Notes to Accounts of Informed Technologies India Ltd.

Mar 31, 2024

23. Provisions and contingent liabilities

Provisions:

A Provision is recorded when the Company has a present obligation (legal or constructive)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 reasonably estimated.

Contingent liabilities:

Whenever there is possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are considered as contingent liability.

Show cause notices are not considered as Contingent Liabilities unless converted into demand.

Contingent Assets:

Contingent assets are not recognised in the standalone financial statements since this may result in recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related assets is not a contingent assets and is recognised.

24. Investment in Associates

The investments in associates are carried in these standalone financial statements at historical cost except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations.

When the Company is committed to a sale plan involving disposal of an investment, or a portion of an investment in an associate the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met.

Any retained portion of an investment in an associate that has not been classified as held for sale continues to be accounted for at historical cost. Upon loss of significant influence over the associate the Company measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate and the fair value of retained investment and proceeds from disposal is recognised in Standalone Statement of Profit and Loss.

25. Cash Dividend to Equity Holders of the Company

The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

26. Earnings per share

Basic earnings per share are calculated by dividing the Net Profit or Loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the Net Profit or Loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are considered for the effects of all dilutive potential equity shares.

i) Gratuity:

Retirement benefits in the form of gratuity liability (being administered by Life Insurance Corporation of India) is a defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.

The present value of obligation is determined based on actuarial valuation using the projected unit credit method as prescribed by the Ind AS-19 -’Employee Benefits’, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up final obligation.

ii) Compensated absences/leave encashment:

The company also extends defined plans in the form of compensated absences/leave encashment to employees. Provisions for compensated absences is made on actuarial valuation basis.

The company is exposed to various risks as regards its obligation towards gratuity benefit and leave salary which are as follows:

(i) interest rate risk, (ii) liquidity risk, (iii) salary escalation risk, (iv) regulatory risk, (v) market risk and (vi) investment risk

Financial instruments : Fair values measurement Accounting classification and fair value hierarchy

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments:

Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2: inputs other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market participants.

Set out below, is a comparison by category of the carrying amounts and fair value of the company''s financial instruments.

Key inputs:

- Listed equity investments (other than subsidiaries, joint ventures and associates): quoted bid price on stock exchange (Level 1)

- Mutual funds: based on net asset value of the scheme (Level 2)

- The management assessed that fair value of cash and bank balances, trade receivables, loans, trade payables, borrowings , other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

- During the reporting period ending 31st March, 2023 and 31st March, 2022, there was no transfer between Level 1 and Level 2 fair value measurement.

3 Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. Management exposed to market risk primarily related to the market value of investments and interest rate risk. Thus, our exposure to market risk is function of investing and borrowing activities only.

4 Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in interest rates.

Exposure to interest rate risk

Company is not having interest rate risk arises from borrowings, as company is having borrowings with fixed interest rate. The interest rate profile the company''s interest bearing financial instruments as reported to the management of the company.

Additional Information Details :

1 Event after reporting period:

No adjusting or significant non-adjusting event have occurred between the 31st March, 2024 reporting date and the date of authorization.

2 Standards notified but not yet effective

There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company''s financial statements.

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

4 The Company do not have any transactions with companies struck off.

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

6 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.

7 The figures of previous year have been regrouped and rearranged wherever necessary.

For Parekh Sharma & Associates For and on behalf of the Board of Directors

Chartered Accountants Firm''s Regn. No. 129301W

Sd/- Sd/- Sd/-

Sujesh Sharma Gautam P. Khandelwal Nimis Sheth

Partner Chairman Director

M.No. :118944 (DIN: 00270717) (DIN: 00482739)

Sd/- Sd/-

Roshan Dsouza Neha Rane

Chief Financial Officer Company Secretary

(ICSI No. A59050)

Place: Mumbai Place: Mumbai

Date: 30th May,2024 Date: 30th May,2024

---

Mar 31, 2015

1. The Company has carried forward Long term capital loss available for set-off against the future profits under the Income Tax Act, 1961. Considering the nature of business, viz. uncertainty regarding generation of sufficient future income for set off against the said carry forwards, net deferred tax assets at the year end including related credit for the year have not been recognised in these accounts on prudent basis.

2. Fixed Assets taken on Finance Lease on which future obligations towards lease rentals under the lease agreements as on 31st March, 2015 amount to Rs. Nil (Previous year Rs. Nil)

3. Previous year figures have been reclassified and/or regrouped and/or rearranged wherever necessary to make them comparable with current year figures.

---

Mar 31, 2014

1. Defined Benefit Plans:

As per Actuarial valuation as on 31st March, 2014 and recognised in the financial statements in respect of Employee Benefit schemes:

The Company has relied on the valuation certificate issued by consulting Actuary for calculating the actuarial value of Gratuity liability of the employees of the Company in terms of AS 15 (revised) issued by the Institute of Chartered Accountants of India.

