Notes to Accounts of WEP Solutions Ltd.

Mar 31, 2025

"Provisions are recognized in the balance sheet when the Company has a present obligation (legal or
constructive) as a result of a past event, which is expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each provision is based on the best estimate of the
expenditure required to settle the present obligation at the balance sheet date. When appropriate, provisions
are measured on a discounted basis.

Constructive obligation is an obligation that derives from a Company''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current
statement, the Company has indicated to other parties that it will accept certain responsibilities; and

(b) as a result, the Company has created a valid expectation on the part of those other parties that it will
discharge those responsibilities.

A.18. Leases

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company, at the
inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration.
This policy has been applied to contracts existing and entered into on or after April 1, 2019.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received.The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the Company''s long term borrowing rate. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in
the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the
Company changes its assessment of whether it will exercise a purchase, extension or termination option. When
the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of
the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero. The Company has elected not to recognise right-of-use assets and lease liabilities for short¬
term leases that have a lease term of 12 months or less and leases of low-value assets (assets of less than INR
5,000 in value). The Company recognises the lease payments associated with these leases as an expense over
the lease term.

A.19. Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with bank, and other short term highly liquid
investments, with original maturities of 3 months or less.

Cash flow Statement: Cash flows are reported using the indirect method, whereby profit for the period is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash
flows from operating, investing and financing activities are segregated.

Performance Obligations :

a) The performance obligation is satisfied by transferring the promised good or service to a customer and the
customer obtains controls over it.

b) The Company payment terms range from advance to 60 days.

c) The Company earns revenue primarily from Managed Printing Solutions and Services, Manufacturing and
Distribution of Retail Billing Products as well as multi-functional printers and providing Digital Services like
faciliation of GST return filing etc. to both enterprise and retail customers, across India.

d) The Company generally offers Standard warranties of 3 months to 12 months for its products sold.

e) The Company has applied the practical expedient given in Ind AS 115 available for performance obligation
which is part of contract that has an original expected duration of one year or less with regard to disclosure of
remaining performance obligation.

The Company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized
by obtaining leave in the subsequent period of employment or encashment at the time of separation. The
obligation as on the balance sheet date is provided on the basis of actuarial valuation and is Rs 57.04 Lakhs (Rs
55.82 Lakhs as on 31st March 2024)

Gratuity: The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for
15 days salary for each completed year of service. The company accounts for gratuity benefits payable in the
future based on the actuarial valuation and the company has taken out a policy with LIC of India in this regard
to mitigate actuarial and liquidity risks.

The following table sets out the amounts recognised in the financial statements for Gratuity

The Company generally offers 3 months to 12 months warranties for its products. Management estimates the
related provision for future warranty claims based on historical warranty claim information, as well as recent
trends that might suggest that past cost information may differ from future claims. Provision is made for
estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting
period.

(ii) The Company is contesting claims under erstwhile Service Tax Law before Appellate authorities. The
Company has disclosed these claims as contingent liabilities as it not practicable to assess the outcome
of the proceedings. The company has made adequate provisions for all ascertained liabilities and the
contingent claims does not have any adverse impact on the financial statement as at 31st March 2025.

(iii) The E-Waste (Management) Rules 2022 and the erstwhile E-Waste (Management) Rules 2016 requires
the Company to fulfill the Extended Producer Responsibility(EPR) targets which are measured based on sales
made in the preceding years, if it is participant in the market during a financial year. Thus, participation in
the market in a year constitutes the obligation event. The Rules permit the Company to purchase extended
producer responsibility certificate from registered recyclers for the purpose of meeting the EPR targets and it is
not practical for the company to estimate the timing of cash outflows, if any, in respect of such purchases in the
future.

For management purposes, the Company is organised into business units based on its products and
services and has two reportable segments, as follows:

a. Partners business segment which is into distribution of traded and manufactured products and
allied services through the Channel Partners/Dealers.

b. Enterprise business segment which serves the Enterprise customers for all their workplace
productivity enhancing products and services.

This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet terms that contain financial instruments.

The details of material accounting policies, including the criteria for recognition, the basis of measurement and
the basis on which income and expenses are recognised, in respect of each class of financial asset, financial
liability and equity instrument is disclosed in Note 1 to the financial statements.

(i) Classification of Financial Assets and Liabilities

All financial assets and financial liabilities are valued at amortised cost.

(ii) Fair Value Heirarchy

There are no financial assets or liabilities of the Company, which, after their initial recognition, have been fair
valued either during the year or in the previous year.

(iii) Financial Risk Management Policies and Objectives

The Company, in the course of its business, is exposed to a variety of financial risks, viz., market risk, credit risk and
liquidity risk which can adversely impact the financial performance. The Company''s endeavour is to foresee the
unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.
The Company has a risk management policy that not only covers the foreign exchange risk but also other
risks such as interest rate risk and credit risk which are associated with financial assets and liabilities.

A. Market Risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result
from a change in the value of financial instrument. The value of a financial instrument may change as a result of
changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market
changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

B. Foreign currency exchange rate risk:

The fluctuations in foreign currency exchange rate may have a potential impact on the statement of profit and loss
and equity. This arises from transactions entered in foreign currency and assets/liabilities which are denominated
in a currency other than the functional currency of the Company.

