Notes to Accounts of SGL Resources Ltd.

Mar 31, 2025

b) Terms and rights attached to equity shares

The company has only one class of equity shares having the par value of Rs. 2/- per share. Each holder of equity share is entitled to one vote per share.

During the financial year 2024-25, the Company issued equity shares through two separate rights issues, both of which were successfully subscribed:

First Rights Issue:

The Company issued 9,88,00,000 equity shares at a price of ?5 per share (including a premium of ?3 per share on a face value of ?2 each), aggregating to ?49.40 crores

Second Rights Issue:

Subsequently, the Company issued 8,23,72,552 equity shares at a price of ?6 per share (including a premium of ?4 per share on a face value of ?2 each), aggregating to ?49.42 crore

Disclosure of payable to vendors as defined under the âMicro, Small and Medium Enterprise Development Act, 2006â is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

Fair value of financial assets and liabilities measured at amortised cost is not materially different from the amortised cost. Further, impact of time value of money is not significant for the financial instruments classified as current. Accordingly, the fair value has not been disclosed separately.

Types of inputs for determining fair value are as under:

Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

B. Measurement of fair values

Investments in unquoted equity shares included in Level 3 of the fair value hierarchy have been valued using the cost approach.For unquoted equity investments categorized under level 3, cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represent the best estimate of fair value within that range.

C. Financial risk management

The Companyâs financial liabilities comprise mainly of borrowings, trade payables and other payables. The Companyâs financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (âBoardâ) oversee the management of these financial risks. The Risk Management Policy of the Company formulated by the Board, states the Companyâs approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Companyâs management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Companyâs financial performance.

The following disclosures summarize the Companyâs exposure to financial risks.Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.

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 three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables and loans.

a) 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 is exposed to interest rate risk on long term floating rate borrowings.The borrowings of the Company are principally denominated in Indian Rupees with floating rate of interest.

For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk represents managementâs assessment of the reasonably possible change in interest rates.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates.The Company operates, in addition to domestic markets, significantly in international markets through its sales and services in overseas and is therefore exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. The Company does not enter into any derivative instruments for trading or speculative purposes.

The Company does not enters into forward exchange contracts, to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments.denominated assets.The Company is exposed to foreign exchange risk on its exports. Most of these transactions are denominated in US dollars.

There is no unhedged foreign currency exposure existing as on 31st March, 2025 and 31st March, 2024.

(iii) Foreign Currency Risk Sensitivity

The Company is mainly exposed to changes in USD . The below table demonstrates the sensitivity to a 5% increase or decrease in the USD against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 5% represents managementâs assessment of reasonably possible change in foreign exchange rate.

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price.Other price risk arises from financial assets such as investments in equity instruments.The Company''s investment in equity instruments recognised at FVTOCI. As at 31st March, 2024, the carrying value of such instruments recognised at FVTOCI amounts to Rs. 195.70 Lakhs (Rs. 195.70 Lakhs as at 31st March, 2023). The details of such equity instruments are given in Note 5.Investments in unquoted equity shares is not considered to be significant and hence the risk is negligible.

2) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company.To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.The Company considers Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, and loans.

Credit risk arising from investment in equity instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the credit rating agencies.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loan or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no provision considered.

Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

3) Liquidity Risk

Liquidity risk is the risk that the company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The approach of the company to manage liquidity is to ensure , as far as possible, that Company will have sufficient liquidity to meet their respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation. The company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

Note 28 : CAPITAL MANAGEMENT

For the purpose of the Companyâs capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

The capital structure of the company is based on managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Companyâs policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Note 29 Employee Benefits

¹) Post- employment benefits :

The Company has the following post-employment benefit plans:

1.1) Defined contribution plans

The Company has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive

obligation. The expense recognised during the period towards defined contribution plan is Rs. 13.02 Lakhs (31st March, 2023 RS. 21.43 Lakhs).

1.2) Defined benefit gratuity plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

2.1) Defined Privilege Leave Benefit plan

Entitlements to annual leave, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of leave encashment as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Entitlements to annual leave, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long term employee benefits.

The Companyâs liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise.

Note 30	Contingent Liabilities & Commitments
a)	Contingent Liabilities		(Rs. Lacs)
	Particulars	As at March 31,2025	As at March 31,2024
	Claims against the Company not acknowledged as debts: Income Tax matter in dispute under appeal	97.36	97.36

a. Income Tax Matters

There is only one particular disputed demand in relation to A.Y. 2016-17 as disclosed above. The recovery of demand has been stayed and appeal is pending at CIT level. The said assessment was completed in haste and inconclusively by the A.O. u/s 143(3) without considering the submission placed. The CIT has already heard the matter and the demand is surely going to be deleted as invalid. So the management and tax advocates expect this matter to be resolved soon and will not have a material adverse effect on the company''s financial position and results of operations.

Originally, the tax demand was raised for Rs. 2,08,74,300, but Rs. 1,03,87,870 is adjusted from previous years refund and company has also paid an amount of Rs. 7, 50,000 against pending demand.

b. A petition has been filed by the Shareholder against the Company in NCLT to restore their name in the Registers of Members, ideally matters relate to share transfer, Transmission, maintaining registers, etc. are dealt by RTA &depository participants. Any grievances in this matter are to be directly addressed to the RTA, though the Company has been made party to the case. Our advocate for NCLT has confidently advised that when the matter will be heard by NCLT, Company would be removed from the list of defendant.

