Notes to Accounts of Sriven Multi-Tech Ltd.

Mar 31, 2024

2.3 Provisions

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

2.4 Contingent liabilities & contingent assets

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

Contingent assets are not recognized in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the
asset and related income are recognized in the period in which the change occurs.

2.5 Financial instruments
Initial recognition

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

Subsequent measurement

• Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive
income if it is held with a business model whose objective is achieved by collecting
contractual cash flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Further in cases where the
Company had made an irrevocable election based on its business model, for its
investments which are classified as equity instruments, the subsequent changes in fair
value are recognized in other comprehensive income.

• Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest
method. For trade and other payables maturing within one year from the Balance Sheet
date, the carrying amounts approximate fair value due to short maturity of these
instruments.

2.6 Critical accounting judgements and key sources of estimation uncertainty :

In the application of the Company’s accounting policies, which are described in note 3, the
management of the Company are required to make judgements, estimates and assumptions about
the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.

The following are the areas of estimation uncertainty and critical judgementsthat the
management has made in the process of applying the Company’s accounting policies and that
have the most significant effect on the amounts recognized in the financial statements:

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other
contingencies. For contingent losses that are considered probable, an estimated loss is recorded

as an accrual in financial statements. Loss Contingencies that are considered possible are not
provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the
likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are
not recognized until the contingency has been resolved and amounts are received or receivable.

23. Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders
by the weighted average number of Equity shares outstanding during the year.

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

26. Based on the information available with the Company, Nil due to supplier who are
registered as micro, small or medium enterprises under “The Micro, Small and Medium
Enterprises Development Act, 2006” as at March 31, 2024.

27. Balances due to or due from the parties are subject to confirmation

28. Other Statutory Information

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

ii. The Company does not have any transaction with companies struck off.

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

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

v. 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.

vi. The Company has not been declared willful defaulter by any bank or financial institution
or government or any government authority.

vii. The Company has not 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.

As per our report of even date For Sriven Multi-tech Limited

For VASG & ASSOCIATES
Chartered Accountants
Firm Registration No.006070S

Sd/- Sd/-

Sd/- V S Lalita V V Subrahmanyam

G.S.Sridhar (Whole Time Director) (Director)

Partner DIN : 01029534 DIN : 01029479

Membership No. 026878
UDIN: 24026878BKCXGW4046

Place: Hyderabad
Date: May 30, 2024

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Jun 30, 2000

1. During the year under consideration, the Company has entered into a Memorandum of Understanding with Sriven Infotech Limited for transfer of certain movable property consisting of Computers & Peripherals (Rs. 1,32,04,000/-), Office Equipment (Rs. 16,73,000/-), Furniture & Fixtures (Rs, 18,00,000/-), Electrical Fittings (Rs.17,07,000/-) Vehicles (Rs, 28,03,000/-), and immovable property (Hitec City property) being property situated at Q4-A1, 10th Floor, Cyber Towers, Madhopur, R.R. Dist. admeasuring 4,943 sq. ft.

The above property was acquired at its book value, whereas the movable properties were acquired at agreed values as per valuation certificate.

The Company has agreed to discharge loans secured on the charge of the above assets namely

a) Rs. 88,59,106 due to Indian Overseas Bank on Hitec Property

b) Rs. 84,790 due to Cholamandalam Investment & Finance Company Ltd. on Maruti Car

c) Rs. 1,99,834 due to Countrywide Finance Ltd. on Maruti Car

d) Rs. 1,68,269 due to Maruthi Countrywide Auot Financial Services Ltd. on Maruti Car and also adjusted the loans and advances (due from Mr. V V Subrahmanyam and Dr. Neeraj Raj, under an agreement entered into by them with the erstwhile management) to the extent of Rs 97,18,291/-, resulting in no cash out-flow to the company.

The Company has taken over the physical possession of assets on 30th June, 2000 and hence the above transaction has been incorporated in the books of account of the Company on 30th June, 2000. The necessary legal formalities for take over of the assets and liabilities are in progress. Further, the Company has made a provision for stamp duty and registration for transfer of above property.

2. Restructuring Account

The management as on 30th June, 2000 has reviewed the status of various assets and liabilities acquired during construction period and all the assets which in the opinion of the management may not be realizable have been adjusted against similar liabilities incurred during the construction period which may not be payable and against the outstanding balance in share forfeiture account and the net balance of Rs. 21,26,749/- has been transferred to Restructuring Account. The Company proposes to write off the balance of Rs. 21,26,749/- proportionately over a period of five commencing from 30th June, 2000.

