Notes to Accounts of AION-TECH Solutions Ltd.

Mar 31, 2025

Depreciation is the systematic allocation of
the depreciable amount of PPE over its
useful life and is provided on a straight¬
line basis over the useful lives as
prescribed in Schedule II to the Act or as
per technical assessment.

Depreciable amount for PPE is the cost of
PPE less its estimated residual value. The
useful life of PPE is the period over which
PPE is expected to be available for use by
the Company, or the number of production
or similar units expected to be obtained
from the asset by the Company.

The Company has componentized its PPE
and has separately assessed the life of
major components. In case of certain
classes of PPE, the Company uses different
useful lives than those prescribed in
Schedule II to the Act. The useful lives have
been assessed based on technical advice,
taking into account the nature of the PPE
and the estimated usage of the asset on
the basis of management’s best estimation
of obtaining economic benefits from those
classes of assets.Such classes of Assets and
their estimated useful lives are as under:

installation or acquisition and in case of
Projects from the date of commencement
of commercial production. Depreciation on
deductions/disposals is provided on a pro¬
rata basis up to the date of deduction/
disposal.

3.11 Intangible Assets and Amortization

Intangible Assets are stated at cost less
accumulated amortization and
impairment. Intangible Assets are
amortized over their respective estimated
useful lives on a straight-line basis, from the
date that they are available for use.

Internally generated assets for which the
cost is clearly identifiable are capitalised
at cost. Research expenditure is
recognised as an expense when it is
incurred. Development costs are
capitalised only after the technical and
commercial feasibility of the asset for sale
or use has been established. Thereafter, all
directly attributable expenditure incurred
to prepare the asset for its intended use
are recognised as the cost of such assets.
Internally generated brands, websites and
customer lists are not recognised as
intangible assets.

Amortization

The estimated useful life of an identifiable
Intangible Asset is based on a number of
factors including the effects of obsolescence,
demand, competition and other economic
factors (such as the stability of the industry
and known technological advances) and
the level of maintenance expenditures
required to obtain the expected future
cash flows from the asset.

Software is amortized over a period of
three to five years.

3.12 Cash and Cash Equivalents

Cash and Cash Equivalents in the Balance
Sheet comprise Cash at Bank and in Hand
and Short-term Deposits with Banks that

are readily convertible into Cash which
are subject to insignificant risk of changes
in value and are held for the purpose of
meeting Short-term Cash commitments.

3.13 Cash Flow Statement

Cash Flows are reported using the indirect
method, whereby net Profit Before Tax is
adjusted for the effects of transactions of
a non-cash nature and any deferrals or
accruals of past or future cash receipts or
payments. The Cash Flows from
Operating, Investing and Financing
activities of the Company are
segregated.

3.14 Government Grants

Government grants are recognized
where there is reasonable assurance that
the grant will be received and all
attached conditions will be complied with.

Where the Company receives non¬
monetary grants, the asset and the grant
are accounted at fair value and
recognized in the Statement of Profit and
Loss over the expected useful life of the
Asset.

3.15 Impairment of non Financial Assets

The carrying amounts of the Company’s
Non-financial Assets, Inventories and
Deferred Tax Assets are reviewed at
each reporting date to determine
whether there is any indication of
impairment. If any such indication exists,
then the Asset’s recoverable amount is
estimated.

The recoverable amount of an Asset or
Cash-generating unit (as defined below)
is the greater of its value in use and its fair
value less costs to sell. In assessing value in
use, the estimated future Cash Flows are
discounted to their present value using a
Pre-tax Discount Rate that reflects current

market assessments of the time value of
money and the risks specific to the asset or
the cash-generating unit. For the purpose of
impairment testing, Assets are grouped
together into the smallest group of Assets
that generates Cash Inflows from continuing
use that are largely independent of the
Cash Inflows of other Assets or groups of
Assets (the “cash-generating unit”).

An Impairment Loss is recognized in the
Income Statement if the estimated
recoverable amount of an asset or its Cash¬
generating unit is lower than its carrying
amount. Impairment Losses recognized in
prior periods are assessed at each
reporting date for any indications that the
loss has decreased or no longer exists. An
Impairment Loss is reversed if there has
been a change in the estimates used to
determine the recoverable amount. An
Impairment Loss is reversed only to the
extent that the asset’s carrying amount
does not exceed the carrying amount that
would have been determined, net of
Depreciation or Amortization, if no
Impairment Loss had been recognized.
Goodwill that forms part of the carrying
amount of an Investment in an Associate is
not recognized separately, and therefore is
not tested for impairment separately.
Instead, the entire amount of the investment
in an associate is tested for impairment as a
single Asset when there is objective
evidence that the investment in an associate
may be impaired.

An Impairment Loss in respect of Equity
accounted investee is measured by
comparing the recoverable amount of
investment with its carrying amount. An
Impairment Loss is recognized in the Income
Statement, and reversed if there has been
a favourable change in the estimates used
to determine the recoverable amount.

3.17 Provisions

A provision is recognized if, as a result of a
past event, the Company has a present
legal or constructive obligation that can be
estimated reliably, and it is probable that
an outflow of economic benefits will be
required to settle the obligation. If the
effect of the time value of money is
material, provisions are determined by

discounting the expected Future Cash
Flows at a Pre-tax rate that reflects current
market assessments of the time value of
money and the risks specific to the liability.
Where discounting is used, the increase in
the provision due to the passage of time is
recognized as a finance cost.

3.18 Contingent Liabilities & Contingent Assets

A disclosure for a contingent Liability is
made when there is a possible obligation
or a present obligation that may, but
probably will not, require an outflow of
resources. Where there is a possible
obligation or a present obligation in
respect of which the likelihood of outflow
of resources is remote, no provision or
disclosure is made.

Contingent Assets are not recognized in the
Financial Statements. However, Contingent
Assets are assessed continually and if it is
virtually certain that an inflow of economic
benefits will arise, the Asset and related
Income are recognized in the period in
which the change occurs.

3.19 Financial Instruments

a. Recognition and Initial recognition

The Company recognizes Financial
Assets and Financial Liabilities when it
becomes a party to the contractual
provisions of the instrument. All
Financial Assets and Liabilities are
recognized at fair value on initial
recognition, except for trade receivables
which are initially measured at
transaction price. Transaction costs that
are directly attributable to the
acquisition or issues of Financial Assets
and Financial Liabilities that are not at
fair value through profit or loss, are
added to the fair value on initial
recognition.

A Financial Asset or Financial Liability is
initially measured at fair value plus, for
an item not at Fair Value Through Profit
and Loss (FVTPL), transaction costs that

are directly attributable to its
acquisition or issue.

b. Classification and Subsequent
measurement

Financial Assets

On initial recognition, a Financial Asset
is classified as measured at

— Amortized Cost;

- FVTPL

Financial Assets are not reclassified
subsequent to their initial recognition,
except if and in the period the
Company changes its business model for
managing Financial Assets.

A Financial Asset is measured at
amortized cost if it meets both of the
following conditions and is not
designated as at FVTPL:

- the asset is held within a business
model whose objective is to hold Assets
to collect contractual Cash Flows; and

— the contractual terms of the Financial
Asset give rise on specified dates to
Cash Flows that are solely payments of
Principal and Interest on the Principal
amount outstanding.

All Financial Assets not classified as
measured at amortized cost as
described above are measured at
FVTPL. On initial recognition, the
Company may irrevocably designate a
Financial Asset that otherwise meets the
requirements to be measured at
amortized cost at FVTPL if doing so
eliminates or significantly reduces an
accounting mismatch that would
otherwise arise.

