Notes to Accounts of TAC Infosec Ltd.

Mar 31, 2025

VIII. Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle
the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

IX. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but discloses its existence in the financial statements.

X. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments
with an original maturity of three months or less.

XI. Retirement and other employee benefits
(a) Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the
contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an
expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance
sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future
payment or a cash refund.

(b) Gratuity

Retirement benefit costs and termination benefits

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial
valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the
effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in
the balance sheet with a charge or credit recognised in profit & loss statements in the period in which they occur. Past service cost is
recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning
of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);

• net interest expense or income; and

• remeasurement

The company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee benefits expense''.
Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the company''s defined
benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of
refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the Group can no longer withdraw the offer of the termination
benefit and when the company recognises any related restructuring costs.

XII. Impairment of tangible and intangible assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or
when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s
recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. 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. In determining net selling price, recent market transactions are taken into account, if available. If no
such transactions can be identified, an appropriate valuation model is used.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may
no longer exist or may have decreased. If such indication exists, the company estimates the asset''s or cash-generating unit''s
recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to
determine the asset''s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying
amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit
and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

XIII. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments
are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities,
the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is
determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is
more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment
basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than
temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the
statement of profit and loss.

XIV. Foreign currency transactions
Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non—monetary
items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange
rate at the date of the transaction.

Non—monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are
translated using the exchange rate at the date when such value was determined.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the
Company are recognised as income or expense in the statement of profit and loss.

XV. Borrowing Cost

Borrowing cost includes interest and amortisation of ancillary costs incurred in connection with the arrangement of
borrowings.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset.
All other borrowing costs are expensed in the period they occur

XVI. Employee Stock Option Plan

Equity settled share-based payments to employees are measured at fair value of the equity instruments at grant date.

The fair value determined at the grant date of the equity settled share-based payment is expensed on a straightline basis
over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a
corresponding increase in equity.

At the end of each reporting period, the Company revises its estimates of the number of equity instruments expected to
vest. The impact of the revision of the original estimates, if any is, recognised in Statement of Profit and Loss such that the
cumulative expenses reflects the revised estimate in case where the vesting period has expired and the Company''s best
estimate of the number of equity instruments that will ultimately vest, with a corresponding adjustment to the shared
option outstanding account The expense or credit in the Statement of Profit and Loss for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee
benefits expense. The company followed the Guidance Note issued by ICAI on "Accounting for Share-based Payments".

No expense is recognised for options that do not ultimately vest because non market performance and/or service
conditions have not been met.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per
share.

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Mar 31, 2024

Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a per share value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

The company is eligible for exemption of 100% tax u/s 80IAC from Assessement year 2023-24 and company has opted the same from the Assessement year 2023-24 which will be available for three consecutive years. Certificate of eligible business under section 80 IAC is obatined

31 from Ministry of Commerece & Industry on 10/03/2023. Company has applied for rectification application u/s 154 for opting out from taxation u/s 115BAA for AY 22-23 & AY 21-22 and withdrawal of Form 10-IC. Hence no provision for Income Tax Expense of Rs.125/- lacs for F.Y. 2022-23 and

154 Lacs for F.Y. 2023-24 has been made.

32 Figures relating to corresponding/previous periods have been regrouped/reclassified wherever necessary to confirm to current period figures.

Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the

^II revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017

_Not Applicable_

where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as

^III defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

In F.Y. 2022-23 there was nominal utilisation of debt. During the year working caital of rs 150 Lacs was sanctioned and same was utilised, hence Debt equity ratio has increase by 369.12%

^ Due to utlisation of debt in the current year as compared to previous year nominal utlisatioin of debt,

Debt Service coverage ratio has decreased by 77.67%

Net profit for F.Y. 2022-23 was significantly high which raised accumulated share holder''s fund for Current financial year. Further opening share holder''s fund in F.Y. 2022-23 was lower then that in current year hence it lead to change in Return on Equity Ratio by 41.11 % and Return on capital employed changed by 30.50%

Change in trade receivable turnover ratio and Net capital turnover is on account of billing done close to

year end for which payment is not due at end of the year as per agreed terms. Hence it lead to change (iv)

in ratios by 53.36% and 30.15% respectively