r) Provisions
Provisions are recognized when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of economic benefits will be required to settle the
obligation, and a reliable estimate can be made of
the amount of the obligation.
The amount recognized as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks and
uncertainties surrounding the obligation.
s) Contingent Liabilities
Subject to IND AS 37, 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.
t) Cash and cash equivalents
Cash and cash equivalent comprise cash at banks
and on hand and short-term deposits with an
original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
u) Cash flow statement
Cash flows are reported using indirect method as
set out in Ind AS -7 "Statement of Cash Flows",
whereby profit / (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating,
investing and financing activities of the Company
are segregated based on the available information.
v) Related Party Transactions:
Related party transactions including purchases,
services, fund and non-fund-based agreements are
disclosed separately.
w) Recent Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. During the year
ended March 31, 2025, MCA has notified Ind AS
117 - Insurance Contracts and amendments to
Ind As 116 - Leases, relating to sale and lease back
transactions, applicable from April 1, 2024. The
Company has assessed that there is no significant
impact on its financial statements.
On May 9, 2025, MCA notifies the amendments to
Ind AS 21 - Effects of Changes in Foreign Exchange
Rates. These amendments aim to provide clearer
guidance on assessing currency exchangeability
and estimating exchange rates when currencies are
not readily exchangeable.
The amendments are effective for annual periods
beginning on or after April 1, 2025. The Company
has assessed that there is no significant impact on
its financial statements.
c) Terms/rights attached to equity shares
The Company has only one class of shares referred to as equity shares having a par value of ? 5 each. Each holder of the
equity share, as reflected in the records of the Company as of the date of the shareholder meeting, is entitled to one vote in
respect of each share held for all matters submitted to vote in the shareholder meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets
of the Company after distribution of all preferential amounts. However, no such preferential amounts exist currently. The
distribution will be in proportion to the number of equity shares held by the shareholders.
e) In the period of five years immediately preceding March 31, 2024:
i) The Company has allotted 4,81,91,234 fully paid up equity shares during the quarter ended March 31, 2018, pursuant to
1:1 bonus share issue approved by shareholders passed through Postal Ballot concluded on 19.03.2018
ii) The Company has not bought back any equity shares.
iii) The Company has not allotted any equity shares as fully paid up without payment being received in cash.
b) Leave Encashment: -
Since leave encashment claims are settled on year-to-year basis, no actuarial valuation needs to be obtained.
34. Financial risk management
The Company has exposure to the following risks arising from the financial instruments
Market Risk
Liquidity Risk
Credit Risk
i) Risk management framework
The Company's risk management is carried out by the treasury department under policies approved by the Board of
Directors. The Board provides written principles for overall risk management, as well as policies covering specific ar¬
eas, such as foreign exchange risk, interest rate risk, credit risk, use of financial instruments and investment of excess
liquidity.
b) Liquidity Risk
The Company requires funds both for short-term operational needs as well as for long-term investment programmers
mainly in growth projects. The Company generates sufficient cash flows from the current operations which together
with the available cash and cash equivalents and short-term investments provide liquidity both in the short-term as
well as in the long-term.
The Company remains committed to maintaining a healthy liquidity, gearing ratio, deleveraging and strengthening bal¬
ance sheet.
c) Credit Risk
Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer con¬
tract, leading to financial loss. The credit risk arises principally from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
The customer's credit risk is managed by the Company's established policy, procedures and control relating to cus¬
tomer credit risk management
Credit quality of a customer is assessed based on the individual credit limits are defined in accordance with the assess¬
ment and outstanding customer receivables are regularly monitored.
On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss.
The Company uses a provisioning policy approved by the Board of Directors to compute the expected credit loss al¬
lowance for trade receivables. The policy takes into account available external and internal credit risk factors and the
Company's historical experience for customers.
35. Leases
The Company's lease asset classes primarily consist of leases for land and buildings. At the date of commencement of the
lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these
short-term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line
basis over the term of the lease. Certain lease arrangements include the options to extend or terminate the lease before the
end of the lease term. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter
of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. The lease liability is initially mea¬
sured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the
interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domi¬
cile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Com¬
pany changes its assessment of whether it will exercise an extension or a termination option. Lease liability and ROU assets
have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
38. Segment Reporting
On standalone basis, segmental revenue is 100% from Digital transformation services.
39. Contingent liabilities
Contingent liabilities as at 31-March-2025 are Nil (previous year-Nil).
40. In the opinion of the management the sum of ? 3,90,39,482 due from Enterprise Consulting Partner, Inc is overdue but
good and recoverable, since the said entity is also having due of sum of ? 4,27,90,000 (USD 500000) in Kellton Tech Inc,
subsidiary company. The balance due of ? 37,50,518 is good and recoverable.
41. As at March 31, 2025, the Company held only raw materials as inventory. The inventories are valued at the lower of cost and
net realizable value, and cost is determined using the FIFO method.
45. Other statutory Information:
a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
b) The Company does not have any charges or satisfaction of charges which is yet to be registered with ROC beyond the
statutory period.
c) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
d) The Company has not received any fund from any person(s) or entity(is), 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.
e) Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other per¬
sons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b)
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f) The Company does not have any 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 sur¬
vey or any other relevant provisions of the Income Tax Act, 1961.
g) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the
Reserve Bank of India.
h) The Company has complied with the number of layers for its holding in downstream companies prescribed under
clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules,
2017.
i) The Company does not have any transaction which is not recorded in the books of accounts that have been surren¬
dered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
j) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year
k) The company is not having any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of the Companies Act, 1956.
As per our report of even date
For ANANT RAO & MALLIK For and on behalf of the Board of Directors
Firms' Registration Number: 006266S
Chartered Accountants
Sd/- Sd/- Sd/-
V.ANANT RAO Niranjan Chintam Krishna Chintam
Partner Chairman & CFO Managing Director & CEO
M No. 022644 DIN: 01658591 DIN: 01658145
UDIN :25022644BMJUSP6486
Sd/-
Rahul Jain
Place : Hyderabad Company Secretary
Date : 30.05.2025 M No. A62949
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