The Company imports raw materials, traded goods, consumables etc and such transactions are denominated in
US Dollars. The Company does not take major exposure in any other foreign currency. The Company also exports
goods which are billed in US dollars.The Company has a hedging policy approved and reviewed by the Board of
Directors to mitigate its risks. As part of the hedging policy, the Company concludes forward contracts at regular
intervals to mitigate the risk. Details of foreign currency exposure in USD are as follows:

C. Interest Rate Risk Management:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s long term debt obligations with floating interest rates.

C.1 Interest Rate Sensitivity Analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is
prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to
key management personnel and represents management''s assessment of the reasonably possible change in

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inteiest iates.

D. Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established
an appropriate liquidity risk management framework for the management of the Company''s short-, medium-
and long-term funding and liquidity management requirements. The company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

E. Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the
contractual terms or obligations. Credit risk covers both the direct risk of default and the risk of deterioration
of creditworthiness as well as concentration risks.Trade receivables constitute the financial instruments that
are exposed to credit risk. The Company''s policy is to deal only with creditworthy counterparts. The Company
management considers that all the financial assets that are not impaired for each of the reporting dates under
review are of good credit quality, including those that are past due. None of the Company financial assets are
secured by collateral or other credit enhancements.

The Company''s exposure to credit risk is limited to the carrying amount of financial assets recognised at the
balance sheet date.

The Company''s capital management is intended to maximise the return to shareholders for meeting
the long-term and short-term goals of the Company through the optimization of the debt and equity
balance.

The Company determines the amount of capital required on the basis of annual and long-term
operating plans and strategic investment plans. The funding requirements are met through
equity and long-term/short-term borrowings. The Company monitors the capital structure on the
basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities
premium and all other reserves attributable to the equity shareholders of the Company. Net
debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
The following table summarises the capital of the Company:

Dividends proposed or declared after the date of balance sheet but before the financial statements
have been approved by the Board of Directors for issue are not recognised as liability on the date of
the balance sheet.

The Board of Directors have recommended final dividend of Rs0.50 per equity share for the financial
year ended on 31st March 2025, subject to the approval of the shareholders in the ensuing Annual
General Meeting of the Company. (Previous year dividend: Rs 0.50 per equity share)

i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property(31st March2024-Nil)

ii) The Company has not traded or invested funds in Crypto currency of Virtual currency (31st March 2024-Nil)

iii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of 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 (31st March 2024-Nil)

iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities(Funding
Party) with the understating (whether recorded in writing or otherwise) that the Company 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 (31st March 2024-Nil)

v) The Company has not been declared wilful defaulter by any bank or financial institution (as defined under
the Act ) or consortium thereof, in accordance wit the guidelines on wilful defaulters issued by the Reserve Bank
of India. (31st March 2024- Nil)

vi) The Company does not have any such transaction which is not recorded in books of account that has been
surrendered or disclosed as income during the year in the tax assessments (such as, search or survey or any
other relevant provisions) under Income Tax Act, 1961. (31st March 2024-Nil)

vii) The Company is in compliance with the requirement of Section 2(87) of the Companies Act, 2013 read with
the Companies (Restriction on number of Layers) Rules, 2017.There are no such holdings or investments made
by company which is related to the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017. (31st March 2024-Nil)

viii) Disclosure as per section 186 of Companies Act 2013: The details of loans, guarantees and investments
under section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers)
Rules, 2014 are as follows:

(a) There are no investments made by the Company

(b) There are no loan given by the Company and guarantees issued as at March 31, 2025 (31st March 2024-Nil)

(ix) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period (31st March 2024- Nil)

(x) There are no immovable property which are held in the name of promoter, director or relative of promoter/
director or employee of promoter/director.(31st March 2024-Nil)

(xi) During the year, company has not revalued its Property, Plant and Equipment. (31st March 2024-Nil)

(xii) There are no intangible assets held under development as on Balance sheet date. (31st March 2024-Nil)

(xiii) There are no Loans or Advances granted to promoters, directors, KMPs and related parties either severally
or jointly with any other person which are either of repayable on demand or without specifying any terms or
period of repayment. (31st March 2024-Nil)

As per Section 135 of the Companies Act 2013, a company meeting the threshold for applicability
is required to spend atleast two percent of the average net profits of the company earned during
the three immediately preceding financial years as per the Corporate Social Responsibility Policy
of the Company. The areas of CSR activities are eradicating hunger, promoting education, art and
culture, healthcare, destitute care and rehabilitation, ensuring environmental sustainability, disaster
management and rural development projects.

See Accompanying Notes to the Financial For and on behalf of the Board of Directors of

Statements WeP Solutions Limited

As per our report of even date attached

For Guru & Jana Shankar Jaganathan Ashok Tripathy

Chartered Accountants Director Managing Director & CEO

ICAI Firm Registration No.006826S DIN:02121024 DIN:09564236

Heena Kauser A P S. Pradeep Chandralika Sharma

Partner Chief Financial Officer Company Secretary

Membership No. : 219971

UDIN:25219971BMMHHL6714

Place: Bengaluru Place: Bengaluru

Date : 17th May 2025 Date : 17th May 2025

---

Mar 31, 2024

A. 17. Provisions

Provisions are recognized in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date. When appropriate, provisions are measured on a discounted basis.

