Enter the first few characters of Company and click 'Go'

Notes to Accounts of Vama Industries Ltd.

Mar 31, 2023

Repayment: Repayable On Demand

Primary Security: 100% Hypothecation of entire stock and receivables created out of bank finance (present & future)

Collateral Security:

1) Residential Flat No 401, 4th Floor, Plot No 14 & 16, Sy No 93, 94 & 95, located at S R Nagar, Hyderabad, Rangareddy, Hyderabad, Telangana -500038 (Metro), admeasuring total area: 1450 Sq. Feet, in the name of Shri V. Atchyuta Rama Raju

2) Commercial Building bearing Sy No. 619, 6th Floor, Maker Chambers, V Premises Co-op Society Ltd., Plot No.221 of Back bay reclamation, Nariman Point, Mumbai - 400021 (Metro) admeasuring total area 434 Sq.Feet in the name of M/s Reliance Tea Private Limited

3) Commercial Residential Plot No. 70, Survey No. 06, Situated at Izzat Nagar Village, Serilingampally Mandal, Ranga Reddy, Telangana - 500082 (Urban) admeasuring 450 Sq. yards in the Name of Vama Industries Limited

4) Pledge of shares of promoters of 30% (No of shares pledged 67,68,550/-)

Personal Guarantee / Corporate Guarantee :

1. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

2. Smt. V. Parvathi, Executive Director, W/o. Sri V. Atchyuta Rama Raju

3. Corporate Guarantee of M/s Reliance Tea Private Limited

Working Capital Term Loan (GECL) from State Bank of India:

Rate of Interest : 7.40%

Repayment : Moratorium period of 12 months and repayment of principal will commence after 12 months moratorium from the date of disbursement. It is repayable in 36 equated monthly instalments of Rs 4,19,445/- each commencing from Nov''21, balance of instalments being is 19 as on 31st March 2023.

Working Capital Term Loan (GECL1.0 Ext Limit) from State Bank of India:

Rate of Interest: 7.40%

Repayment: Moratorium period of 24 months and repayment of principal will commence after 24 months moratorium from the date of disbursement. It is repayable in 36 equated monthly instalments of Rs 2,58,334/- each commencing from Jan''24.

Vehicle Loan from State Bank of India:

1. Secured by hypothecation of Vehicle purchased and repayable in 84 monthly instalments of each Rs. 18,670/- commencing from March 2015, This loan is fully repaid in Feb''22 (rate of Interest: 9.70%)

2. Secured by hypothecation of Vehicle purchased and repayable in 84 monthly instalments of each Rs. 16,634/- commencing from September 2015, This loan is fully repaid in Feb''22 (rate of Interest: 9.55%)

Bank Guarantee (BG) Facility from State Bank of India:

BG Limit of Rs 1700.00 Lakhs

BG Commission Rate: Performance BG - 1.90% GST, Financial BG - 2.20% GST BG Issued will be valid till the date of expiry or till the date of revocation Security: As applicable to Cash Credit Limit, which is detailed above.

Note No 2.33: Segment Reporting

The Company concluded that there is only one operating segment i.e, IT related services. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108, to the extent applicable.

Note No 2.34: Employee BenefitContribution to provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee''s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs. 3.77 Lakhs and Rs. 6.75 Lakhs to the provident fund plan during the years ended 31st March 2023 and 2022, respectively.

Note No 2.37: Ind AS 116 - Leases

The Company has evaluated the impact of Ind AS 116 on the financials. As per the terms and conditions stipulated in the lease deeds, the termination option is available with both lessor and lessee leading to the same being treated as short term and impact charged to "Rent Expenses" (Refer Note No 2.28)

Note No 2.38: Financial Risk Management

The Company''s activities expose it to a variety of financial risks, in cluding credit risk, liquidity risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

a. 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, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.

Trade Receivables - The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed 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. The total trade and other receivables impairment loss is provided Rs. NIL as at 31st March 2023 and Rs. 16.49 lakhs at 31st March 2022. On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company took into consideration the weighted average number of delays taking into consideration deviation of receivables turnover ratio from normal credit period.

The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate. Financial assets that are neither past due nor impaired - None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31 March 2023.

Liquidity Risks:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

As of 31st March 2023 and 2022, the Company has utilized working capital credit limits (fund based) from banks of Rs. 575.89 Lakhs and Rs 631.74 Lakhs respectively.

As of 31 March 2023, the Company had working capital (current assets less current liabilities) of Rs. 1,491.76 Lakhs including cash and cash equivalents of Rs. 82.81 Lakhs. As of 31 March 2022, the Company had working capital of Rs. 1,690.32 Lakhs, i ncluding cash and cash equivalents of Rs. 286.51 Lakhs.

Market Risks:

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

Currency Risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The company mitigates the currency risk with natural hedge arising on export of goods and services

CAPITAL MANAGEMENT

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity and borrowings.

Note No 2.40: Code on Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

2.41 Impact of COVID-I9

The Company has considered the possible effects that may result from the pandemic relating to Covid-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of Covid-19 on the company''s financial statements may differ from that estimated as at the date of approval of these standalone financial statements.