Financial Assets: Business Model
Assessment

The Company makes an assessment of
the objective of the business model in
which a Financial Asset is held at a

portfolio level because this best reflects
the way the business is managed and
information is provided to
management. The information
considered includes:

— the stated Policies and Objectives for
the Portfolio and the operation of those
Policies in practice. These include
whether management’s strategy
focuses on earning contractual Interest
Income, maintaining a particular
interest rate profile, matching the
duration of the Financial Assets to the
duration of any related liabilities or
expected cash outflows or realizing
cash flows through the sale of the
Assets;

— how the performance of the portfolio
is evaluated and reported to the
Company’s management;

— the risks that affect the performance
of the Business Model (and the financial
assets held within that business model)
and how those risks are managed;

— how managers of the business are
compensated - e.g. whether
compensation is based on the fair value
of the assets managed or the
contractual cash flows collected; and

— the frequency, volume and timing of
sales of Financial Assets in prior
periods, the reasons for such sales and
expectations about future sales activity.

Transfers of Financial Assets to third
parties in transactions that do not
qualify for derecognition are not
considered sales for this purpose,
consistent with the Company’s continuing
recognition of the Assets.

Financial Assets that are held for
trading or are managed and whose
performance is evaluated on a fair
value basis are measured at FVTPL.

Financial Assets: Assessment whether
contractual cash flows are solely
payments of Principal and Interest

For the purposes of this assessment,
‘Principal’ is defined as the fair value of
the Financial Asset on initial recognition.
‘Interest’ is defined as consideration for
the time value of money and for the
credit risk associated with the Principal
amount outstanding during a particular
period of time and for other basic
lending risks and costs (e.g. liquidity risk
and administrative costs), as well as a
profit margin.

In assessing whether the contractual
cash flows are solely payments of
Principal and Interest, the Company
considers the contractual terms of the
instrument. This includes assessing
whether the Financial Asset contains a
contractual term that could change the
timing or amount of contractual cash
flows such that it would not meet this
condition. In making this assessment, the
Company considers:

— contingent events that would change
the amount or timing of Cash Flows;

— terms that may adjust the contractual
coupon rate, including variable interest
rate features;

— prepayment and extension features;
and

— terms that limit the Company’s claim to
cash flows from specified Assets (e.g.
non- recourse features).

A prepayment feature is consistent with
the solely payments of Principal and
interest criterion if the prepayment
amount substantially represents unpaid
amounts of Principal and Interest on the
Principal amount outstanding, which
may include reasonable additional
compensation for early termination of
the contract. Additionally, for a

Financial Asset acquired at a
significant discount or premium to its
contractual par amount, a feature that
permits or requires prepayment at an
amount that substantially represents
the contractual par amount plus
accrued (but unpaid) contractual
interest (which may also include
reasonable additional compensation
for early termination) is treated as
consistent with this criterion if the fair
value of the prepayment feature is
insignificant at initial recognition.

Financial Assets: Subsequent
measurement and gains and losses

Financial assets at FVTPL: These assets
are subsequently measured at fair
value. Net gains and losses, including
any Interest or Dividend Income, are
recognized in Profit or Loss.

Financial Assets at Amortized Cost:
These Assets are subsequently
measured at amortized cost using the
effective interest method. The amortized
cost is reduced by impairment losses.
Interest Income, Foreign Exchange
Gains and Losses and Impairment are
recognized in Profit or Loss. Any gain
or loss on derecognition is recognized
in Profit or Loss.

Financial Liabilities: Classification,
Subsequent measurement and Gains
and Losses

Financial Liabilities are classified as
measured at amortized cost or FVTPL.
A Financial Liability is classified as at
FVTPL if it is classified as held- for- trading,
or it is a derivative or it is designated
as such on initial recognition. Financial
Liabilities at FVTPL are measured at
fair value and net Gains and Losses,
including any interest expense, are
recognized in Profit or Loss. Other

Financial Liabilities are subsequently
measured at amortized cost using the
effective interest method. Interest
expense and foreign exchange Gains
and Losses are recognized in Profit or
Loss. Any Gain or Loss on derecognition
is also recognized in Profit or Loss.

c. Derecognition
Financial Assets

The Company derecognizes a Financial
Asset when the contractual rights to the
cash flows from the Financial Asset
expire, or it transfers the rights to
receive the contractual cash flows in a
transaction in which substantially all of
the risks and rewards of ownership of
the Financial Asset are transferred or in
which the Company neither transfers nor
retains substantially all of the risks and
rewards of ownership and does not
retain control of the Financial Asset.

If the Company enters into transactions
whereby it transfers Assets recognized
on its Balance Sheet, but retains either
all or substantially all of the risks and
rewards of the transferred Assets, the
transferred Assets are not derecognized.

Financial Liabilities

The Company derecognizes a Financial
Liability when its contractual obligations
are discharged or cancelled, or expire.

The Company also derecognizes a
Financial Liability when its terms are
modified and the cash flows under the
modified terms are substantially
different. In this case, a new Financial
Liability based on the modified terms is
recognized at fair value. The difference
between the carrying amount of the
Financial Liability extinguished and the
new Financial Liability with modified
terms is recognized in Profit.

d. Offsetting

Financial Assets and Financial Liabilities
are offset and the net amount
presented in the Balance Sheet when
and only when, the Company currently
has a legally enforceable right to set
off the amounts and it intends either to
settle them on a net basis or to realize
the asset and settle the Liability
simultaneously.

e. Impairment

The Company recognizes loss
allowances for expected credit losses
on Financial Assets measured at
amortized cost;

At each reporting date, the Company
assesses whether Financial Assets
carried at amortized cost and debt
securities at fair value through other
comprehensive income (FVOCI) are
credit impaired. A Financial Asset is
‘credit- impaired’ when one or more
events that have a detrimental impact
on the estimated future cash flows of the
Financial Asset have occurred.

Evidence that a Financial Asset is credit-
impaired includes the following
observable data:

— significant financial difficulty of the
borrower or issuer;

— the restructuring of a loan or advance
by the Company on terms that the
Company would not consider otherwise;

— it is probable that the borrower will
enter bankruptcy or other financial
reorganization; or

— the disappearance of an active
market for a security because of
financial difficulties.

The Company measures loss allowances
at an amount equal to lifetime expected
credit losses, except for the following,

which are measured as 12 month
expected credit losses:

— debt securities that are determined to
have low credit risk at the reporting
date; and

— other debt securities and bank
balances for which credit risk (i.e. the risk
of default occurring over the expected
life of the financial instrument) has not
increased significantly since initial
recognition.

Loss allowances for trade receivables
are always measured at an amount
equal to lifetime expected credit losses.

Lifetime expected credit losses are the
expected credit losses that result from
all possible default events over the
expected life of a financial instrument.

12-month expected credit losses are the
portion of expected credit losses that
result from default events that are
possible within 12 months after the
reporting date (or a shorter period if the
expected life of the instrument is less
than 12 months).

In all cases, the maximum period
considered when estimating expected
credit losses is the maximum contractual
period over which the Company is
exposed to credit risk.

When determining whether the credit
risk of a Financial Asset has increased
significantly since initial recognition and
when estimating expected credit losses,
the Company considers reasonable and
supportable information that is relevant
and available without undue cost or
effort. This includes both quantitative
and qualitative information and
analysis, based on the Company’s
historical experience and informed
credit assessment and including
forward- looking information.

Measurement of expected credit
losses

Expected credit losses are a
probability-weighted estimate of
credit losses. Credit losses are
measured as the present value of all
cash shortfalls (i.e. the difference
between the cash flows due to the
Company in accordance with the
contract and the cash flows that the
Company expects to receive).