Note 32 Corporate Social Responsibility-

Provisions of Section 135 of the Companies Act, 2013, requires every Company having a net worth of Rupees 500 crore or more, or turnover of Rupees 1000 crore or more or a net profit of rupees 5 crore or more during the immediately preceding financial year shall spend at least 2% of the average net profits of the Company made during the three immediately preceding financial years on Corporate Social Responsibility (CSR).

The Company doesnât fall in any of the above criteria, hence provisions of Section 135 of the Companies Act, 2013, is not applicable to the Company.

Note 33 Segment Reporting

The company is Primarily engaged in the business of providing Information Technology Software services and GIS products in India, hence there are no separate reportable primary or secondary segments as per Indian Accounting Standard 108 Operating Segments.

Information about Major Customers

Revenue from one of the customers of the Company is approximately Rs 3258.37 Lakhs which is more than 10% of the Company''s total revenue, for the year ended 31 March 2025.

Revenue from Two of the customers of the Company is approximately Rs 1492.82 Lakhs which is more than 10% of the Company''s total revenue, for the year ended 31 March 2024.

Note 36 In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non-Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated

Note 37 On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss have been provided in the Financial Year 2024-25 (Previous Year 2023-24 Rs. Nil)

Note 38 : ADDITIONAL REGULATORY INFORMATION

i) TITLE DEEDS

The title deeds of all the Immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

ii) REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

The Company has not undertaken any revaluation of Property Plant & Equipments / Intangible assets during the year.

iii) DETAILS OF BENAMI PROPERTY

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for holding any benami property.

iv) BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS

Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

v) WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financials institution or lender.

vi) RELATIONSHIP WITH STRUCK OFF COMPANIES

The company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the previous year.

vii) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

viii) UTILISATION OF BORROWED FUNDS/ADVANCES

The Company has 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

ix) 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:

(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.

x) UNDISCLOSED INCOME

The Company does not have any 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).

xi) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

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

Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

Mar 31, 2024

i. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made ofthe amount ofthe obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all ofthe economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount ofthe receivable can be measured reliably.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for onerous contracts

j. IncomeTaxes

Income tax comprises current and deferred tax. Income tax expense is recognized in the Statement of Profit and Loss except to the extent it relates to items directly recognized in equity or in other comprehensive income

i. Current income tax

Current income tax liability/ (asset) for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the year. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the year. The Company off sets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

ii. Deferred tax

Deferred income tax is recognized using the Balance Sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax asset is recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred income tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

k. Cash flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of anon-cash nature, any deferrals or accruals of past or future operating cash receipt or payments and item of income or expense associated with investing or financing cash-flows. The cash flow from operating, investing and financing activities ofthe Company is segregated.

I. Revenue Recognition

The Company derives revenue primarily from software development and from the licensing of software products. The Company recognizes revenue when it transfers control over a product or a service to a customer. The method for recognizing revenues and costs depends on the nature ofthe services rendered.

The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and unearned revenue on the Company''s Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones.

The Company''s receivables are rights to consideration that are unconditional. Unbilled revenues comprising revenues in excess of billings from time and material contracts and fixed-price maintenance contracts are classified as financial asset when the right to consideration is unconditional and is due only after a passage oftime.

Invoicing to the clients for other fixed-price contracts is based on milestones as defined in the contract and therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore unbilled revenues for other fixed-price contracts (contract asset) are classified as "non-financial asset" because the right to consideration is dependent on completion of contractual milestones. Invoicing in excess of earnings is classified as "unearned revenue".

Remaining performance obligation disclosure:

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation-related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of the entity''s performance completed to date, typically those contracts where invoicing is on time and material and unit of work-based contracts. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, and adjustment for revenue that has not materialized and adjustments for currency.

i. Time and materials contracts

Revenues from contracts priced on a time and material basis are recognized as the related services are performed and related costs are incurred.

ii. Fixed-price contracts

Revenues from fixed-price contracts are recognized using the "percentage-of-completion" method. Percentage of completion is determined based on project costs incurred to date as a percentage of total estimated project costs required to complete the project. The cost expended (or input) method has been used to measure progress towards completion as there is a direct relationship between input and productivity.

If the Company does not have a sufficient basis to measure the progress of completion or to estimate the total contract revenues and costs, revenue is recognized only to the extent of contract cost incurred for which recoverability is probable.

When total cost estimates exceed revenues in an arrangement, the estimated losses are recognized in the statement of profit and loss in the period in which such losses become probable based on the current contract estimates.

iii. Maintenance Contracts

Revenue from maintenance contracts is recognized ratably over the period ofthe contract using the "percentage-of-completion "method. When services are performed through an indefinite number of repetitive acts over a specified period of time, revenue is recognized on a straight line basis over the specified period or under some other method that better represents the stage of completion.

''Unbilled revenues'' represent cost and earnings in excess of billings as at the end ofthe reporting period.

''Unearned revenues'' represent billing in excess of revenue recognized. Advance payments received from customers for whom no services are rendered are presented as ''Advance from customers.

