Notes to Accounts of Shyam Telecom Ltd.

Mar 31, 2024

U. 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 probable that there will be an outflow of resources. Contingent liabilities
are not recognized but are disclosed in notes.

Show cause notices issued by various government authorities are not considered as obligation. When the demand
notice are raised against such show cause notice and are disputed by the Company then these are classified as
possible obligations.

V. Leases

Leases where significant portion of risk and reward of ownership are retained by the lessor are classified as operating
leases and lease payments are recognised as an expense on a straight line basis in Statement of Profit and Loss over
the lease term.

Finance leases that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are
capitalized at commencement of the lease at the fair value of the leased property or, if lower, at the present value
of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction in the
lease liability so as to achieve a constant rate of interest on the remaining balance of liability. Finance charges are
recognised in finance cost in the statement of profit and loss.

W. Proposed Dividend

The final dividend on shares is recorded as liability on the date of approval by the shareholders, and interim dividends
are recorded as a liability on the date of declaration by the Company’s Board of Directors.

X. Cash and Cash Equivalent

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly
liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.

Y. Earnings per Share

The earnings considered in ascertaining the Company’s Earnings per Share (‘EPS’) comprise the profit/(loss) for
the year. The number of shares used in computing basic EPS is the weighted average number of shares outstanding
during the year. The weighted average number of equity shares outstanding during the year is adjusted for event of
bonus element in a rights issue to existing shareholders.

The number of shares used in computing diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share, and also the weighted average number of shares, if any which
would have been used in the conversion of all dilutive potential equity shares.

Z. Impairment

• Financial Assets

The Company recognizes loss allowances using the expected credit losses (ECL) model for the financial assets which
are not fair valued through statement of profit and loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase
in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is
required to be recognised is recognised as an impairment gain or loss in statement of profit and loss.

• Non-Financial Asset

Intangible Assets and Property, Plant and Equipment

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely in dependent of those from other
assets. In such cases, the recoverable amount is determined for the Cash Generating Unit to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is
measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the
asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the carrying amount that would have been determined (net of
any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior year.

*Income tax demands mainly include the appeals filed by the Company before various appellate authorities against the
disallowance by income tax authorities of certain expenses being claimed, non-deduction of tax at source with respect to
dealers / distributor’s margin and payments to international operators for access charges (Net of amount paid).

** VAT/Sales Tax demand mainly relates to demand raised by VAT & Sales tax department of few states on supply of charger
(Net of amount paid).

25. An amount of Rs.42.82 crore (PY Rs. 42.82 crore, cr.) being advances from customers classified under the head “Other
Current Liabilities” are in process of being settled for a long time. An amount of Rs. 2.26 crore (PY Rs. 2.26 crore, cr.)
being Sundry Creditors classified under the head “Trade Payables” are in process of being settled for a long time. An
amount of Rs. 28.10 cr (PY 28.10 crore, dr.) being Loan to Subsidiary Classified under “Loans-Doubtful”. The company
had already made a provision of Rs. 28.10 (PY Rs. 28.10 crore) against such doubtful advances in previous years. All the
above-mentioned amounts are long overdue and Company is following up for approvals.

26. In the earlier years, the Company had invested in the share capital of wholly owned subsidiary Shyam telecom Inc.
(STI), USA and given advance against share capital and extended long term loans to STI and accordingly, an amount of
Rs. 20.74 Lacs (PY Rs 20.74 Lacs, dr.) and Rs. 2789.31 lacs (PY Rs. 2789.31 Lacs, dr.) are outstanding as on the year end
against such advance and loans, respectively. The Subsidiary company had liquidated all assets and had accumulated
losses amounted to Rs. 2124.63 lacs (PY Rs. 2124.63 Lacs,). Shyam Telecom Inc. (Corporation), erstwhile subsidiary of
the Company has been dissolved as per the certificate issued by State Of Delaware (USA) pursuant to Section 275 and
391 (a) (b) (c) with effect from 22^nd December, 2015. Accordingly, The Company had made provisions against advances
given for share capital and long term loans amounting to US$ 33,94,344 (33,69,294 25,050) and provided impairment
loss against investment made, in the earlier years. An application to write-off the same post dissolution has been made
which is subject to approval from Reserve Bank of India. Since the corporation has already been dissolved w.e.f. 22^nd
December, 2015, the same will be written off after taking necessary approval from RBI. However, full provision and
impairment loss for the same is already been made in the books of account.