Presentation of allowance for expected
credit losses in the balance sheet

Loss allowances for Financial Assets
measured at amortized cost are
deducted from the gross carrying
amount of the Assets.

Write-off

The gross carrying amount of a
Financial Asset is written off (either
partially or in full) to the extent that
there is no realistic prospect of
recovery. This is generally the case
when the Company determines that the
trade receivable does not have assets
or sources of income that could
generate sufficient cash flows to repay
the amounts subject to the write- off.
However, Financial Assets that are
written off could still be subject to
enforcement activities in order to
comply with the Company’s procedures
for recovery of amounts due.

d) Terms and conditions of transactions with Related Parties:

The transactions with related parties are made on terms equivalent to those that prevail in arm''s
length transactions. Outstanding balances at the year-end are unsecured and interest free.

33 Segment Information

Ind AS 108 "Operating Segment” ("Ind AS 108”) establishes standards for the way that public
business enterprises report information about Operating and Geographical Segments and related
disclosures about products and services, geographic areas, and major customers. Based on the
"management approach” as defined in Ind AS 108, Operating Segments and Geographical
Segments are to be reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM).The CODM evaluates the Company''s performance and allocates
resources on overall basis.

During the year, the Company has two reportable segments i.e. Information Technology / Software
Services and Software License

The Segment Revenue, Profitability, Assets and Liabilities are as under:

35 Gratuity (Non-Funded)

The Company provides its employees with benefits under a defined benefit plan, referred to as the
"Gratuity Plan”. The Gratuity Plan entitles an employee, who has rendered at least five years of
continuous service, to receive 15 days salary for each year of completed service (service of six
months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of
INR 2,000,000

The following tables summarize the components of net benefit expense recognized in the statement
of profit or loss and the amounts recognized in the balance sheet for the plan:

Reconciliation of opening and closing balances of the present value of the defined benefit obligations:

37 Leases

Where the Company is a Lessee:

Effective 1-April-2019, the Company adopted Ind AS 116, Leases. This standard brings most leases
on-balance sheet for lessees under a single model, eliminating the distinction between operating and
finance leases. Company has recognized Right of use asset or Lease liability in accordance of this
standard.

The Company has elected not to apply the requirements of Ind AS 116 Leases to certain short term
leases of some of the assets that have a lease term of 12 months or less and leases for which the
underlying asset is of low value. The lease payments associated with these leases amounting to
INR2.48 Million (Previous Year: INR1.57 Million) are recognized as an expense on a straight-line basis
over the lease term.

38 Earnings Per Share

Basic EPS amounts are calculated by dividing the Profit for the year attributable to Equity Holders by
the weighted average number of Equity Shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the Profit attributable to Equity Holders by the
weighted average number of Equity Shares outstanding during the year plus the weighted average
number of Equity Shares that would be issued on conversion of all the dilutive potential Equity Shares
into Equity Shares.

39 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance and support Company''s
operations. The Company''s principal financial assets include inventory, trade and other receivables,
cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior
management oversees the management of these risks. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises two types of risk: interest rate risk and
other price risk, such as commodity risk. Financial instruments affected by market risk include loans

and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the
position as at 31 March 2025 and 31 March 2024. The sensitivity analyses have been prepared on
the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity
and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective
market risks. This is based on the financial assets and financial liabilities held at 31 March 2025 and
31 March 2024.

Interest rate risk

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 short-term debt obligations with floating interest
rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate
borrowings. The Company does not enter into any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on
that portion of loans and borrowings affected. With all other variables held constant, the Company''s
profit before tax is affected through the impact on floating rate borrowings, as follows:

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The credit risk arises principally from its operating
activities (primarily trade receivables) and from its investing activities, including deposits with banks
and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous
basis to whom credit has been granted after obtaining necessary approvals for credit. The collection
from the trade receivables are monitored on a continuous basis by the receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses
in respect of trade and other receivables based on the past and the recent collection trend. The
maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting
to INR 193.57 Millions (31 March 2024: INR 190.01 Million). Basis the estimate, there is allowance
for Bad and doubtful depts provided by the Company of INR 12.77 Million (31 March 2024: INR
2.40 Million).

The top 5 customers account for around 20% of the revenue as of 31 March 2025 and around 25%
of the revenue as of 31 March 2024 as the Company has diversified business in the areas of IT
Consulting, IT Staffing, Off-shore Technical Support and Big Data Analytics Software License Sales.
Credit risk on Cash and Cash equivalent is limited as the Company generally transacts with banks
and financial institutions with high credit ratings assigned by international and domestic credit rating
agencies.

c) Liquidity risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility
through the use of bank deposits and loans.

The table below summarizes the maturity profile of the Company''s financial liabilities based on
contractual undiscounted payments:

41 Other Statutory Information

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

41.2 The Company do not have any transactions with companies struck off.

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

41.4 The Company have not traded or invested in Crypto currency or Virtual Currency during the
financial year.

41.5 The Company have no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

41.6 The Company has complied with the number of layers prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

41.7 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

41.8 The Company have not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:

Note

42.1 The increase in Current Ratio of 5.24% due to increase in the Other Bank Balances because of sale of
company''s part of Land situated at Cherlapally, Hyderabad and sale of 100% Equity Stake of
subsidiary company named Wowtruck Technologies Private Limited.

42.2 The decrease in Debt - Equity Ratio due to low utilization of Overdraft Credit facility. The utilization
of Overdraft Credit facility stood at INR23.56 Million as on 31-March-2025 as against a
sanctioned limit of INR69.00 million.

42.3 The decrease in Debt - Service coverage ratio is because the company has given discounts to the
large sized Software License Sale orders resulting in decrease in margin on Software License Sale.

42.4 Increase in Return on Equity Ratio due to Profit on sale of part of Land owned by the company
situated at Cherlapally, Hyderabad and Sale of 100% Equity Stake in subsidiary named Wowtruck
Technologies Private Limited.

42.5 Increase in Trade Receivables Turnover Ratio is due to timely collection of Accounts Receivable.

42.6 The decrease in Trade Payable Turnover Ratio is due to timely payment to suppliers of Software
Licenses.

42.7 The decrease in net Capital Turnover Ratio is due to increase in Other Bank Balances due to Sale of
part of land owned by Company in Cherlapally, Hyderabad and Sale of 100% Equity stake in the
subsidiary named Wowtruck Technologies Private Limited.

42.8 Increase in Net Profit Ratio due to profit on Sale of part Land owned by Company in Cherlapally,
Hyderabad and Sale of 100% Equity stake of Wowtruck Technologies Private Limited.

42.9 Decrease in Return on Capital Employed due to decrease in margins because discount given to large
sized customer orders in Software License Sales segment.

42.10 Increase in Return on Investment Ratio due to profit on Sale of part Land owned by Company in
Cherlapally, Hyderabad and Sale of 100% Equity stake of Wowtruck Technologies Private Limited.

43 Significant Accounting Estimates, Judgements and Assumptions

The preparation of the Company''s financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods.

43(a) Judgements

In the process of applying the Company''s accounting policies, management has made the following
judgements, which have the most significant effect on the amounts recognised in the financial
statements:IThe Company determines the lease term as non-cancellable term of the lease, together
with any periods covered by an option to extend the lease if it is reasonably certain to be exercised,
or any periods covered by an option to terminate the lease, if it is reasonably certain not to be
exercised.