Revenues are reported net of Sales returns, GST and applicable discounts and allowances.

m. Dividend and dividend distribution tax

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The Company declares and pays dividends in Indian rupees and is subject to applicable distribution taxes. The applicable distribution taxes are treated as an appropriation of profits.

n. Foreign Currencytransactions and translations

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the Statement of Profit and Loss and reported within foreign exchange gains/ (losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date oftransaction.

Foreign currency gains and losses are reported on a net basis. This includes changes in the fair value of foreign exchange derivative instruments, which are accounted at fair value through profit or loss.

o. Finance Income and expense

Finance income consists of interest income on funds invested, dividend income and fair value gains on the FVTPL financial assets. Interest income is recognized as it accrues in the statement of profit and loss, using the effective interest method.

Dividend income is recognized in the statement of profit and loss on the date that the Company''s right to receive payment is established.

Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method.

p. Impairment

i. Financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss.

The Company assesses at each Balance Sheet date whether a financial asset or a group of financial assets is impaired. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable and unbilled revenue. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company recognizes lifetime expected credit losses for all trade receivables and/or other contract assets that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

ECL allowance (or reversal) is recognized as income / expense in the Statement of Profit and Loss.

ii. Non-financial assets

The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognized in Statement of Profit and Loss and reflected in an allowance account. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through Statement of Profit and Loss.

The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net off any accumulated depreciation/amortization)had no impairment loss been recognized for the asset in prior years.

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. 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 assessor groups of assets (the "cash-generating unit").

q. Earnings pershare

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning ofthe period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

r. Contingent Liabilities

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company, or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility ofan outflow of resources embodying economic benefits is remote.

s. Contingent Assets

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The Company does not recognize a contingent asset.

t. Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue. On-adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events after the reporting date are not accounted, but disclosed.

u. IntangibleAssets

Intangible assets are measured on initial recognition at cost (net of recoverable taxes, if any). Subsequently, intangible assets are carried out at cost less any accumulated amortization and accumulated impairment losses, if any.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognized as income or expenses in the Statement of Profit and Loss in the year or disposal.

v. Borrowing Costs

Borrowing costs include interest and amortization of ancillary costs incurred to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets. Capitalizations of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

During the year company has not capitalized any borrowing cost.

w. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement ofSchedule III, unless otherwise stated.

x. Goods & Service Tax:

GST credit on materials purchased for production / service availed for production / input service are taken into account at the time of purchase and GST credit on purchase of capital items wherever applicable are taken into account as and when the assets are acquired.

The GST credits so taken are utilized for payment of excise duty/GST on sales. The unutilized GST credit is carried forward in the books. The GST credits so taken are utilized for payment of tax on goods sold. The unutilized GST credit is carried forward in the books.

y Recent Pronouncements

The Company applied for the first time these amendments of Ind AS 1, Ind AS 8 and Ind AS 12 and there is no material impact on financials.

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company

Note 29 Employee Benefits 1) Post-employment benefits :

The Company has the following post-employment benefit plans:

1.1) Defined contribution plans

The Company has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation ofthe Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs. 21.43 Lakhs (31st March, 2023 RS. 22.42 Lakhs).

1.2) Defined benefit gratuity plan

a. Income Tax Matters

Originally, the tax demand was raised for Rs. 2,08,74,300, but Rs. 1,03,87,870 is adjusted from previous years refund and company has also paid an amount of Rs. 7, 50,000 against pending demand.

Note 32 Corporate Social Responsibility

The Company doesnât fall in any of the above criteria, hence provisions of Section 135 of the Companies Act, 2013, is not applicable to the Company.

Note 33 Segment Reporting

Information about Major Customers

Revenue from one of the customers of the Company is approximately Rs 1492.82 Lakhs which is more than 10% of the Company''s total revenue, for the year ended 31 March 2024.

Revenue from one of the customers of the Company is approximately Rs 487 Lakhs which is more than 10% of the Company''s total revenue, for the year ended 31 March 2023.

Note 38 : Additional Regulatory Information i) Title Deeds

H) Revaluation Of Property, Plant And Equipment And Intangible Assets

The Company has not undertaken any revaluation of Property Plant & Equipments / Intangible assets during the year.

Hi) Details Of Benami Property

iv) Borrowings Obtained On The Basis Of Security Of Current Assets

Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

v) Wilful Defaulter

The Company is not declared wilful defaulter by any bank or financials institution or lender.

vi) Relationship With Struck Off Companies

vii) Registration Of Charges Or Satisfaction With Registrar Of Companies

The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

viii) Utilisation Of Borrowed Funds/Advances

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding thatthe 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

(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 anyguarantee, securityorthe like on behalfofthe ultimate beneficiaries.

x) Undisclosed Income

xi) Details Of Crypto Currency Or Virtual Currency

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

Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

Material accounting policies and notes to accounts (Refer Note No. 2)

The accompanying notes are an integral part of the financial statements

As per our report of even date attached

For, SPARKS & Co. For and on behalf of the Board of Directors of

Chartered Accountants Scanpoint Geomatics Limited

(Firm Registration No.)

