Notes to Accounts of Globesecure Technologies Ltd.

Mar 31, 2025

xii. Provision''s, Contingent Liabilities and Contingent Assets

The Company recognizes as provisions, the liabilities being present obligation arising out
of past events, the settlement of which is expected to result in an outflow of resources
which can be measure only by using a substantial degree of estimation.

Contingent liabilities are disclosed by way of notes to the financial statements after
careful evaluation by the management of the facts and the legal aspects of the matter
involved.

Contingent assets are neither recognized nor disclosed.

xiii. Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting
Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing
and financing activities of the Company.

Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand
and unencumbered bank balance

¦ The Company has provided guarantee to Multi commodity exchange of India Ltd. of
Rs.9.91 lakhs- in case company fails to provide support & service mentioned under the
purchase order.

However in case company is unable to meet or fulfill the obligation ICICI bank will pay
the amount to MCX on behalf of company.

The above bank guarantee is secured against fixed deposit created with ICICI bank.

27. There is no capital commitment outstanding at the end of current and previous year.

28. The Company came with Right issue of equity shares issuing 68,31,000 new equity shares
of Rs. 10 each at a premium of Rs. 30 per share, aggregating to a total amount of Rs.
2732.40 lakhs. The objectives and utilization of the funds raised through the Right issue
are as follows:

29. The company does not allow accumulation of leaves and hence the Company has not
obtained actuarial valuation report for leave encashment.

The particulars as required under the Accounting Standard-AS 15 of Employees Benefits
are as under:

ii. Defined Benefit Plan:

Following are the principle Actuarial Assumptions used for determining defined benefit
obligations towards gratuity as on the Balance Sheet date:

35. Expenditure in foreign currency: Nil

36. The Company has given long term trade advances to Three parties for carrying out the
Research & development activities for developing of new IT Security product and
Company is hopeful of recovering more than advance given by making a sales in
subsequent years from the developed product.

The Company has also appointed the Technical valuer for conducting the feasibility of and
marketability and value of the expected product as on March 31, 202 5 to demonstrate no
impairment is required for the advance given.

37. During the year, the Company has utilised the right issue proceeds towards giving trade
advances to Two Parties, Out of that, trade advance given to one party is for development
of new product amounting to Rs. 1948.15 lakhs. As per the agreement entered with the
party on dated November 13, 2024, the party has to develop the product within One year
from the date effective date mentioned in the agreement.

The Company has given another trade advance of Rs.550 lakhs for design,
implementation and maintenance of comprehensive infrastructure management services
for site surveys, Passive infrastructure, Connectivity and network, Surveillance,
Environmental controls and Auxiliary and miscellaneous services .

38. The Company has not deposited the TDS liability of Rs.93.52 Lakhs since October 2024 till
date, however the provision has been made along-with the interest. The management is
working on the improving the cash flow management to ensure such non-compliance does not
occurs in future.

39. One of the operational creditors having outstanding dues of Rs. 132.78 lakhs as on March 31,
2025 has filed an application with NCLT Mumbai for initiation of insolvency proceeding. The
NCLT has issued a direction to response to the appeal filed by 9^th of June, 2025. The
Company is assessing the appeal filed by the Creditors and direction issued by the NCLT.

40. Earnings in Foreign Currency INR Rs.83.12lacs

43. Other Significant notes

i. No transactions has been surrendered or disclosed as income during the year in the tax
assessment under the Income Tax Act, 1961. There are no such previously unrecorded
income or related assets.

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

iii. The company has not undertaken any transactions with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

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

v. The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social
Responsibility are not applicable to the Company during the year and hence reporting
under this clause is not applicable.

vi. The Company does not have any charges or satisfaction which is yet to be registered with
Registerer of Companies (ROC) beyond the statutory period.

vii. The company has not advanced or loaned or invested funds (either borrowed funds or
share premium or any other sources or kind of funds) to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever (Ultimate
Beneficiaries) by or on behalf of the company or provide any guarantee, security or the
like to or on behalf of the Ultimate Beneficiaries.

viii. The company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the company shall directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of
the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

ix. The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social
Responsibility are not applicable to the Company during the year and hence reporting
under this clause is not applicable.

x. No Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.

xi. The title deeds of immovable properties (other than properties where the Company is
the lessee and the lease agreements are duly executed in favour of the lessee) are held in
the name of the Company.

xii. The Company does not have any investment property.

xiv. There are no proceedings that have been initiated or pending against the Company
for holding any benami property under the Benami Transactions (Prohibitions) Act,
1988 (45 of 1988) and the Rules made thereunder.

44. Previous Year’s figures have been regrouped /reclassified to conform to the current year’s
presentation, wherever necessary.

As per our report of even date attached

For Kumbhat & Co LLP For and on the behalf of the Board of Directors

Chartered Accountants Globesecure Technologies Limited

Firm Reg. No.: 001609S/ S000162

Gaurang C. Unadkat Ragavan Rajkumar Sonam Ragavan

Partner Managing Director Director

Membership No. 131708 DIN: 02002480 DIN: 08789592

Amit Das Heta Desai

Chief Financial Officer Company Secretary

Place :- Mumbai Place :- Mumbai

Date :- 29^th May, 2025 Date :- 29^th May, 2025

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Mar 31, 2024

Note 1: Corporate Information:

The Company was incorporated on February 09, 2016. The Company is engaged in the business of IT Security products and related services.

Note 2: Significant Accounting Policies:

The significant accounting policies followed by the company are stated as below:

i. Basis of preparation of financial statements

The Company is a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company."

