Notes to Accounts of Ram Info Ltd.

Mar 31, 2025

(d) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ''10/- per share. Voting right is upon show of hands, every member is entitled to one vote only irrespective of number of shares such member is holding and upon a poll, each holder of equity shares is entitled to one vote per share. In 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 the preferential liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

a) Company has used the borrowings from banks for the specific purpose for which it was taken at the balance sheet date.

b) Short term borrowings from banks - Punjab National Bank: Primary Security is hypothecation of Book Debts of the company, both present and future. This facility is guaranteed by RRAS Technologies Pvt Ltd (Promoter Company), Managing Director of the Company and his relative. This facility is also secured by the immovable properties of other parties.

The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) has been determined to the extent such parties have been identified on the basis of information available with the Company.

a) Defined Benefit Plans: The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees, which provide a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of payment.

b) Defined Contribution Plan: The Company makes a contribution of provident fund as per Employees Provident Fund and Miscellaneous Provisions Act, 1952 and other funds. Contribution made during the year ended March 31,2025 is ''6.64 (March 31, 2024: ''18.36)

NOTE 34 - FINANCIAL RISK MANAGEMENT

Financial risk factors:

The Company''s activities expose it to a variety of financial risks - market risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is interest rate risk. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

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. Market risk comprises two types of risk: interest rate risk and foreign currency risk.

A. Interest rate risk

Interest rate risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company quite often bridges its short term cash flow mismatch by availing working capital loan from banks by hypothecation of stocks and book debts. The interest rate on working capital loan is Bank Rate RLLR 2.50%.

The Company''s exposure to interest rate risk due to variable interest rate borrowings is as follows:

B. Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the rendering of services in US. The exchange rate between the Indian rupee and US dollar has changed in recent years and may fluctuate in substantially in the future.

C. Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ''3,845.73 (Amount in lakhs) and ''4,719.82 (Amounting in lakhs) respectively as at March 31, 2025 and March 31, 2024 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India and US. Credit risk has always managed by the Company 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. As per Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

Credit risk exposure

The allowance for expected credit loss on customer balances for the years ended March 31, 2025 and March 31, 2024 is ''344.50 and ''359.12 respectively.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposit with banks with high credit ratings assigned by credit rating agencies.

D. Liquidity risk

The Company monitors its risk of shortage of funds using cash flow forecasting models. These models consider the maturity of its financial investments, committed funding and projected cash flows from

operations. The Company''s objective is to provide financial resources to meet its business objective in a timely, cost effective and reliable manner and to manage its capital structure. A balance between continuity of funding and flexibility is maintained through the use of various types of borrowings.

NOTE 35 - CAPITAL MANAGEMENT

The Company''s objective when managing capital is to safeguard continuity and healthy capital ratios in order to support its business and provide adequate return to its shareholders through continuing growth. The Company''s overall strategy remains unchanged from previous year.

The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation, borrowings. The Company''s policy is to use borrowings to meet anticipated funding requirements.

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

ii. The Company does not have any transections with companies struck off.

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

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

v. The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

vi. The Company has 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 behalf of the Ultimate Beneficiaries.

vii. 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 Group 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.

viii. The Company has not such transaction which is not recorded in books of accounts that has been surrendered or disclosed as income during the year in the assessments under the income tax Act,1961 (such as, search or survey or any other relevant provision of the income tax act,1961).

NOTE: 43 - Previous year figure are regrouped / reclassified wherever necessary to correspond with the current years classification/disclosure.

---

Mar 31, 2024

1.1.11 Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized for when the Company has a present, legal or contractual obligation as a result of past events, only if it is probable that an outflow of resources embodying economic outgo or loss will be required and if the amount involved can be measured reliably.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. 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 of time is recognised as finance cost.

Contingent Liability

A possible obligation that arises from past events and 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 enterprise are disclosed as contingent liability and not provided for. Such liability is not disclosed if the possibility of outflow of resources is remote.

Contingent Asset

A contingent asset is possible asset 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.

Contingent assets are not recognised but disclosed only when an inflow of economic benefits are probable.

1.1.12 Foreign currency transactions

(a) Initial recognition

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

(b) Conversion:

At the year-end, monetary items denominated in foreign currencies, if any, are converted into rupee equivalents at exchange rates prevailing on the balance sheet date.

(c) Exchange Differences:

All exchange differences arising on settlement and conversion of foreign currency transaction are included in the Statement of Profit and Loss.