2. Contingent Liabilities and Commitments (to the extent not provided for)

PARTICULARS As at As at 31st March, 2014 31st March, 2013

i) Contingent Liability

(a) Claims against the company not acknowledged as debt:]

Income Tax demand not provided for pending outcome of appeal

A.Y 2009-10 466,032 466,032

A.Y 2010-11 534,770 534,770

A.Y. 2012-13 848,780 -

(b) Guarantees

(c) Other money for which the company is contingently liable - - Commitments

Total Contingent Liabilities and Commitments 1,849,582 1,000,802

3. The Company has carried forward Long term capital loss available for set-off against the future profits under the Income Tax Act, 1961. Considering the nature of business, viz. uncertainty regarding generation of sufficient future income for set off against the said carry forwards, net deferred tax assets at the year end including related credit for the year have not been recognised in these accounts on prudent basis.

4. Disclosures as required under AS-18, "Related Party Disclosures" are given below: a) Name and Nature of Relationship of the Related Parties:

Name of the Related Party Nature of Relationship

Khandelwals Limited Holding Company

Nagpur Power & Industries Ltd. Enterprise that directly, or indirectly through one

Meteor Metals & Ores Ltd. or more intermediaries, control, or are

Zeppelin Investments Pvt. Ltd. controlled by, or are under common control with,

Khandelwal Remedies Pvt. Ltd the reporting enterprise.

Mrs. Suelve Khandelwal Key Management Personnel upto 15.03.2014

Mr. Arnold Allen Key Management Personnel

* The Company does not have an exhaustive list of business or professions in which relatives of directors of the company have substantial interest. As such, payments made to any such persons, if any have not been identified. This management representation has been relied upon by the Auditors.

5. Fixed Assets taken on Finance Lease on which future obligations towards lease rentals under the lease agreements as on 31st March, 2014 amount to Rs. Nil

(Previous year Rs. Nil)

---

Mar 31, 2013

1. Contingent Liabilities and Commitments (to the extent not provided for)

(In Rupees) PARTICULARS As at As at 31st March 2013 31st March 2012

i) Contingent Liability

(a) Claims against the company not acknowledged as debt:

Income Tax demand not provided for pending outcome of appeal

A.Y. 2006-07 6,13,948

A.Y. 2009-10 4,66,032 4,66,032

A.Y. 2010-11 5,34,770 31,220

A.Y. 2011-12 20,772

(b) Guarantees

(c) Other money for which the company is - - contingently liableCommitments

Total Contingent Liabilities and Commitments 10,00,802 11,31,972

2. The Company has carried forward Long term capital loss available for set-off against the future profits under the Income Tax Act, 1961. Considering the nature of business, viz. uncertainty regarding generation of sufficient future income for set off against the said carry forwards, net deferred tax assets at the year end including related credit for the year have not been recognised in these accounts on prudent basis.

* The Company does not have an exhaustive list of business or professions in which relatives of directors of the company have substantial interest. As such, payments made to any such persons, if any have not been identified. This management representation has been relied upon by the Auditors.

3. Fixed Assets taken on Finance Lease on which future obligations towards lease rentals under the lease agreements as on 31st March, 2013 amount to Rs. Nil

(Previous year Rs. Nil)

4. Previous year figures have been reclassified and/or regrouped and/or rearranged wherever necessary to make them comparable with current year figures.

---

Mar 31, 2012

1.1 The Equity Shares of the Company have voting rights and are subject to the restrictions as prescribed under the Companies Act, 1956.

1.2 Disclosures pursuant to Note no. 6(A)(h,i,j,k,l) of Part I of Schedule VI to the Companies Act, 1956 is NIL.

2.1 The balances of Trade Payables are subject to confirmation.

2.2 In the absence of relevant information with the company, the names of small scale industrial undertakings to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. This management representation has been relied upon by the Auditors.

3.1 The company has provided for but not funded the gratuity liability of Rs.5,94,131 and leave encashment liability of Rs.1,23,277.

Notes:

4.1 Buildings-Freehold Include:

The face value of shares held in co-operative housing societies amounting to Rs.81,750/- viz:

(a) Shree Nirmal Commercial Limited: 765 shares of Rs.100 each fully paid up and the share certificates are held in the former name Khandelwal Ferro Alloys Corporation Limited.

(b) The Malabar Hill Co-Operative Housing Society Limited: 105 shares of Rs.50 each fully paid up

The Net Block of both the above premises included herein is Rs.18,426,183/-(Previous Year Rs.18,817,384/-)

4.2 Buildings-Leasehold Include:

Unit No.302, 303 & 304 at Mahape, having aggregate Gross Block value Rs.85,37,100/- (Previous Year Rs. 85,37,100/-) have been acquired on 95 years lease from MIDC.

The lease documents in respect of unit nos. 302 & 303 are yet to be executed. .

5.1 During the year the formalities of closure of business of Company's Wholly Owned Subsidiary in USA are completed and hence the investment has been written off.

5.2 As the subsidiary has ceased to operate in previous year (2010-2011) the consolidation statement u/s 212 is not applicable.

