.

4. Managerial Remuneration: Managerial Remuneration paid to the Managing Director and Whole time Directors: Nil

No computation of Profit under Sec. 350 of the Companies Act, 1956 has been given as no Commission is paid to directors.

5. The Company has not received any information from any of the suppliers of their being Small Scale Industrial Unit. Hence, the amounts due to Small Scale Industrial Units outstanding as on 31st March 2013 are not ascertainable.

6. Quantitative Details:

The Company is engaged in the business of development of Computer Software. The production and sale of such software is not capable of being expressed in any generic unit. Hence, it is not possible to give the quantitative details of such sale and the information required under paragraphs 3, 4C and 4D of the Part II of Schedule VI of the Companies Act, 1956.

7. Some of the Sundry Debtors, Loans and Advances, Deposits, Other Receivables and Sundry Creditors are subject to confirmation, reconciliations and adjustments if any.

8. Unclaimed dividend pertaining to the year 2000-01 to the extent of Rs. 15,765 has not been transferred to Central Govt. account for unclaimed dividends.

9. Notes 1 to 15 form part of Balance Sheet and have been authenticated.

---

Mar 31, 2012

1. Contingent Liabilities: Nil

2. Figures have been rounded off to the nearest rupee.

3. Previous year figures have been regrouped, reclassified and recast wherever necessary to conform to current year's classification.

4. Managerial Remuneration: Managerial Remuneration paid to the Managing Director and Whole time Directors: Nil

No computation of Profit under Sec. 350 of the Companies Act, 1956 has been given as no Commission is paid to directors.

5. The Company has not received any information from any of the suppliers of their being Small Scale Industrial Unit. Hence, the amounts due to Small Scale Industrial Units outstanding as on 31st March 2012 are not ascertainable.

6. Quantitative Details:

The Company is engaged in the business of development of Computer Software. The production and sale of such software is not capable of being expressed in any generic unit. Hence, it is not possible to give the quantitative details of such sale and the information required under paragraphs 3, 4C and 4D of the Part II of Schedule VI of the Companies Act, 1956.

7. Some of the Sundry Debtors, Loans and Advances, Deposits, Other Receivables and Sundry Creditors are subject to confirmation, reconciliations and adjustments if any.

8. Unclaimed dividend pertaining to the year 2000-01 to the extent of Rs. 15,765 has not been transferred to Central Govt. account for unclaimed dividends.

9. Notes 1 to 16 form part of Balance Sheet and have been authenticated.

---

Mar 31, 2010

1. General:

Figures have been rounded off to the nearest rupee.

Previous year figures have been regrouped, reclassified and recast wherever necessary to conform to current year’s classification.

Figures in brackets are for previous year.

2. The Company has not received any information from any of the suppliers of their being Small Scale Industrial Unit. Hence, the amounts due to Small Scale Industrial Units outstanding as on 31st March 2010 are not ascertainable.

3. Quantitative Details:

The Company is engaged in the business of development of Computer Software. The production and sale of such software is not capable of being expressed in any generic unit. Hence, it is not possible to give the quantitative details of such sale and the information required under paragraphs 3, 4C and 4D of the Part II of Schedule VI of the Companies Act, 1956.

---

Mar 31, 2009

1. General:

Figures have been rounded off to the nearest rupee.

Previous year figures have been regrouped, reclassified and recast wherever necessary to conform to current years classification.

Figures in brackets are for previous year,

2. Managerial Remuneration: Managerial Remuneration paid to the Managing Director and Whole time Directors

Salaries Nil Nil

No computation of Profit under Sec. 350 of the Companies Act, 1956 has been given as no Commission is paid to directors.

3. The Company has not received any information from any of the suppliers of their being Small Scale Industrial Unit. Hence, the amounts due to Small Scale Industrial Units outstanding as on 31st March, 2009 are not ascertainable.

4. Quantitative Details: The Company is engaged in the business of development of Computer Software. The production and sale of such software is not capable of being expressed in any generic unit. Hence, it is not possible to give the quantitative details of such sale and the information required under paragraphs 3, 4C and 4D of the Part II of Schedule VI of the Companies Act, 1956.