27. The Company is exposed primarily to market risk, credit risk and liquidity risk which may adversely impact the fair
value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks
to mitigate potential adverse effects on the financial performance of the Company.

Market Risk:

Market risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. It is a risk of changes in market prices due to foreign exchange rate changes and interest rates that will
fluctuate affecting Company’s revenue and the value of its financial instruments.

(a) Interest Rate Risks

The Company does not have any floating interest bearing borrowings as on 31^st March, 2024 and 31^st March, 2023.

Hence, Company is not exposed to any significant interest rate risks.

(b) Foreign Currency Risks

The Company has following un-hedged foreign currency risks on financial assets and financial liabilities

Credit Risk:

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due,
causing financial loss to the Company. Credit risk arises from Company’s activities in investments and outstanding
receivables from customers.

Liquidity Risk:

Liquidity risk arises from the inability to meet cash flow commitments on time. Prudent liquidity risk management implies
maintaining sufficient stock of cash and marketable securities.

30. The figures of Long-term / Short-term borrowings, Trade payable, Trade receivables & Other Current Assets and Loans
and Advances shown in the foregoing Balance sheet are subject to confirmation.

31. In the opinion of Board of Directors, PPE , Current Assets, Loans and Advances have a value on realisation in ordinary
course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all
liabilities have been made in the Accounts, which has been relied upon by the auditors.

32. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets
a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

These benefits are funded. The following tables summarises the components of net benefit expense recognized in the
Statement of profit and loss and the funded status and amounts recognized in the balance sheet.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs. 7.79 Lacs (previous Year Rs. 7.90 lacs) towards contribution to PF in
the Statement of Profit and Loss .

B. State Plans

Employer’s contribution to Employee State insurance

During the year, the Company has recognised Rs. 0.71 Lacs (Previous year Rs. 0.76 lacs) towards contribution to ESI
in the Statement of Profit and Loss.

C. Defined Benefit Plans

The actuarial valuation carried out is based on following assumption:

33. None of the creditors have informed that they comprise Micro, small & medium enterprises as defined under MSMED
Act, 2006. Hence there are no creditors which comprise amount outstanding for more than 45 days at Balance Sheet
date. Based on information available with company, the balance due to micro and small enterprise as defined in MSMED
Act, 2006 in current year is Rs. NIL and no interest during the year has been paid or payable under terms of MSMED
Act, 2006.

34. The Company has incurred a loss of Rs. 312.55 (PY loss of Rs.487.11 Lacs) during the year and the net worth has
been fully eroded for the year under report. Considering the losses and negative net worth on account of settlement
of pending arbitration cases in earlier years, the management has made an assessment of its ability to continue as a
going concern. The Company is in the process of continuing with its trading operations and expected to generate profits
in coming years. Such aspects are considered by the management while preparing the financial statements, and an
assessment of an entity’s ability to continue as a going concern is made accordingly.

40. Previous year figures have been regrouped / reclassified wherever considered necessary.

For Padam Dinesh & Co. For and on behalf of Board of Directors

Chartered Accountants of Shyam Telecom limited

(Firm Regn. No: 009061N)

Sd/- Sd/- Sd/-

CA Rakesh Aggarwal Ajay Khanna Nishi Sabharwal

Partner Director Director

M. No.: 084226 DIN: 00027549 DIN: 06963293

UDIN: 24084226BKBUGV1905

Sd/- Sd/-

Vinod Raina Kirti Kesarwani

Chief Financial Officer Company Secretary

Date: 10^th May, 2024
Place: New Delhi

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Mar 31, 2016

1. Discontinuing Operations

The company initiated the process of Discontinuing/outsourcing the manufacturing operations in pursuance to the resolution passed in the meeting of Board of Directors held on 9th Feberuary,20l5,thereby vacated the premises by 15th April, 2015, disposed off all tangible assets except vehicles, discharged/provided for contarctual obligations of manpower/worker and resolved to outsource the operations henceforth. Consequently there is only one reportable segment as on 31st march, 2016.

