Notes to Accounts of Saven Technologies Ltd.

Mar 31, 2025

2.17 Provisions, Contingent Liabilities and contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent
Liabilities are not recognized but are disclosed in the notes on accounts. Contingent Assets are neither recog¬
nized nor disclosed in the financial statements.

2.18 Tax Expenses:

Tax expense for the year comprises current tax and deferred tax. Tax is recognized in Statement of Profit and
Loss except to the extent that it relates to items recognized in the comprehensive income or in equity. In which
case, the tax is also recognized in other comprehensive income or equity.

Current Tax

Current tax assets and liabilities are measured at the amounts expected to be recovered from or paid to the
taxation authorities, based on the tax rates and laws that are enacted or substantively enacted at the Balance
Sheet date.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.

2.19 Financial Instruments:

As per Ind AS 109, Financial Instruments, all financial assets and liabilities are recognized at fair value on initial
recognition, expect for trade receivables which are initially measured at transaction price. Financial assets are
subsequently measured at amortized cost, fair value through profit or loss or fair value through other compre¬
hensive income as the case may be.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest method less impair¬
ment losses, if these financial assets are held within a business model whose objective is to hold these assets
in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value

Financial assets not measured at amortised cost are carried at fair value through profit or loss (FVTPL) on initial
recognition, unless the company irrecoverably elects on initial recognition to present subsequent changes in fair
value in ''other comprehensive income'' for investment in equity instruments which are not held for trading.

The Company, on initial application of IND AS 109 Financial instruments, has made an irrevocable election to
present in ''other comprehensive income'', subsequent changes in fair value of equity instruments not held for
trading.

Financial asset at FVTPL, are measured at fair values at the end of each reporting period, with any gains or
losses arising on remeasurement recognized in the Statement of profit or loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest rate method or at
FVTPL. For financial liabilities carried at amortised cost, the carrying amounts approximate fair values due to the
short term maturities of these instruments. Financial liabilities are classified as at FVTPL when the financial
liability is either contingent consideration recognised in a business combination, or is held for trading or it is
designated as FVTPL. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on
remeasurement recognized in in the Statement of profit and loss.

13.5 Nature and Purpose of Reserves

(a) Capital Reserve:

The amount of Rs.44.86 lakhs on Preferential Warrants convertible to equity shares and forfeited of other
equity shares amounting to Rs.2.00 lakhs are recognised under Capital Reserve.

(b) Share Premium:

Share Premium Reserve is to record the premium on issuse of shares. The Reserve will be utilised in
accordance with the provisions of the Companies Act, 2013.

(c) General Reserve:

General Reserves represent amounts transferred from retained earnings in earlier years under the
provisions of the erstwhile Companies Act, 1956. Mandatory transfer to genreal reserve is not required
under the Companies Act, 2013.

(d) Retained Earnings:

These are the accumulated earnings after appropriation of total comprehensive income and related
transfers.The Company uses retained earnings in accordance with the provisions of the Companies Act.

(e) Other Comprehensive Income:

Re-measurements of Non- Current Investments (Mutual Funds) valued at Fair Value, net of Income Tax.

(a) The Company is mainly engaged in the Software Development and Services. Hence there is no
separate reportable segment as per Accounting Standard-Ind AS-108 issued by the Institute of
Chartered Accountants of India.

(b) Geographical Segment:

Ind AS 108 "Operating Segment" ("Ind AS 108") establishes standards for the way that public business
enterprises report information about operating and Geographical Segments and related disclosures
about Overseas and India services, geographical areas. Based on the "management approach" as
defined in Ind AS 108, Operating Segments and geographical segments are to be reported in a manner
consistent with the internal reporting provided to the Chief Executive Officer (CEO). Then CEO
evaluates the Company''s performance and allocates resources on overall basis. The Company''s sole
operating segment is therefore "Software Development and Services" but there are multiple geographical
segments. Accordingly, the information as per these geographical segments is as under:

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 transactions with companies struck off.

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

iv) The Company has not traded or invested in Crypto currency or Virtual currency during this 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 utilized short term funds for long term users.

vii) 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 on behalf of the Ultimate Beneficiaries

viii) 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 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

ix) The Company has not any such transaction which is not recorded in the books of account 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.

35. Figures have been rounded off to the nearest rupee in Lakhs.

36. Reclassification:

Previous years'' figures have been recast / restated wherever necessary.