2.43G Relationship with struck off companies

The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 2.43H Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

2.43I Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act Act, 1961, that has not been recorded previously in the books of account.

2.43J Title Deeds of Immovable Properties

The title deeds of all the immovable properties, as disclosed in Note 2.01 to the financial statements, are held in the name of the company

2.43K Valuation of Property Plant & Equipment, Intangible Asset

The company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

2.43L Loans or advances to specified persons

No loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

2.43M Details of benami property held

No proceedings have been initiated on or pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

2.43N Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

2.43O Compliance with number of layers of companies

The company has complied with the number of layers prescribed under Section 2(87) of Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

2.43P Details of Crypto currency or virtual currency

The company has not traded or invested in Crypto Currency or virtual currency during the current or previous year

2.43Q Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities ("intermediaries") with the understanding, whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the company (Ultimate beneficiaries). The company has not received any fund from any party (Funding Party) with the understanding that the company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2.43R Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

Mar 31, 2018

6) Cash & Cash Equivalents

Cash and bank balances comprise of cash balance in hand, in current accounts with banks, demand deposit, short-term deposits, Margin Money deposits and unclaimed dividend accounts. For this purpose, âshort-termâ means investments having maturity of three months or less from the date of investment. Bank overdrafts and Cash Credit that are repayable on demand and form an integral part of our cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. The Margin money deposits and unclaimed dividend balances shall be disclosed as restricted cash balances.

7) Employee Benefits

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Defined Contribution Plan

The Company''s contributions to defined contribution plans are charged to the statement of profit and loss as and when the services are received from the employees.

Termination benefits

Termination benefits are recognized as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.

8) Provisions, contingent liabilities and contingent assets

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.

Contingent liabilities

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

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.

9) Revenue Recognition Sale of goods and services

Revenue from sale of computer hardware is recognized on dispatch of the products from the company for delivery to the customers. Revenue from product sale is shown net of tax separately charged and discounts as applicable.

Revenue from IT Services consists of earnings from services performed on a âtime and materialâ basis and fixed price contracts. The related revenue is recognized as and when the services are performed and delivered.

Revenue from Annual Maintenance Contracts (AMCsâ) is recognized on accrual basis as per the Contracts / Agreements entered with the Clients.

Other Income

Interest Income

Interest Income mainly comprises of interest on Margin money deposit with banks relating to bank guarantee. Interest income should be recorded using the effective interest rate (EIR).However, the amount of margin money deposits relating to bank guarantee are purely current in nature, hence effective interest rate has not been applied. Interest is recognized using the time-proportion method, based on rates implicit in the transactions.

Dividend

Dividend income is recognized when the Companyâs right to receive dividend is established.

10) Borrowing Costs

Borrowing costs consist of interest, ancillary and other costs that the Company incurs in connection with the borrowing of funds and interest relating to other financial liabilities. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs. 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 capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

11) Tax Expenses

Tax expense consists of current and deferred tax.

Income Tax

Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred Tax

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income tax regulations is not considered as tax expense for the Company and all such taxes are recognized in the statement of changes in equity as part of the associated dividend payment.

12) Earnings Per Share

The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

13) Trade receivables

Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using effective interest method, less provision for impairment.

14) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are presented as current liabilities unless payment is not due within twelve months after the reporting period. They are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

Determination of fair values

The Company''s accounting policies and disclosures require the determination of fair value, for certain financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

a. Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange of non-monetary assets, is measured at fair value on the acquisition date. For this purpose, fair value is based on appraised market values and replacement cost.

b. Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks acquired in a business combination is based on the discounted estimated royalty payments that have been avoided as a result of these brands, technology related intangibles, patents or trademarks being owned (the ârelief of royalty methodâ). The fair value of customer related, product related and other intangibles acquired in a business combination has been determined using the multiperiod excess earnings method after deduction of a fair return on other assets that are part of creating the related cash flows.

c. Inventories

The fair value of inventories acquired in a business combination is determined based on its estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories.

d. Investments in equity and debt securities and units of mutual funds

The fair value of marketable equity and debt securities is determined by reference to their quoted market price at the reporting date. For debt securities where quoted market prices are not available, fair value is determined using pricing techniques such as discounted cash flow analysis.

In respect of investments in mutual funds, the fair values represent net asset value as stated by the issuers of these mutual fund units in the published statements. Net asset values represent the price at which the issuer will issue further units in the mutual fund and the price at which issuers will redeem such units from the investors.

Accordingly, such net asset values are analogous to fair market value with respect to these investments, as transactions of these mutual funds are carried out at such prices between investors and the issuers of these units of mutual funds.

e. Derivatives

The fair value of foreign exchange forward contracts is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds). The fair value of foreign currency option and swap contracts and interest rate swap contracts is determined based on the appropriate valuation techniques, considering the terms of the contract.

f. Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases the market rate of interest is determined by reference to similar lease agreements. In respect of the Companyâs borrowings that have floating rates of interest, their fair value approximates carrying value.

