Notes to Accounts of ITCONS E-Solutions Ltd.

Mar 31, 2025

3.17 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and is probable that
an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the
best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent
assets are not recognized in the financial statements.

3.18 Segment information

Based on similarity of activities, risks and reward structure, organization structure and internal reporting systems, the
Company''s primary business segment is recruitment and staffing services.

@ in FY 2022-23 the Company had completed the Initial Public Offering (IPO) including fresh issue of INR 8,67,000
hundreds comprising 17,00,000 equity shares of INR 10 each at an issue price of INR 51 per share. The equity shares of
the Company were listed on BSE Limited under SME category w.e.f 13 March 2023.

$ Pursuant to the approval of the Board of Directors of the Company, at its meeting held on 29th July 2024, has approved
the issue and allotment of 1,00,400 Hundreds (One Crore Forty Thousand) Share Warrants, each convertible into 1 (One)
fully paid-up Equity Share of face value of INR 10/- each at a price of INR 71/- per share (including a premium of INR 61/-),
on a preferential basis, in accordance with the provisions of Section 62(1)(c) and Section 42 of the Companies Act, 2013
and other applicable laws.

Pursuant to the terms of allotment, the warrants allotted to the following individuals/entities have been duly converted into
equity shares upon receipt of the balance subscription amount of ? 53.25/- per warrant within the stipulated period of 18
months from the date of allotment:

The Company has one class of equity shares having a face value of INR 10 each. Each shareholder is eligible for one vote
per share held. The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and
approved by Shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation,
the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.

26 Contingent liabilities (To the extent not provided for)

a. Claims against the company not acknowledged as debt Nil (Previous year : Nil).

b. Capital commitments - The estimated amount of contracts of capital nature (net of advances) remaining to be executed
and not provided for is Nil (Previous year : Nil)

27 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development
Act, 2006 (“MSMED")

The company has identified Micro, Small and Medium Enterprises on the basis of information available. As at 31 March
2025 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED (Previous year : Nil).
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the Management. This has been relied upon by the auditors.

28 Leasing arrangements

The Company''s significant leasing arrangement is in respect of operating lease for office premises. The operating lease
payments for the year amounted to 22,694.22 (Previous year : 19,953.73).

29 Employee benefits plan

a. Defined contribution plan

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contri¬
bution plans for qualifying employees. The Company recognised 4,98,077.43 (Previous year : 2,62,647.68) for Provident
Fund contributions and 74,089.70 (Previous year : 42,587.03) for Employee State Insurance Scheme contributions in the
Statement of Profit and Loss.

b. Defined benefit plan

The company has a defined benefit for gratuity. Every employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The company provides for
the liability in its books of accounts based on the actuarial valuation by applying the Projected Unit Credit Method.

c. Other long term employee benefits

The Company has made provision for leave encashment basis the leave policy of the Company. The Company recognised
2,307.34 (Previous year : 1,637.25) towards leave encashment in the statement of profit and loss.

35 Other statutory information

i. The company does not have any immovable property in its name and there are no investment properties held by the
Compny.

ii. The Company does not have any Benami property, where any proceedings has been initiated or pending against the
Company for holding any Benami property.

iii. The Company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory
period.

iv. Final dividend of Rs. 0.15/- per share (on the face value of Rs. 10/- per equity share), has been recommended by the
Board of

Directors in their meeting held on May 30, 2025. (Previous year-NIL)

v. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

vi. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other person 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

vii. The Company has not received any funds from any persons or entities, 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 person 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

viii. The Company has not surrendered or disclosed any 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).

ix. The Company has no expenditure obligation towards Corporate Social Responsibility as per the provisions of Section
135 of the Act read with schedule VII to the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014,
as amended.

x. The Company does not have any transactions or relationships with any company struck off under section 248 of the
Companies Act, 2013 or Section 560 of the Companies Act, 1956.

xi. During the year no Scheme of Arrangement has been formulated by the Company/pending with competent authori¬
ty.

xii. The Company does not have any subsidiary company as defined under section 2(87) of the Companies Act, 2013. Ac¬
cordingly the provisions of section 2(87) of the Companies Act, 2013 read with Companies (Restriction on Number of
Layers) Rules, 2017 is not applicable.

xiii. Balances in parties accounts are subject to confirmation / reconciliation. Appropriate adjustments, if any, will be
made as and when the balances are reconciled.

36 Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

37 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond
with the current year''s classification / disclosure.