Constructive obligation is an obligation that derives from a Company''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the Company has indicated to other parties that it will accept certain responsibilities; and

(b) as a result, the Company has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

A. 18.Leases

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. This policy has been applied to contracts existing and entered into on or after April 1, 2019.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company''s long term borrowing rate. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets (assets of less than INR 5,000 in value). The Company recognises the lease payments associated with these leases as an expense over the lease term.

A.19. Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, demand deposits with bank, and other short term highly liquid investments, with original maturities of 3 months or less.

Cash flow Statement:- Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities are segregated.

i) Cash Credit facilities are secured by hypothecation of Inventories & book debts of the company

ii) The company has taken a term loan during the year.The first drawal of Rs.40 Mn was received during the year. Term Loan is repayable in 54 installments. It carries an interest rate of Repo plus 3.5% p.a.with interest being reset at quarterly intervals and is secured by -

a) Primary Security: Hypothecation of fixed assets purchased using the term loan.

b) Collateral Security: Equitable Mortgage of Leasehold land situated at Baddi, Himachal Pradesh. The final instalment is payable in February 2029.

Hi) Term loan obtained under ECGLS amounting to Rs 1.79 Crores in December 2020 repayable in 36 monthly instalments commencing from November 2021. It carried an interest rate of 9.25% and was secured by hypothecation of current assets on second charge basis with 100% credit guarantee by NCGTC. The final instalment was payable in October, 2024. However, the term loan was fully repaid ahead of repayment schedule in March 2024. iv) There is no breach of Loan Agreements.

Performance Obligations:

a) The performance obligation is satisfied by transferring the promised good or service to a customer and the customer obtains controls over it.

b) The Company payment terms range from advance to 60 days.

c) The Company earns revenue primarily from Managed Printing Solutions and Services, Manufacturing and Distribution of Retail Billing Products as well as multi-functional printers and providing Digital Services like facilitation of GST return filing etc. to both enterprise and retail customers, across India.

d) The Company generally offers Standard warranties of 3 months to 12 months for its products sold.

e) The Company has applied the practical expedient given in Ind AS 115 available for performance obligation which is part of contract that has an original expected duration of one year or less with regard to disclosure of remaining performance obligation.

Note 24: Employee Benefit Plans

The Company provides to its employees following retirement benefits:

i) Leave Accrual

ii) Gratuity

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation and is Rs 55.82 lakhs (Rs 45.86 lakhs as on 31 st March 2023)

Gratuity: The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary for each completed year of service. The company accounts for gratuity benefits payable in the future based on the actuarial valuation and the company has taken out a policy with LIC of India in this regard to mitigate actuarial and liquidity risks.

The Company generally offers 3 months to 12 months warranties for its products. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest that past cost information may differ from future claims. Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting period.The Company has taken a specific contract where in addition to the regular warranty support, the Company has to replace the product during the life of the contract. Accordingly, an additional sum has been provided during the current year for the replacement

(ii) The Company is contesting claims under erstwhile Service Tax Law before Appellate authorities. The Company has disclosed these claims as contingent liabilities as it not practicable to assess the outcome of the proceedings. The company has made adequate provisions for all ascertained liabilities and the contingent claims does not have any adverse impact on the financial statement as at 31 st March 2024.

(iii) The E-Waste (Management) Rules 2022 and the erstwhile E-Waste (Management) Rules 2016 requires the Company to fulfill the Extended Producer Responsibility(EPR) targets which are measured based on sales made in the preceding years, if it is participant in the market during a financial year. Thus, participation in the market in a year constitutes the obligation event. The Rules permit the Company to purchase extended producer responsibility certificate from registered recyclers for the purpose of meeting the EPR targets and it is not practical for the company to estimate the timing of cash outflows, if any, in respect of such purchases in the future.

Note 30 : Accounting for Leases

The carrying value of the Right of Use assets and changes in the carrying value along with the depreciation are given in Note 2 relating to Property Plant and Equipment. The liabilities in respect of lease are reflected in Note 10(d).

Note 31 : Segment Reporting

For management purposes, the Company is organised into business units based on its products and services and has two reportable segments, as follows:

a) Partners business segment which is into distribution of traded and manufactured products and allied services through the Channel Partners/Dealers.

b) Enterprise business segment which serves the Enterprise customers for all their workplace productivity enhancing products and services.

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet terms that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 to the financial statements.

(i) Classification of Financial Assets and Liabilities

All financial assets and financial liabilities are valued at amortised cost.

(ii) Fair Value Hierarchy

There are no financial assets or liabilities of the Company, which, after their initial recognition, have been fair valued either during the year or in the previous year.

(iii) Financial Risk Management Policies and Objectives

The Company, in the course of its business, is exposed to a variety of financial risks, viz., market risk, credit risk and liquidity risk which can adversely impact the financial performance. The Company''s endeavour is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Company has a risk management policy that not only covers the foreign exchange risk but also other risks such as interest rate risk and credit risk which are associated with financial assets and liabilities.

