Notes to Accounts of Plada Infotech Services Ltd.

Mar 31, 2024

m) Provisions and contingencies

A provision is recognized when enterprise has a present obligation as a result of past events; it 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 are determined based on 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.

Provisions are recognized when the company has a legal and constructive obligation as a result of a past
event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent Liabilities are disclosed when the Company has a possible
obligation or a present obligation and it is probable that a cash outflow will not be required to settle the
obligation.

n) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares
outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

o) Cash Flow Statement

The cash flow statement has been compiled from and is based on the Balance Sheet as at year end and the
related Statement of Profit and Loss for the year ended on that date. The cash flow statement has been
prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow Statement
issued by the ICAI.

3.2 Terms / rights attached to equity shares

Company has only one class of equity shares having par value of Rs. 10/- per share. Each equity share holder is entitled for one vote per share. Dividend, if declared and
paid, will be in Indian rupees and shall be subject to the approval of shareholders in the ensuing Annual General Meeting.

The Company has not declared any dividend during the year ended March 31, 2024 and March 31,2023.

In the event of liquidation of the Company, the holder of equity shares shall be entitled to receive remaining assets of the Company, after distribution of preferential
amounts. The distribution will be in proportion of the number of fully paid equity shares held by each shareholder.

3.3 Details of bonus shares issued

During the year ended 31st March 2024, on 12th April, 2023 company allotted 40,00,000 bonus shares of face value of Rs. 10/- each. The bonus issue of share has been
made in the ratio of 2:1 (ie 2 (two) fully paid up equity share for every 1 ( one ) Equity share held to the shareholders.

During the year ended 31st March 2023, on 16th June 2022 company allotted 18,00,000 bonus shares of face value of Rs. 10/- each. The bonus issue of share has been
made in the ratio of 9:1 (ie 9 (nine) fully paid up equity share for every 1 ( one ) Equity share held to the shareholders.

3.4 Detailes of fresh Issue

The Company completed an Initial Public Offer ("IPO") of 25,74,000 equity shares of face value of INR 10 each at an issue price of INR 48 per equity share aggregating INR
1,235.52 Lakh, through fresh issue of shares. The equity shares of the Company were listed on NSE EMERGE on October 13, 2023.

23 Contingent liabilities and commitments, (continued)

(a) Income tax liability pertains to demand on account of additions during assessment for AY 2021-22. The company has filed an appeal with Comissioner of
Appeals on which is pending appeals at the date of signinig of financial statements.

b) The Honourable Supreme court gave a judgement dated February 28, 2019 on certain aspects related to Provident Fund. The question before the Supreme
Court was whether certain allowances payable to all employees generally or to all employees engaged in a particular category would also fall within the
purview of ''basic wages'' for the purpose of determining the amount of EPF Contribution payable by the employer.

In reference to the above judgement, the Group is of the view that it is highly unlikely that the judgment of the Supreme Court would call for retrospective
application. Further, the Group is also of the view that there are interpretation challenges and considerable uncertainty, including estimating the amount

retrospectively.

Consequently, no financial effect has been provided in the financial statements towards any potential retrospective application of the above Supreme court
judgement. However, as a matter of abundant caution, the Group has made a provision on a prospective basis and believes that the difference between the
provision and the expected liability (if any) is not material.

(c) Company assigns its employees to various client locations as part of its operations. In accordance with the terms of our agreements with clients, the
responsibility for ensuring compliance with labor laws, regulations, and related statutory requirements for these assigned employees primarily rests with the
respective clients. In the event that a client defaults or fails to fulfill the required labor law compliances for their assigned employees, Group may be required
to assume responsibility and take necessary actions to ensure compliance on their behalf. This could involve engaging in corrective measures, making
financial provisions, or bearing any legal consequences that may arise due to the client''s non-compliance.

While Group maintains systems and procedures to monitor and encourage client compliance, it may not have direct control over the actions and decisions
made by the clients Therefore, the possibility of unforeseen contingent liabilities arising from client non-compliance cannot bo completely eliminated.

d) There are no other present obligations requiring provisions in accordance with the guiding principles as enunciated in Accounting Standard (AS) - 29,
"Provisions, Contingent liabilities & Contingent Assets" as it is not probable that an outflow of resources embodying economic benefits will be required.

(iv) Terms and conditions of transactions with related parties

i. The sales to and purchases from related parties are made on terms equivalent to those that prevail in an arm''s length
transaction.

Notes:

i. Related parties has been identified by the management of the company and relied upon by the auditors

ii. Transaction for the period are excluding indirect taxes, if any. Outstanding balances are includig indirect taxes wherever
applicable.

iii. Remuneration excludes provision for employee benefits as separate actuarial valuation for directors and key
management personnel is not available.

iv. Related party transactions are excluding the transactions in the nature of reimbursement not being in the nature of
outflow of economic resources to the related party.

A. Defined contribution plans

The company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees
towards provident fund, employees state insurance corporation and labour welfare fund, which are defined contribution plans. The
company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit
and Loss as they accrue. The amount recognised as an expense towards employee contribution is 366.71 lacs and 216.01 lacs for the
year ended 31st March 2024 and 31st March 2023 respectviely.''

B. Defined benefit plan

The company has a defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. The scheme is a non-contributory
defined benefit arrangement providing gratuity benefits expressed in terms of final monthly salary and service. The scheme is non-
funded in nature. In accordance with the standard, the disclosures relating to the Group''s gratuity plan are provided below:

28 The Code on Social Security 2020 (''the Code'') relating to employee benefits, during employment and post¬
employment, has received Presidential assent on 28 September 2020. The Code has been published in the Gazette
of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on 13 November
2020. However, the effective date from which the changes are applicable is yet to be notified and rules for
quantifying the financial impact are also not yet issued.

29 In accordance with the provisions of Accounting Standard on impairment of Assets, (AS-28), the management has
made assessment of assets in use & considering the business prospects related thereto, no provision is considered
necessary in these accounts on account of impairment of assets.

30 The Board has certified that all the expenses accrued to the Company has been taken into consideration which
belong entirely and exclusively to the business of the Company.

31 In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of loans,
advances and current assets in the ordinary course of business will not be less than the amount at which these are
stated in the Balance Sheet.

32 Segment reporting: The Company''s business activity primarily falls within a single business segment i.e. merchant
services and programme management. The Company mainly operates Indian domicile. Hence segment
information as per AS 17 is not required to be disclosed.

33 Details of Loans given, Investments made and Guarantee given covered u/s 186 (4) of the Companies Act, 2013.

34 Other statutory information:

'' ^Tu^{he Compan}Y ^{does not have} any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

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

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

period. ¹

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

v 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

vi The Company have not received any fund from any person(s) 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 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.

vii The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendere 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.

35 Previous year''s figures have been regrouped/rearranged wherever considered necessary to make them
comparable with current period''s figures.

This is the Balance Sheet referred to in our report of even date.

For S C Mehra & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants Plada Infotech Services Limited

Firm Registration Number: 106156W

CA sc Mehra II *( )*j) Shailesh Kumar Damani Anil Mahendra Kotak

^Partner • /Si Chairman & Managing Whole-Time Director &

^{D,rector CF0}

Membership No: 039730 ^DIN : 01504610 DIN : 05266836

Place: Mumbai

Date: 29th May, 2024
UDIN: 24039730BKAOZO5526