The Company has several lease contracts that include extension and termination options. The
Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise
the option to renew or terminate the lease. That is, it considers all relevant factors that create an
economic incentive for it to exercise either the renewal or termination. After the commencement date,
the Company reassesses the lease term if there is a significant event or change in circumstances that is
within its control and affects its ability to exercise or not to exercise the option to renew or to terminate
(e.g., construction of significant leasehold improvements or significant customisation to the leased
asset).

43(b)E stimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

I. Deferred tax assets (including MAT credits) are recognised for unused tax credits to the extent that
it is probable that taxable profit will be available against which the credits can be utilised.
Significant management judgement is required to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and the level of future taxable profits together with
future tax planning strategies. Refer Note 30.

II. Defined benefit plan

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the
present value of the gratuity obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future.
These include the determination of the discount rate, future salary increases and mortality rates. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

III. Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates
arrived at based on the useful lives and residual values of all its property, plant and equipment
estimated by the management. The management believes that depreciation rates currently used
fairly reflect its estimate of the useful lives and residual values of property, plant and equipment,
which are equal to the life prescribed under Schedule Il of the Companies Act, 2013.

IV. The Company assesses at each balance sheet date whether there is any indication that an asset or
a group of assets comprising a cash generating unit may be impaired. If any such indication exists, the
Company estimates the recoverable amount of the asset. For an asset or group of assets that does not
generate largely independent cash inflows, the recoverable amount is determined for the cash¬
generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss
and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication
that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical
cost. An impairment loss is reversed only to the extent that the carrying amount of asset does not
exceed the net book value that would have been determined, if no impairment loss had been
recognised.

V. Leases- Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the
Company presently pays on Borrowings availed by the Company.

44 Standards issued but not yet effective

I. Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in
accounting policies and the correction of errors. It has also been clarified how entities use
measurement techniques and inputs to develop accounting estimates. The amendments are not
expected to have a material impact on the Company''s financial statements.

II. Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more
useful by replacing the requirement for entities to disclose their ‘significant’ accounting
policies with a requirement to disclose their ‘material’ accounting policies and adding
guidance on how entities apply the concept of materiality in making decisions about
accounting policy disclosures. The Company is currently revisiting their accounting policy
information disclosures to ensure consistency with the amended requirements.

III. The amendments narrow the scope of the initial recognition exception under Ind AS 12, so
that it no longer applies to transactions that give rise to equal taxable and deductible
temporary differences. The amendments should be applied to transactions that occur on or
after the beginning of the earliest comparative period presented. In addition, at the
beginning of the earliest comparative period presented, a deferred tax asset (provided
that sufficient taxable profit is available) and a deferred tax liability should also be
recognised for all deductible and taxable temporary differences associated with leases
and decommissioning obligations. Consequential amendments have been made in Ind AS
101.

The Company is currently assessing the impact of the amendments.

45 The Indian Parliament has approved the code on Social Security, 2020 which could impact
the contributions by the company towards Provident Fund and Gratuity. The effective date
from which the changes are applicable is yet to be notified and the rules for quantifying the
financial impact are yet to be framed. The company will complete evaluation and will give
appropriate impact in the financial results in the period in which, the code and related rules
become effective.

46 Prior Year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to
conform with the current year’s classification.

As per our report of even date

for P Murali & Co for and on behalf of the Board of Directors of

Chartered Accountants Aion-Tech Solutions Limited

ICAI Firm Registration Number: 007257S CIN: L72200TG1994PLC017211

Sd/- Sd/- Sd/-

Mukund Vijayrao Joshi Seetepalli Venkat Raghunand L.P. Sashikumar

Partner Whole Time Director Director

Membership No.: 024784 DIN: 10267020 DIN: 00016679

Sd/- Sd/-

Place: Hyderabad Vithal V S S N K Popuri Adalat Srikanth

Date: 29.05.2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

3.17 Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected Future Cash Flows at a Pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

3.18 Contingent Liabilities & Contingent Assets

A disclosure for a contingent Liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are not recognized in the Financial Statements. However, Contingent Assets are assessed continually

and if it is virtually certain that an inflow of economic benefits will arise, the Asset and related Income are recognized in the period in which the change occurs.

3.19 Financial Instruments

a. Recognition and Initial recognition

The Company recognizes Financial Assets and Financial Liabilities when it becomes a party to the contractual provisions of the instr ument. All Financial Assets and Liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issues of Financial Assets and Financial Liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.

A Financial Asset or Financial Liability is initially measured at fair value plus, for an item not at Fair Value Through Profit and Loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

b. Classification and Subsequent measurement

Financial Assets

On initial recognition, a Financial Asset is classified as measured at

— Amortized Cost;

- FVTPL

Financial Assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing Financial Assets.

A Financial Asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold Assets to collect contractual Cash Flows; and

- the contractual terms of the Financial Asset give rise on specified dates to Cash Flows that are solely payments of Principal and Interest on the Principal amount outstanding.

All Financial Assets not classified as measured at amortized cost as described above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a Financial Asset that otherwise meets the requirements to be measured at amortized cost at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial Assets: Business Model Assessment

The Company makes an assessment of the objective of the business model in which a Financial Asset is held at a portfolio level because this best reflects the way the business is managed and in for m a tio n is provi d ed to management. The information considered includes:

- the stated Policies and Objectives for the Portfolio and the operation of those Policies in practice. These include whether management’s strategy focuses on earning contractual Interest Income, maintaining a particular interest rate profile, matching the duration of the Financial Assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the Assets;

- how the performance of the portfolio is evaluated and reported to the Company’s management;

— the risks that affect the performance of the Business Model (and the financial assets held within that business model) and how those risks are managed;

— how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

— the frequency, volume and timing of sales of Financial Assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of Financial Assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Company’s continuing recognition of the Assets.

Financial Assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

Financial Assets: Assessment whether contractual cash flows are solely payments of Principal and Interest

For the purposes of this assessment, ‘Principal’ is defined as the fair value of the Financial Asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the Principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of Principal and Interest, the Company considers the contractual terms of the instrument. This includes assessing whether the Financial Asset contains a contractual term that could change the

timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

— contingent events that would change the amount or timing of Cash Flows;

— terms that may adjust the contractual coupon rate, including variable interest rate features;

— prepayment and extension features; and

— terms that limit the Company’s claim to cash flows from specified Assets (e.g. non- recourse features).

A prepayment feature is consistent with the solely payments of Principal and interest criterion if the prepayment amount substantially represents unpaid amounts of Principal and Interest on the Principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a Financial Asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

Financial Assets: Subsequent measurement and gains and losses

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any Interest or Dividend Income, are recognized in Profit or Loss.

Financial Assets at Amortized Cost: These Assets are subsequently

measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest Income, Foreign Exchange Gains and Losses and Impairment are recognized in Profit or Loss. Any gain or loss on derecognition is recognized in Profit or Loss.

Financial Liabilities: Classification, Subsequent measurement and Gains and Losses

Financial Liabilities are classified as measured at amortized cost or FVTPL. A Financial Liability is classified as at FVTPL if it is classified as held- for-trading, or it is a derivative or it is designated as such on initial recognition. Financial Liabilities at FVTPL are measured at fair value and net Gains and Losses, including any interest expense, are recognized in Profit or Loss. Other Financial Liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange Gains and Losses are recognized in Profit or Loss. Any Gain or Loss on derecognition is also recognized in Profit or Loss.

c. Derecognition Financial Assets

The Company derecognizes a Financial Asset when the contractual rights to the cash flows from the Financial Asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the Financial Asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the Financial Asset.

If the Company enters into transactions whereby it transfers Assets recognized on its Balance Sheet, but retains either all or substantially all of the risks and

rewards of the transferred Assets, the transferred Assets are not derecognized.