A. Market Risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the value of financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

B. Foreign currency exchange rate risk:

The fluctuations in foreign currency exchange rate may have a potential impact on the statement of profit and loss and equity. This arises from transactions entered in foreign currency and assets/liabilities which are denomindated in a currency other than the functional currency of the Company.

The Company imports raw materials, traded goods, consumables etc and such transactions are denominated in US Dollars. The Company does not take major exposure in any other foreign currency. The Company also exports goods which are billed in US dollars.The Company has a hedging policy approved and reviewed by the Board of Directors to mitigate its risks. As part of the hedging policy, the Company concludes forward contracts at regular intervals to mitigate the risk. Details of foreign currency exposure in USD are as follows:

C. Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk covers both the direct risk of default and the risk of deteroriation of creditworthiness as well as concentration risks.Trade receivables constitute the financial instruments that are exposed to credit risk. The Company''s policy is to deal only with creditworthy counterparts. The Company management considers that all the financial assets that are not impaired for each of the reporting dates under review are of good credit quality, including those that are past due. None of the Company financial assets are secured by collateral or other credit enhancements.

The Company''s capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the Company through the optimization of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

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

ii) The Company has not traded or invested funds in Crypto currency of Virtual currency.

iii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of 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.

iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities(Funding Party) with the understating (whether recorded in writing or otherwise) that the Company 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.

v) The Company has not declared wilful defaulter by any bank of financial institution of other lender.

vi) The Company does not have any such transaction which is not recorded in books of account that has been surrendered or disclosed as income during the year in the tax assessments (such as, search or survey or any other relevant provisions) under Income Tax Act, 1961.

vii) The Company is in compliance with the requirement of Section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

viii) Disclosure as per section 186 of Companies Act 2013: The details of loans, guarantees and investments under section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014 are as follows:

(i) There are no investments made by the Company

(ii) There are no loan given by the Company and guarantees issued as at March 31, 2024

(ix) The Company does not have any balances with companies struck off under section 248 of The Companies, 2013 to the best of knowledge of Company''s Management excepting for one transaction given below:-

Note 39 :Previous Year figures have been regrouped / rearranged wherever necessary to conform to the current year presentation.

As per our report of even date attached For and on behalf of the Board of Directors of WeP Solutions Limited

For Guru & Jana

Chartered Accountants

ICAI Firm Registration No.006826S Shankar Jaganathan AshokTripathy

Director Managing Director & CEO

DIN:02121024 DIN:09564236

Heena Kauser A P Sandeep Kumar Goyal

Partner Executive Director & CFO

Membership No.: 219971 DIN: 03023842

Place: Bengaluru Place: Bengaluru

Date : May 25, 2024 Date : May 25, 2024

UDIN : 24219971BKCLQ11298

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Mar 31, 2018

1. Corporate Information

The Company is principally engaged in the business of providing Managed Printing Solutions and Services, Manufacturing and Distribution of Retail Billing Products and providing Digital Services like GST, Aadhar Authentication, Document Management Solutions, etc. to both enterprise and retail customers, pan India. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act 1956. Its shares are listed on the Bombay Stock Exchange and the registered office of the Company is located at 40/1A, Basappa Complex, Lavelle Road, Bengaluru - 560001.

Notes

a) The Company provides extended warranty for its products. Consequent to adoption of Ind AS, the Company has derecognised the revenue pertaining to the extended warranty and spread on a straignt line basis over the period extended warranty,

b) The amount of stock options expense impact represents the impact of change in valuation of stock options from the erstwhile intrinsic value method under IGAAP to the fair value method under Ind AS.

c) The Company has recognised all actuarial gains and losses on post retirement defined benefit schemes in other comprehensive income. Deferred taxes pertaining to these losses have also been recognised in other comprehensive income.

d) Advance rent expense and Interest income on rent deposits is due to adoption of fair valuation for the Rent Deposits paid by the Company.

e) Warranty provision restatement is due to deferment of revenue for the extended warranty on products sold by the Company. Since the provision was made factoring the extended warranty and with the revenue being deferred and recognised over the period of extended warranty, the provision pertaining to the extended warranty period has been reversed.

a) Capital Reserve - This represents the value of bargain purchase gain upon acquisition and is not freely available for distribution

b) Retained earnings / General reserve - These are free reserves that are available for distribution of dividends. Retained earnings comprises of the Company''s undistributed earnings after taxes.

c) Securities premium reserve: Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provision of section 52 of the Companies Act, 2013.

d) Share option outstanding account - The share option outstanding account is used to recognize the value of equity-settled share based payments provided to employees, including key management personnel.

e) Other Comprehensive Income: Changes in the fair value of financial instruments measured at fair value through other comprehensive income and actuarial gains and losses on defined benefit plans are recognized in other comprehensive income (net of taxes), and presented within equity as other comprehensive income.

Terms and Rights Attached to Equity Shares:

Equity shares have a par value of INR 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Shares Reserved for Issue under Options:

Information relating to ESOP plans of the company, including details of the options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note 24.