2.12.2 Rights attached to equity shares

âThe company has one class of equity shares having a par value of Rs.10/- each. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2.12.3 In the period of five years immediately preceding March 31,2018:

â* The Company has sub-divided the nominal value of equity share from Rs. 10/- to Rs. 2/- per share with effect from 03.11.2016 vide board resolution dated 20.10.2016. the said sub-division of equity shares is approved by the members in Annual General Meeting dt 26.09.2016.

** Nirant Technologies Private Limited shareholding has been diluted from 5.12% to 4.76% as at 31.03.17 being equity shares are issued during the year on conversion of warrants.â

Vehicle Loan from State Bank of India:

1. Secured by hypothecation of Vehicle purchased and repayable in 60 monthly installments of each Rs. 21,095/commencing from March 2015, balance of installments being 21( rate of Interest: 9.55%)

2. Secured by hypothecation of Vehicle purchased and repayable in 84 monthly installments of each Rs. 18,670/commencing from March 2015, balance of installments being 45( rate of Interest: 9.70%)

3. Secured by hypothecation of Vehicle purchased and repayable in 84 monthly installments of each Rs. 16,634/commencing from September 2015, balance of installments being 53( rate of Interest: 9.55%)

Unsecured Business Loans

Tata Capital Financial Services Limited

It is repayable in 24 monthly installments of Rs. 1,77,450/- each commencing from February 2017, balance of installments being 10 (Rate of Interest: 18.52%)

Religare Finvest Limited

It is repayable in 36 monthly installments of Rs. 1,46,665/- each commencing from March 2016, balance of installments being 11 (Rate of Interest: 19.02%)

Magma Fincorp Limited

It is repayable in 24 monthly installments of Rs. 2,52,119/- each commencing from January 2018, balance of installments being 21 (Rate of Interest: 18.75%)

Edelwesiss Retail Finance Limited

It is repayable in 24 monthly installments of Rs. 2,01,635/- each commencing from January 2018, balance of installments being 21 (Rate of Interest: 19.00%)

Bajaj Finserv Limited

It is repayable in 36 monthly installments of Rs. 92,556/- each commencing from March 2016, balance of installments being 11 (Rate of Interest: 19.00%)

Bajaj Finserv Limited

It is repayable in 24 monthly installments of Rs. 58,928/- each commencing from March 2017, balance of installments being 11 (Rate of Interest: 19.00%)

Dewan Housing Finance Corporation Limited

It is repayable in 24 monthly installments of Rs. 1,76,435/- each commencing from January 2018, balance of installments being 21 (Rate of Interest: 19.00%)

Equitas Small Finance Bank Ltd

It is repayable in 24 monthly installments of Rs. 1,51,230/- each commencing from February 2018, balance of installments being 22 (Rate of Interest: 19.00%)

india infoline Finance Limited

It is repayable in 36 monthly installments of Rs. 1,83,280/- each commencing from January 2018, balance of installments being 33 (Rate of Interest: 19.00%)

iVL Finance Limited

It is repayable in 36 monthly installments of Rs. 1,83,280/- each commencing from January 2018, balance of installments being 33 (Rate of Interest: 19.00%)

Religare Finvest Limited

It is repayable in 24 monthly installments of Rs. 1,00,817/- each commencing from January 2018, balance of installments being 21 (Rate of Interest: 19.00%)

Shriram City Union Finance Limited

It is repayable in 24 monthly installments of Rs. 1,76,431/- each commencing from April 2018, balance of installments being 24 (Rate of Interest: 19.00%)

Tata Capital Financial Services Limited

It is repayable in 24 monthly installments of Rs. 1,00,574/- each commencing from February 2018, balance of installments being 22 (Rate of Interest: 18.75%)

Cash Credit from State Bank of India Rate of Interest : 11.70%

Repayment: Repayable On Demand

Primary Security: Hypothecation of stock and receivables of the company âCollateral Security :

1) EM of Flat No. 401, 4th Floor, Plot No. 14 & 16, S No.93, 94 & 95 located at Madhura Nagar, Yousufguda, Hyderabad-38 belongs to Shri. V. Atchyutha Rama Raju.

2) EM of Office Premises No. 619, 6th Floor, Maker Chambers, V Premises Co-op Society Ltd., Plot No.221 of Back bay reclamation, Nariman Point, Mumbai - 400021 belongs to M/s Reliance Tea Private Limited.

3) EM of Plot No. 70, Survey No. 06, Situated at Izzat Nagar Village, Serilingampally Mandal, Ranga Reddy District, admeasuring 450 Sq. yards in the Name of Vama Industries Limiitedâ

âPersonal Gaurantee:

1. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

2. Shri V. Rajam Raju, Director, S/o. Late V. Venkata Satynarayana Raju.

3. Smt. V. Parvathi, Guarantor, W/o. Sri V. Atchyuta Rama Raju

4. Corpoarte Gaurantee of M/s Reliance Tea Private Limitedâ

2.28 First-time adoption of Ind AS

These financial statements, for the year ended 31st March 2018, are the first set of financial statements the Company has prepared in accordance with Indian Accounting Standards (Ind ASs). For periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

The Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March 2018, together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1st April 2016, i.e., the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2016 and the financial statements as at and for the year ended 31st March 2017.