2. Related Party Information:

Relationship

a) Subsidiary:

- Shyam Telecom Inc. up to 22 December ,2015.

b) Key Management Personnel and relative of Key Management personal:

Mr. Rajiv Mehrotra , Mr Alok Tondon,Mr. Arun Khanna and Mr. Ajay Khanna.

c) Enterprises over which Key Management Personnel and relatives are able to exercise significant influence:

Shyam Antenna Electronics Ltd., Intercity Cable System Pvt. Ltd, Shyam Communication Systems, Shyam Networks Ltd. (formerly Shyam Telecom Systems Pvt. Ltd.), Shyam Digital Communications Pvt Ltd, Sistema Shyam Teleservices Ltd.,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet Pvt Ltd., Shyam infratel Pvt ltd, Vihaan Networks Ltd and Think of us. Pvt Ltd

Note; Related party relationship is as identified by the Company and relied upon by the auditors.

3. Some of the personal accounts are subject to adjustments / reconciliation / confirmation .

4. In the opinion of Board of Directors Fixed Assets, Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

5. In compliance with the accounting standards 15 (revised 2005) "Employee Benefits" The company has got the employee benefits evaluated from actuarial valuer.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs 17.24 Lacs (previous Year Rs. 32.88 lacs) towards contribution to PF in the Statement of Profit and Loss.

B. State Plans

Employer''s contribution to Employee State insurance and to welfare fund

During the year the Company has recognized Rs. 1.97 lacs (Previous year Rs.2.98 lacs) towards contribution to ESI and Rs NIL (previous Year Rs.0.11 lacs) towards welfare fund, in the Statement of Profit and Loss.

C. Defined Benefit Plans

The actuarial valuation carried out is based on following assumption:

a) Leave Encashment

b) Contribution to Gratuity Fund - Employee''s Gratuity Fund.

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Mar 31, 2015

1. The Department of Telecommunications, Ministry of Communication, Government of India, had invited the tenders from the Indian Companies to provide basic telephony services. The Company Shyam Telelink Networks Ltd. (India) (STNL) along with ARM Ltd. and other parties entered into an MOU to jointly participate in the tenders through STNL. The parties entered into an agreement from which ARM Ltd. withdrew and the parties agreed for buying the shares of ARM Ltd. for a consideration of Rs 10 Crores. The same was partly effected but STNL did not pay the balance amount alleging fraud by ARM Ltd. The matter which was under arbitration by a sole arbitrator who was replaced by the Hon'ble Supreme Court of India (which was approached by the Company by way of an SLP), which vide its order dated 29th Aug, 2012 appointed a different Sole arbitrator. The arbitrator vide his order dated 24th Jan, 2014 has directed the company to pay ARM Ltd. Rs 11.50 Crores along with interest of Rs 14.12 Crores totaling Rs. 25.62 Crores on account of payout. The interest shall be payable upto the date of payment. In addition to the above he has further awarded USD 5,00,000 at the conversion rate prevailing on 24.01.2014 plus interest @ 9% p.a. from the date of award till the date of payment and Rs 20 Lakhs payable to ARM Ltd as arbitration Cost. The company has filed an application under section 34 of the Arbitration and Conciliation Act, 1996 against the said order before the Hon'ble Delhi High Court. The Hon'ble Delhi High Court has issued notice in the said application (which has the effect of stay on the award), and the matter is presently sub-judice before the Hon'ble Delhi High Court. As per the legal opinion produced to us by the Company, the company expects to win the case and hence no provision for the liability has been considered in the accounts. The outstanding amount has been included under Contingent Liabilities.

2. As on 31.03.2015, an amount of Rs 3676.90 Lakhs payable to (Aquarius Technology Pte Ltd. Rs 3237.74 and Nisshoiwai Corporation Rs 439.16 Lakhs ) in Foreign Currency remains unsettled for a period exceeding One year.

3. Exceptional items:

(i) Company had in the previous year(s) given advance against share capital and extended long term loans to WOS STI which as on 31-03-2015 amounted to Rs. 15.68 Lacs (US$ 25,050) and Rs. 2108.95lacs (US$33,69,294) respectively. The Subsidiary company had liquidated all assets and had Accumulated losses amounted to Rs 2124.63 lacs(US$ 33,94,344). In the opinion of the management the said loans & advances are not recoverable. The same will be written off after taking necessary approval from RBI however provision for the same is made

(ii) Includes provision for diminution in carrying value of Investment in Spanco Limited and Sistema Shyam Teleservices Limited amounting to Rs. 75.03 Lacs for the year ended 31st March 2015.