1.1.13 Taxes on Income

Income tax expenses comprise current and deferred income tax. Income expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to item recognised directly in equity, in which case it is recognised in Other Comprehensive Income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from tax authorities, using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax for the year. The Company recognises MAT credit available as deferred tax asset only when there is convincing evidence that sufficient taxable profit will be available to allow all or part of MAT credit to be utilised during the specified period, i.e., the period for which such credit is allowed to be utilised. In the year in which the Company recognises MAT credit as an asset, it is created by way of credit to the Statement of Profit and Loss and shown as part of deferred tax asset. The Company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.

1.1.14 Retirement and other employee benefits

(a) Short Term Employee Benefits

The company has an obligation towards leave encashment, a defined benefit retirement plan covering eligible employees. The liability is provided for on the basis of the Company policy and calculations made by the Management at the end of each financial year.

(b) Post Employment Benefits

(i) Defined Benefit Plan

Gratuity being a defined benefit scheme is accrued based on the valuations (Gratuity payable) calculated by the employees of the company and were on the basis of actuarial valuations made by a qualified actuary.

For the purpose of presentation of defined benefit plans, the allocation between short term and long term provisions has been made as determined by the actuarial valuator.

(ii) Defined Contribution Plans

Company''s contribution to Provident Fund and Employees'' State Insurance Fund which are define contribution plans determined under the relevant schemes and/or statutes are charged to Statement of Profit and Loss when incurred.

1.1.15 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax for the period adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.1.16 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised in the Statement of Profit and Loss in the period they occur.

1.1.17 Segment Reporting:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

1.1.18 Earnings per Equity Share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share are computing by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Financial risk factors:

The Company''s activities expose it to a variety of financial risks - market risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is interest rate risk. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

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. Market risk comprises two types of risk: interest rate risk and foreign currency risk.

A) Interest rate risk

Interest rate risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company quite often bridges its short term cash flow mismatch by availing working capital loan from banks by hypothecation of stocks and book debts. The interest rate on working capital loan is Bank Rate 2.50%.

B) Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the rendering of services in US. The exchange rate between the Indian rupee and US dollar has changed in recent years and may fluctuate in substantially in the future.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ?4,719.82 (Amount in lakhs) and ?6567.92 (Amount in lakhs) respectively as at March 31,2024 and March 31,2023 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India and US. Credit risk has always managed by the Company 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. As per Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

Credit risk exposure

The allowance for expected credit loss on customer balances for the years ended March 31, 2024 and March 31, 2023 is ?359.12 and ? 191.88 respectively.

Liquidity risk

The Company monitors its risk of shortage of funds using cash flow forecasting models. These models consider the maturity of its financial investments, committed funding and projected cash flows from operations. The Company''s objective is to provide financial resources to meet its business objective in a timely, cost effective and reliable manner and to manage its capital structure. A balance between continuity of funding and flexibility is maintained through the use of various types of borrowings.

The Company''s objective when managing capital is to safeguard continuity and healthy capital ratios in order to support its business and provide adequate return to its shareholders through continuing growth. The Company''s overall strategy remains unchanged from previous year.

The Company sets the amount of capital required on the basis of annual business and long term operating plans which include capital and strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation, borrowings. The Company''s policy is to use borrowings to meet anticipated funding requirements.

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, that uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses accounting software to maintain its books of accounts. The audit trail (edit log) feature was enabled at the application level and the same operated throughout the year. Management has assured that throughout the reporting period

i.e. from 1 April 2023 to 31 March 2024, no unauthorized personnel was provided with access to prevent any changes through data base (create, change, delete)

NOTE 43 - OTHER STATUTORY INFORMATION

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

ii. The Company does not have any transections with companies struck off.

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

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

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

vi. The Company has 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 behalf of the Ultimate Beneficiaries.

vii. 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 Group 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.

viii. The Company has not such transaction which is not recorded in books of accounts that has been surrendered or disclosed as income during the year in the assessments under the income tax Act,1961( such as, search or survey or any other relevant provision of the income tax act,1961).

Note: 45 - Previous year figure are regrouped / reclassified wherever necessary to correspond with the current years classification/disclosure.