Exemptions Applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

The Company adopted not to measure any item of property, plant and equipment at its fair value at the Transition Date. Accordingly, on the transition date, the net carrying value of the property, plant and equipment and intangible assets shall be considered as deemed cost for Ind AS purposes.

The Company adopted to measure investments in subsidiaries at cost i.e., carrying value of the investments on the date of transition shall be considered as deemed cost for Ind AS purposes.

Estimates

The estimates at 1st April 2016 and at 31st March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:

- FVTPL - Quoted Mutual Funds

- Impairment of financial assets based on expected credit loss model (âECL modelâ)

- FVTPL - Retention Money

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1st April 2016, the date of transition to Ind aS and as of 31st March 2017.

Proposed dividend

Under Indian GAAP, proposed dividends including dividend distribution tax are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid. Therefore, the liability of Rs.12.65 Lakhs for the year ended on 31st March 2016 recorded for dividend has been derecognized against retained earnings on 1st April 2016.

FVTPL Financial assets

Under Indian GAAP, the Company accounted for long term investments in quoted equity shares as investment measured at cost less provision for diminution other than temporary diminution in the value of investments, if any. Under Ind AS, the Company has designated such investments as FVTPL investments. Ind AS requires FVTPL investments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments fair value and Indian GAAP carrying amount has been recognized as a separate component of equity, in the retained earnings.

Deferred tax

Indian GAAP requires deferred tax accounting using the statement of profit and loss approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

Trade receivables

Under Ind AS, impairment allowance has been determined based on Expected Loss model (ECL). Due to ECL model, the company impaired its trade receivable by Rs. 91.32 Lakhs (including probability of default of Rs.,65.86 Lakhs) on 1st April 2016 which has been eliminated against retained earnings. The company impaired its trade receivable by Rs. 95.48 Lakhs on 31st March 2017, (including probability of default of Rs.,65.86 Lakhs) such increase in impairment has been recognized in the profit the loss account for the year ended 31st March 17.

Sale of goods and services

Under Indian GAAP, revenue is recognized on dispatch, performance and accrual basis based on type of revenue. However, under Ind AS, in case of Service Contracts certain percentage is withheld by the principal as retention money for a period of time after the work has

been completed. The time loss of value of consideration is determined and recognized at fair value through profit and loss. Thus sale of goods under Ind AS for the year ended 31st March 2017 has decreased by Rs. 8.55 Lakhs with a corresponding decrease in retention money receivable.

2.31 Related Parties

Subsidiary: Vama Technologies Pte Ltd

In accordance with the provisions of Ind AS 24 âRelated Party Disclosuresâ and the Companies Act, 2013, Companyâs Directors, members of the Companyâs Management Council and Company Secretary are considered as Key Management Personnel. List of related party of the Company is as below:

S.No. Name of the Related Party Nature of Relationship

1 V. Atchyuta Rama Raju Key Managerial Personnel

2 V.Rajam Raju Key Managerial Personnel

3 V.Parvathi Relative of Key Managerial Personnel

4 Reliance Tea Pvt Ltd * EDS

5 Vama Technologies Pte. Ltd Subsidiary

6 Gottumukkala Achyuta Rama Raju Relative of Key Managerial Personnel

7 Bangarraju Mudundi Relative of Key Managerial Personnel

8 V Sarada Relative of Key Managerial Personnel

9 M Krishna Veni Relative of Key Managerial Personnel

10 Vegesna Pushpavathi Relative of Key Managerial Personnel

11 Mohan Raju Indukuri Relative of Key Managerial Personnel

12 Uma Vani Indukuri Relative of Key Managerial Personnel

13 G. Siva Chief Financial Officer

14 M K Bhaskara Teja Company Secretary

* Entity over which the director is having significant influence

2.39 Financial Risk Management:

The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Companyâs risk assessment and management policies and processes.

a. 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, and arises principally from the Companyâs receivables from customers and investment securities. Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.

Trade Receivables-The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed 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. The total trade and other receivables impairment loss is provided Rs.38.44 as at 31 March 2018 and Rs.29.62 at 31stMarch 2017.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company took into consideration the weighted average number of delays taking into consideration deviation of receivables turnover ratio from normal credit period.

Financial assets that are neither past due nor impaired - None of the Companyâs cash equivalents, including deposits with banks, were past due or impaired as at 31 March 2018.

Reconciliation of allowance for credit losses

Liquidity Risks:

As of 31 March 2018 and 2017, the Company had unutilized credit limits from banks of fund based limits of Rs., 3.72 and NIL respectively.

As of 31 March 2018, the Company had working capital (current assets less current liabilities) of Rs.1384.07 Lakhs including cash and cash equivalents of Rs. 493.70 Lakhs and investments in FVTPL financial assets of Rs.123.11 Lakhs. As of 31 March 2017, the Company had working capital of Rs.1016.25 Lakhs, including cash and cash equivalents of Rs. 616.11 Lakhs.