4. As per the requirement of Schedule II of the Companies Act 2013 effective from 1st April 2014, the company has charged depreciation based on the useful lives as prescribed under the Schedule. Consequently, the company has adjusted Rs. 78.38 Lacs from retained earning and depreciation charge for the year ended 31st March,2015 is higher by Rs.91.34 Lacs.

5. Discontinuing Operations

The company initiated the process of Discontinuing/outsourcing the manufacturing operations in pursuance to the resolution passed in the meeting of Board of Directors held on 9th Feberuary,2015,thereby vacated the premises by 15th April,2015,disposed off all tangible assets except vehicles,discharged/provided for contarctual obligations of manpower/ worker and resolved to outsource the operations henceforth.Consequently there is only one reportable segment as on 31st march,2015.

6. Related Party Information:

Relationship

a) Subsidiary :

- Shyam Telecom Inc.

b) Key Management Personnel and relative of Key Management personal : Mr. Rajiv Mehrotra , Mr Alok Tondon, Mr. Arun Khanna and Mr. Ajay Khanna.

c) Enterprises over which Key Management Personnel and relatives are able to exercise significant influence:

Shyam Antenna Electronics Ltd., Intercity Cable System Pvt. Ltd, Shyam Communication Systems, Shyam Networks Ltd. (formerly Shyam Telecom Systems Pvt. Ltd.), Shyam Digital Communications Pvt Ltd, Sistema Shyam Teleservices Ltd.,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet Pvt Ltd., Shyam infratel Pvt ltd, Vihaan Networks Ltd and Think of us Pvt. Ltd.

Note: Related party relationship is as identified by the Company and relied upon by the auditors.

7. Some of the personal accounts are subject to adjustments / reconciliation / confirmation .

8. In the opinion of Board of Directors Fixed Assets, Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

9. In compliance with the accounting standards 15 (revised 2005) "Employee Benefits" The company has got the employee benefits evaluated from actuarial valuer.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs 32.88 Lacs (previous Year Rs. 49.99 lacs) towards contribution to PF in the Statement of Profit and Loss .

B. State Plans

Employer's contribution to Employee State insurance and to welfare fund During the year the Company has recognised Rs. 2.98 lacs (Previous year Rs.3.67 Lacs)towards contribution to ESI and Rs 0.11 Lacs (previous Year Rs.0.21 Lacs) towards welfare fund, in the Statement of Profit and Loss.

C. Defined Benefit Plans

The actuarial valuation carried out is based on following assumption:

a) Leave Encashment

b) Contribution to Gratuity Fund - Employee's Gratuity Fund.

10. Previous year figures have been regrouped/reclassified wherever considered necessary.

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Mar 31, 2014

NOTE - 1 TRADE PAYABLES

The Company has not received any intimation from "suppliers" regarding their status under the Micro, small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

CURRENT YEAR PREVIOUS YEAR 2 Contingent liabilities : (Rs In Lacs) (Rs In Lacs)

-Income Tax 74.41 39.71

-Excise Duty 80.87 -

-Claims of ARM Ltd * 2,892.74 -

* The Department of Telecommunications, Ministry of Communication, Government of India, had invited the tenders from the Indian Companies to provide basic telephony services. The Company Shyam Telelink Networks Ltd. (India) (STNL) along with ARM Ltd. and other parties entered into an MOU to jointly participate in the tenders through STNL. The parties entered into an agreement from which ARM Ltd. withdrew and the parties agreed for buying the shares of ARM Ltd. for a consideration of Rs 10 Crores. The same was partly effected but STNL did not pay the balance amount alleging fraud by ARM Ltd. The matter which was under arbitration by a sole arbitrator who was replaced by the Hon''ble Supreme Court of India (which was approached by the Company by way of an SLP), which vide its order dated 29th Aug, 2012 appointed a different Sole arbitrator.