Snehal R. Shah Kantilal Ladani Mitesh Sanghvi

Partner Wholetime Director Director

M No. 113347 DIN: 00016171 DIN:07403394

Ahmedabad Darshil Shah Komal Peshwani

24th May, 2024 Chief Financial Officer Company Secretary

BEFPS3689D ETNPP1901H

Ahmedabad, 24th May, 2024

Mar 31, 2023

i. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for
onerous contracts

j. Income Taxes

Income tax comprises current and deferred tax. Income tax expense is recognized in the Statement of Profit and
Loss except to the extent it relates to items directly recognized in equity or in other comprehensive income

i. Current income tax

Current income tax liability/ (asset) for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities based on the taxable income for the
year. The tax rates and tax laws used to compute the current tax amount are those that are enacted
or substantively enacted by the reporting date and applicable for the year. The Company off sets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis or to realize the asset and
liability simultaneously.

ii. Deferred tax

Deferred income tax is recognized using the Balance Sheet approach. Deferred income tax assets
and liabilities are recognized for deductible and taxable temporary differences arising between the tax
base of assets and liabilities and their carrying amount in financial statements, except when the
deferred income tax arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and affects neither accounting nor taxable profits or
loss at the time of the transaction.

Deferred income tax asset is recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilized. Deferred income tax liabilities are recognized for all
taxable temporary differences.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date

k. Cash flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of anon-cash nature, any deferrals or accruals of past or future operating cash receipt or payments
and item of income or expense associated with investing or financing cash-flows. The cash flow from operating,
investing and financing activities of the Company is segregated.

l. Revenue Recognition

The Company derives revenue primarily from software development and from the licensing of software products.
The Company recognizes revenue when it transfers control over a product or a service to a customer. The method
for recognizing revenues and costs depends on the nature of the services rendered.

The timing of revenue recognition, billings and cash collections results in receivables, unbilled revenue, and
unearned revenue on the Company''s Balance Sheet. Amounts are billed as work progresses in accordance with
agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of
contractual milestones.

The Company''s receivables are rights to consideration that are unconditional. Unbilled revenues comprising
revenues in excess of billings from time and material contracts and fixed-price maintenance contracts are classified
as financial asset when the right to consideration is unconditional and is due only after a passage of time.

Invoicing to the clients for other fixed-price contracts is based on milestones as defined in the contract and
therefore the timing of revenue recognition is different from the timing of invoicing to the customers. Therefore
unbilled revenues for other fixed-price contracts (contract asset) are classified as "non-financial asset" because the
right to consideration is dependent on completion of contractual milestones. Invoicing in excess of earnings is
classified as "unearned revenue".

Remaining performance obligation disclosure:

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize
these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed
the remaining performance obligation-related disclosures for contracts where the revenue recognized corresponds
directly with the value to the customer of the entity''s performance completed to date, typically those contracts
where invoicing is on time and material and unit of work-based contracts. Remaining performance obligation
estimates are subject to change and are affected by several factors, including terminations, changes in the scope
of contracts, periodic revalidations, and adjustment for revenue that has not materialized and adjustments for
currency.

i. Time and materials contracts

Revenues from contracts priced on a time and material basis are recognized as the related services are performed
and related costs are incurred.

ii. Fixed-price contracts

Revenues from fixed-price contracts are recognized using the "percentage-of-completion" method. Percentage of
completion is determined based on project costs incurred to date as a percentage of total estimated project costs
required to complete the project. The cost expended (or input) method has been used to measure progress
towards completion as there is a direct relationship between input and productivity.

If the Company does not have a sufficient basis to measure the progress of completion or to estimate the total
contract revenues and costs, revenue is recognized only to the extent of contract cost incurred for which
recoverability is probable.

When total cost estimates exceed revenues in an arrangement, the estimated losses are recognized in the
statement of profit and loss in the period in which such losses become probable based on the current contract
estimates.

iii. Maintenance Contracts

Revenue from maintenance contracts is recognized ratably over the period of the contract using the "percentage-of-
completion "method. When services are performed through an indefinite number of repetitive acts over a specified
period of time, revenue is recognized on a straight line basis over the specified period or under some other method
that better represents the stage of completion.

''Unbilled revenues'' represent cost and earnings in excess of billings as at the end of the reporting period.

''Unearned revenues'' represent billing in excess of revenue recognized. Advance payments received from
customers for whom no services are rendered are presented as ''Advance from customers.

Revenues are reported net of Sales returns, GST and applicable discounts and allowances.

m. Dividend and dividend distribution tax

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The Company
declares and pays dividends in Indian rupees and is subject to applicable distribution taxes. The applicable
distribution taxes are treated as an appropriation of profits.

n. Foreign Currency transactions and translations

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates
prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of
monetary assets and liabilities denominated in foreign currencies are recognized in the Statement of Profit and
Loss and reported within foreign exchange gains/ (losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date of transaction.

Foreign currency gains and losses are reported on a net basis. This includes changes in the fair value of foreign
exchange derivative instruments, which are accounted at fair value through profit or loss.

o. Finance Income and expense

Finance income consists of interest income on funds invested, dividend income and fair value gains on the FVTPL
financial assets. Interest income is recognized as it accrues in the statement of profit and loss, using the effective
interest method.

Dividend income is recognized in the statement of profit and loss on the date that the Company''s right to receive
payment is established.

Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the
Statement of Profit and Loss using the effective interest method.

p. Impairment

i. Financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss.

The Company assesses at each Balance Sheet date whether a financial asset or a group of financial assets is
impaired. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade
receivable and unbilled revenue. The application of simplified approach does not require the Company to track
changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition. The Company recognizes lifetime expected credit losses for all trade
receivables and/or other contract assets that do not constitute a financing transaction. For all other financial assets,
expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount
equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since
initial recognition.