The table below provides details regarding the contractual maturities of significant financial liabilities as at 31 March 2018:

Market Risks:

Currency Risk

CAPITAL MANAGEMENT

Mar 31, 2016

Note No. : 1 Working Capital Loan / Vehicle Loans:

Working Capital Loan from State Bank of India:

Cash Credit and Bank Guarantee Limits:

Rate of Interest:

Cash Credit from SBI: Interest at the rate of 3.75% magrin above the base rate which is presently 9.30% P.A. Present effective rate 13.05% P.A.

Primary Security:

Hypothecation of Stocks & Receivables (present & future) of the Company.

Collateral Security:

1) EM of Flat No. 401, 04th Floor, Plot No. 14 & 16, S No.93, 94 & 95 located at Madhura Nagar, Yousuf guda, Hyderabad-38 belongs to Shri. V. Atchyutha Rama Raju

2) EM of Office Premises No. 619, 06th Floor, Maker Chambers, V Premises Co-op Society Ltd., Plot No.221 of Backbay reclamation, Nariman Point, Mumbai - 400021. belongs to M/s Reliance Tea Private Limited

3) EM of Plot No. 70, Survey No. 06, Situated at Izzathnagar Village, Serilingampally Mandal, Ranga Reddy District, admeasuring 450 Sq. yards in the Name of Vama Industries Limiited.

Personal Guarantee of

4. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

5. Shri V. Rajam Raju, Director, S/o. Late V. Venkata Satynarayanaraju

6. Smt. V. Parvathi, Guarantor, W/o. Sri V. Atchyuta Rama Raju Corporate Guarantee of M/s Reliance Tea Private Limited.

Terms of Repayment:

Working Capital Loans repayable on demand.

Vehicle Loans from Banks:

Rate of Interest:

SBI Car Loan-Honda City_1: @ 9.75% per annum SBI Car Loan-Honda City_2: @ 9.75% per annum SBI Car Loan-Honda City_3: @ 9.90% per annum

Security:

Vehicles loans are secured by hypothecation of vehicles financed by respective banks.

Terms of Repayment:

SBI Car Loan 7:

This Loan is repayable in 60 monthly installments of Rs.21, 095/- each commencing from March, 2015 Status as on 31.03.2016 : Balance No. of Installments -45

SBI Car Loan 8:

This Loan is repayable in 84 monthly installments of Rs.18,670/- each commencing from March, 2015 Status as on 31.03.2016 : Balance No. of Installments -69

SBI Car Loan 9:

This Loan is repayable in 84 monthly installments of Rs.16,634/- each commencing from September, 2015 Status as on 31.03.2016 : Balance No. of Installments -77

Unsecured Business Loans from Financial Institutions:

Tata Capital Financial Services Limited

Rate of Interest: @ 19.02% per annum Security: Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs.1, 25,415/- each commencing from February, 2016

Status as on 31.03.2016: Balance No. of Installments -22

Religare Finvest Limited

Rate of Interest: @ 19.02% per annum Security: Unsecured Loan

Terms of Repayment :

This Loan is repayable in 36 monthly installments of Rs. 1, 46,665/each commencing from March, 2016 Status as on 31.03.2016 : Balance No. of Installments -35

Magma Fincorp Limited

Rate of Interest: @ 19.00% per annum Security: Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 1, 77,340/each commencing from March, 2016 Status as on 31.03.2016: Balance No. of Installments -23

Edelwesiss Retail Finance Limited

Rate of Interest: @ 19.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 36 monthly installments of Rs. 91,641/each commencing from March, 2016 Status as on 31.03.2016: Balance No. of Installments -35

Bajaj Finserv Limited

Rate of Interest: @ 19.00% per annum Security: Unsecured Loan

Terms of Repayment :

This Loan is repayable in 36 monthly installments of Rs. 92,556/each commencing from March, 2016 Status as on 31.03.2016: Balance No. of Installments -35

Note No. : 10 Contingent Liabilities

The liability towards bank guarantees of Rs. 2, 60, 62,433/- issued to various parities by the company in the course of ordinary business is partly covered against fixed deposits with the banks which are held by the bankers as the security.

11. Note: Capital Commitments

Estimated amount of unexecuted capital contracts of Rs. 2, 42, 00,000/- identified by the management relevant for the current FY 2015-16. There are no other contracts remaining to be executed on capital account and not provided for, during the current financial year.

12. In the opinion of the Board, current assets, loans and advances are stated at a value, which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

13. Some of the balances in Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation, reconciliations and adjustments, if any, which in the opinion of the management will not be significant.

14. These financial statements have been prepared in the format prescribed by the Schedule III to the Companies Act, 2013.

15. The figures of the previous year are re-grouped / re-classified wherever necessary to make them comparable with that of the current year.

Mar 31, 2015

Note No. 1 Segment Reporting

The Company has identified three reportable segments viz.Software Development Service, Hardware Sales & Services and Trading of Metals & Minerals . Segments have been identified and reported taking into account nature of products and services. The accounting policies adopted for segment reporting are in line with accounting policy of the company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable"

b) Segment assets and Segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

Note No. : 2 Working Capital Loan / Vehicle Loans: Working Capital Loan from State Bank of India: Cash Credit and Bank Guarantee Limits: Rate of Interest:

Cash Credit from SBI: Interest at the rate of 3.75% magrin above the base rate which is presently 10% P.A. Present effective rate 13.75% P.A.