Pursuant to the provisions of section 2(40) of the Companies Act, 2013, the Company has presented a cash flow statement. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles followed by the Company.

ii. Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and differences between actual results and estimates are recognised in the periods in which the results are known / materialise.

iii. Property, Plant and Equipments and Depreciation

Fixed assets are stated at Cost less Depreciation. Cost comprises of Purchase price and any attributable cost of bringing the assets to working condition for its intended use.

Depreciation on all assets is charged proportionately from the date of acquisition / installation on written down value basis at rates prescribed in Schedule III of the Companies Act, 2013.

iv. Impairment of Assets:-

An asset is considered as impaired in accordance with Accounting Standard 28 on Impairment of Assets when at the balance sheet date there are indications of impairment and the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs, exceeds its recoverable amount (i.e. the higher of the asset’s net selling price and value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and Loss.

v. Investments

Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognize the diminution.

vi. Revenue recognition:

Sale of Licenses and Hardware Components:

Sales of Licenses and Hardware Components are recognized, net of returns and trade discounts on transfer of significant risks and rewards of ownership to the customer.

Income from Support Services:

Revenue from support service is recognized pro-rata over the period of contract.

Unbilled Revenue:

Revenue recognized over and above the billings on a customer is classified as unbilled revenue. Unbilled Revenue is classified as unbilled revenue (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time it required, as per contractual terms. Unearned revenue is recognised when there is billing in excess of revenue. The billing schedules agreed with customers include periodic performance based payments.

vii. Inventories

Inventories are valued at the lower of Cost (Generally determined on FIFO Basis) and Net Realizable Value. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.

viii. Employee Benefits

Company’s contribution to recognized provident fund is defined contribution plan and is charged to the Profit and Loss Account on accrual basis. There are no other obligations than the contribution payable to the fund.

Contribution to gratuity fund is defined benefit obligation and is provided for on basis of an actuarial valuation on projected accrued benefit method made at the end of each financial year.

ix. Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Foreign Currency denominated assets and liabilities at the balance sheet date is translated at the exchange rate prevailing on the date of balance sheet.

x. Earnings Per Share

Basic earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, if any.

xi. Accounting For Taxes on Income

Tax expense comprises of current and deferred tax. Provision for current tax is made, based on the tax payable under the Income-tax Act, 1961. Deferred tax assets and liabilities from timing differences between taxable income and accounting income is accounted for using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date.

xii. Provision’s, Contingent Liabilities and Contingent Assets

The Company recognizes as provisions, the liabilities being present obligation arising out of past events, the settlement of which is expected to result in an outflow of resources which can be measure only by using a substantial degree of estimation. Contingent liabilities are disclosed by way of notes to the financial statements after careful evaluation by the management of the facts and the legal aspects of the matter involved.

Contingent assets are neither recognized nor disclosed.

xiii. Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the Company.

Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and unencumbered bank balances.

26.Contingent liabilities not provided for as on 31st March, 2024

Nature of the Statute	Amount (Rs. In lakhs)	Period to Which it Relates	Forum where the dispute is pending
Income Tax Act ,1961	998.77	AY 21-22	Appeal has been fled with CIT(A) against the order passed u/s.143(3) against the addition made of INR 998.77 lakhs.
Income Tax Act ,1961	16.81	AY 22-23	Appeal has been fled with CIT(A) against the order passed u/s.143(3) against the addition made of INR 16.81 lakhs.

The Company has provided guarantee to Multi commodity exchange of India Ltd. of Rs.9.91 lakhs- in case company fails to provide support & service mentioned under the purchase order.

However in case company is unable to meet or fulfil the obligation ICICI bank will pay the amount to MCX on behalf of company. The above bank guarantee is secured against fixed deposit created with ICICI bank.

27. There is no capital commitment outstanding at the end of current and previous year.

28. The Company came with an Initial Public Offer of equity shares on 23rd May, 2022 and closed on 25th May, 2022. The Initial Public Offer was for 34,92,000 equity shares of face value of Rs. 10 each at premium of Rs. 19 per share aggregating to INR 1012.68 lakhs. The shares of the Company were listed on the National Stock Exchange of India Limited, Emerge Platform on 02nd June, 2022.

29. The company does not allow accumulation of leaves and hence the Company has not obtained actuarial valuation report for leave encashment.

35. Expenditure in foreign currency: Nil (Nil/- in FY 23-24)

36. The Company has given long term trade advances to Three parties for carrying out the Research & development activities for developing of new IT Security product and Company is hopeful of recovering more than advance given by making a sales in subsequent years from the developed product.

The Company has charged the interest of Rs. 73.61 lakhs due to delay in completing the above product which is shown under Note No. 20 of the financial statement.

The Company has also appointed the Technical valuer for conducting the feasibility of and marketability and value of the expected product as on March 31,2024 to demonstrate no impairment is required for the advance given.

37. Earnings in Foreign Currency INR /- NIL

Notes

1 Debt = Non-current borrowings Current borrowings_

2 Net worth -Paid-up share capital Reserves created out of profit* Security premium -Accumulated losses_

2 Cost of goods sold - Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods, stock-in-trade and work-in

_mmz_

4 Purchase-Purchaseofstock-in-trade PurchaseofRawMaterialand packing material

5 Working Capital = Current assets-Current liabilities_

6 EBIT - Earnings before Interest, tax and exceptional items_

7 Capital employed = Total equity Non-current borrowings_

40.Previous Year’s figures have been regrouped /reclassified to conform to the current year’s presentation, wherever necessary.