ECL allowance (or reversal) is recognized as income / expense in the Statement of Profit and Loss.

ii. Non-financial assets

The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset
or a group of non financial assets is impaired. If any such indication exists, the Company estimates the amount of
impairment loss.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount.
Losses are recognized in Statement of Profit and Loss and reflected in an allowance account. If the amount of
impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after
the impairment was recognized, then the previously recognized impairment loss is reversed through Statement of
Profit and Loss.

The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does
not exceed the carrying amount that would have been determined (net off any accumulated
depreciation/amortization)had no impairment loss been recognized for the asset in prior years.

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. 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 assessor groups of assets (the "cash-generating unit").

q. Earnings per share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares considered for deriving basic earnings per equity share
and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity
shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently for each period presented.

r. Contingent Liabilities

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will
be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the
control of the Company, or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are
appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

s. Contingent Assets

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
The Company does not recognize a contingent asset.

t. Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting
period. The financial statements are adjusted for such events before authorization for issue. On-adjusting events
are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events
after the reporting date are not accounted, but disclosed.

u. Intangible Assets

Intangible assets are measured on initial recognition at cost (net of recoverable taxes, if any). Subsequently,
intangible assets are carried out at cost less any accumulated amortization and accumulated impairment losses, if
any.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between
net disposal proceeds and the carrying amount of the asset and is recognized as income or expenses in the
Statement of Profit and Loss in the year or disposal.

v. Borrowing Costs

Borrowing costs include interest and amortization of ancillary costs incurred to the extent they are regarded as an
adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to
the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.
Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of
activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset
is added to the cost of the assets. Capitalizations of borrowing costs is suspended and charged to the Statement of
Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.
During the year company has not capitalized any borrowing cost.

w. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees as per the
requirement of Schedule III, unless otherwise stated.

x. Goods & Service Tax:

GST credit on materials purchased for production / service availed for production / input service are taken into
account at the time of purchase and GST credit on purchase of capital items wherever applicable are taken into
account as and when the assets are acquired.

The GST credits so taken are utilized for payment of excise duty/GST on sales. The unutilized GST credit is
carried forward in the books. The GST credits so taken are utilized for payment of tax on goods sold. The unutilized
GST credit is carried forward in the books.

Provisions of Section 135 of the Companies Act, 2013, requires every Company having a net worth of Rupees
500 crore or more, or turnover of Rupees 1000 crore or more or a net profit of rupees 5 crore or more during
the immediately preceding financial year shall spend at least 2% of the average net profits of the Company
made during the three immediately preceding financial years on Corporate Social Responsibility (CSR).

The Company doesnât fall in any of the above criteria, hence provisions of Section 135 of the Companies Act,
2013, is not applicable to the Company.

Note 32 Segment Reporting

The company is Primarily engaged in the business of providing Information Technology Software services and
GIS products in India, hence there are no separate reportable primary or secondary segments as per Indian
Accounting Standard 108 Operating Segments.

Information about Major Customers

Revenue from one of the customers of the Company is approximately Rs 487 Lakhs which is more than 10%
of the Company''s total revenue, for the year ended 31 March 2023.

Revenue from Two of the customers of the Company is approximately Rs 1344.04 Lakhs which is more than
10% of the Company''s total revenue, for the year ended 31 March 2022.

i) TITLE DEEDS

The title deeds of all the Immovable properties, (other than immovable properties where the Company is
the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the
financial statements included in property, plant and equipment and capital work-in progress are held in
the name of the Company as at the balance sheet date.

ii) REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

The Company has not undertaken any revaluation of Property Plant & Equipments / Intangible assets
during the year.

iii) DETAILS OF BENAMI PROPERTY

The company does not hold any benami property as defined under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending
against the company for holding any benami property.

iv) BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS

Quarterly returns or statements of current assets filed by the Company with banks are in agreement
with the books of accounts.

v) WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financials institution or lender.

vi) RELATIONSHIP WITH STRUCK OFF COMPANIES

The company does not have any transaction with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the
previous year.

vii) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The Company does not have any charges or satisfaction of charges which is yet to be registered with
Registrar of Companies beyond the statutory period.

viii) UTILISATION OF BORROWED FUNDS/ADVANCES

The Company has 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

ix) 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:

(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.

x) UNDISCLOSED INCOME

The Company does not have any 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).

xi) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

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

Previous year''s figures have been regrouped and rearranged wherever necessary, to make them
comparable with those of current year.

Significant accounting policies and notes to accounts (Refer Note No. 2)

The accompanying notes are an integral part of the financial statements

As per our report of even date attached

For, SPARKS & Co. For and on behalf of the Board of Directors of

Chartered Accountants Scanpoint Geomatics Limited

(Firm Registration No. )

Snehal R. Shah Kantilal Ladani Mitesh Sanghvi Deven Laheru

Partner Wholetime Director Director Chief Executive Officer

M No. 113347 DIN: 00016171 DIN: 07403394 AAHPL6521C

Ahmedabad Darshil Shah Dhaval Parekh

30th May, 2023 Chief Financial Officer Company Secretary

BEFPS3689D BQNPP6663C

Ahmedabad, 30th May, 2023

Mar 31, 2018

1. CORPORATE INFORMATION

The Scanpoint Geomatics Limited is a public company incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The Company Is engaged in the business of GIS based software development and sales.