For akasam & associates For and on behalf of the Board of Directors of

Chartered Accountants Raminfo Limited

Firm Registration No. 005832S CIN:L72200TGI994PLC0I7598

S Ravi Kumar L.Srinath Reddy V.Anil Kumar Ambati

Partner Managing Director Director

Membership No. 28881 DIN:03255638 DIN:06535455

K. Kiran Kumar Reddy V.Maheswara Rao

Company Secretary Chief Financial Officer

ACS No: 72217

Place: Hyderabad Place: Hyderabad Place: Hyderabad

Date: May 29, 2024 Date: May 29, 2024 Date: May 29, 2024

---

Mar 31, 2018

1.0 CORPORATE INFORMATION:

RAMINFO Limited ("The Company) was incorporated on 20-05-1994 and the CIN being L72200TG1194PLC017598. The company is engaged in the business of IT enabled services/Software development.

Explanation of Key components:

a) Remeasurement cost of net defined benefit liability: The remeasurement cost arising primarily due to change in actuarial assumptions has been recognised in Other Comprehensive Income (OCI) under Ind AS compare to Statement of Profit and Loss under previous GAAP.

b) Amortised cost for Financial Assets and Financial Liabilities: The Company has valued certain Financial Assets and Financial Liabilities at amortised cost. Impact as on transition date is recognised in opening reserves and changes thereafter are recognised in Statement of Profit and Loss.

There were no significant reconciliation items between cash flows prepared under Indian GAAP and those under Indian AS.

HDFC Loan: Vehicle loan from HDFC bank is secured against hypothecation of Vehicle.

Overdraft - Punjab National Bank: Primary Security is hypothecation of Book Debts of the company, both present and future. This facility is guaranteed by RRAS Technologies Pvt Ltd (Promoter Company), Managing Director of the Company and his relative. This facility is also secured by the immovable properties of other parties.

c. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Voting right is upon show of hands, every member is entitled to one vote only irrespective of number of shares such member is holding and upon a poll, each holder of equity shares is entitled to one vote per share. In 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 the preferential liabilities. The distribution will be in proportion to the number of equity shares held by the share holders.

Previous year figure are regrouped / reclassified wherever necessary to correspond with the current years classification / disclosure

The accompanying notes are an integral part of the Standalone financial statements.

---

Mar 31, 2015

1. CORPORATE INFORMATION:

RAMINFO Limited (Formerly Known as RAM Informatics Limited) ("The Company") was incorporated on 20-05-1994 and the CIN being L72200TG1994PLC017598. The company is engaged in the business of Software development, e-governance etc.,

2. Terms/Rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of Rs.10/- per share. Voting right is upon show of hands, every member is entitled to one vote only irrespective of number of shares such member is holding and upon a poll, each holder of equity shares is entitled to one vote per share. In 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 the preferential liabilities. The distribution will be in proportion to the number of equity shares held by the share holders.

HDFC Loan: Vehicle loan from HDFC Bank is secured against the hypothecation of the vehicle. EMI's due in the ensuing financial year are considered as current liabilities

Overdraft - Punjab National Bank: Primary security is hypothecation of Book Debts of the company, both present and future. This facility is guaranteed by RRAS Technologies Pvt. Ltd (Promoter Company), Managing Director of the company and his relative. This facility is also secured by the immovable properties of other parties.

ICD of Rs.10.61 Lacs accepted from Coingen Tech Solutions Pvt. Ltd and repayable with in 3 years with interest @12% per annum.

3. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

Particulars As at 31 As at 31 March, 2015 March, 2014

Rs.In Rs.In Thousands Thousands Contingent liabilities

1. Bank Guarantees : Margin money deposit of Rs. 6.90 lacs kept with the bank - Including accrued Interest 3086 3580

2. Provident Fund : The demand from PF Authorities for Rs.39.06 lacs is disputable and not provided. The Company has filed appeal with the Honorable High Court of Andhra Pradesh vide WP No. 717/2012 dated 06.01.2012 3765 3906

3. Provident Fund : The Show Cause notice from PF Authorities for Rs.63.71 lacs for levying of damages and interest U/s 14B of EPF & MP Act, 1952 is disputable and not provided. The Company is contesting before the concerned authorities. 6371 -

4. Service Tax : Service Tax Liability as per the Order dt 20.09.2011 of Hyderabad II Commissionerate, Hyderabad vide OR.No. 62/2010 which includes Service Tax Liability Rs. 83.91 lacs and penality of Rs.87.65 lacs. The Company preferred an appeal before the Appellate Authority, Banglore. 17156 17156

TOTAL 30378 24642

4. EMPLOYEES BENEFITS:

a. Contribution to provident fund is made as per provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to Profit and Loss Account.

b. The company has an obligation towards Gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or on termination of employment in an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company has subscribed Policy with LIC of India to meet its obligations.

c. The company has an obligation towards leave encashment, a defined benefit retirement plan covering eligible employees. The Company has subscribed Policy with LIC of India to meet its obligations.