Financial Liabilities

The Company derecognizes a Financial Liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognizes a Financial Liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new Financial Liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the Financial Liability extinguished and the new Financial Liability with modified terms is recognized in Profit

d. Offsetting

Financial Assets and Financial Liabilities are offset and the net amount presented in the Balance Sheet when and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the Liability simultaneously.

e. Impairment

The Company recognizes loss allowances for expected credit losses on Financial Assets measured at amortized cost;

At each reporting date, the Company assesses whether Financial Assets carried at amortized cost and debt securities at fair value through other comprehensive income (FVOCI) are credit impaired. A Financial Asset is ‘credit- impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the Financial Asset have occurred.

Evidence that a Financial Asset is credit-impaired includes the following observable data:

— significant financial difficulty of the borrower or issuer;

— the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;

— it is probable that the borrower will enter bankruptcy or other financial reorganization; or

— the disappearance of an active market for a security because of financial difficulties.

The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the following, which are measured as 12 month expected credit losses:

— debt securities that are determined to have low credit risk at the reporting date; and

— other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is

exposed to credit risk.When determining whether the credit risk of a Financial Asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward- looking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowances for Financial Assets measured at amortized cost are deducted from the gross carrying amount of the Assets.

Write-off

The gross carrying amount of a Financial Asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the trade receivable does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write- off. However, Financial Assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

33 Segment Information

Ind AS 108 "Operating Segment” ("Ind AS 108”) establishes standards for the way that public business enterprises report information about Operating and Geographical Segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach” as defined in Ind AS 108, Operating Segments and Geographical Segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company''s performance and allocates resources on overall basis.

During the year, the Company has two reportable segments i.e. Information Technology / Software Services and Software License

37 Leases

Where the Company is a Lessee:

Effective 1-April-2019, the Company adopted Ind AS 116, Leases. This standard brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Company has recognized Right of use asset or Lease liability in accordance of this standard.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short term leases of some of the assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases amounting to INR1.57 Million (Previous Year: INR6.63 Million) are recognized as an expense on a straight-line basis over the lease term.

38 Earnings Per Share

Basic EPS amounts are calculated by dividing the Profit for the year attributable to Equity Holders by the weighted average number of Equity Shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the Profit attributable to Equity Holders by the weighted average number of Equity Shares outstanding during the year plus the weighted average number of Equity Shares that would be issued on conversion of all the dilutive potential Equity Shares into Equity Shares.

The following table sets out the computation of Basic and Diluted Earnings Per Share:

39 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans

and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at 31 March 2024 and 31 March 2023. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.

Interest rate risk

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 short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company does not enter into any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to INR 190.01 Millions (31 March 2023: INR 171.88 Million). Basis the estimate, there is allowance for expected credit loss provided by the Company of INR 2.40 Million (31 March 2023: INR 1.95 Million).

42.3 Increase in Debt - Service coverage ratio on account of increase in profitability due to decrease in manpower and other expenses.

42.4 Decrease in Return on Equity Ratio due to increase in Finance cost due to increase in ODFD Facility utilization and increase in Depreciation on account of long term lease.

42.5 Decrease in Trade Receivables Turnover Ratio is due to extended credit period given for the large sized customers in Data Analytics License Sale segment.

42.6 The decrease in Trade Payable Turnover Ratio is due to extended credit period given by Creditors of the company particularly by the Data Analytics Software License suppliers.

42.7 Improvement in net Capital Turnover Ratio is due to increase in Sales particularly in Data Analytics License Sale segment.

42.8 Decrease in Net Profit Ratio due to increase in ODFD Facility utilization resulting in increase in Finance Cost and increase in depreciation due to long term lease.

42.9 Decrease in Return on Capital Employed due to decrease in margins due to discount given to large sized customers in Data Analytics Software License Sales segment.

42.10 Decrease in Return on Investment Ratio due to decrease in Net Profit due to discount given to large sized customers in Data Analytics Software License Sales segment and also increase in Finance Cost & increase in Depreciation on account of long term lease.

43 Significant Accounting Estimates, Judgements and Assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

43 (a) Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

The Company determines the lease term as non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

43 (b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to

market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

I. Deferred tax assets (including MAT credits) are recognised for unused tax credits to the extent that it is probable that taxable profit will be available against which the credits can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Refer Note 30.

II Defined benefit plan

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

III Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the useful lives and residual values of all its property, plant and equipment estimated by the management. The management believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant and equipment, which are equal to the life prescribed under Schedule Il of the Companies Act, 2013.

IV The Company assesses at each balance sheet date whether there is any indication that an asset or a group of assets comprising a cash generating unit may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. For an asset or group of assets that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost. An impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined, if no impairment loss had been recognised.

V Leases- Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company presently pays on Borrowings availed by the Company.

44 Standards issued but not yet effective

I Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments are not expected to have a material impact on the Company''s financial statements.

II Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant'' accounting policies with a requirement to disclose their ‘material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The Company is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements.

III The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101.

The Company is currently assessing the impact of the amendments.

45 The Indian Parliament has approved the code on Social Security, 2020 which could impact the contributions by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules for quantifying the financial impact are yet to be framed. The company will complete evaluation and will give appropriate impact in the financial results in the period in which, the code and related rules become effective.

46 Prior Year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current year''s classification.

As per our report of even date

for P Murali & Co for and on behalf of the Board of Directors of

Chartered Accountants Aion-Tech Solutions Limited

ICAI Firm Registration Number: 007257S CIN: L72200TG1994PLC017211

Sd/- Sd/- Sd/-

M V Joshi Pavan Chavali L.P. Sashikumar

Partner Managing Director Director

Membership No.: 024784 DIN: 08432078 DIN: 00016679

Sd/- Sd/-

Place: Hyderabad Vithal V S S N K Popuri Niralee Rasesh Kotdawala

Date: 23.05.2024 Chief Financial Officer Company Secretary

---

Mar 31, 2023

(A) Terms / rights attached to the Equity Shares

Equity Shares of the Company have a par value of INR 10/- Per Share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. 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.

B. Overdraft Credit Facility against Fixed Deposit:

During the F.Y 2022-23, the Company availed Rs.40,000,000/- Overdraft Credit facility with a interest of 5.60% per annum against Fixed Deposit of Rs.50,000,000/- (interest rate on FD is 5.10% per annum) from State Bank of India, NRI Branch, Hyderabad, TS State, India.

Also during the F.Y 2022-23, the Company availed Rs.38,000,000/- Overdraft Credit facility with a interest of 5.65% per annum against Fixed Deposit of Rs.40,000,000/- (interest rate on FD is 5.15% per annum) from ICICI Bank Limited, M.G. Road Branch, Secunderabad, TS State, India.

The Company offered the Land owned by it to the extent of 26,092 Sq. Yds. situated at Survey No. 249 (Part), 250 (Part) and 251 (part) and Building there on as collateral security to State Bank of India, Commercial Branch, Hyderabad against the credit facilities availed by M/s Olectra Greentech Limited (formerly known as Goldstone Infratech Ltd.) and also given corporate guarantee for INR 920.00 Millions. However the Company''s liability is restricted to the value of the property offered as collateral security.

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free.

33 Segment Information

Ind AS 108 "Operating Segment” ("Ind AS 108”) establishes standards for the way that public business enterprises report information about Operating and Geographical Segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach” as defined in Ind AS 108, Operating Segments and Geographical Segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM evaluates the Company''s performance and allocates resources on overall basis.