Note 1 to 36 form part of the Balance Sheet and have been authenticated.

In terms of our report attached for and on behalf of the Board

for Suryanarayana & Suresh

Chartered Accountants Murty Gudipati Rajagopal Ravi

Firm Reg. No: 006631S Managing Director & CEO Chairman

P. Muralikrishna DIN: 01459606 DIN: 06755889

Partner

Membership No.224319

Place : Hyderabad S Mohan Rao PJayanthi

Date : May 14, 2025 Chief Financial Officer Company Secretary

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Mar 31, 2024

2.17 Provisions, Contingent Liabilities and contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes on accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

2.18Tax Expenses:

Tax expense for the year comprises current tax and deferred tax. Tax is recognized in Statement of Profit and Loss except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

Current Tax

Current tax assets and liabilities are measured at the amounts expected to be recovered from or paid to the taxation authorities, based on the tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

2.19 Financial Instruments:

As per Ind AS 109, Financial Instruments, all financial assets and liabilities are recognized at fair value on initial recognition, expect for trade receivables which are initially measured at transaction price. Financial assets are subsequently measured at amortized cost, fair value through profit or loss or fair value through other comprehensive income as the case may be.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest method less impairment losses, if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value

Financial assets not measured at amortised cost are carried at fair value through profit or loss (FVTPL) on initial recognition, unless the company irrecoverably elects on initial recognition to present subsequent changes in fair value in ''other comprehensive income'' for investment in equity instruments which are not held for trading.

The Company, on initial application of IND AS 109 Financial instruments, has made an irrevocable election to present in ''other comprehensive income'', subsequent changes in fair value of equity instruments not held for trading.

Financial asset at FVTPL, are measured at fair values at the end of each reporting period, with any gains or losses arising on remeasurement recognized in the Statement of profit or loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest rate method or at FVTPL. For financial liabilities carried at amortised cost, the carrying amounts approximate fair values due to the short term maturities of these instruments. Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised in a business combination, or is held for trading or it is designated as FVTPL. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in in the Statement of profit and loss.

13.5 Nature and Purpose of Reserves

(a) Capital Reserve:

The amount of Rs.44.86 lakhs on Preferential Warrants convertible to equity shares and forfeited of other equity shares amounting to Rs.2.00 lakhs are recognised under Capital Reserve.

(b) Share Premium:

Share Premium Reserve is to record the premium on issuse of shares. The Reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

(c) General Reserve:

General Reserves represent amounts transferred from retained earnings in earlier years under the provisions of the erstwhile Companies Act, 1956. Mandatory transfer to genreal reserve is not required under the Companies Act, 2013.

(d) Retained Earnings:

These are the accumulated earnings after appropriation of total comprehensive income and related transfers.The Company uses retained earnings in accordance with the provisions of the Companies Act.

(e) Other Comprehensive Income:

Re-measurements of Non- Current Investments (Mutual Funds) valued at Fair Value, net of Income Tax.

34. 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 transactions with companies struck off.

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

iv) The Company has not traded or invested in Crypto currency or Virtual currency during this 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 utilized short term funds for long term users.

vii) 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 on behalf of the Ultimate Beneficiaries

viii) 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 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

ix) The Company has not any such transaction which is not recorded in the books of account 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.

35. Figures have been rounded off to the nearest rupee in Lakhs.

36. Reclassification:

Previous years'' figures have been recast / restated wherever necessary.

Note 1 to 36 form part of the Balance Sheet and have been authenticated.

In terms of our report attached for and on behalf of the Board

for Suryanarayana & Suresh

Chartered Accountants Murty Gudipati R S Sampath

Firm Reg. No: 006631S Managing Director & CEO Chairman

V Nagendra Rao DIN: 01459606 DIN: 00063633

Partner

Membership No.227679

Place : Hyderabad S Mohan Rao P.Jayanthi

Date : May 23, 2024 Chief Financial Officer Company Secretary

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Mar 31, 2015

1.1 Received Interim dividend amount to Rs.209.88 lakhs from subsidiary, Saven technologies Inc., USA.

1.2 The Company has disinvested its holdings in its foreign subsidiary, Saven Technologies Inc., USA. Consequently, profit on sale of investment Rs.285.89 lakhs on such disinvestment is accounted as other income.