Preferential Issue:

On February 6, 2017, the company allotted 20,00,000 equity shares at a price of INR 50 per share, on a preferential basis after the same was duly approved by the members.

Note

On December 28, 2017, the company granted 10,00,000 warrants at a price of INR 60 per warrant, on a preferential basis after the same was duly approved by the members. The company received the initial consideration of 25% i.e. Rs. 1,50,00,000/- and the same has been classified as other Equity. The allottee has a period of 18 months from the date of allottment to convert the warrants into Equity shares, failing which the initial amount paid shall be forfeited as per the terms of the allotment and regulations as applicable.

Note 2: Employee Benefit Plans

The Company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

Gratuity: The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportationately for 15 days salary for each completed year of service. The company accounts for gratuity benefits payable in the future based on the actuarial valuation. The company is exposed to actuarial risk with respect to this plan.

Note 3: Warranty

The Company generally offers 6 to 12 months warranties for its products. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest that past cost information may differ from future claims. Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting period.

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet terms that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 to the financial statements.

i) Classification of Financial Assets and Liabilities

All financial assets and financial liabilities are valued at amortised cost.

ii) Fair Value Heirarchy

There are no financial asset or liabilities of the Company, which, after their initial recognition, have been fair valued either during the year or in the previous year.

iii) Financial Risk Management Policies and Objectives

The Company, in the course of its business, is exposed to a variety of financial risks, viz., market risk, credit risk and liquidity risk which can adversely impact the financial performance. The Company''s endeavour is to foresee the unrpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Company has a risk management policy that which not only covers the foreign exchange risk but also other risks such as interest rate risk and credit risk which are associated with financial assets and liabilities.

A. Market Risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the value of financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

B. Foreign currency exchange rate risk

The fluctuations in foreign currency exchange rate may have a potential impact on the statement of profit and loss and equity. This arises from transactions entered. into foreign currency and assets / liabilities which are denomindated in a currency other than the functional currency of the Company.

The Company imports raw materials, traded goods, consumables etc and such transactions are denominated in US Dollars. The Company does not take major exposure in any other foreign currency. The company also exports goods which are billed in US dollars. The Company has a hedging policy approved and reviewed by the Board of Directors to mitigate its risks. Details of foreign currency exposure in USD are as follows:

C. Credit risk

Credit risk is the risk of financial loss arising from counter party failure to repay or service debt according to the contractual terms or obligations. Credit risk covers both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Trade receivables constitute the financial instruments that are exposed to credit risk. The Company''s policy is to deal only with creditworthy counterparts. The Company management considers that all the financial assets that are not impaired for each of the reporting dates under review are of good credit quality, including the reporting dates under review are of good those that are past due. None of the Company financial assets are secured by collateral or other credit enhancements.

The Company''s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date.

Note 4: Segment Reporting

For management purposes, the company is organised into business units based on its products and services and has three reportable segments, as follows:

a) The Printers business which is into design, manufacturing and distribution of Retail Billing Printers and other impact printers

b) The Managed Printing Solutions (MPS) business which is into providing office printing solutions and services to corporate customers

c) The Digital Services business which is into providing Digital services like GST, Aadhaar authentication, document management etc. This business has been seeded during the current financial year.

Note 5: Previous Year figures have been regrouped / rearranged wherever necessary to conform to the current period presentation.

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Mar 31, 2017

1. Rights, Preferences and Restrictions attached to Equity Shares:

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders would be eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

2. Employee Benefit Plans

The Company provides to its employees following retirement benefits:

3. Gratuity

4. Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees which is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation.

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

5. Disclosures of dues / payments to Micro, Small and Medium enterprises to the extent such enterprises are identified by the company:

The Company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act), hence disclosure regarding:

6. Amount due an account of suppliers as at the end of the accounting year;

7. Interest Paid during the year;

8. Interest payable at the end of the year;

9. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmation from the suppliers regarding their status under the Act.

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Mar 31, 2016

Notes on Accounts for the year ended March 31, 2016

All figures are reported in Rupees, except data relating to number of Equity Shares or unless stated otherwise.

The Previous period figures have been regrouped / reclassified, wherever necessary, to conform to the current period presentation.

1. Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of equity shares having a par value of '' 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders would be eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

2. Acquisition of a Company

During the current year, the company acquired M/s eRM Solutions Private Limited, a company specifically in the focus area of Document Management Solutions (DMS) . It is a 100% subsidiary of WeP, which owns an in-house developed, unique technical solution for providing DMS to various verticals of the Corporate customers.

3. Segment Reporting

The company''s operation predominantly relate to Printer Business and Managed Printing Solutions (MPS) Business. Accordingly the revenue from the said business comprise the primary basis of segment information set out in this financial statement. The accounting principles consistently used for the preparation of financial statements are also applied to record income and expenditure in individual segment. These are set out on the note on significant accounting policies. Fixed Assets used in companies business and liabilities contracted have been identified to the reportable segments.