During the year, the Company has two reportable segments i.e. Information Technology / Software Services and Software License

Segment Assets, Segment Liabilities & Segment Capital Employed:

Segment Capital Employed: Segregation of assets, liabilities, depreciation and other non-cash expenses into various primary segments has not been done, as the assets are used interchangeably between segments. Accordingly no disclosure relating to segmental assets and liabilities has been made.

35 Gratuity (Non-Funded)

The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan”. The Gratuity Plan entitles an employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of INR 2,000,000.

The following tables summarize the components of net benefit expense recognized in the statement of profit or loss and the amounts recognized in the balance sheet for the plan:

Reconciliation of opening and closing balances of the present value of the defined benefit obligations:

36 Dues to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2023 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (‘The MSMED Act'') is not expected to be material. The Company has not received any claim for interest from any supplier.

37 Leases

Where the Company is a Lessee:

Effective 1st April 2019, the Company adopted Ind AS 116, Leases. This standard brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Company has recognized Right of use asset or Lease liability in accordance of this standard.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short term leases of some of the assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases amounting to INR 7.56 Million (Previous Year: INR 7.87 Million) are recognized as an expense on a straight-line basis over the lease term.

38 Earnings Per Share

Basic EPS amounts are calculated by dividing the Profit for the year attributable to Equity Holders by the weighted average number of Equity Shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the Profit attributable to Equity Holders by the weighted average number of Equity Shares outstanding during the year plus the weighted average number of Equity Shares that would be issued on conversion of all the dilutive potential Equity Shares into Equity Shares.

39 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at 31 March 2023 and 31 March 2022. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022.

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 short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company does not enter into any interest rate swaps.

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to INR 171.88 Millions (31 March 2022: INR 141.87 Million). Basis the estimate, there is no allowance for expected credit loss provided by the Company.

The top 5 customers account for around 25% of the revenue as of 31 March 2023 and around 45% of the revenue as of 31 March 2022 as the Company has diversified business in the areas of IT Consulting, IT Staffing, Off-shore Technical Support and Big Data Analytics Software License Sales. Credit risk on Cash and Cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:

40 Capital Management

The Company''s policy is to maintain a stable Capital base so as to maintain Investor, Creditor and Market confidence and to sustain future development of the business. Management monitors Capital on the basis of Return on Capital Employed as well as the Debt to Total Equity Ratio.

For the purpose of Debt to Total Equity Ratio, Debt considered is Long-term and Short-term Borrowings. Total Equity comprise of issued Share Capital and all other Equity Reserves.

The Capital Structure as of 31 March 2023 and 31 March 2022 was as follows:

41 Other Statutory Information

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

41.2 The Company do not have any transactions with companies struck off.

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

41.4 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

41.5 The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

41.6 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

41.7 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

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

42.1 Decrease in Current Ratio is due to decrease in Cash and Cash Equivalents. The Company acquired 100% Equity of Wowtruck Technologies Pvt. Ltd., and made investment 4.95% Equity of ETO Motors Private Limited. This resulted in decrease of Cash and Cash Equivalents and also the Current Ratio.

42.2 The decrease in Debt - Equity Ratio due to low utilization of ODFD Facility. The said ODFD utilization as at 31-March-2023 is INR0.05 Millions.

42.3 Increase in Debt - Service coverage ratio on account of reduced finance cost on account of low utilization of ODFD Facility.

42.4 Increase in Return on Equity Ratio due to increase in Net Profit. During the Year there is an increase in margin in Software License Sale.

42.5 Improvement in Trade Receivables Turnover Ratio is due to collection of majority of Accounts Receivables as per agreed credit period.

42.6 The increase in Trade Payable Turnover Ratio is due to timely payment to Vendors

42.7 Improvement in net Capital Turnover Ration is due to increase in Net Profit. During the Year there is an increase in margin in Software License Sale.

42.8 Increase in Net Profit Ratio due to increase in margin in Software License Sale

42.9 Increase in Return on Capital Employed due to increase in margins in Software License Sale

42.10 Increase in Return on Investment Ratio due to increase in Net Profit. During the Year there is an increase in margin in Software License Sale.

43 Significant Accounting Estimates, Judgements and Assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

43 (a)Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

The Company determines the lease term as non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

43 (b)Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

I Deferred tax assets (including MAT credits) are recognised for unused tax credits to the extent that it is probable that taxable profit will be available against which the credits can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Refer Note 30.

II Defined benefit plan

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial

valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

III Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the useful lives and residual values of all its property, plant and equipment estimated by the management. The management believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant and equipment, which are equal to the life prescribed under Schedule Il of the Companies Act, 2013.

IV The Company assesses at each balance sheet date whether there is any indication that an asset or a group of assets comprising a cash generating unit may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. For an asset or group of assets that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost. An impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined, if no impairment loss had been recognised.

V Leases- Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company presently pays on Borrowings availed by the Company.

44 Standards issued but not yet effective

I Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments are not expected to have a material impact on the Company''s financial statements.

II Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant'' accounting policies with a requirement to disclose their ‘material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The Company is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements.

III The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest

comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101.

The Company is currently assessing the impact of the amendments.

45 The Indian Parliament has approved the code on Social Security, 2020 which could impact the contributions by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules for quantifying the financial impact are yet to be framed. The company will complete evaluation and will give appropriate impact in the financial results in the period in which, the code and related rules become effective.

46 Prior Year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current year''s classification.

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Mar 31, 2015

1. Contingent Liability:

Outstanding Bank Guarantees - Rs.79.88 Lakhs (Previous year Rs.125.67 Lakhs)

2. Investments:

A) The company acquired 100% holding in M/s Staytop Systems Inc at a total purchase consideration of USD 2,100,000 in the year 2005. Out of the total purchase consideration an amount of USD 2,000,000 was paid up to 2006-07 and for the balance amount of USD 100,000 the company issued 35,918 Equity Shares as fully paid and no new fresh investments during the year.

B) The company has holding of 9900 share @ Rs.10/- of M/s Staytop Systems and Software Pvt Ltd.,

3. Confirmation of balances with sundry debtors and sundry creditors:

Company has taken necessary steps to get the confirmation of balances from the parties.

4. Provision for Income-Tax:

The company has provided provision for Tax of Rs. 30,40,000/- as per the provisions of the Income Tax Act, 1961.

5. Deferred Taxation:

Deferred Tax Liability/Asset is recognized in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

6. Fixed Assets :

During the year company has computed Depreciation on Fixed Assets based on the useful life in the manner prescribed in part C of Schedule II of new companies Act 2013. In accordance with the transitional provisions under note 7(b) to Part C of Schedule II of the act, 2,07,85,515/- has been adjusted against retained earnings pertaining to assets whose balance useful life was NIL as at 1st April 2014.

7. Related Party Disclosure:

As per Accounting Standard 18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below:

List of related parties with whom transactions have taken place and

Sl. No Name of the related party Relationship

1 Staytop Systems, Inc. Subsidiary

2 Staytop Systems and Software Pvt Ltd Subsidiary

8. Impairment of Assets:

The company reviewed with regard to realizable value of Fixed Asset and found that, the realizable value is more than the book value, hence no provision for impairment of Assets considered necessary.

9. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions have been recognized by the Company for all present obligations arising from past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made by using a substantial degree of estimation. This is as per the provisions of AS-28 issued by ICAI.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on-going basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets have not been recognized in the financial statements.

10. Prior Period Adjustments:

Prior period adjustment of Rs.14,48,369/- ( Previous year Rs.61,544/-) shown in the Profit and Loss account is the net amount of the debits and credits pertaining to previous years, which were not provided during those periods.