2. Contingent Liabilities not acknowledged as debt: NIl

3. Related Party Transactions A. Details of related parties:

S.No. Relationship Names of the related parties

1. Subsidiary Saven Technologies Inc., USA,

2. Joint venture Penrillian Limited, U.K

3. Associates Pennar Industries Limited-Common Director Pennar Engineered Building Systems Limited - Common Director Pennar Enviro Limited-Common Director Medha Services Inc., USA - Common Director

4. Relatives J.Rajya lakshmi, Ch. Arathi, Avanti Rao & Aditya Narsing Rao

5.Key Management Personnel Mr. Murty Gudipati - Executive Director & CEO (KMP) Mr. S. Mohan Rao - Chief Financial Officer Ms. P. Jayanthi - Company Secretary

4. Segment Details

The Company is mainly engaged in the Software Development and Services. Hence there is no separate reportable segment as per Accounting Standard-17 issued by the Institute of Chartered Accountants of India.

5. Corporate Social Responsibility (CSR):

During the financial year 2014-15 the company received dividend income of Rs. 209.88 lakhs from its foreign subsidiary and earned profit on sale of investments in foreign subsidiary of Rs. 285.89 lakhs. Excluding these incomes, the company's net profit for the year is below Rs.5 crores. In the light of the above, the net profits of the Company for the last three financial years were below Rs. 5 crores, the provisions of Section 135 of Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the company for the financial year 2014-15.

6. Consolidated Accounts:

The company has disinvested its entire holdings in its foreign subsidiary company, Saven Technologies Inc., USA during the month of May, 2014. Hence there is no requirement for the company to furnish consolidated accounts for the financial year ended March 31, 2015.

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

8. Reclassification:

These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 2013. Previous years' figures have been recast / restated.

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Mar 31, 2014

Note 1

a) Contingent liabilities and commitments (to the extent not provided for)

(Rs. In Lacs)

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

(i) Contingent Liabilities

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

(b) Corporate Guarantees, Bank Guarantees and Other money for which the company is contingently liable 11,102.48 7,987,52

11,102.48 7,987.52

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for - -

(b) Uncalled liability on shares and other investments partly paid

(c) Other commitments (specify nature) - -

Total 11,102.48 7,987.52

2. Dues to Micro, Small and Medium Enterprises

The Company has not received any memorandum (as required to be filed by the Suppliers with the notified authorities under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2014 as micro, small or medium Enterprises. Consequently the amount paid/payable to these parties during the year is unascertainable.

3. Balances standing to the account of the debtors, creditors, advances, receivables and deposits are subject to confirmations.

4. Related Party Disclosures

(a) List of Parties where control exists, irrespective of transactions

i) . Subsidiary Companies

1. Omnitech Technologies Inc., USA

2. Omnitech Services Pte. Ltd., Singapore

3. Europe Omnitech Technology Services B.V., Netherlands

4. Omnitech (Singapore) Holding Pte Ltd, Singapore

ii) . Key Management Personnel

1. Mr. Atul M. Hemani - Managing Director & CEO

2. Mr. Avinash C. Pitale-Jt. Managing Director

3. Mr. Devarshi D. Buch - Executive Director

iii). Relatives of Key Management Personnel

1. Mrs. Amisha A. Hemani

2. Mrs. Vanita Hemani

3. Mr. Nirav Hemani

4. Ms. Vidhi Hemani

5. Mr. Bharat Hemani

6. Mr. Chandrakant Pitale

7. Mr. Amit Buch

8. Ms. Juhi Buch

9. Mr. Maganlal Hemani

10. Ms. Sheetal Pitale

11. Mr. Nitish Pitale

12. Mrs. Shubhangi Pitale

13. Mrs. Beejal D. Buch

14. Mr. Dushyant Buch

15. Mrs. Jayshree Buch

16. Mr. Yugal Hemani

iv) . Enterprises owned or significantly influenced by Key Management Personnel or their relatives

1. Omnitech Technologies Limited, India

2. Wintel Computers Private Limited, India

3. Atul Hemani HUF

4. Avinash Pitale HUF

5. Omnitech Employees'' Welfare Trust

v) Step-down subsidiaries

1. Omnitech Services Limited, Hong Kong

2. Avensus Nederland B.V, Netherlands

3. Omnitech Services Japan Co. Ltd., Japan

4. Omnitech (UK) Technologies Ltd. United Kingdom

5. Omnitech Australia Pty Ltd, Australia

(b) Following are the transactions entered into with the related parties.