5. RELATED PARTY DISCLOSURES:

Related Party Disclosures for the year ended 31st March 2015 in accordance with Accounting Standard - 18 Issued by the Institute of Chartered Accountant of India.

List of related parties:

Name of the Party Relationship

Mr.L.Srinath Reddy Key Management

Mr.PS.Raman Director

Mr.R.Jagadeeswara Rao Director

6. As per Accounting Standards referred to in section 133 of The Companies Act 2013, the company has to carry out the assessment of impairment of assets. Loss of Rs.16.84 lacs on disposal of assets includes loss identified on carrying out the impairment of assets.

7. The company has entered in to operating lease agreement for its office premises for a period of 36 months renewable at the option of the lessor and lessee. Total lease payment for the period charged to the Statement of the Profit & Loss is Rs16.19 lacs (Previous year Rs.14.14 lacs)

8. During the year the company has identified the bad debts and Rs.187.76 lacs was written off as bad debts, hence excess provision in bad & doubtful debts of Rs. 86.35 lacs (Net) reversed.

9. As regards the disclosure of particulars of amounts owed by the Company to small scale industrial undertakings that are required to be disclosed in the Balance sheet in pursuance of amendment to Schedule III of the Companies Act, 2013, the Company is not in possession of any information as to the business/industrial status of its creditors whose particulars are to be disclosed. The Company is making efforts to obtain the same.

---

Mar 31, 2014

The previous year figures have been re-grouped/re-classified, wherever necessary to confirm to the current year presentation

1. The scheme for re-structuring of capital is approved by Hon''ble High Court of Andhra Pradesh and became effective upon filing of the court order with Registrar of Companies, Andhra Pradesh on 25/02/2013. Upon effecting of the scheme, face value of each equity share has been reduced from Rs.10/- (Rupees Ten Only) to Re1/- (Rupee One Only) and further consolidated to face value of Rs.10/- each (Rupees Ten Only) consequently the no. of equity shares are reduced from 1,12,41,400 (One Crore Twelve Lakhs Fortyone Thousand Four Hundred Only) to 11,24,140 (Eleven Lakhs Twentyfour Thousand One Hundred and Forty Only) equity shares.

2. In pursuance of the scheme sanctioned by Hon''ble High Court of Andhra Pradesh 26,56,500 equity shares of Rs. 10/- each were issued to un-secured creditors due to conversion of their un-secured loans into equity shares.

3. The Scheme also provides for issue of another 25,00,000 equity shares of Rs. 10/- each on preferential allotment basis and in view of the same shares were issued to M/s. RRAS Ventures Private Limited (5,00,000 equity shares), M/s. Jayachakra Ventures Private Limited (2,50,000 equity shares), M/s. Coingen Tech Solutions Private Limited (15,00,000 equity shares) and Mr.Nitin Bhaskar Khapre (2,50,000 equity shares).

4. Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Voting right is upon show of hands, every member is entitled to one vote only irrespective of number of shares such member is holding and upon a poll, each holder of equity shares is entitled to one vote per share. In 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 the preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

5. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

Particulars As at As at 31 March, 2014 31 March, 2013 Rs. In Rs. In Thousands Thousands Contingent liabilities

Bank Guarantees: Margin money deposit kept with the bank - Rs.35.80 lacs - Including accrued Interest 3580 3317

Provident Fund: The demand from PF Authorities for Rs.39.06 lacs is disputable and not provided. The Company has filed appeal with the Honorable High Court of Andhra Pradesh vide WP No. 717/2012 dated 06.01.2012 3906 4050

Service Tax: Service Tax Liability as per the Order dt 20.09.2011 of Hyderabad II Commissionerate, Hyderabad vide OR.No. 62/2010 which includes Service Tax Liability Rs. 83.91 lakhs and penality of Rs.87.65 lakhs)

The Company is preferring an appeal before the appellate authority, Banglore. 17156 -

TOTAL 24642 7367

6. In the absence of virtual certainty that the sufficient further taxable income will be available against which deferred tax asset can be realized, the same has not been recognised in the books of accounts in line with Accounting Standard dealing with Accounting for Income Taxes''.