11. Additional Information required as per Para's 3 & 4 of Part II of Schedule IV to the companies Act,2013:

12. The Company is engaged in Information Technology & Information Technology Enabled Services. The production and sale of such service cannot be expressed in Units, Hence, it is not possible to give the quantitative details and information as required under paragraphs 3,4 of Part II of Schedule VI to the Companies Act, 2013.

13. Inventory:

During the year the company has no Inventories

14. Capital Work in Progress

Capital Work in Progress includes cost of Fixed Assets under installation including Advances given for purchase of Capital Goods, interest on borrowing costs attributable to the assets for the Assets taken on Finance and any un allocated expenditure pertaining there to

15. Short term Borrowings:

Working Capital Facilities from Central Bank of India are secured by:

i). Hypothecation against first charge on receivables of the company both present and future.

ii). Equitable Mortgage of immovable property of M/s Goldstone Technologies Limited & M/s Goldstone Infratech Limited.

iii). Corporate Guarantee given by M/s Trinity Infraventures Limited & M/s Goldstone Infratech Limited for above loan.

iv). Personal guarantee of a promoter director of the company.

v) The said working capital facility has been sanctioned for a period of one year and renewable on a Yearly basis with rate of interest -base rate of the bank plus 3.5% and renewable on a yearly basis.

16. Trade payables:

"The Company has no "Supplier / Vendor" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006.

17. Figures for the previous year/period are regrouped/ rearranged wherever considered necessary.

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Mar 31, 2014

1. Contingent Liability :

Outstanding Bank Guarantees - Rs.125.67 Lakhs (Previous year Rs.163.66 Lakhs)

2. Investments :

A) The company acquired 100% holding in M/s Staytop Systems Inc at a total purchase consideration of USD 2.100.000 in the year 2005. Out of the total purchase consideration an amount of USD 2,000,000 was paid up to 2006- 07 and for the balance amount of USD 100.000 the company issued 35,918 Equity Shares as fully paid and no new fresh investments during the year.

B) The company has holding of 9900 share @ Rs.10/- of M/s Staytop Systems and Software Pvt Ltd.,

3. Confirmation of balances with sundry debtors and sundry creditors: Company has taken necessary steps to get the confirmation of balances from the parties.

4. Provision for Income-Tax :

The company has provided provision for Tax of Rs.6.25 Millions as per the provisions of the Income Tax Act, 1961.

5. Deferred Taxation :

Deferred Tax Liability/Asset is recognized in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

6. Related Party Disclosure :

As per Accounting Standard 18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below :

8. Segment Reporting :

As per Accounting Standard 17 on Segment Reporting disclosures issued by the Institute of Chartered Accountants of India the disclosures on segment reporting are given below :

Business Segment - In the previous year the company was engaged in the business of Information Technology & Information Technology Enabled Services. The business segment wise details are given

Segment Capital Employed : Segregation of assets, liabilities, depreciation and other non-cash expenses into various primary segments has not been done, as the assets are used interchangeably between segments. Accordingly no disclosure relating to segmental assets and liabilities has been made.

9. Impairment of Assets :

The company reviewed with regard to realizable value of Fixed Asset and found that, the realizable value is more than the book value, hence no provision for impairment of Assets considered necessary.

10.Employee Benefits :

Retirement benefits to employees The Company has made provision based on actuarial valuation in respect of Gratuity and Leave Encashment as per AS 15. The details are as follows :

Accounting for Provisions, Contingent Liabilities and Contingent Assets :

Provisions have been recognized by the Company for all present obligations arising from past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made by using a substantial degree of estimation. This is as per the provisions of AS-29 issued by ICAI.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on-going basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets have not been recognized in the financial statements.

11. Prior Period Adjustments :

Prior period adjustment of Rs. 61,544/- ( Previous year Rs. Nil ) shown in the Profit and Loss account is the net amount of the debits and credits pertaining to previous years, which were not provided during those periods.

12. Additional Information required as per Para''s 3 & 4 of Part II of Schedule VI to the companies Act,1956 :

12.1 The Company is engaged in Information Technology & Information Technology Enabled Services. The production and sale of such service cannot be expressed in Units, Hence, it is not possible to give the quantitative details and information as required under paragraphs 3,4 of Part II of Schedule VI to the Companies Act, 1956.

13. Inventory :

Movie Rights & Colourisation :

Cost of acquisition of Movies and expenditure incurred for restoration, digitalisation and Colourisation has been recognised as capital assets during the current financial year, which has been shown as inventory in the previous year. Further it has been amortized over a period of 5 years commencing in financial year 2013-2014.

14. Capital Work in Progress :

Capital Work in Progress includes cost of Fixed Assets under installation including Advances given for purchase of Capital Goods, interest on borrowing costs attributable to the assets for the Assets taken on Finance and any un allocated expenditure pertaining there to.

15. Short term Borrowings :

Working Capital Facilities from Central Bank of India are secured by :

i) . Hypothecation against first charge on receivables of the company both present and future.

ii) . Equitable Mortgage of immovable property of M/s Goldstone Technologies Limited & M/s Goldstone

Infratech Limited.

iii) . Corporate Guarantee given by M/s Trinity Infraventures Limited & M/s Goldstone Infratech Limited

for above loan

iv) . Personal guarantee of a promoter director of the company.

v) The said working capital facility has been sanctioned for a period of one year and renewable on a yearly basis with rate of interest -base rate of the bank plus 3.5% and renewable on a yearly basis.

vi). During the financial year working capital availed from ICICI Bank has been paid in full and closed.

16. Trade payables :

"The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them".

17. Figures for the previous year/period are regrouped/ rearranged wherever considered necessary.

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Mar 31, 2013

1. Contingent Liability:

Outstanding Performance Bank Guarantees –Rs.163.66 Lakhs (Previous year Rs.48.61 Lakhs)

2. Investments:

A) The company acquired 100% holding in M/s Staytop Systems Inc at a total purchase consideration of USD 2,100,000 in the year 2005. Out of the total purchase consideration an amount of USD 2,000,000 was paid up to 2006- 07 and for the balance amount of USD 100,000 the company issued 35,918 Equity Shares as fully paid and no new fresh investments during the year. B) The company has holding of 9900 share @ Rs.10/- of M/s Staytop Systems and Software Pvt Ltd.

3. Confirmation of balances with sundry debtors and sundry creditors:

Company has taken necessary steps to get the confirmation of balances from the parties.

4. Provision for Income-Tax:

The company has provided provision for Tax of Rs. 3.87 Millions as per the provisions of the Income Tax Act, 1961. Federal / State tax paid on income of the branch of the company in USA has been accounted for.

5. Deferred Taxation:

Deferred Tax Liability/Asset is recognized in accordance with Accounting Standard 22 – "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

6. Segment Reporting:

As per Accounting Standard 17 on Segment Reporting disclosures issued by the Institute of Chartered Accountants of India the disclosures on segment reporting are given below

Business Segment – In the previous year the company was engaged in the business of Information Technology & Information Technology Enabled Services. The business segment wise details are given below

Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions have been recognized by the Company for all present obligations arising from past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made by using a substantial degree of estimation. This is as per the provisions of AS-28 issued by ICAI.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on-going basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets have not been recognized in the financial statements.

7. Prior Period Adjustments:

Prior period adjustment of Rs. Nil ( Previous year Rs.18,82,786/- ) shown in the Profit and Loss account is the net amount of the debits and credits pertaining to previous years, which were not provided during those periods.