2. Segment reporting:

The company is engaged in the business of providing Information Technology Software services and GIS products. The company is therefore one business segment only as stated.

3. Details of dues to Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro Small & Medium Enterprises Development Act, 2006, no disclosure is made as required under the Act.

4. In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

5. On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss have been provided in the Financial Year 2017-18 (Previous Year Rs. Nil)

6. Defined Benefit Plans

6.1 Risk exposure to defined benefit plans

The plans typically expose the Company to actuarial risks such as: investment risk, longevity risk and salary risk Investment risk the present value of the defined benefit plan liability is calculated using a discount rate which is determine by reference to market yields at the end of the reporting period on Indian government securities; if the return on plan asset is below this rate , it will create a plan deficit.

Interest risk a decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investment.

Longevity risk the present value of the defined benefit plan liability is calculated sby reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk the present value of the defined benefit plan liability is calculated reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The most recent actuarial valuation of the plan assets and the defined benefit obligation were carried out at March 31, 2018 The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

7. Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

8. Financial Instruments and Risk Management

Risk Management Framework

The Company''s risk management is governed by policies and approved by the board of directors. Company''s identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The company has policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

8.1 Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company maintains its cash and cash equivalents and bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

On account of the adoption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors and the company''s experience for customers.

The Company reviews trade receivables on periodic basis and charges to profit and loss account when management feels the amount will not be receivable in future. The Company also calculates the expected credit loss (ECL) for non-collection of receivables.

8.2 Liquid Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible,that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and liabilities including debt financing plans and maintenance of balance sheet liquidity ratios are considered while reviewing the liquidity position.

Exposure to Liquid Risk:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

8.3 Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three types of risks: a) Currency Risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of receivables in foreign currency. Company is exposed to currency risk on account of receivables in foreign currency.

8.4 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.

(c) Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

9. First time adoption of IND-AS

First Ind AS Financial statements

These are the company''s first separate financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows are set out in the following tables and notes:

9.1 Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemption and mandatory exemption applied in the transition from Previous GAAP to Ind AS.

9.1.1 Optional exemptions availed Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment, Intangible assets and investment properties as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.

Accordingly, the company has elected to measure all of its property, plant and equipment, Intangible assets and Investment properties at their previous GAAP carrying value.

Investment in subsidiaries, joint controlled entities and associates

Ind AS 101 permits a first-time adopter to measure it''s investment, at the date of transition, at cost determined in accordance with Ind 27, or Deemed cost. The deemed cost of such investment shall be it''s fair value at date of transition to Ind AS of the Company, or previous GAAP carrying amount to the date. The Company has elected to measure its investment in subsidiary companies, joint controlled companies and associate company at previous GAAP carrying amount as its deemed cost on the transition date.

Fair Value Measurement of financial assets or financial liabilities at initial recognition

Ind AS 101 permits a first time adopter to apply requirements of paragraph B5.1.2A (b) of Ind AS 109 prospectively to transactions entered into on or after the date of transition to Ind ASs. The company has elected to measure its investment in equity shares at previous GAAP carrying amount as its deemed cost on the transition date.

9.1.2 Ind AS Mandatory exceptions applied

Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except where Ind AS required a different basis for estimates as compared to the previous GAAP De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The company has applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

The company has classified its financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Explanation to Reconciliation

1. Impact on account of prior period expenses

Previous GAAP - Prior period items are included in determination of net profit or loss of the period in which the error pertaining to a prior period is discovered and are separately disclosed in the Statement of profit and loss.

Ind AS - Prior period errors are corrected retrospectively by restating the comparative amount for prior period presented in which the error occurred or if the error occurred before the earliest period presented by restating the opening reserves.

2. Impact of recognizing actuarial gains / losses on defined benefit obligations in other comprehensive income

Previous GAAP - Actuarial gains / losses on defined benefit obligations is recognised in statement of profit and loss.

Ind AS - Actuarial gains / losses on defined benefit obligations is recognised in other comprehensive income (OCI). Consequently, actuarial loss of Rs.44005 on 01-04-2016 and Actuarial gain of Rs. 588085 on 31-03-2017 have been recognised in OCI.

3. Impact of deferred taxes on the above adjustments

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred tax has impacted the reserves on date of transition, with consequential impacts to the statement of profit and loss for the subsequent periods.

10. Disclosure on Specified Bank Notes

During the Year, The Company had specified Bank Notes (SBNs) or other denomination notes as defined in MCA notification, G.S.R. 308(E), dated March 31, 2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016 the denomination-wise SBNs and other notes as per the notification are as follows.

a). For The purpose of the clause, the term " Specified Bank Notes" shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economics Affairs number S.O. 3407(E), dated November 8, 2016

Mar 31, 2016

1. Details of Dues to Micro and Small Enterprises as defined under the Micro. Small and Medium Enterprises Development Act. 2006

2. Provisions, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

3. Balance of Sundry Debtors, Loans and Advances recoverable in cash or kind, Deposits and Sundry Creditors are subject to confirmations, reconciliation and adjustments if any.