5. Remittance of Dividend in Foreign Currency

During the year, the Company has not remitted any dividend in foreign currency.The company does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by/on behalf of non-resident shareholders. The particulars of dividends payable to non-resident shareholders which were declared during the year are as under:

6. Retirement Benefits

The Company has made provision in books pertaining to retirements benefits. However, the same has not been done in line with the applicable accounting standards.

7. Derivative Instruments

The Company uses Forward Contracts to hedge against its Foreign Exchange Exposure. The Company does not enter into any derivative instruments for Trading or Speculative purposes. As on 31s* March, 2014, there are no outstanding Forward Contracts.

8. Segmental Reporting

The Company is mainly engaged in the business of Information Technology and Information Technology enabled services. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz. Information Technology.

The Company operates in Local and Export geographically. But due to nature of business, the assets/liabilities and expenses thereof cannot be bifurcated separately.

9. Accounting for Employees Stock Option

a. Employee Stock Options are evaluated and accounted on intrinsic value method as per the accounting treatment prescribed by Guidance Note on ''Accounting for Employee Share-based payments'' issued by ICAI read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines 1999 issued by SEBI. The excess of market value, if any, of the stock options as on the date of grant over the exercise price of the options is recognized as deferred employee compensation and is charged to the profit and loss account on vesting basis over the vesting period of the options. The un- amortized portion of the deferred employee compensation is reduced from Employee Stock Option Outstanding, which is shown under Reserves and Surplus.

b. During the year 4741 options have been exercised.

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Mar 31, 2013

1. Corporate information

Saven Technologies Limited offers a full range of software services from end to end development of new software and web solutions, Enterprise Application Services, to re-engineering and enhancement of legacy applications, application integration and ongoing maintenance.

2. Exceptional items

During the year, Company has recovered an amount of Rs.37,08,750 against provision for doubtful debts of Rs.112,65,531/- which was provided in earlier years. The amount received during the year have been credited to Statement of Profit and Loss for the year ended March 31, 2013 as exceptional items.

3. Contingent Liabilities not acknowledged as debt: NIL

4. Segment Details

The Company is mainly engaged in the Software Development and Services. Hence there is no separate reportable segment as per Accounting Standard-17 issued by the Institute of Chartered Accountants of India.

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

6. Reclassification:

These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous years'' figures have been recast / restated.

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Mar 31, 2012

1. Corporate information

Saven Technologies Limited offers a full range of software services from end to end development of new software and web solutions, Enterprise Application Services, to re-engineering and enhancement of legacy applications, application integration and ongoing maintenance.

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.

2.1 Dues to Micro, Small and Medium enterprises has been determined to be Rs.Nil to the extent such parties have been identified on the basis of information available with the Company.

*Vehicle loan from ICICI Bank carries interest @ 11%. The loan amount of Rs.600,000/- is repayable in 36 monthly installments from December 3, 2009. The loan is secured by charge over fixed asset i.e. vehicle, for which finance is provided by the lender.

* Company had advanced Rs. 20 Lakhs to Saven Employees Foundation Trust for acquiring shares in the Company for issuance to employees.

** In respect of provision made in the previous years towards doubtful debts recoverable from overseas customers. The Company has plan to seek the permission of regulatory authorities for write off.

(i) Balances with banks include deposits amounting to Rs.18,666,973/- Which have maturity of less than 12 months on Balance sheet date

3. Exceptional items

An amount of Rs.61,37,961/- provided as doubtful debts in the previous years which was received during the year have been credited to Statement of Profit and Loss for the year ended March 31, 2012 as exceptional items.

4. Contingent Liabilities not acknowledged as debt: NIL

5. Segment Details

The Company is mainly engaged in the Software Development and Services. Hence there is no separate reportable segment as per Accounting Standard-17 issued by the Institute of Chartered Accountants of India.

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

Note: Saven Technologies, Inc. became a Subsidiary of the Company with effect from May 31, 2001.

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Mar 31, 2011

1. Taxes on Income:

In the absence of convincing evidence regarding availability of sufficient taxable income in near future against which the deferred tax asset / liability can be adjusted, the company has not recognized the deferred tax asset / liability arising due to tax effect of timing difference at present.