8. Additional Information required as per Para''s 3 & 4 of Part II of Schedule VI to the companies Act,1956:

9.1 The Company is engaged in Information Technology & Information Technology Enabled Services. The production and sale of such service cannot be expressed in Units, Hence, it is not possible to give the quantitative details and information as required under paragraphs 3,4 of Part II of Schedule VI to the Companies Act, 1956.

10. Inventory:

a) Restoration and colorization expenses in respect of the films for which the company has acquired distribution rights are carried as working in progress pending completion of the respective films.

b) Costs incurred for a colorization of movies including the movie rights have been shown in the inventory.

11. Capital Work in Progress

Capital Work in Progress includes cost of Fixed Assets under installation including Advances given for purchase of Capital Goods, interest on borrowing costs attributable to the assets for the Assets taken on Finance and any un allocated expenditure pertaining there to.

12. Figures for the previous year/period are regrouped/ rearranged wherever considered necessary.

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Mar 31, 2012

1. Contingent Liability:

Outstanding Bank Guarantees -Rs.48.61 Lakhs (Previous year Rs.10.28 Lakhs) Claims against the company - against disputed income tax demands not provided for about Rs.7.50 Lakhs, pending before Appellate Authority.

2. Investments:

The company acquired 100% holding in M/s Staytop Systems Inc at a total purchase consideration of USD 2,100,000 in the year 2005. Out of the total purchase consideration an amount of USD 2,000,000 was paid upto 2006-07 and for the balance amount of USD 100,000 the company issued 35,918 Equity Shares as fully paid and no new fresh investments during the year.

3. Confirmation of balances with sundry debtors and sundry creditors:

Company has taken necessary steps to get the confirmation of balances from the parties.

4. Provision for Income-Tax:

The company has provided for Minimum Alternative Tax of Rs.1.5 Millions as per the provisions of Section 115JB of the Income Tax Act, 1961. Federal / State tax paid on income of the branch of the company in USA has been accounted for.

5. Deferred Taxation:

Deferred Tax Liability/Asset is recognized in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Computation of Deferred Tax Asset/Liability:

6. Related Party Disclosure:

As per Accounting Standard 18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below:

7. Segment Reporting:

As per Accounting Standard 17 on Segment Reporting disclosures issued by the Institute of Chartered Accountants of India the disclosures on segment reporting are given below Business Segment

In the previous year the company was engaged in the business of Information Technology & Information Technology Enabled Services. The business segment wise details are given below.

Segment Capital Employed: Segregation of assets, liabilities, depreciation and other non-cash expenses into various primary segments has not been done, as the assets are used Interchangeably between segments. Accordingly no disclosure relating to segmental assets and liabilities has been made.

8. Impairment of Assets:

The company reviewed with regard to realizable value of Fixed Asset and found that, the realizable value is more than the book value, hence no provision for impairment of Assets considered necessary.

Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions have been recognized by the Company for all present obligations arising from past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made by using a substantial degree of estimation. This is as per the provisions of AS-28 issued by Institute of Chartered Accountant of India.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on-going basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets have not been recognized in the financial statements.

9. Prior Period Adjustments:

Prior period adjustment of Rs.18,82,786/- (Previous year 84,340/-) shown in the Profit and Loss account is the net amount of the debits and credits pertaining to previous years, which were not provided during those periods.

10. Additional Information required as per Para's 3 & 4 of Part II of Schedule VI to the companies Act,1956:

11.1 The Company is engaged in Information Technology & Information Technology Enabled Services. The production and sale of such service cannot be expressed in Units, hence, it is not possible to give the quantitative details and information as required under paragraphs 3,4 of Part II of Schedule VI to the Companies Act, 1956.

12. Inventory:

a) Restoration and colorization expenses in respect of the films for which the company has acquired distribution rights are carried as working in progress pending completion of the respective films.

b) Costs incurred for a colorization of movies including the movie rights have been shown in the inventory.

13. Capital Work in Progress

Capital Work in Progress includes cost of Fixed Assets under installation including Advances given for purchase of Capital Goods, interest on borrowing costs attributable to the assets for the Assets taken on Finance and any un allocated expenditure pertaining there to. During the year under review an amount of Rs.17.2 million received on sale of items has been reduced from capital work in process.

14. Figures for the previous year/period are regrouped/ rearranged wherever considered necessary.

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Mar 31, 2010

1. Contingent Liability

Outstanding Bank Guarantees: Rs. 12 Lakhs (Previous year Rs. 22 Lakhs)

Claims against the company: against disputed income tax demands not provided for about Rs. 7.50 Lakhs, pending before Appellate Authority

2. Secured Loans

Mortgage Loans of Rs. 17,500,400/- are secured by way of hypothecation of the said assets.

3. Investments

During the year the company has cancelled its investment amount invested in M/s 4G Informatics Private Limited.

The company acquired 100% holding in M/s. Staytop Systems Inc at a total purchase consideration of USD 2,100,000 in the year 2005. Out of the total purchase consideration an amount of USD 2,000,000 was paid up to 2006-07 and for the balance amount of USD 100,000 the company issued 35,918 Equity Shares as fully paid.

4. Current Assets and Current Liabilities

Balances of Sundry Debtors, Loans & Advances and Sundry Creditors balances are subject to confirmation in few cases.

5. Provision for Income-Tax

The company has provided for Minimum Alternative Tax of Rs. 1.18 Million as per the provisions of Section 115JB of the Income Tax Act, 1961.

Federal / State tax paid on income of the branch of the company in USA has been accounted for.

6. Deferred Taxation

Deferred Tax Liability/Asset is recognized in accordance with Accounting Standard 22 – “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India.

Computation of Deferred Tax Asset/Liability:

Rs. In Millions

Deferred Tax Liability as at 1st April, 2009 2.66

Less: Deferred tax asset reversed during the year on account of timing differences - 0.55 between book and tax depreciation

Deferred Tax Liability as at 31st March, 2010 3.21

7. Related Party Disclosure:

As per Accounting Standard 18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below:

8. Segment Reporting:

As per Accounting Standard 17 on Segment Reporting disclosures issued by the Institute of Chartered Accountants of India the disclosures on segment reporting are given below

Business Segment – In the previous year the company was engaged in the business of Information Technology & Information Technology Enabled Services. The business segment wise details are given below.

9.Impairment of Assets:

The company reviewed with regard to realizable value of Fixed Asset and found that, the realizable value is more than the book value, hence no provision for impairment of Assets considered necessary.

Segment Capital Employed: Segregation of assets, liabilities, depreciation and other non-cash expenses into various primary segments has not been done, as the assets are used interchangeably between segments. Accordingly no disclosure relating to segmental assets and liabilities has been made.

10. Provision for Contingent Liabilities and Assets:

Provisions have been recognized by the Company for all present obligations arising from past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made by using a substantial degree of estimation. This is as per the provisions of AS-28 issued by ICAI.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on-going basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets have not been recognized in the financial statements.

11. Additional Information required as per Paras 3 & 4 of Part II of Schedule VI to the companies Act, 1956.

11.1.The Company is engaged in Information Technology & Information Technology Enabled Services. The production and sale of such service cannot be expressed in Units. Hence, it is not possible to give the quantitative details and information as required under paragraphs 3 & 4 of Part II of Schedule VI to the Companies Act, 1956.

12. Inventory:

Restoration and colorization expenses in respect of the films for which the company has acquired distribution rights are carried as work in progress pending completion of the respective films.

13.Capital Work in Progress

Capital Work in Progress includes cost of Fixed Assets under installation including Advances given for purchase of Capital Goods, interest on borrowing costs attributable to the assets for the Assets taken on Finance and any unallocated expenditure pertaining thereto.

14. Figures for the previous year/period are regrouped/ rearranged wherever considered necessary.