The arbitrator vide his order dated 24th Jan, 2014 has directed the company to pay ARM Ltd. Rs 11.50 Crores along with interest of Rs 14.12 Crores totaling Rs. 25.62 Crores on account of payout. The interest shall be payable upto the date of payment. In addition to the above he has further awarded USD 5,00,000 at the conversion rate prevailing on 24.01,2014 plus interest @ 9% p.a. from the date of award till the date of payment and Rs 20 Lakhs payable to ARM Ltd as arbitration Cost. The company has filed an application under section 34 of the Arbitration and Conciliation Act, 1996 against the said order before the Hon''ble Delhi High Court. The Hon''ble Delhi High Court has issued notice in the said application (which has the effect of stay on the award), and the matter is presently sub-judice before the Hon''ble Delhi High Court. As per the legal opinion produced to us by the Company, the company expects to win the case and hence no provision for the liability has been considered in the accounts. The outstanding amount has been included under Contingent Liabilities.

3 As on 31.03.2014, an amount of Rs 3530.52 Lakhs payable to (Aquarius Technology Pte Ltd. Rs 3108.84 and Nisshoiwai Corporation Rs 421.68 Lakhs ) in Foreign Currency remains unsettled for a period exceeding One year.

4 A loan amounting to Rs 2090.25 Lakhs extended to Shyam Telecom Inc, USA remains outstanding as on date . The said wholly owned subsidiary has incurred substantial losses.However management is of the opinion that amount shall be recovered, hence no provision is considered necessary.

5 Research & Development:

Research and Development expenses, clubed in respective head of expenses amounting to Rs. Nil in Current year(Previous Year Rs. 69.86 lacs).

6 Exceptional items:

The company in financial year 1994-95 rejected "Digital Micro Radio Equipment" supplied by M/s Bharat Electronics Limited on ground of defects in the equipments supplied and non adherence to delivery schedule. On appeal by the Bharat Electronic Limited for recovery of interest on the unpaid amount the company had deposited Rs 339.75 lacs in the High Court of Delhi in the year ended 31.03.2012 which was charged to revenue as exception Item. On final disposal of appeal by Bharat Electronics Limited the Honable High Court directed to deposit of Rs 118.31 lacs as amount of interest which has also been charged to revenue during the previous year ended 31.03.2013 as exceptional item

7 Related Party Information:

Relationship

a) Subsidiary :

- Shyam Telecom Inc.

b) Key Management Personnel and relative of Key Management personal :

Mr. Rajiv Mehrotra , Mr. Alok Tondon,Mr. Arun Khanna and Mr. Ajay Khanna and Relative of Key Management personal : Mr. K.N. Mehrotra

c) Enterprises over which Key Management Personnel and relatives are able to exercise significant influence:

Shyam Antenna Electronics Ltd., Intercity Cable System Pvt. Ltd., Shyam Communication Systems, Shyam Basic Infrastructures Projects Pvt. Ltd., Shyam Networks Ltd., (formerly Shyam Telecom Systems Pvt. Ltd.), A.T. Invofin India Pvt. Ltd., Cell cap Invofin India Pvt Ltd, Intell Invofin India Pvt Ltd., Shyam Digital Communications Pvt Ltd., Sistema Shyam Teleservices Ltd.,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet Pvt Ltd., Shyam infratel Pvt ltd., Vihaan Networks Ltd. and Think of us.

Note; Related party relationship is as identified by the Company and relied upon by the auditors.

8 SEGMENT INFORMATION

The Company''s operations predominantly relate to providing Telecommunication products , Trading and respective related Services. The company has considered business segment as the primary segment for disclosure. The segments have been identified taking into account the nature of the products, the deferring risk and returns, the organisation structure and internal reporting system . The company caters mainly to the needs of the domestic market and export turnover is not significant in context of the total turnover, hence there is no reportable geographical segment . The Telecom products & Services segment comprise of manufacturing, trading and services in the related area. Trading services segment includes the Trading in Telecom Products. Investments are primarly in the companies which are dealing in IT and telecommunication sectors.

Revenue & expenditure which relates to enterprises as a whole and are not attributable to segments are included in unallocable expenditure (Net of unallocable income ). Assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segment , as all the assets and services are used interchangeably between segments, The Company believes that it is currently not practicable to provide segment disclosure relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

9 Some of the personal accounts are subject to adjustments / reconciliation / confirmation.

10 In the opinion of management ,the diminution in the value of investment is temporary in nature.

11 In the opinion of Board of Directors Fixed Assets, Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

12 In compliance with the accounting standards 15 (revised 2005) "Employee Benefits" The company has got the employee benefits evaluated from actuarial valuer.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs 49.99 Lacs (previous Year Rs. 49.63 lacs) towards contribution to PF in the Statement of Profit and Loss.