4. Following are the related parties and transactions made with them during the year.

A. Name and Relationship of the Related parties.

5. Associated Company/Enterprise/Firms : Karnavati Infrastructures Projects Ltd.

Scan Press Ltd.

Minal Soni

Diyatec Private Limited

6. Key Management Personnel along with their relatives have significant influence, a. Key Management personnel. : Shri Ramesh K. Sojitra,

Shri Chirag J. Soni,

Shri Kanti V. Ladani Mrs. Leelavanti R. Sojitra

7. PREVIOUS YEAR FIGURES

The figures in respect of previous year have been regrouped/rearranged wherever necessary to confirm

Mar 31, 2015

1. Terms and rights attached to equity shares

2. The company has only one class of equity shares having the par value of Rs 2/-per share Each holder of equity share is entitied to one vote per share.

3. Details of Dues to Micro and Small Enterprises as defined under the Micro. Small and Medium Enterprises Development Act. 2006

In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro Small & Medium Enterprises Development Act, 2006, no disclosure is made as required undertheAct.

4. Provisions, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will bean outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

5. Balance of Sundry Debtors, Loans and Advances recoverable in cash or kind, Deposits and Sundry Creditors are subject to confirmations, reconciliation and adjustments if any.

6. Following are the related parties and transactions made with them during the year.

A. Name and Relationship of the Related parties.

1. Associated Company/Enterprise/Firms : Karnavati Infrastructures Projects Ltd. Scan Press Ltd.

2. Key Management Personnel along with their relatives have significant influence.

a. Key Management personnel. : Shri Ramesh K. Sojitra,

Shri Chirag J. Soni,

Shri Kanti V. Ladani

Shri Rajendra Chaudhari

7. PREVIOUS YEAR FIGURES

The figures in respect of previous year have been regrouped/rearranged wherever necessary to confirm to this year's classification.

Mar 31, 2014

Terms and rights attached to equity shares

I) The company has only one class of equity shares having the par value of Rs 2/- per share Each holder of equity share is entitied to one vote pershare.

1. Details of Dues to Micro and Small Enterprises as defined under the Micro. Small and Medium Enterprises Development Act. 2006

In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro Small & Medium Enterprises Development Act, 2006, no disclosure is made as required under the Act.

2. Provisions, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

3 Balance of Sundry Debtors, Loans and Advances recoverable in cash or kind, Deposits and Sundry Creditors are subject to confirmations, reconciliation and adjustments if any.

4 PREVIOUS YEAR FIGURES

The Figures in respect of previous year have been regrouped/rearranged wherever necesary to confirm to this year''s classification

Mar 31, 2013

1. Details of Dues to Micro and Small Enterprises as defined under the Micro. Small and Medium Enterprises Development Act. 2006

In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro Small & Medium Enterprises Development Act, 2006, no disclosure is made as required under the Act.

2. Provisions, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nordisclosed in the financial statements.

3 Balance of Sundry Debtors, Loans and Advances recoverable in cash or kind, Deposits and Sundry Creditors are subject to confirmations, reconciliation and adjustments if any.

4 Following are the related parties and transactions made with them during the year.

Mar 31, 2012

Terms and rights attached to equity shares

1) The company has only one class of equity shares having the par value of Rs 21- pershare Each holder of equity share is entitied to one vote pershare.

2) During last year 2010-11 the company has allotted new 15000000 equity shares of Rs. 2/-each out of which 5380800 Equity shares were allotted with lock in period of 3 Years and balance 9619200 equity shares were allotted with lock in period of 1 year effective from the date of allotment i.e. 21/6/2010.

1 Segmental Reporting

Primary Segment Reporting (by business segment)

(i) The Company has identified Business Segment as the Primary Segment. Segments have been identified taking into accounts the nature of the products, differing risks and return organizational structure and internal reporting system.

(ii) Composition of the business segment:

Name of the Segments Companies of:

a) Information Technology & GIS Work

b) Digital Print Work

Previous year figures have been regrouped/rearrange wherever necessary to confirm this year classification.

Segment Revenue Segment Results, Segments Assets and Segment Liabilities including the respective amounts identifiable to each of the Segments also amounts allocated on a reasonable (estimated) basis, if any.

2. IMPORTED AND INDIGENOUS RAW MATERIALS, COMPONENTS AND SPARE PARTS CONSUMED

3. Details of Dues to Micro and Small Enterprises as defined under the Micro. Small and Medium Enterprises Development Act. 2006

The Company is in process of compiling information in respect of status of supplier falling under the category of micro, small and medium enterprise in absence of necessary date, outstanding amounts as well as overdue amount if any of the year end together with interest paid/payable has not been given.

4. Provisions, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and is probable that there will be an outflow of resources Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised not disclosed in the financial statements.

Contingent Liabilities

Corporate Bank Guarantee of Rs. 13.00 Crores issued by the company for loan taken by Shreejikrupa Buildcon Ltd. from the Bank the Company has given Corporate Bank guarantee to State Bank of india Rajkot of Rs. 13.00 crores for loan taken by Shreeji krupa Builcon Ltd. The above bank guarantee is secured by way of first charge on immovable property in the nature of land and Building situated at Ahmedabad of the Company

5 Balance of sundry Debtors, Loans and Advances Recoverable in cash of kind Deposits and Sundry Creditiors are subject to confirmations, reconciliation and adjustments if any.