For and on behalf of the Board of Directors

Ga^{urav Mitta}l Chetan Prakash Mittal

Managing Director

Director and CFO

^{DIN - 01205,29} DIN - 01205222

Pooja Gupta

Company Secretary

Place: Noida
Date : 30.05.2025

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Mar 31, 2024

The Company has one class of equity shares having a face value of INR 10 each. Each shareholder is eligible for one vote per share held. The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

@During the year the Company had completed the Initial Public Offering (IPO) including fresh issue of INR 8,67,000 hundreds comprising 17,00,000 equity shares of INR 10 each at an issue price of INR 51 per share. The equity shares of the Company were listed on BSE Limited under SME category w.e.f 13 March 2023.

D. Details of shares held by each shareholder holding more than 5% of the aggregate shares in the Company

Nature and purpose of reserves

I. Securities premium reserve is used to record the premium on issue of shares. The reserve is to be utilised in

accordance with the provisions of Section 52 of the Companies Act, 2013.

II. Retained earnings represents the cumulative undistributed profits of the Company and can be utilised in accordance

with the provisions of the Companies Act, 2013

*Secured by a floating charge on all current assets, book debts, movable property, present and future, of the Company and guaranteed by Directors. It carries interest ranging between 8.25% to 8.8% (31 March 2023 : 8.25% to 8.8%) per annum. The Company has filed monthly returns or statements with the bank in lieu of the sanctioned working capital facilities, which are generally in agreement with the books of accounts.

Note: Pursuant to issue of Bonus Shares (refer note 4(c)) during the current year Earnings per share (Basic and Diluted) have been adjusted for the period presented.

25. Contingent liabilities (To the extent not provided for)

a. Claims against the company not acknowledged as debt Nil (Previous year : Nil).

b. Capital commitments - The estimated amount of contracts of capital nature (net of advances) remaining to be executed and not provided for is Nil (Previous year : Nil)

26. Disclosures required under Section 22 of the Micro, Small and Medium Enter prises Development Act, 2006 ("MSMED")

The company has identified Micro, Small and Medium Enterprises on the basis of information available. As at 31 March 2024 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED (Previous year : Nil).

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

27. Leasing arrangements

The Company''s significant leasing arrangement is in respect of operating lease for office premises. The operating lease payments for the year amounted to 19,95,373 (Previous year : 22,26,208).

28. Employee benefits plan

a. Defined contribution plan

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans for qualifying employees. The Company recognised 2,62,64,768.29 (Previous year : 2,50,45,733) for Provident Fund contributions and 42,58,702.63 (Previous year : 35,63,336) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss.

a. Defined benefit plan

The company has a defined benefit for gratuity. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The company provides for the liability in its books of accounts based on the actuarial valuation by applying the Projected Unit Credit Method.

b. Other long term employee benefits

The Company has made provision for leave encashment basis the leave policy of the Company. The Company recognised 1,63,725 (Previous year : 5,05,423) towards leave encashment in the statement of profit and loss.

29.Related party disclosures

a. List of related parties

i. Key management personnel

• Mr. Gaurav Mittal, Manging Director

• Mr. Chetan Prakash Mittal, Director & CFO

• Mrs. Premlata Mittal, Director

• Mr. Ayush Jindal, Director

• Mrs. Archana Gangal, Director

ii. Relatives of key management personnel

Mrs. Swati Jain - wife of Mr. Gaurav Mittal, Managing Director

iii. Enterprises over which key management personnel / relatives of key management personnel have significant influence

• Mahhaguru Navgrah Private Limited

• Mahakal Maharaj Bikaner Seva Mandir

34. Other statutory information

30.Segment information

The Company has a single reportable business which is recruitment and staffing services, hence there is no separate information to be provided.

31. Disclosure as per regulation 34(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as regards the loans and inter-corporate deposits granted to subsidiaries, associates and other companies in which directors are interested:

I. The company does not have any immovable property in its name and there are no investment properties held by

the Company.

II. The Company does not have any Benami property, where any proceedings has been initiated or pending against

the Company for holding any Benami property.

III. The Company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory

period.

IV. No dividend on equity shares is paid or proposed by the Board of Directors for the year ended 31 March 2024 and 31 March 2023.

V. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

VI. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other person 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

VII. The Company has not received any funds from any persons or entities, 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 person 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 behalfof the Ultimate Beneficiaries

The Company has not surrendered or disclosed any 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).

VIII. The Company has no expenditure obligation towards Corporate Social Responsibility as per the provisions of Section 135 of the Act read with schedule VII to the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.