B. State Plans

Employer''s contribution to Employee State insurance and to welfare fund

During the year the Company has recognised Rs. 3.67 lacs (Previous year Rs.4.92 Lacs)towards contribution to ESI and Rs 0.21 Lacs (previous Year Rs. . 0.23 Lacs) towards welfare fund, in the Statement of Profit and Loss.

C. Defined Benefit Plans

The actuarial valuation carried out is based on following assumption:

a) Leave Encashment

b) Contribution to Gratuity Fund - Employee''s Gratuity Fund.

13 Previous year figures have been regrouped/reclassified wherever considered necessary.

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Mar 31, 2013

CURRENT YEAR PREVIOUS YEAR (Rs. In Lacs) (Rs. In Lacs)

1 Contingent liabilities :

-Income Tax 39.71 75.00

2 Commitments:

Letter of Credits issued by the Banks (Agst. which Goods have not been despatched) 2,484.89

3 Research & Development:

Research and Development expenses, clubed in respective head of expenses amounting to Rs. 69.86 Lacs in Current year(Previous Year Rs. 204.55 lacs).

4 Exceptional items:

The company in financial year 1994-95 rejected "Digital Micro Radio Equipment" supplied by M/s Bharat Electronics Limited on ground of defects in the equipments supplied and non adherence to delivery schedule. On appeal by the Bharat Electronic Limited for recovery of interest on the unpaid amount the company had deposited Rs.339.75 lacs in the High Court of Delhi in the previous year ended 31.03.2012 which was charged to revenue as exception Item. On final disposal of appeal by Bharat Electronics Limited the Honable High Court directed to deposit of Rs.118.31 lacs as amount of interest which has also been charged to revenue during the year as exceptional item.

5 Related Party Information: Relationship

a) Subsidiary :

- Shyam Telecom Inc.

b) Key Management Personnel and relative of Key Management personal : Mr. Rajiv Mehrotra, Mr Alok Tondon, Mr. Arun Khanna and Mr. Ajay Khanna Relative of Key Management personal : Mr. K.N. Mehrotra.

c) Enterprises over which Key Management Personnel and relatives are able to exercise significant influence:

Shyam Antenna Electronics Ltd., Intercity Cable System Pvt. Ltd, Shyam Communication Systems, Shyam Basic Infrastructures Projects Pvt. Ltd., Shyam Networks Ltd. (formerly Shyam Telecom Systems Pvt. Ltd.), A.T. Invofin India Pvt. Ltd., Cell cap Invofin India Pvt Ltd, Intell Invofin India Pvt Ltd, Shyam Digital Communications Pvt Ltd, Sistema Shyam Teleservices Ltd.,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet Pvt Ltd., Shyam infratel Pvt ltd and Vihaan Networks Ltd.

Note; Related party relationship is as identified by the Company and relied upon by the auditors.

6 SEGMENT INFORMATION

The Company''s operations predominantly relate to providing Telecommunication products, Trading and respective related Services. The company has considered business segment as the primary segment for disclosure. The segments have been identified taking into account the nature of the products, the deferring risk and returns, the organisation structure and internal reporting system. The company caters mainly to the needs of the domestic market and export turnover is not significant in context of the total turnover, hence there is no reportable geographical segment. The Telecom products & Services segment comprise of manufacturing, trading and services in the related area. Trading services segment includes the Trading in Telecom Products. Investments are primarly in the companies which are dealing in IT and telecommunication sectors.

Revenue & expenditure which relates to enterprises as a whole and are not attributable to segments are included in unallocable expenditure (Net of unallocable income). Assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segment, as all the assets and services are used interchangeably between segments, The Company believes that it is currently not practicable to provide segment disclosure relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

7 Some of the personal accounts are subject to adjustments / reconciliation / confirmation .

8 In the opinion of Board of Directors Fixed Assets, Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

9 In compliance with the accounting standards 15 (revised 2005) "Employee Benefits" The company has got the employee benefits evaluated from actuarial valuer.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs.49.63 Lacs (previous Year Rs. 64.47 lacs) towards contribution to PF in the Statement of Profit and Loss.