4 Related Party Transactions 2.30.1. List of Related Parties

Name of Related Party Relationship

Mr. Ram Narayan Agarwal Chairman & Managing Director

Mr. B R Ganesh Small Shareholders & Independent Director

Mr. G H Visweswara Non-Executive Director

Mr. Sudhir Prakash Independent Director

Dr. A L Rao Non-Executive Director

Mr. H V Gowthama Independent Director

Ms. Mythily Ramesh Independent Director

Ms. Prashee Agarwal* Non-Executive Director

Mr Shankar Jaganathan Independent Director

eRM Solutions Private Limited Subsidiary Company (100% owned)

WeP Solutions India Limited Promoter Group

WeP Peripherals Limited Promoter

*Appointed as Additional Director on 18th May, 2015. Further, appointed as Non-Executive Director on 27th August, 2015

5. Employee Benefit Plans

The Company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees which is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation.

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

6. Disclosures of dues / payments to Micro, Small and Medium enterprises to the extent such enterprises are identified by the company:

The Company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises development Act, 2006 (the Act), hence disclosure regarding:

a. Amount due on account of suppliers as at the end of the accounting year

b. Interest paid during the year;

c. Interest payable at the end of the year;

d. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmation from the suppliers regarding their status under the Act.

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Mar 31, 2015

All figures are reported in Rupees, except data relating to number of Equity Shares or unless stated otherwise The Previous period figures have been regrouped/reclassified, wherever necessary, to conform to the currentperiod presentation.

1. Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders would be eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

2. Change in Accounting Policy for Depreciation

In accordance with Schedule II of the Companies Act 2013, the company has reviewed the useful life of all its fixed assets as on April 1,2014

a) In case of assets where there is a reduction in useful life, the incremental depreciation arising out of the reduced life as calculated upto March 31,2014 has been adjusted in the retained earnings; the consequent adjustment to the retained earnings(net of deferred tax) is Rs. 94.3Lakhs

b) In case of assets where there is an increase in useful life, the written down value of assets as on April 1, 2014 has been charged off over the revised remaining useful life of the assets. Consequently, charge of depreciation to the Profit and Loss account is lower by Rs.50.8 Lakhs for the year ended March31,2015

3. Contingent Liabilities In Respect of:

a) Letters of Credits opened by Banks for purchases of Spares and Consumables Rs. NIL (March 2015), Rs. 2,975,445(March 2014).

b) Disputed demand for Excise, Customs, Income Tax, VAT and other matters Rs. 5,091,761 (March 2015), Rs. 5,517,452 (March 2014).

4. Segment Reporting

The company's operation predominantly relate to Printer Business and Managed Printing Solutions (MPS) Business. Accordingly the revenue from the said business comprise the primary basis of segment information setout in this financial statement. The accounting principles consistently used for the preparation of financial statements are also applied to record income and expenditure in individual segment. These are set out on the note on significant accounting policies. Fixed Assets used in companies business and liabilities contracted have been identified to the reportable segments.

5. Employee Benefit Plans

The Company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees which is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation.

Leave Accrual: The Company allows accumulation/encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

6. Disclosures of dues / payments to Micro, Small and Medium enterprises to the extent such enterprises are identified by the company:

The Company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises development Act, 2006 (the Act), hence disclosure regarding:

a. Amount due an account of suppliers as at the end of the accounting year

b. Interest Paid during the year;

c. Interest payable at the end of the year;

d. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmation from the suppliers regarding their status under the Act.

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Mar 31, 2014

Company Overview

WeP Solutions Limited is the pioneer of Managed Printing Solutions in India. With our extensive network and expertise in the business we have grown over the period and manage close to 18000 printers / copiers across 1500 locations for 600 customers.

We are the first Indian company to provide pan India printing solutions and set organization free from hassle of managing printers to focus better on their core business. Besides reducing printing cost to Organization, MPS contributes to environmental objectives of WeP Solutions Limited.

The Printers Business comprises of Research & Development, Manufacturing, Sales, Service and Maintenance of High Speed Impact Printers. The customers of this business include many nationalised and private banks, Insurance and financial institutions, Public sector companies spread across India.

Assets and Liabilities are bifurcated into current and non current based on 12 months period from the balance sheet date, as operating cycle of the company is determined less than 1 year.

All figures are reported in Rupees, except data relating to number of Equity Shares or unless stated otherwise

The Previous period figures have been regrouped / reclassified, wherever necessary, to conform to the current period presentation.

2.1.2 Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on paripassu basis. On liquidation of the Company, the equity shareholders would be eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

2.2 Contingent liabilities in respect of:

a) Letters of Credits opened by Banks for purchases of Spares and Consumables Rs. 2,975,445 (March 2014), Rs. 2,075,513 (March 2013).

b) Disputed demand for Excise, Customs, Income Tax, VAT and other matters Rs. 5,517,452 (March 2014), Nil (March 2013).

2.1 Segment reporting

The company''s operation predominantly relate to Printer Business and Managed Printing Solutions (MPS) Business. Accordingly the revenue from the said business comprise the primary basis of segment information setout in this financial statement. The accounting principles consistently used for the preparation of financial statements are also applied to record income and expenditure in individual segment. These are set out on the note on significant accounting policies. Fixed Assets used in companies business and liabilities contracted have been identified to the reportable segments.

Segment Reporting for the year ended 31st March, 2014.