7. EMPLOYEES BENEFITS:

a. Contribution to provident fund is made as per provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to Profit and Loss Account.

b. The company has an obligation towards Gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or on termination of employment in an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company has subscribed Policy with LIC of India to meet its obligations.

c. The company has an obligation towards leave encashment, a defined benefit retirement plan covering eligible employees. The Company has subscribed Policy with LIC of India to meet its obligations.

8. As per Accounting Standards referred to in section 211(3C), the company has to carry out the assessment of impairment of assets. However, the company has not carried out the physical verification of fixed assets as well as its impairment there of.

9. There is no additional provision for doubtful debts made for the year end 31.03.2014. The provision carried over from last year are related to debtors due for more than 365 days old.

10 As regards the disclosure of particulars of amounts owed by the Company to small scale industrial undertakings that are required to be disclosed in the Balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No.GSR 129(E), dated 22-02-1999 issued by the Department of Company Affairs, the Company is not in possession of any information as to the business/industrial status of its creditors whose particulars are to be disclosed. The Company is making efforts to obtain the same.

11. Provision for service tax as on 31st March 2013 stands at Rs.39.23 lacs including for provision for the 2013-14. There were arrears of service tax in previous years unpaid due to difficult financial position of the company. The returns were filed for years upto 2012-13. On account of interpretation issue related to IT service, provision related to previous years has to be reworked and regularised.

---

Mar 31, 2013

1.0 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Particulars As at 31 March, 2013 As at 31 March, 2012 '' In Thousands '' In Thousands

Contingent liabilities

Bank guarantees (1) 3317 3000

Provident fund (2) 4050 4050

1) Margin money deposit kept with the bank - Rs.33.17 lacs - Including accrued Interest (2) The demand from PF Aut horities for Rs.40.50 lacs is disputable and not provided

TOTAL 7367 7050

2.0 In the absence of virtual certainty that the sufficient further taxable income will be available against which deferred tax asset can be realized, the same has not been recognized in the books of accounts in line with Accounting Standard dealing with Accounting for Income Taxes''.

3.0 EMPLOYEES BENEFITS:

a. Contribution to provident fund is made as per provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 and charged to Profit and Loss Account.

b. The company has an obligation towards Gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or on termination of employment in an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Gratuity plans of the entity are an unfunded plan. The company accounts for the liability for future Gratuity benefits on the basis of an independent actuarial valuation

c. Liability for leave encashment is provided on the basis of the actual encashable leave outstanding at the year-end.

4.0 RELATED PARTY DISCLOSURES

Related Party Disclosures for the year ended 31st March 2013 in accordance with Accounting Standard - 18 Issued by the institute of Chartered Accountant of India.

5.0 Additional information pursuant to the provisions of para 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 (to the extent applicable)

6.0 As per Accounting Standards referred to in section 211(3C), the company has to carry out the assessment of impairment of assets. However, the company has not carried out the physical verification of fixed assets as well as its impairment thereof.

7.0 There is no additional provision for doubtful debts made for the year end 31.03.2013. The provision carried over from last year are related to debtors due for more than 365 days old.

8.0 A total sum of Rs.8.53 lacs( Extra Ordinary Items) has been written off from the loans and advances given to parties etc., which are considered no longer recoverable due to comprehensive capital restructure plan proposal and approved by Hon''ble High Court of Andhra Pradesh.

9.0 As regards the disclosure of particulars of amounts owed by the Company to small scale industrial undertakings that are required to be disclosed in the Balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No.GSR 129(E), dated 22-02-1999 issued by the Department of Company Affairs, the Company is not in possession of any information as to the business/industrial status of its creditors whose particulars are to be disclosed. The Company is making efforts to obtain the same.

10.0 Provision for service tax as on 31st March 2013 stands at Rs.32.39 lacs including for provision for the 2012-13. There were arrears of service tax in previous years unpaid due to difficult financial position of the company. The returns were filed for years up to 2008 - 09. On account of interpretation issue related to IT service, provision related to previous years has to be reworked and regularized.

---

Mar 31, 2012

The previous year figures have been re-grouped/re-classified' wherever necessary to confirm to the current yearpresentation.

1.1 Terms/Rights attached to Equity Shares: The Company has only one class of equity shares having a par value of Rs.10/- per share. Voting right is upon show of hands every member is entitled to one vote only irrespective of number of shares such member is holding and upon a poll each holder of equity shares is entitled to one vote per share. In 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 the preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

2.1 In the absence of virtual certainty that the sufficient further taxable income will be available against which deferred tax asset can be realized' the same has not been recognised in the books of accounts in line with Accounting Standard 22' dealing with Accounting For Taxes on Income.