3. Notes to Accounts :

1999-00 1998-99 Rs. Rs. Contingent liabilities not provided for

i) Estimated amount of contracts remaining 93,15,571 Nil to be executed on capital account (net of advances)

ii) Towards Bank Guarantee 4,10,000 Nil

iii) On account of Letter of credit 14,98,522 Nil

b) The amount paid or provided by way of remuneration to Managing Director and

Executive Director :

Salaries & Allowances 10,48,000 Nil

Perquisites 2,21,825 Nil

c) Remuneration to Auditors

Audit fee 35,000 10,000

Other Services Nil Nil

d) CIF Value of Imports

Capital goods 1,45,44,323 Nil

e) Expenditure in Foreign Currency

Travelling 62,89,912 Nil

Others 2,37,21,745 Nil

f) Earnings in Foreign Currency

Export Income 1,89,33,500 Nil

Other Income 18,365 Nil

g) In the opinion of the management of the Company, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated unless specifically mentioned otherwise and provisions for all known liabilities has been made.

h) Sundry debtors, sundry creditors, other liabilities, loans and advances, advances from customers etc. are subject to confirmation and reconciliation.

i) The Company has no information as to whether any of its suppliers constitute Small Scale Undertaking and therefore, the amount due to such suppliers has not been identified.

j) Bank balances include certain accounts aggregating Rs.49,67,012/- for which neither statement of account nor confirmation of balances have been received.

k) Loans & Advances

Loans and advances include Rs, 185.78 lacs extended by the earlier management, which is irrecoverable. The Board has vide board resolution dated 30th June, 2000, decided to write off the same over a period of next three years.

Loans and advances include Rs. 372.95 lacs due from directors of the company as a part of agreement entered into by Mr V.V. Subrahmanyam, Dr Neeraj Raj and Sriven Employees Foundation Trust with erstwhile promoters of the Company for takeover of liability to company on behalf of earlier promoters. Of total advances of Rs. 570 lacs, an amount of Rs.197.05 lacs have already been recovered during the year and the balance will be recovered within 3 years.

l) Investments

During the year, the Company has received as a group company adjustment 15,00,000 Equity Shares of Rs.10/- each of Boss Securities Limited from earlier promoters vide agreement entered into dated 2nd April 1999, These Shares were acquired form the esterwhile management without any cash outflow to the company

4. Information pursuant to the provisions of Part IV of the Schedule VI of the Companies Act, 1956.

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Mar 31, 1999

1. Contingent Liabilities not provided for Nil.

The estimated value of contracts outstanding on Capital Accounts (Net Advances) (Previous Year - amounts to Rs. Nil) this year - Nil.

2. During the year the Company is still in the process of setting up the project and no commercial activities have started. Hence no profit and Loss Account has been prepared.

3. No provision for payment of gratuity is made in the Accounts, as this being the second year of operations no liability towards the same arises.

4. The Company has not yet commenced Commercial operations

5. Net incidental expenses incurred prior to commencement of operations to be tune of Rs. 1648266/- shall be proportionately capitalised to the fixed assets which are directly attributable to the acquisition of the related assets and the balance amount consisting mainly of office overheads and other overheads which are not directly attributable to the acquisition of the fixed assets, shall be treated as deferred revenue expenditure for being return off over period of ten years from the year the company makes profits.

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Mar 31, 1998

01. During the year the Company is still in the process of setting up the project and no commercial activities have started. Hence no profit and Loss account has been prepared.

02. Balances under the heads Loans and Advances and advances included in Capital Works in progress, unsecured loans are subject to confirmation from the respective parties.

03. A sum of Rs.3,85,66,000/- was refunded to the Company by the suppliers of Machinery/Equipment which was shown under the head Capital Work in progress in the previous year as advances to suppliers of machinery.

04. No provision for payment of gratuity is made in the Accounts, as no employee qualify for the same and this is only the 3rd year of the company coming in to existence.

05. The Company has not yet commenced Commercial operations.

06. Net incidental expenses incurred prior to commencement of operations to the tune of Rs.10,62,928/- has been treated as decerred revenue expenditure for being return off over period of ten years.

07. In view of the Company having not started commercial operations, the Directors have not taken any remuneration.

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Mar 31, 1997

01. During the year the Company is still in the process of setting up the project and no commercial activities have started. Hence no profit and Loss Account has been prepared.

02. Balances under the heads Loans and Advances and advances included in Capital Works in progress, unsecured loans are subject to confirmation from the respective parties.

03. A sum of Rs. 3,85,66,000 was refunded to the Company by the suppliers of Machinery/Equipment which was shown under the head Capital Work in progress in the previous year as advances to suppliers of machinery.

04.Net incidental expenses incurred prior to commencement if operations to the tune of Rs. 10,62,928 has been treated as deferred revenue expenditure for being return off over period of ten years.