Notes to Accounts of Vedavaag Systems Ltd.

Mar 31, 2024

C Terms/rights attached to equity shares, including restrictions on distribution of dividends and the repayment of capital

The Company has only one class of shares referred to as equity shares having a par value of Rs 10 each Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts

The disribution will be in proportion to the number of equity shares held by the shareholders

The company has taken policy for group gratuity scheme with Life insurance Corporation of India and making premium contributions towards Gratuity and Pension liability as intimated from time to time. The Company does not possess the data relating to actuarial valuation made by the Trust for the year and correspondingly does not have any actuarial valuation provision in the financial statement against such employee benefits.

The Company has submitted Performance Bank Guarantees worth of Rs.70.00 lakhs. The BGs were obtained against 100% margin money from various banks for Financial Inclusion projects.

Note: 30 Corporate social responsibility

In accordance with section 135(5) of the Companies Act, 2013, the CSR expenditure for the year was Rs. 16.46 lakhs and the CSR expenditure incurred was Rs. 21.20 lakhs resulting in surplus of Rs. 3.34 lakhs which can be adjusted against the CSR liability for the next three financial years.

There are no proceedings initiated or pending against the company as at 31st March 2024, under Prohibition of Benami Property Transaction Act, 1988 (as amended in 2016).

Note: 34 Wilful Defaulter

The company is not declared a wilful defaulter by any bank or financial institution or other lender.

Note: 35 Undisclosed incomes

The company does not have 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, survey or any other relevant provisions of the Income Tax Act, 1961)

Note: 36

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note: 37 Struck off companies

The company has not entered into any transaction with the companies struck off as per section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

Previous figures have been regrouped wherever necessary to confirm to current years classification

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Mar 31, 2023

5. Provisions and contingencies:

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

6. Impairment of Investments:

Investments in Subsidiaries are reviewed for impairment, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or earnings and material adverse changes in the economic environment.

Impairment test is performed at entity level. An impairment loss is recognised whenever the carrying amount of Investment exceeds its recoverable amount.

The recoverable amount is the greater of its fair value less costs to sell and value in use. To Calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates and the risk specific to the asset.

The calculation involves use of significant estimates and assumptions which include turnover and gross margin, growth rate and net margin used to calculate projected future cash flows, Discount rate and longterm growth rate.

r. Financial Instruments:

As per Ind AS 109, Financial Instruments, all financial assets and liabilities are recognized at fair value on initial recognition, except 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.

On account of adoption of Ind AS 109, the group uses Expected Credit Loss (ECL) model to assess the impairment loss or gain. The group uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors, credit ratings and the Group''s historical experience for customers. The adoption of ECL model did not have a material impact on the financial statements.

Fair value of financial instrument:

In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value and such value may never actually be realized.

For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

s. Investments in subsidiaries and associates

Investments in subsidiaries are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, investments in subsidiaries are carried at cost less accumulated impairment losses, if any.

t. Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

u. Cash flow statement

Cash flows are reported using indirect method, whereby net profits before tax are adjusted for the effects of transaction of non-cash and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating (operating activities), investing and financing activities of the company are segregated.

Note: 36

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note: 37 Struck off companies

The company has not entered into any transaction with the companies struck off as per section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

Previous figures have been regrouped wherever necessary to confirm to current years classification

For PARY & CO For & on behalf of the Board of Directors

Chartered Accountants (Firm''s Registration No.007288C)

Sd/- Sd/- Sd/-

(P VAMSI KRISHNA REDDY) J Murali Krishna J Sujatha

Partner Managing Director Director

M.No.224674 DIN: 00016054 DIN: 07014640

Sd/- Sd/-

Place: Hyderabad T B Krishna Mohan Ivaturi Saiteja

Date : 29-May-2023 CFO Company Secretary

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Mar 31, 2018

1. Company Information:

Vedavaag Systems Limited(“the Company”) is a Public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on BSE stock exchange in India.

The registered office of the company is located at 1-90-8/13, B Block, 103, Siri Sai Orchid, Hi-Tech City, Madhapur, Hyderabad - 500081, Telangana. The Company is principally engaged in IT Sales and Services like E - Governance & Citizen Services, Banking, Finance and Insurance Services.

The financial Statements for the year ended 31^stMarch 2018 were approved by the Board of Directors and authorised for issue on 30^th May, 2018.

2.1. During the year, Rs.2.16cr of Gross Block and Equivalent amount of Accumulated Depreciation of Computer Software has been deleted as the Assets have been fully amortised and have no realisable value.

* Vehicle loan from Andhra Bank availed at an interest rate of 9.2% p.a., repayable in 60EMIs and the outstanding balance is Rs.21.61 lakhs.There is no overdue installment.