2.2 Employee benefit plans

The Company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees which is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation. The company does not have any plan assets as the gratuity liability is not funded.

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

2.3 Disclosures of dues / payments to Micro, Small and Medium enterprises to the extent such enterprises are identified by the company:

The Company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises development Act, 2006 (the Act), hence disclosure regarding:

a. Amount due an account of suppliers as at the end of the accounting year;

b. Interest Paid during the year;

c. Interest payable at the end of the year;

d. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmation from the suppliers regarding their status under the Act.

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Mar 31, 2013

Company Overview

WeP Solutions Limited is the pioneer of Managed Printing Solutions in India. With our extensive network and expertise in the business we have grown over the period and manage close to 18000 printers / copiers across 1500 locations for 600 customers.

We are the first Indian company to provide pan India printing solutions and set organization free from hassle of managing printers to focus better on their core business. Besides reducing printing cost to Organization, MPS contributes to environmental objectives of organizations.

During the year, the company has acquired Printers Business of M/s WeP Peripherals Limited with effect from April 1, 2012. The Printers Business comprises of Research & Development, Manufacturing, Sales, Service and Maintenance of High Speed Impact Printers. The customers of this business include many nationalised and private banks, Insurance and financial institutions, Public sector companies spread across India.

Assets and Liabilities are bifurcated into current and non current based on 12 months period from the balance sheet date, as operating cycle of the company is determined less than 1 year.

1.1 Contingent liabilities in respect of:

a) Letters of Credits opened by Banks for purchases of Spares and Consumables Rs. 2,075,513 (Mar 2013), Rs. 19,278,624 (Mar 2012).

1.2 Segment reporting

The company''s operation predominantly relate to Printer Business and Managed Printing Solutions (MPS) Business. Accordingly the revenue from the said business comprise the primary basis of segment information setout in this financial statement. The accounting principles consistently used for the preparation of financial statements are also applied to record income and expenditure in individual segment. These are setout on the note as significant accounting policies. Fixed Assets used in companies business and liabilities contracted have been identified to the reportable segments

1.3 Employee benefit plans

The company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees which is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation. The company does not have any plan assets as the gratuity liability is not funded.

Leave Accrual: The company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

Disclosure envisaged in revised AS 15 in respect of gratuity are given below:

1.4 Disclosures of dues / payments to Micro, Small and Medium enterprises to the extent such enterprises are identified by the company:

The company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises Development Act 2006 (the Act) and hence disclosure regarding:

a. Amount due an account of suppliers as at the end of the accounting year

b. Interest Paid during the year

c. Interest payable at the end of the year

d. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmations from the suppliers as regarding their status under the Act.

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Mar 31, 2012

Company Overview

WeP Solutions Limited (formerly known as Datanet Systems Limited) is the pioneer of Managed Printing Solutions in India. With our extensive network and expertise in the business we have grown over the period and manage close to 19000 printers/copiers across 1500 locations for 600 customers.

We are the first Indian company to provide pan India printing solutions and set organization free from hassle of managing printers to focus better on their core business. Besides reducing printing cost to Organization, MPS contributes to environmental objectives of organizations.

"The presentation of the accounts is based on the Revised Schedule VI of the Companies Act 1956, applicable from the current financial year. Accordingly previous year figures are realigned to make it comparable with current year. Assets and Liabilities are bifurcated into current and non current based on 12 months period from the balance sheet date, as operating" cycle of the company is determined less than 1 year."

All figures are reported in Rupees, except data relating to number of Equity Shares or unless stated otherwise

The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current period presentation

1.1 Contingent Liabilities in respect of:

Letters of Credits opened by Banks for purchases of Spares and Consumables Rs. 19,278,624 (Mar 2012), Rs. Nil (Mar 2011)

1.2. The company was hitherto following a policy of charging off spares issued to the field over a period of 9 months.From the current year the spares issued for assets after depreciated life are capitalised and depreciated over a period of two years and other spares are charged off on issue. Due to this change, loss before tax is higher by Rs. 8,559,841.

1.3 Segment Reporting

As the Company's activities falls within a single business segment, viz "Managed Printing Solutions", the disclosure requirements of Accounting Standard 17 on "Segment Reporting" notified by the Companies(Accounting Standard) Rules 2006, are not applicable.

1.4 Employee Benefit Plans

The company provides to its employees following retirement benefits:

I) Gratuity

ii) Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees for which the fund is maintained with LIC. This is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation.

Leave Accrual: The company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

1.5 Disclosures of dues/payments to Micro, Small And Medium Enterprises to the extent such enterprises are identified by the Company:

The company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises Development Act 2006 (the Act) and hence disclosure regarding:

a. Amount due an account of suppliers as at the end of the accounting year;

b. Interest Paid during the year;

c. Interest payable at the end of the year;

d. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmations from the suppliers as regarding their status under the Act.

1.6 Additional Information pursuant to the provisions of Part II of Schedule VI to the Companies Act 1956.

a.In the absence of a homogenous unit, it is not practicable to give quantity details of Purchases, Sales and Closing Stock.