Primary Security:

Hypothecation of Stocks and Receivables and all chargeable current assets of the Company.

Collateral Security:

1) Hypothecation of fixed assets

2) EM of Flat No. 401, 04th Floor, Plot No. 14 & 16, SNo.93, 94 & 95 located at Madhura Nagar, Yousuf guda, Hyderabad existing in the name of Shri. V. Atchyuta Rama Raju S/o. VVS Raju

3) EM of Office Premises No. 619, 06th Floor, Maker Chambers, V Premises Co-op Soc Ltd., Plot No.221 of Backbay reclamation, Nariman Point, Mumbai - 400021. Carpet Area-434 sft in the name of Reliance Tea Private Limited

Personal Guarantee of

1. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

2. Shri V. Rajam Raju, Director, S/o. Late V. Venkata Satynarayanaraju

3. Smt. V. Parvathi, Guarantor, W/o. Sri V. Rama Raju Corporate guarantee of Reliance Tea Pvt. Ltd.

Terms of Repayment:

Working Capital Loans repayable on demand.

Vehicle Loans from Banks:

Rate of Interest:

SBI Car Loan-Honda City_1: @ 10.15% per annum

SBI Car Loan-Honda City_2: @ 10.15% per annum

Security:

Vehicles loans are secured by hypothecation of vehicles financed by respective banks.

Terms of Repayment:

SBI Car Loan 1:

This Loan is repayable in 83 monthly installments of Rs.18,670/- each commencing from March, 2015

Status as on 31.03.2015 : Balance No. of Installments -82

SBI Car Loan 2:

This Loan is repayable in 59 monthly installments of Rs.21,095/- each commencing from March, 2015

Status as on 31.03.2015 : Balance No. of Installments -58

Note No. : 3 Contingent Liabilities

(a) The liability towards bank guarantees of Rs.89,81,600/- issued to various parities by the company in the course of ordinary business is partly covered against fixed deposits with the banks which are held by the bankers as the security.

4 Note: Capital Commitments

There are no capital commitments identified by the management for the current financial year. There are no contracts remaining to be executed on capital account and not provided for, during the current financial year.

5 In the opinion of the Board, current assets, loans and advances are stated at a value, which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

The Company sold the investments worth Rs. 53.80 lakhs for a value of Rs. 1.10 Lakhs and the loss on the same is classified as exceptional item.

6 Some of the balances in Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation, reconciliations and adjustments if any, which in the opinion of the management will not be significant.

7 These financial statements have been prepared in the format prescribed by the Schedule III to the Companies Act, 2013

8 The figures of the previous year are re-grouped / re-classified wherever necessary to make them comparable with that of the current year.

Mar 31, 2014

Note No : 1 Related Party Disclosures

S.No. Name of the Related Party Nature of Relationship

1 V.A. Rama Raju Key Managerial Personnel

2 V.Rajam Raju Key Managerial Personnel

3 V.Parvathi Relative of Director

4 D.Tanuja Relative of Director

5 Reliance Tea Pvt Ltd Associate

Note: Related Party relationships as given above is as identified by the Company and relied upon by the Auditors Note No. 31 Segment Reporting

The Company has identified three reportable segments viz.Software Development Service, Hardware Sales & Services and Trading of Metals & Minerals . Segments have been identified and reported taking into account nature of products and services. The accounting policies adopted for segment reporting are in line with accounting policy of the company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable"

b) Segment assets and Segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

The future minimum lease rental obligation under non-cancellable operating leases in respect of these assets is on account of lock-in period and notice period in some of the lease agreements entered by the company for operating of offices:

Note No. : 2 Working Capital Loan / Vehicle Loans:

Working Capital Loan from State Bank of India:

Cash Credit and Bank Guarantee Limits:

Rate of Interest:

Cash Credit from SBI: Interest at the rate of 3.75% magrin above the base rate which is presently 10% P.A. Present effective rate 13.75% P.A.

Primary Security:

Hypothecation of Stocks and Receivables and all chargble current assets of the Company.

Collateral Security:

1) Hypothecation of fixed assets

2) EM of Flat No. 401,04th Floor, Plot No. 14 & 16, SNo.93, 94 & 95 located at Madhura Nagar, Yousuf guda, Hyderabad existing in the name of Shri. V. Atchyuta Rama Raju S/o. VVS Raju

3) EM of Office Premises No. 619, 06th Floor, Maker Chambers, V Premises Co-op Soc Ltd., Plot No.221 of Backbay reclamation, Nariman Point, Mumbai - 400021. Carpet Area-434 sft in the name of Reliance Tea Private Limited

Personal Guarantee of

1. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

2. Shri V. Rajam Raju, Director, S/o. Late V. Venkata Satynarayanaraju

3. Smt. V. Parvathi, Guarantor, W/o. Sri V. Rama Raju

Terms of Repayment:

Working Capital Loans repayable on demand.