* Vehicle loan from Diamler Financial Services Pvt.Ltd. availed at an interest rate of 8.37% p.a.,repayable in 60 EMIs and the outstanding balance is Rs.37.67 Lakhs.There is no overdue installment

* Vehicle loan from Axis Bank. availed at an interest rate of 9.15% p.a.,repayable in 60 EMIs and the outstanding balance is Rs.4.87 Lakhs.There is no overdue installment.

3. Related Party Disclosures

i) Related parties where control exists

ii) Key Management personnel

a) J. Muralai Krishna - MD

b) D. Himabindhu- Company Secretary

iii) Related party transactions during the year

4. Contingent liabilities

Certain Claims and Counter Claims regarding one of the Suppliers is sub judice and management is confident that there will not be any liability on company. Hence no provision has been made.

Interest and Penalty on delay in filing of statutory returns is not provided for.

5. Corporate social responsibility

In accordance with section 135(5) of the Companies Act, 2013,The CSR expenditure to be spent is Rs.17.15 lakhs and the same shall be spent during the F.Y.2018-19.

6. Transition to Ind AS

Financial statements for the year ended March 31, 2018 have been prepared in accordance with Ind-AS. For periodsup to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance withStatutory reporting requirements in India immediately before adopting Ind AS (‘previous GAAP’).

Accordingly, the Company has prepared financial statements which comply with Ind-AS applicable for year ending onMarch 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017. In preparingthese financial statements, the Company’s opening balance sheet was prepared as at April 1, 2016, the Company’s dateof transition to Ind-AS. This note explains the principal adjustments made by the Company in restating its Indian GAAPfinancial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the yearended March 31, 2017

In the reconciliations mentioned above, certain reclassifications are made to Indian GAAP financial information to align with the Ind AS presentation.

C) Notes of IND AS

Under Indian GAAP, the long-term security deposits are recognized at the transaction value. Under Ind AS, the long term security deposits (financial assets) are recognizec at the fair value under amortized cost method. The difference between the fair value and the transaction value is considered as prepaid rent and amortized over the period of lease.

7. Previous year’s figures have been regrouped where necessary to conform to curren’ year’s classification.

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Mar 31, 2016

ii. Terms/rights attached to equity shares, including restrictions on distribution of dividends and the repayment of capital.

Equity shares issued by the company are Equity Shares within the meaning of Section 85(2) of the Companies Act, 1956.

Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

The distribution will be in proportion to the number of equity shares held by the shareholders.

Shares in the Company held by each share holder holding more than 5 percent shares specifying the number of shares.

1. Increase in paid-up capital of Rs. 50,00,000 is on account of conversion of FIVE Lacs Equity share warrants issued earlier to the promoter.

2. The composition of deferred tax liability of Rs. 191.27 lakhs (previous year Rs.340.49 lakhs) is on account of timing differences relating to depreciation.

3. There are no small scale industrial undertakings to whom the company owes a sum exceeding Rs.1.00 lakh which is outstanding for more than 30 days of the Balance sheet date.

4. Confirmation of balances from parties as at the end of the year has not been received and adjustments, if any, shall be made as on ongoing process.

5. No provision has been made for employee retirement benefit pending actuarial valuation.

6. All figures have been rounded off to the nearest rupee and previous year figures have been regrouped wherever necessary.

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Mar 31, 2014

1. Terms/rights attached to equity shares, including restrictions on distribution of dividends and the repayment of capital.

Equity shares issued by the company are Equity Shares within the meaning of Section 85(2) of the Companies Act, 1956.

Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

The disribution will be in proportion to the number of equity shares held by the shareholders

Rs.in lakhs Rs.in lakhs

2. Contingent Liabilities: 2013-14 2012-13

a Claims against the company not acknowledged as debts 240.00 240.00

b Other money for which the company is contingently liable:

Counter guarantees given in favour of company''s bankers for guarantees issued by them - 75.00

3. The composition of deferred tax liability of Rs. 307.09 lakhs (previous year Rs.252.06 lakhs) is on account of timing differences relating to depreciation.

4. There are no small scale industrial undertakings to whom the company owes a sum exceeding Rs.1.00 lakh which is outstanding for more than 30 days of the Balance sheet date.

5. Confirmation of balances from parties as at the end of the the year has not been received and adjustments, if any, shall be made as an ongoing process.