6.1 Balances of Security Deposits are subject to confirmation.

6.2 In the opinion of the board loans and advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

7.1 The balances of Trade Receivables are subject to confirmation.

7.2 The Company has to receive sums aggregating to Rs.2,98,393/- from Khandelwals Ltd, London, a Company under the same management. These sums are old outstandings which are unreconciled and supportings are not available. Therefore as a prudent policy the said amount has been provided as doubtful. Linder the circumstances, the auditors have relied upon the judgement of the Management.

8.1 The balances of Loans & Advances are subject to confirmation.

8.2 In the opinion of the board the Loans and Advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

8.3 Others include Inter Compnay Deposit, demand loans, advance rent received, advance travelling expenses of Rs.152,901/- paid to director (Mr. Arnold Allen) and prepaid expenses.

8.4 The Company has advanced sums aggregating to Rs. 74,55,954 to Magnachem Pharmaceuticals Pvt. Limited, a company under the same management. In view of the continuing losses, erosion of entire net worth and no signs of recovery in the forseeable future, the company made full provision for these doubtful advances in the year 2005-2006.

During the year name of Magnachem Pharmaceuticals Pvt. Ltd. has been struck off from the Register of Companies on 13th May, 2011 and the Company is dissolved. As a result the advances of Rs.74,55,954 have been written off in the current year against the provision made in 2005-2006.

9.1 The balances of other current assets is subject to confirmation. '

9.2 In the opinion of the board the other current assets have a value on realisation in the ordinary course of business at least equal to the sums stated. .

10. Contingent Liabilities and Commitments (In Rupees)

PARTICULARS As at As at 31st March, 2012 31st March, 2011

(i) Contingent Liability

(a) Claims against the company not acknowledged as debt:

Income Tax demand not provided for pending outcome of appeal

F.Y. 2005-2006 6,13,948 6,13,948

F.Y. 2011-2012 4,66,032 -

Tax on Distributed Profits (Dividend) not provided for pending outcome of rectification

- F.Y. 2009-2010 31,220 -

F.Y. 2010-2011 20,772 -

(b) Guarantees - -

(c) Other money for which the company is - - contingently liable

(ii) Commitments - -

Total Contingent Liabilities and Commitments 11,31,972 6,13,948

11. During the year company has received no objection for In-principle Exit from STP scheme from Software Technology Park of India (STPI) vide letter no STPI/MUMA/lll(A)(393)/2000(03)/6/13 dated 13.09.2011.

12. The Company has carry forward Long term capital loss available for set-off against the future profits under the Income Tax Act, 1961. Considering the nature of business, viz. uncertainty regarding generation of sufficient future income for set off against the said carry forwards , net deferred tax assets at the year end including related credit for the year have not been recognised in these accounts on prudent basis.

13. Previous year's figures are reclassified and/or regrouped and/or rearranged wherever necessary.

---

Mar 31, 2010

A) Commitment and Contingencies

As at As at

31st Mar, 2010 31st Mar, 2009

Rupees Rupees

Estimated amount of contract remains to be executed on capital

account and not provided for against which advance has been paid Nil Nil

Any claim against the Company not acknowledged as debts None None

b) The Company has carry forward loss of business available for set-off against the future profits under the Income Tax Act, 1961. Considering the nature of business, viz. uncertainty regarding generation of sufficient future income / taxable income for set off against the said carry forwards , net deferred tax assets at the year end including related credit for the year have not been recognised in these accounts on prudent basis.

c) In the opinion of the board the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

d) The balance of sundry debtors, deposits, advances and sundry creditors are subject to confirmation.

e) The Company has to receive sums aggregating to Rs.2,98,393/- from Khandelwals Ltd, London, a Company under the same management. These sums are old outstandings which are unreconciled and supportings are not available. Therefore as a prudent policy the said amount has been provided as doubtful. Under the circumstances, the auditors have relied upon the judgement of the Management.

f) Previous years figures are reclassified and/or regrouped and/or rearranged wherever necessary.

g) In the absence of relevant information with the company, the names of small scale industrial undertakings to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. This management representation has been relied upon by the Auditors.

h) The Company has been granted STP approval from Software Technology Park of India (STPI) vide letter no STPI/MUM/VIII(A)(393)/2000(03)/ (SKA)/ 3577 dated 25.05.2009 valid upto 1st December 2012.

ii) Disclosures as required under AS-18, "elated Party Disclosures" are given below: a) Name and Nature of Relationship of the Related Parties where Control Exists:

Name of the Related Party Nature of Relationship

a) Khandelwals Limited, London Holding Company

b) Informed Financial US Inc. Wholly owned Subsidiary Company

c) Nagpur Power & Industries Ltd Associate Company

d) Magnachem Pharmaceuticals Pvt. Ltd Associate Company

e) Meteor Metals & Ores Ltd. Associate Company

f) Zeppelin Investments P. Ltd. Associate Company

3. Relatives of Key Management Personnel* - Nil -

* The Company does not have an exhaustive list of business or professions in which relatives of directors of the company have substantial interest. As such, payments made to any such persons, if any have not been identified. This management representation has been relied upon by the Auditors.