B. State Plans

Employer''s contribution to Employee State insurance and to welfare fund

During the year the Company has recognised Rs. 4.92 lacs (Previous year Rs. 6.71 Lacs)towards contribution to ESI and Rs. 0.23 Lacs (previous Year Rs. 0.16 Lacs) towards welfare fund, in the Statement of Profit and Loss.

C. Defined Benefit Plans

The actuarial valuation carried out is based on following assumption:

a) Leave Encashment

b) Contribution to Gratuity Fund - Employee''s Gratuity Fund.

10 Previous year figures have been regrouped / reclassified wherever considered necessary

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Mar 31, 2012

CURRENT YEAR PREVIOUS YEAR (Rs. In Lacs) (Rs. In Lacs)

1. Contingent liabilities :

- Claim against the company not acknowledged as debt - 108.13

- Income Tax 75.00 -

2. Commitments:

Letter of Credits issued by the Banks (Agst. which Goods have not been despatched) 2,484.89 2,338.89

3. Research & Development:

Research and Development expenses, clubed in respective head of expenses amounting to Rs. 204.55 lacs in Current year, Previous year Rs. 363.49 Lacs including Rs. 204.91 Lacs transferred from Work in progress have been charged to revenue as no future economic benefit was expected to flow to the company on use.

4. Exceptional items:

The company in financial year 1994-95 rejected "Digital Micro Radio Equipment" supplied by M/s. Bharat Electronics Limited on ground of defects in the equipments supplied and non adherence to delivery schedule. However, the High Court of Delhi passed order against the company and company deposited the ordered amount of Rs 339.75 Lacs with the High court of Delhi. Amount deposited has been charged to revenue as Exceptional item.

5. Related Party Information: Relationship

a) Subsidiary :

- Shyam Telecom Inc.

b) Key Management Personnel and relative of Key Management personal :

Mr. Rajiv Mehrotra, Mr Alok Tondon, Mr. Arun Khanna and Mr. Ajay Khanna and Relative of Key Management personal : Mr, K.N. Mehrotra

c) Enterprises over which Key Management Personnel and relatives are able to exercise significant influence:

Shyam Antenna Electronics Ltd., Intercity Cable System Pvt. Ltd, Shyam Communication Systems, Shyam Basic Infrastructures Projects Pvt. Ltd., Shyam Networks Ltd. (formerly Shyam Telecom Systems Pvt. Ltd.), A.T. Invofin India Pvt. Ltd., Cell cap Invofin India Pvt Ltd, Intell Invofin India Pvt Ltd, Shyam Digital Communications Pvt Ltd, Sistema Shyam Teleservices Ltd.,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet Pvt Ltd., Shyam infratel Pvt ltd and Vihaan Networks Ltd.

Note; Related party relationship is as identified by the Company and relied upon by the Auditors.

6. SEGMENT INFORMATION

The Company's operations predominantly relate to providing Telecommunication products, Trading and respective related Services. The company has considered business segment as the primary segment for disclosure. The segments have been identified taking into account the nature of the products, the deferring risk and returns, the organisation structure and internal reporting system, The company caters mainly to the needs of the domestic market and export turnover is not significant in context of the total turnover, hence there is no reportable geographical segment. The Telecom products & Services segment comprise of manufacturing, trading and services in the related area. Trading services segment includes the Trading in Telecom Products. Investments are primarily in the companies which are dealing in IT and telecommunication sectors.

Revenue & expenditure which relates to enterprises as a whole and are not attributable to segments are included in unallocable expenditure (Net of unallocable income), Assets used in the Company's business or liabilities contracted have not been identified to any of the reportable segment, as all the assets and services are used interchangeably between segments, The Company believes that it is currently not practicable to provide segment disclosure relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

7. Some of the personal accounts are subject to adjustments/reconciliation/confirmation.

8. In the opinion of Board of Directors Fixed Assets, Current Assets Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

36. In compliance with the accounting standards 15 (revised 2005) "Employee Benefits" The company has got the employee benefits evaluated from actuarial valuer.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs. 64.47 Lacs (previous Year Rs. 58.45 lacs) towards contribution to PF in the Statement of Profit and Loss.

B. State Plans

Employer's contribution to Employee State insurance and to welfare fund During the year the Company has recognised Rs. 6.71 lacs (Previous year Rs. 6.39 Lacs)towards contribution to ESI and Rs. 0.16 Lacs (previous Year Rs. 0.18 Lacs) towards welfare fund, in the Statement of Profit and Loss.