2. Foreign Currency Transactions:

The long term monetary assets in foreign currency holding, for more than one year are translated into reporting currency without considering the exchange fluctuation during the year.

3. Related Party Transactions:

A. Related Parties and their Relationship

I. Associate or Joint Venture:

a) Saven Technologies Inc., USA, a Subsidiary of the Company.

b) Penrillian Limited, a Joint Venture Company in the U.K.

c) Pennar Industries Limited - Common Director.

d) Pennar Engineered Building Systems Limited - Common Director.

e) Pennar Chemical Limited - Common Director.

II. Key Management Person:

Mr. Murty Gudipati - Executive Director

4. Quantitative details:

The Company is engaged in the Development of Computer Software and IT Enabled Services (ITES). The sale and production of such software cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under Paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

5. Other Liabilities:

Other Liabilities includes an amount of Rs.3.54 Lakhs relating to Hire Purchase of cars excluding Hire charges, and the said loan was secured by hypothecation of the said cars.

8. Segment-wise / Product-wise performance

Business Segments of the Company are primarily Software Development Services in respect of offshore projects working in India and IT-Enabled Services.

Geographical revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.

6. Dues to Micro, Small and Medium Enterprises:

The amount due to Micro, Small and Medium Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006 " has been determined to the extent such parties have been identified on the basis of information available with the company.

7. Sundry Debtors:

Sundry Debtors include an amount of Rs.34,109,583/- due from Saven Technologies Inc., a subsidiary in USA, (out of which an amount of Rs. 61.38 Lakhs has been provided for provision for doubtful debts) which has been provided in full as provision for doubtful debts in the books of accounts.

During the year, an amount of Rs.40,93,000/- has been written off against the provision of the same amount, due from Saven Technologies (UK) Limited made during the earlier years, towards sundry debtors amounting to Rs.2,005,040/- advances amounting to Rs. 1,411,742/- and investments amounting to Rs.6,76,218/- pursuant to the approval of Reserve Bank of India for dissolution of the wholly-owned subsidiary.

8. Reclassification:

The previous year's figures have been recast, regrouped, rearranged wherever necessary, to conform to the current year's classification.

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Mar 31, 2010

1. Taxes on Income:

In the absence of convincing evidence regarding availability of sufficient taxable income in near future against which the deferred tax asset / liability can be adjusted, the company has not recognized the deferred tax asset / liability arising due to tax effect of timing difference at present.

2. Foreign Currency Transactions:

The long term monetary assets in foreign currency holding, more than one year are translated into reporting currency without considering the exchange fluctuation during the year.

3. Related Party Transactions:

A. Related Parties and their Relationship

I. Associate or Joint Venture:

a) Saven Technologies Inc., USA, a Subsidiary of the Company.

b) Penrillian Limited, a Joint Venture Company in the U.K.

II. Key Management Person:

Mr. Murty Gudipati - Executive Director

Accordingly, the Company has not disclosed in the related party transaction the amount towards Provision for Investment, Receivables and Others are:

1. Provision for Investments to the extent of 90% r Rs.608,596/- already made. During the year balance 10% of Rs.67,622/- taken provision.

2. Provision for Receivables of Rs.2,005,040/- already made.

3. Provision for Other Advances of Rs.14,11,742/- already made.

4. Quantitative details:

The Company is engaged in the Development of Computer Software and IT Enabled Services (ITES). The sale and production of such software cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under Paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

5. Other Liabilities:

Other Liabilities includes an amount of Rs.6.26 Lakhs relating to Hire Purchase of cars excluding Hire charges, and the said loan was secured by hypothecation of the said cars.

6. Segment-wise / Product-wise performance

Business Segments of the Company are primarily Software Development Services in respect of offshore projects working in India and IT-Enabled Services.

Geographical revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognized.

7. Dues to Micro, Small and Medium Enterprises:

As of March 31, 2010, the Company had no outstanding dues to Micro, Small and Medium Enterprises (As of March 31, 2009- Rs. Nil)

8. Sundry Debtors:

Sundry Debtors include an amount of Rs.31,688,626/- due from Saven Technologies Inc., a subsidiary in USA, (out of which an amount of Rs.61.38 Lakhs has been provided for provision for doubtful debts) which has been provided in full as provision for doubtful debts in the books of accounts.

9. Reclassification:

The previous years figures have been recast, regrouped, rearranged wherever necessary, to conform to the current years classification.