3.0 EMPLOYEES BENEFITS:

1. Contribution to provident fund is made as per provisions of Employees Provident Fund and Miscellaneous Provisions Act' 1952 and charged to Profit and Loss Account.

2. Liability for gratuity is provided for on the basis of actuarial valuation.

3. Liability for leave encashment is provided on the basis of the actual encashable leave outstanding at the year-end.

4. Contribution to Regional Provident Fund Authority charged to Statement of Profit and Loss during the year ended 31st March'2012 is 14.48 thousands (31st March' 2011: 95.04 thousands)

4.0 RETIREMENT BENEFITS:

a) Contribution to Provident Fund is recognised as an expenditure on accrual basis.

b) The company has an obligation towards Gratuity' a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement' death while in employment or on termination of employment in an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Gratuity plans of the entity are an unfunded plan. The company accounts for the liability for future Gratuity benefits on the basis of an independent actuarial valuation.

c) Leave encashment is not categorised as a retirement benefit as the company is in the practice of paying the leave encashment benefit every year.

5.0 RELATED PARTY DISCLOSURES:

5.1 Related Party Disclosures for the year ended 31st March 2012 in accordance with Accounting Standard - 18 Issued by The Institute of Chartered Accountants of India.

As required by Accounting Standard (AS-28) "Impairment of Assets" issued by The Institute of Chartered Accountants of India' the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

5.2 The amounts provided as doubtful debts are more than 365 days old. Dues from eSeva project through the consortium partners i.e. CMS and CCS (Rs. 157.47 lakhs) are also under dispute against which Arbitration proceedings are pending. Also these are considered doubtful and provided for. The Vizag APSRTC project dues (Rs. 28.22 lakhs) are provided for on termination of contract and under dispute. Hence considered as doubtful. B1 project provision relates to transaction rate differential estimated and provided (Rs.15 lakhs)

5.3 The company has written off a sum of Rs.132.06 lakhs as loss on physical verification of assets. This represents value of items scrapped and not having realisable value as certified by the Management.

5.4 A total sum of Rs.406.86 lakhs(Extra Ordinary Items) has been written back from liabilities due to employees' creditors etc.' which are considered no longer required due to comprehensive capital restructure plan proposal and approved by Board. Applications are being filed for the necessary regulatory approvals of the scheme. Some of acceptance letters from the parties have been obtained.

5.5 Disputes' if any' arising in the future out of the sum of Rs. 406.86 lakhs written back are not identifiable and to the extent will affect the Profitability of the company in the future.

5.6 The Company has written off the sum of Rs.149.71 lakhs of the inventory of software stock 'since the same has become obsolete.

5.7 Previous Year’s figures are given in brackets and the same have been regrouped/rearranged wherever necessary.

---

Mar 31, 2010

1. Disclosure as required under Accounting Standard (AS) 15:

Consequent to the application of Accounting Standard AS-15" Employee Benefits" notified by the Companies (Accounting Standards) Rule,2006, all employee benefits were determined in accordance with the Standard in the preparation of financial statements for the year 2009-10:

2. The Company has recognized following deferred assets and liabilities determined on account of timing differences in accordance with Accounting Standard - 22 Accounting of Taxes on Income" issued by the Institute of Chartered Accountants of India

3. Related Party Disclosure:

a) Related parties: Wholly Owned Subsidiary M/s Aravali Technologies Inc., California, USA.

Members of the Board : Mr. RS. Raman, Mr. P.S. Venkateswaran, Mr. R. Jagadeeswara Rao, Mr. K. Kumar Raja, Mr. Haragopal, Mr. S.K. Mathur & Mr. Khushwant Singh.

Key Management Personnel: Mr. RS. Raman, Mr. RS. Venkateswaran, Mr. R. Jagadeeswara Rao

b) Summary of transactions with the related parties:

c) Loans/advances in the nature of Loans and investments in its own shares by the company, its subsidiary, associates etc:

(i) The company has not given any loans and advances in the nature of loans to its subsidiary and/or associates.

(ii) Investment by the loanee in the shares of the company: Not applicable.

4. There are no dues in respect of amounts mentioned under Section 205 C of the Companies Act, 1956 that are required to be credited to the Investor Education and Protection Fund as at 31st March 2010.

5. Figures for the previous year have been regrouped and reclassified wherever necessary to be in conformity with the current year figures.