9. Previous year figures have been regrouped/reclassified wherever considered necessary.

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Mar 31, 2010

Current Year Previous Year

1 Contingent liabilities : (Rs in Lacs) (Rs in Lacs)

i) Claim against the company not acknowledged as debt 108.13 108.13

ii) Estimated amount of contracts remaining to be executed on capital account (Net of advance) - 133.45

iiI) Outstanding Guarantee Issued by Banks 690.87 276.49

iv) Letter of Credits issued by the Banks (Agst. which Goods have not been despatched) 1,160.70 1,532.32

2 The Company had transaction for supply and procurement of goods with M/s KTP Exports Pte Limited and M/s Aquarius technology Pte Limited which belongs the same group. An amount of Rs 4336.64 lacs recoverable and shown in Sundry Debtors and amount Rs.4141.63 lacs has been shown as payable & included in creditor.The compnay applied to Reserve Bank of India for set off of the amount payable against amount receivable. The permission of Reserve Bank of India is awaited.

3 RELATED PARTY INFORMATION RELATIONSHIP

a) Names of the related parties where control exists are as under :

- Subsidiary

Shyam Telecom Inc.

b) - Key Management Personnel : Mr. K. N. Mehrotra , Mr. Rajiv Mehrotra Mr Alok Tondon and Mr. Ajay Khanna [Previous year Mr. K. N. Mehrotra Mr. Rajiv Mehrotra , Mr Alok Tondon and Mr. Ajay Khanna)]

c) Enterprises over which Key Management Personnel and relatives are able to exercise significant influence: Shyam Antenna Electronic Ltd., Intercity Cable System Pvt. Ltd, Shyam Communication Systems, Shyam Basic Infrastructures Projects Pvt. Ltd, Shyam Telecom Systems Pvt. Ltd, A.T. Invofin India Pvt Ltd, Cell cap Invofin India Pvt Ltd, Intell Invofin India Pvt Ltd, Shyam Digital Communications Pvt Ltd, Sistema Shyam Teleservices Limited,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet Pvt Ltd., Vihaan Networks Ltd.

Note: Related party relationship is as identified by the Company and relied upon by the auditors.

4 SEGMENT INFORMATION

The Companys operations predominantly relate to providing Telecommunication products , Turnkey Projects , Trading and respective related Services. The company has considered business segment as the primary segment for disclosure. The segments have been identified taking into account the nature of the products, the deferring risk and returns, the organisation structure and internal reporting system . The company caters mainly to the needs of the domestic market and export turnover is not significant in context of the total turnover, hence there is no reportable geographical segment . The Telecom products & Services segment comprise of manufacturing and services in the related area. Turnkey Projects and trading services segment includes the turnkey Projects and Trading in Telecom Products. Investments are primarly in the companies which are dealing in IT and telecommunication sectors.

Revenue & expenditure which relates to enterprises as a whole and are not attributable to segments are included in unallocable expenditure ( Net of unallocable income ) . Assets used in the Companys business or liabilities contracted have not been identified to any of the reportable segment , as all the assets and services are used interchangeably between segments, The Company believes that it is currently not practicable to provide segment disclosure relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

5 Derivatives

In case of forward contracts, the difference between the forward rate and the exchange rate, being the premium or discount, at the inception of a forward exchange contract is recognized as income/expense over the life of the contract. Exchange differences on such contracts are recognized in the profit and loss account in the reporting period in which the rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the period..

6 Some of the personal accounts are subject to adjustments / reconciliation / confirmation.

7 In the opinion of Board of Directors Fixed Assets, Current Assets, Loans and Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

8 In compliance with the accounting standards 15 (revised 2005) "Employee Benefits" The company has got the employee benefits evaluated from actuarial valuer. .

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund

During the year the Company has recognized Rs. 51.69 Lacs (previous Year Rs. 49.31 lacs) towards contribution to PF in the Profit and Loss account.

B. State Plans

Employers contribution to Employee State insurance and to welfare fund During the year the Company has recognised Rs. 3.92 Lacs (Previous Year Rs. 4.65 lacs) towards contribution to ESI and welfare fund in the Profit and Loss accounts.

9 The Company has not received any intimation from “suppliers” regarding their status under the Micro, small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished

10 Previous year figures have been regrouped/reclassified wherever considered necessary