Note No. : 3 Contingent Liabilities

(a) The liability towards bank guarantees of Rs.61,29,578/- issued to various parities by the company in the course of ordinary business is partly covered against fixed deposits with the banks which are held by the bankers as the security,

4 Note: Capital Commitments

There are no capital commitments identified by the management for the current financial year. There are no contracts remaining to be executed on capital account and not provided for, during the current financial year,

5 In the opinion of the Board, current assets, loans and advances are stated at a value, which could be realized in the ordinary course of business, The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary,

6 Some of the balances in Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation, reconciliations and adjustments if any, which in the opinion of the management will not be significant.

7 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous period figures have been recasted / restated to confirm to the classification of the current period,

8 The figures of the previous year are re-grouped / re-classified wherever necessary to make them comparable with that of the current year,

Mar 31, 2013

Note No. : 1 Working Capital Loan / Vehicle Loans:

Working Capital Loan from State Bank of India:

Cash Credit and Bank Guarantee Limits:

Rate of Interest:

Cash Credit from SBI: Interest at the rate of 3% magrin above the base rate which is presently 10% P.A. Present effective rate 13% P.A.

Primary Security:

Hypothecation of Stocks and Charge over Receivables of the Company.

Collateral Security:

Immovable Property

1) EM of Flat No. 401, 04th Floor, Plot No. 14 & 16, Survey No''s 93, 94 & 95 at Madhura Nagar, Yousuf guda, Hyderabad belonging to Sri. V. Atchyuta Rama Raju. (extent of 1450 Sq. Ft.)

2) EM of Flat No. 619, 06th Floor, Maker Chambers, Nariman Point, Mumbai belonging to Reliance Tea Private Limited

Third Party Guarantee:

"1. Personal guarantees of Sri V.Atchyuta Rama Raju, Smt. V.Parvathi, Sri V.Rajam Raju

2. Corporate Guarantee of M/s Reliance Tea Private Limited"

Terms of Repayment:

Working Capital Loans repayable on demand.

Vehicle Loans from Banks: (in Note 4, 7 & 9)

ICICI Bank Car Loan-Honda Accord Rate of Interest:

ICICI Bank Car Loan-Honda Accord: @ 9.24% per annum Terms of Repayment:

This Loan is repayable in 36 monthly installments of Rs.56,784/- each commencing from June, 2010 Security:

Vehicles loans are secured by hypothecation of vehicles financed by respective banks.

Note No. : 2 Contingent Liabilities

(a) Company received demand notice from Commercial Tax Department (Sales Tax) for the Financial Year 2007-08 for Rs. 5,31,097/-, in this regard we have filed an appeal at the Appellate Deputy Commissioner (CT) Punjagutta, Nampally, Hyderabad, by paying 12.5% of notice amount as deposit with the authorities. Appellate Deputy Commissioner (CT) has passed Assessment Order, on 12.06.2012, by stating Sale of Rs.2,78,691/- is subjected to VAT @ 4%. It amounts to Rs.11,148/- and has been provided in Books of Account in Financial Year 2012-13.

(b) The liability towards bank guarantees of Rs.51,05,788/- issued to various parities by the company in the course of ordinary business is fully covered against fixed deposits with the banks which are held by the bankers as the security

3 Note: Capital Commitments

There are no capital commitments identified by the management for the current financial year. There are no contracts remaining to be executed on capital account and not provided for, during the current financial year.

4 In the opinion of the Board, current assets, loans and advances are stated at a value, which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

5 Some of the balances in Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation, reconciliations and adjustments if any, which in the opinion of the management will not be significant.

6 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous period figures have been recanted / restated to conform to the classification of the current period.

7 The figures of the previous year are re-grouped / re-classified wherever necessary to make them comparable with that of the current year.

Mar 31, 2012

(a) Rights, preferences and restrictions attached to shares:

The company has one class of equity shares having a par value of Rs. 10/- each. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity sharesholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Unquoted Investments

Aggregate amount of Un-quoted Investments Rs.53,80,000/- (Previous Year Rs.56,54,528/-)

* Note:

M/s Vama Asia Pte Ltd., has passed a Resolution for closure of its operations at Extra-Ordinary General Meeting conducted on 27th February, 2012. Applied for the same to Accounting and Corporate Regulatory Authority on the same day for closure of company. The present status is "Struck-off"

* Deposits include Rs. 30,97,775/- (Previous Year Rs. 4,46,921/-) with SBI held as lien against Bank Guarnatees issued by SBI on behalf of the company.

* Deposits include Rs. 41,000/- (Previous Year Rs. Nil) with SBI held as security deposit withCentral Excise Department

* includes Singapore Dollars (SGD) 2,348/- (Previous Year SGD Nil)

** Deposits include Rs. 20,00,000/- (Previous Year Rs.20,00,000/-) with SBI held as collateral security against cash credit limits sanctioned by the SBI.

** Deposits include Rs. 2,27,250/- (Previous Year Rs.86,386/-) with SBI held as lien against Bank Guarnatees issued by SBI on behalf of the company.