6. No provision has been made for employee retirement benefit pending acturial valuation.

7. All figures have been rounded off to the nearest rupee.

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Mar 31, 2013

Rs.in lakhs Rs.in lakhs 2012-13 2011-12

1 Contingent Liabilities:

a Claims against the company not

acknowledged as debts: 240.00 240.00

b Other money for which the company is contingently liable:

Counter guarantees given in favour of

company''s bankers for guarantees issued by them 75.00 37.00

2. Income tax liability aggregating to Rs 44.52 lakhs is outstanding and under reconciliation with Income Tax authorities for the adjustment of prepaid taxes to ascertain the net liability, if any

3. Related Party Disclosures as per AS 18

Transactions with related parties in the ordinary course of business

4. The composition of deferred tax liability of Rs. 252.06 lakhs (previous year Rs.329.09 lakhs) is on account of timing differences relating to depreciation.

5. Deletion of fixed assets represent assets condemned and retired from active use which have been fully depreciated over their useful life and have no realisable value.

6. Other Current assets include an amount of Rs.794 lakhs being retention money on SECC and NPR projects.

7. There are no small scale industrial undertakings to whom the company owes a sum exceeding Rs.1.00 lakh which is outstanding for more than 30 days of the Balance sheet date.

8. Confirmation of balances from parties as at the end of the the year has not been received and adjustments, if any, shall be made as an ongoing process.

9. All figures have been rounded off to the nearest rupee.

10. Previous year''s figures are regrouped wherever necessary.

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Mar 31, 2012

I. Terms/rights attached to equity shares, including restrictions on distribution of dividends and the repayment of capital.

Equity shares issued by the company are Equity Shares within the meaning of Section 85(2) of the Companies Act, 1956.

Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets ofthe Company, after distribution of all preferential amounts.

The disribution will be in proportion to the number of equity shares held by the shareholders.

1. Income tax liability aggregating to Rs 44.62 lakhs is pending payment and under reconciliation with Income tax Authorities for the adjustment of prepaid taxes to ascertain the net liability, if any

2. Related Party Disclosures .

Transactions with related parties in the ordinary course of business

3. The composition of deferred tax liability of Rs. 329.09 lakhs is on account of timing differences relating to depreciation. During the year no additional provision for deferred tax has been made as it is felt that the existing provision is adequate.

4 There are no small scale industrial undertakings to whom the company owes a sum exceeding Rs.1.00 lakh which is outstanding for more than 30 days ofthe Balance sheet date.

5. Confirmation of balances from parties as at the end of the the year has not been received and adjustments, if any, shall be made as an ongoing process.

6. All figures have been rounded off to the nearest rupee.

7. No provisions has been made for retirement benefit pending actual valuation.

8. During the year ended 31-03-2012, the revised schedule VI notified under the Companies Act, 1956 has become appicabe to the Company, for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified/regrouped the previous year figures in accordance with the requirements applicable in the current year.

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Mar 31, 2010

1 Contingent Liabilities:

a Claims against the company not acknowledged as debts: Rs. 11,056,323

b Other money for which the company is contingently liable: Counter guarantees given in favour of companys bankers for guarantees issued by them Rs. 1.37 Cr

2 Secured Loans:

a The term loan from IL & FS Financial Services Ltd has been secured by hypothecation of all assets of the company an amount of Rs. 2.33 Crs has been overdue out of the total loan amount of Rs. 11.53 Crs.

b Working capital loan by way of Cash Credit from UCO Bank, Suryanagar Branch, Hyderabad has been secured by first charge on the current assets of the company.

c Vehicle loan from Axis Bank, Patna has been secured by hypothecation of the vehicle purchased from the loan amount.

d Equipment loan from ICICI Bank, Hyderabad has been secured by hypothecation of the equipments purchased from the loan amount.

3 Redeemable preference share capital has been transfered to unsecured loans as the due date for redemption is over

4 Depreciation includes writeoff of residual value of obsolute assets to the extent of rupees 38.32 lakhs.

5 During the year no additional provision for diferred tax has.been made as the existing provision is adequate .

6 Quantitative Details

The company is engaged in the business of development of computer software and delivering turn key solutions on Build, Operate and Own - BOO basis. The production and sale of such software is not capable of being expressed in any generic unit. Hence, it is not possible to give the quantitative details of such sale and information required under paragraphs 3,4C and 4 D of Part II of Schedule VI of the Companies Act, 1956.

7 Deferred Tax Liability

The composition of deferred tax liability as at 31.03.2010 of Rs. 329.09 lakhs (previous year Rs. 329.09 lakhs) is on account of timing differences relating to depreciation.

8 There are no small scale industrial undertakings to whom the company owes a sum exceeding Rs. 1.00 lakh which is outstanding for more than 30 days of the Balance sheet date.

9 Confirmation of balances from parties as at the end of the the year has not been received and adjustments, if any, shall be made as on ongoing process.

10 Previous year figures have been regrouped and rearranged wherever necessary.

11 All figures have been rounded off to the nearest rupee.