IX. The Company does not have any transactions or relationships with any company struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

X. During the year no Scheme of Arrangement has been formulated by the Company/pending with competent

a uthority.

XI. The Company does not have any subsidiary company as defined under section 2(87) of the Companies Act, 2013. Accordingly the provisions of section 2(87) of the Companies Act, 2013 read with Companies (Restriction on Number of Layers) Rules, 2017 is not applicable.

XII. Balances in parties accounts are subject to confirmation / reconciliation. Appropriate adjustments, if any, will

35. Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

36. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2023

3.17 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

3.18 Segment information

Based on similarity of activities, risks and reward structure, organization structure and internal reporting systems, the Company''s primary business segment is recruitment and staffing services.

25 Contingent liabilities (To the extent not provided for)

a. Claims against the company not acknowledged as debt Nil (Previous year : Nil).

b. Capital commitments - The estimated amount of contracts of capital nature (net of advances) remaining to be executed and not provided for is Nil (Previous year : Nil).

26 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act,2006 ("MSMED")

The company has identified Micro, Small and Medium Enterprises on the basis of information available. As at 31 March 2023 there are

no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED (Previous year : Nil).

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

27 Leasing arrangements

The Company''s significant leasing arrangement is in respect of operating lease for office premises. The operating lease payments forthe year amounted to 22,262.08 (Previous year : 15,441.85).

28 Employee benefits plan a. Defined contribution plan

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans forqualifying employees. The Company recognised 2,50,457.33 (Previous year : 1,51,198.94) for Provident Fund contributions and 35,633.36 (Previous year : 23,867.42) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss.

b. Defined benefit plan

As represented by the management, the Company is not liable for payment of gratuity and pension on retirement, since the monthly compensation is inclusive of such benefits.

c. Other long term employee benefits

The Company has made provision for leave encashment basis the leave policy of the Company. The Company recognised 5.054.23 (Previous year : Nil) towards leave encashment in the statement of profit and loss.

29 Related party disclosures

a. List of related parties

i. Key management personnel

Mr. Gaurav Mittal, Managing Director Mr. Chetan Prakash Mittal, Director and CFO

Mrs. Premlata Mittal, Director

Mrs. Swati Jain, Director (resigned w.e.f 01 October 2022) Mr.

Ayush Jindal, Director (appointed w.e.f 13 October 2022)

Mrs. Archana Gangal, Director (appointed w.e.f 13 October 2022)

ii. Relatives of key management personnel

Mrs. Swati Jain - wife of Mr. Gaurav Mittal

iii. Enterprises over which key management personnel / relatives of key management personnel have significant influence

Mahhaguru Navgrah Private Limited Mahakal Maharaj Bikaner Seva Mandir

35 Other statutory information

i. The company does not have any immovable property in its name and there are no investment properties held by the Company.

ii. The Company does not have any Benami property, where any proceedings has been initiated or pending against the Company for holdingany Benami property.

iii. The Company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv. No dividend on equity shares is paid or proposed by the Board of Directors for the year ended 31 March 2023 and 31 March 2022.

v. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

vi. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other person 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.

vii. The Company has not received any funds from any persons or entities, 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 person 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.

viii. The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961 (suchas, search or survey or any other relevant provisions of the Income Tax Act, 1961).

ix. The Company has no expenditure obligation towards Corporate Social Responsibility as per the provisions of Section 135 of the Act read with schedule VII to the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.

x. The Company does not have any transactions or relationships with any company struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

xi. During the year no Scheme of Arrangement has been formulated by the Company/pending with competent authority.

xii. The Company does not have any subsidiary company as defined under section 2(87) of the Companies Act, 2013. Accordingly the provisions of section 2(87) of the Companies Act, 2013 read with Companies (Restriction on Number of Layers) Rules, 2017 is not applicable.

xiii. Balances in parties accounts are subject to confirmation / reconciliation. Appropriate adjustments, if any, will be made as and when the balances are reconciled.

36 Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

37 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

For G B S G & Associates For and on behalf of the Board of Directors

Chartered Accountants Firm Regn. No. -031422N

Gulshan Khandelwal Gaurav Mittal Chetan Prakash Mittal

^Partner Managing Director Director and CFO

Membership No. 506712 DIN - 01205129 DIN - 01205222

Pooja Gupta

Company Secretary

Place: Faridabad Place: Delhi

Date: 30 May 2023 Date: 30 May 2023