1.7 As per Scheme of Arrangement u/s 391 to 394 of Companies Act 1956, Printer division of WeP Peripherals Limited is proposed to be demerged into the Company w.e.f. April 1, 2012 by way of issue of equity shares of the Company. The Scheme has been approved by the Shareholders and the Creditors of the Company and approval is pending with the Hon'ble High Court of Karnataka.

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Mar 31, 2011

A Scheme of arrangement

During the year, under Sec 391 – 394 of the Companies Act 1956, Managed Printing Solution business of wep solutions india limited was transferred to the company on a going concern basis as per the Scheme of Arrangement approved by the shareholders of the company, M/s wep solutions india limited and Hon'ble High Court of Karnataka. Accordingly following assets and liabilities have been transferred to the company from the appointed date April 1, 2010 in compliance of the section 2(19AA) of the Income Tax Act, 1961.

B.The company's operations presently are predominantly in one segment. Hence reporting of segment detail does not arise.

C. As required by the Accounting Standard - 18 the transaction with the related parties is disclosed below.

Sl. No. Name of Related Party Relationship

1. G H Visweshwara Director

2. H K Nanjunda Swamy Director

3. B R Ganesh Director

4. Sudhir Prakash Director

5. Tej Sharma Director

6. H V Gowthama Director

7. Shankar Jaganathan Director

8. WeP Peripherals Limited Promoter

9. WeP Solutions India Limited Transferor Company

J. Employee Benefit Plans

The company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Gratuity: The Company provides gratuity benefit to the employees for which the fund is maintained with LIC. This is the defined benefit plan and the obligation of the company is calculated on the basis of actuarial valuation.

Leave Accrual: The company allows accumulation / encashment of leave at the time of separation for a specified period. Such accumulation can be utilized by obtaining leave in the subsequent period employment. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

Disclosure envisaged in revised AS 15 in respect of gratuity are given below:

D. Disclosures of dues/payments to Micro, Small and Medium enterprises to the extent such enterprises are identified by the company:

The company has not received any intimation from the suppliers regarding the status under the Micro, Small and Medium Enterprises Development Act 2006 (the Act) and hence disclosure regarding:

a. Amount due an account of suppliers as at the end of the accounting year;

b. Interest Paid during the year;

c. Interest payable at the end of the year;

d. Interest accrued and unpaid at the end of the accounting year; has not been provided.

The Company is making efforts to get the confirmations from the suppliers as regarding their status under the Act.

L. Additional Information Pursuant to the Provisions of Part II of Schedule VI to the Companies Act 1956.

a. In the absence of a homogenous unit, it is not practicable to give quantity details of Purchases, Sales and Closing Stock.

b. Value of Imports on basis

E. Comparative figures relating to the previous year have been reclassified wherever necessary to confirm to the classification adopted this year.

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Mar 31, 2010

1. As implementation under Phase ii of the employees stock Option scheme of 1999-2000 ( ESOS) , 156,000 options were vested as on 31st March 2010 out of granted options of 300,000 ( previous year 156,000). Options exercised during the year nil ( previous year nil ) and options lapsed during the year ended 31st March 2010 nil ( previous year nil ). Options available for further vesting as on 31st March 2010 - 476,400 (previous year 476,400)

2. Estimated amount of contracts remaining to be executed on capital account (net of advance) is Rs. Nil (previous year Rs. Nil)

3. a) There is no income tax liability for the year as per the normal / Section 115JB computation under the provisions of the income tax act, 1961

b) No provision for wealth tax has been made, as there is no taxable wealth under the provisions of the wealth tax act, 1957.

4. Service income includes income from software services, customisation and annual maintenance contracts.

5. Sundry debtors, sundry creditors and Loans & advances of certain parties balances are subject to confirmation.

6. The company is engaged in the development of computer software solutions and rendering related services. Hence quantitative information as required under paragraphs 3 and 4C of Part ii of schedule VI to the Companies act, 1956 is not furnished.

7. The companys operations presently are predominantly in Financial service segment. Hence reporting of segment details does not arise.

8. The financial statements do not include any adjustments relating to recoverability and classification of recorded asset amounts , or to amounts and classification of liabilities that may be necessary if the company is unable to continue as a going concern.

9. Loans and advances include rs.7,364,000/- ( towards 736,400 option @ Rs. 10/- ) being loan given to Datanet employees welfare trust (trust) , formed for the benefit of its employees, for purchase of equity shares in the company (Previous year Rs. 7,364,000/-).

The advance amount is represented by balance number of equity shares originally allotted to the trust at par value.

As on 31/03/2010, 476,400 options are available for further vesting in future and for recovery of the loan against exercise .in addition, 260,000 options which were vested and in force with the employees as on 31/03/2010, upon exercise of which the loan is recoverable from such employees.

Recorded amounts of other assets reasonably represent their fair value.

10. The company has taken leased premises under cancelable operating leases. the rental expenditure in respect of operating leases was rs.309,000/- (previous year Rs. 899,428/-) Contingent rents recognized in the Profit and Loss account is Rs. Nil (previous year Rs. Nil

11. Additional information required to be disclosed pursuant to Part ii of schedule VI of the Companies act, 1956 to the extent applicable.