6 PREVIOUS YEAR FIGURES

During the year ended 31 March 2012 the Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company.

The Figures in respect of previous year have been regrouped/rearranged wherever necesary to confirm to this year's classification

In terms of our report of even date attached

Mar 31, 2011

1. Contingent Liabilities not provided for:

Corporate Bank Guarantee of Rs. 13.00 Crores given to Bank for loan taken by Shreejikrupa Buildcon Ltd.

2. Balance of Sundry Debtors, Loans and Advances recoverable in cash or kind, Deposits and Sundry Creditors are subject to confirmations, reconciliation and adjustments if any.

3. Loans and advances include Rs. 34,00,000/- (Previous Year 34,00,000/-) considered as doubtful for which no provision has been made, as the Management is confident of its recovery owing to sincere efforts being made.

4. In view of current and past year accumulated losses, and company being registered with BIFR, the provision for Taxation for the current year and provision for deferred tax liability and deferred tax assets has not been assessed and provided during the year. The company has not recognized deferred tax in accordance with the requirements of Accounting Standard -22 Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India.

5. In the opinion of the Board, the Current Assets, Loans and advances have a value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the accounts unless otherwise stated and adequate provision for all known liabilities of the Company has been made.

6. Security for Loans :- The Company has given Corporate Bank guarantee to State Bank of India, Rajkot, of Rs. 13.00 crores, for loan taken by Shreejikrupa Buildcon Ltd. The above bank guarantee is secured by way of First Charge on immovable property in the nature of Land and Building situated at Ahmedabad of the Company.

7. The Company is in process of compiling information in respect of status of supplier falling under the category of micro, small and medium enterprise. In absence of necessary data, outstanding amounts as well as overdue amount if any of the year end together with interest paid/payable has not been given.

8. Segmental Reporting:

Primary Segment Reporting (by business segment)

(i) The company has identified Business Segment as the Primary Segment. Segments have been identified taking into accounts the nature of the products, differing risks and return organizational structure and internal reporting system.

(ii) Composition of the business segment:

Name of the Segments Companies of:

a) Information Technology &GIS Work

b) Pre-Press Work

13. Following are the related parties and transactions made with them during the year.

A. Name and Relationship of the Related parties.

1. Associated Company. Kamavati Infrastructure Projects Limited.

2. Key Management Personnel along with their relatives have significant influence.

a. Key Management personnel. Shri Rameshchandra K. Sojitra.

Shri Chirag J. Soni

Shri Kanti V. Ladani

9. The figures in respect of previous year have been regrouped/rearranged wherever necessary to confirm to this year's classification.

Mar 31, 2010

1. Contingent Liabilities not provided for:

Corporate Bank Guarantee of Rs. 13.00 Crores given to Bank for loan taken by Shreejikrupa Buildcon Ltd.

2. Balance of Sundry Debtors, Loans and Advances recoverable in cash or kind, Deposits and Sundry Creditors are subject to confirmations, reconciliation and adjustments if any.

3. Loans and advances include Rs. 34,00,000/- (Previous Year 54,00,000/-) considered as doubtful for which no provision has been made, as the Management is confident of its recovery owing to sincere efforts being made.

4. In view of current and past year accumulated losses, and company being registered with BIFR, the provision for Taxation for the current year and provision for deferred tax liability and deferced tax assets has not been assessed and provided during the year. The company has not recognized deferred tax in accordance with the requirements of Accounting Standard -22 Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India.

5. In the opinion of the Board, the Current Assets, Loans and advances have a value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the accounts unless otherwise stated and adequate provision for all known liabilities of the Company has been made.

6. Security for Loans :- The Company has given Corporate Bank guarantee to State Bank of India, Rajkot, of Rs. 13.00 crores, for loan taken by Shreejikrupa Buildcon Ltd. The above bank guarantee is secured by way of First Charge on immovable property in the nature of Land and Building situated at Ahmedabad of the Company.

7. The Company is in process of compiling information in respect of status of supplier falling under the category of micro, small and medium enterprise. In absence of necessary data, outstanding amounts as well as overdue amount if any of the year end together with interest paid/payable has not been given.

8. Segmental Reporting:

Primary Segment Reporting (by business segment)

(i) The company has identified Business Segment as the Primary Segment. Segments have been identified taking into accounts the nature of the products, differing risks and return organizational structure and internal reporting system.

(ii) Composition of the business segment:

Name of the Segments Companies of:

a) Information Technology &GIS Work .

b) Pre-PressWork

9. A) During the period, the Board for Industrial Financial Reconstruction (BIFR) has sanctioned a rehabilitation scheme ("Sanctioned scheme") granting various reliefs and concessions to the for its revival and for making its net-worth positive by its order dated 24/02/2010. B) In terms of the said sanctioned scheme and as decided by the board of Directors at its meeting dated held on 22/03/2010, the company has

I) Availed the following reliefs and concessions through "Capital Restructuring Account". i) Reduction of 80% in existing paid up Equity share capital of Rs. 11,90,40,000/- effected by reducing the face value to Rs.2/- per share from Rs. 10/- per share.

a) Adjustment of Land revaluation reserve and capital reserve

b) The balance, in the said "Capital Restructuring Account" as on 31st march, 2010 computed as below is credited to profit and loss account:

10. The figures in respect of previous year have been regrouped/rearranged wherever necessary to confirm to this years classification.

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