* Directors Remuneration of Rs. 12,00,000/- (Previous Year Rs. 9,00,000/-) transferred to Product Development Expenditure.

** includes contribution to Employee provident fund, Employee State Insurance Scheme.

Note: Related Party relationships as given above is as identified by the Company and relied upon by the Auditors Note No. 31 Segment Reporting

The Company has identified three reportable segments viz.Software Development Service, Hardware Sales & Services and Trading of Metals & Minerals . Segments have been identified and reported taking into account nature of products and services. The accounting policies adopted for segment reporting are in line with accounting policy of the company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable"

b) Segment assets and Segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

Note No.: 1 Working Capital Loan I Vehicle Loans:

Working Capital Loan from State Bank of India:

Rate of Interest:

Cash Credit from SBI: @ 6.00% above SBAR Primary Security:

Hypothecation of Stocks & Receivables of the Company.

Collateral Security:

Immovable Property:

1) Hypothecation of Flat No. 401, 04th Floor, Plot No. 14 & 16, Survey No's 93, 94 & 95 at Madhura Nagar, Yousufguda, Hyderabad belonging to Sri. V. Atchyuta Rama Raju

2) Hypothecation of the Fixed Assets of the Company.

3) Lien on STDR Rs. 20,00,000/- in the name of the Company.

Third Party Guarantee:

Personal guarantees of Sri V.Atchyuta Rama Raju, Smt. V.Parvathi, Sri V.Rajam Raju.

Terms of Repayment:

Working Capital Loans repayable on demand.

Vehicle Loans from Banks: (in Note 4.7&91 ICICI Bank Car Loan-Honda Civic:

Rate of Interest: 11.68% per annum Terms of Repayment:

This Loan is repayable in 60 monthly installments of Rs.21,912/- each commencing from July, 2007 Security:

Vehicles loans are secured by hypothecation of vehicles financed by respective banks.

ICICI Bank Car Loan-Honda Accord Rate of Interest:

ICICI Bank Car Loan-Honda Accord: @ 9.24% per annum Terms of Repayment:

This Loan is repayable in 36 monthly installments of Rs.56,784/- each commencing from June, 2010 Security:

Vehicles loans are secured by hypothecation of vehicles financed by respective banks.

Note No.: 2 Contingent Liabilities

(a) Company received demand notice from Commercial Tax Department (Sales Tax) for the Financial Year 2007-08 for Rs. 5,31,097/-, in this regard we have filed an appeal at the Appellate Deputy Commissioner (CT) Punjagutta, Nampally, Hyderabad, by paying 12.5% of notice amount as deposit with the authorities. Appellate Deputy Commissioner (CT) has passed Assessment Order, on 12.06.2012, by stating Sale of Rs.2,78,691/- is subjected to VAT @ 4%. It amounts to Rs.11,148/- and has been provided in Books of Account in Financial Year 2012-13.

(b) The liability towards bank guarantees of Rs.42,59,030/- issued to various parities by the company in the course of ordinary business is fully covered against fixed deposits with the banks which are held by the bankers as the security

Note No.: 3 Capital Commitments

There are no capital commitments identified by the management for the current financial year.There are no contracts remaining to be executed on capital account and not provided for, during the current financial year.

Note No. : 4

In the opinion of the Board, current assets, loans and advances are stated at a value, which could be realized in the ordinary course of business. The provision for all known liabilities made is adequate and not in excess of the amount reasonably necessary.

Note No.: 5

Some of the balances in Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation, reconciliations and adjustments if any, which in the opinion of the management will not be significant.

Note No. : 6

These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous period figures have been recasted / restated to confirm to the classification of the current period.

Note No.: 7

The figures of the previous year are re-grouped / re-classified wherever necessary to make them comparable with that of the current year.

Mar 31, 2010

1. Sundry debtors, Loans & Advances and Creditors balances are subject to confirmation.

2. All amounts in the Financial Statements are presented in Rupees except in cash flow statement where amounts are presented in lakhs.

3. The previous years figures have been regrouped or reclassified where ever necessary to conform to the current years presentation.

4. There are no capital commitments identified by the management for the Current Financial Year. There are no contingent liabilities identified by the management.

5. There are no contracts remaining to be executed on capital account and not provided for, during the current financial year.

6. Loan Funds:-

Secured Loans from ICICl Bank is towards purchase of Motor Cars against Hypothecation of the same against the loans of Rs.10.76 lakhs (Rs.16.57 lakhs - March 31, 2009} and The company has availed a Working Capital facility in the form of Cash Credit of Rs. 22.07 lakhs (FY 2008-09 - Rs.Nil) from State Bank of India, Hyderabad. This facility is secured by Book Debts of the Company and personal properties of Director of the Company. There are no other secured loans sanctioned in favor of or accepted by the Company.

7. Investments

In line with the Accounting Policy, the investment in equity in Varna Asia Pte Ltd is carried at their original cost. The difference in value of investments considering the value of exchange as on the date of Balance Sheet amounts to Rs.46,298/-

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article