m) Provisions, Contingent Liabilities and Contingent Assets :
The Company recognises provisions when there is present obligation as a result of past event and it is probable that there will be an
outflow of resources and reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is
material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax
discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the
liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at
each reporting date and are adjusted to the reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent Liabilities are also disclosed when
there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent assets are not recognized in financial statements since this may result in the recognition of income that may never be
realised.
n) Financial instruments:
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss.
A. Financial assets
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset
in order to collect contractual cash flows 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.
(ii) 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 within a business model
whose objective is achieved by both 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 case where the company has made an irrevocable selection 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.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.
(iv) The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair
valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount
equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL,
unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The
amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is
required to be recognised is recognized as an impairment gain or loss in statement of profit or loss.
B. Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial Liabilities
Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised
cost, using the effective interest rate method where the time value of money is significant.
Interest bearing bank loans, overdrafts and unsecured loans are initially measured at fair value and are subsequently measured at
amortised cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the
settlement or redemption of borrowings is recognised over the term of the borrowings in the statement of profit and loss.
Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it
transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial
liability) is derecognized from the Company's balance sheet when the obligation specified in the contract is discharged or cancelled or
expires.
Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on
market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash
flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general
approximation of value, and such value may or may not be realized.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the Standaloene balance sheet where there is a legally
enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the
liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
Contingency Reserve
The Company transfers to Contingency Reserve out of the Surplus in the Statement of Profit and Loss, such amounts as the
Management considers appropriate based on their assessment to meet any contingencies relating to substantial expenditure
incurred during the maintenance period of a contract, non-realisation of contract bills earlier recognised as income and claims, if any,
lodged by the contractees or by sub-contractors or by any third party against the Company in respect of completed projects for which
no specific provision has been made.
o) Earnings Per Share :
The basic earnings per share is computed by dividing the profit/(loss) for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share,
profit/(loss) for the year attributable to the equity shareholders and the weighted average number of the equity shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares.
p) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with
an original maturity of three months or less), highly liquid investments that are readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.
q) Transactions in Foreign Currencies:
The Stadalone financial statements of the Company are presented in Indian rupees ('), which is the functional currency of the
Company and the presentation currency for the financial statements.
Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction.
Foreign currency monetary assets and liabilities such as cash, receivables, payables, etc., are translated at year end exchange rates.
r) Segment Reporting - Identification of Segments:
The company's corporate strategy aims at creating multiple drivers of growth anchored on its core competence. The company is
currently focused on two segments. The business segments comprise the following:
(i) Software services : Software development and maintenance services
(ii) Real Estate: Revenue from Sale of flats
s) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic
benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for leases with a term of twelve 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.
As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term
on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract
will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements
undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company's
operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term reflects the current economic circumstances.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use 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.
Right-of-use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit
(CGU) to which the asset belongs.
The lease liability is initially measured 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 domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows.If modifications or reassessments occur, the lease liability and right of use asset are re-measured. Right of use
assets are depreciated over the shorter of the useful life of the asset or the lease term.
t) Impact of COVID-19 Key accounting judgements, estimates and assumptions.
The threats posed by the coronavirus outbreak are multifold. In many countries, businesses have been forced to cease or limit their
operations for long or indefinite periods of time. Even in India the outbreak has been declared epidemic and on March 24, 2020, the
Government of India ordered a nationwide lockdown, limiting movement of the population of India as a preventive measure against
the COVID-19 pandemic. As a result, most businesses throughout the world are dealing with lost revenue and disrupted supply
chains. The disruption to global supply chains due to factory shutdowns has already exposed the vulnerabilities of many
organizations.
The Company considered the uncertainty relating to the COVID-19 pandemic in assessing the recoverability of receivables, goodwill,
intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of
information up to the date of approval of these financial statements. The Company has also used the principles of prudence in
applying judgments, estimates and assumptions including sensitivity analysis. Based on its current estimates, the Company expects
to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets.
As the outbreak continues to evolve, the Company will continue to closely monitor any material changes to future economic
conditions.
The preparation of the Financial Statements required the Management to exercise judgements and to make estimates and
assumptions. The Management has considered the possible effects, if any, that may result from the pandemic relating to COVID-19
on the carrying amounts of its assets. In developing the assumptions and estimates relating to the uncertainties as at the Balance
Sheet date in relation to the recoverable amounts of these assets, the Management has considered the global economic conditions
prevailing as at the date of approval of these financial statements and has used internal and external sources of information to the
extent determined by it. The actual outcome of these assumptions and estimates may vary in future due to the impact of the
pandemic.
u) Recent Accounting Pronouncements.
ministry of corporate affairs (MCA) notifies new standards or amendments to the existing standards under companies (Indian
Accounting Standards) Rules are issued from time to time. For the year ended March 31,2025 , MCA has not yet notified any new
standards or amendments to the existing standards applicable to the company.
( c) Terms/Rights attached to equity shares
The company has only one class of equity shares having a face value of Rs. 10/- each. Each holder of equity share is entitled to
one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the
company, the equity shareholders 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.
Nature and purpose of other reserves
(i) Capital reserve
Capital reserve is a sum earmarked for specific purposes or long-term projects or mitigating capital losses or any other long-term
contingencies.
(ii) Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Act.
(iii) Translation Reserve
The exchange differences arising from the translation of financial statements of Foreign operations with functional currency other
than Indian rupees is recognised in Other Comprehensive Income and presented with equity in the Foreign Currency translation
reserve.
(iv) Money Received against Share Warrants
During the year, the Company has issued NIL-share Warrants ( Previous year 13,20,000 ) to Promoters and the company has
converted the shares for the NIL share warrants in to equity during the year ( Previous Year Allotment 6,70,000).
(iii) Post- employment obligations
a) Gratuity:
The Company provides for gratuity for employee's as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on
retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied
for the number of years of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit
Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.
36. Financial risk management
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and
credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the
financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include
loans and borrowings, trade receivables and trade payables.
(i) Foreign Currency Risks:
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.
(B) Credit Risk
Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non¬
current held-to maturity financial assets.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit
Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant
factors. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.
The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances and bank deposits represents
company's maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk.
Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and
others.
The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including default risk associate with
the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating
scorecard and individual credit limits are defined in accordance with this assessment.
An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number
of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to
credit risk at the reporting date is the carrying value of each class of financial assets.
i. Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invest in deposits with
banks with high credit ratings assigned by external agencies.
ii. Credit risk on trade receivables and other financial assets is evaluated as follows:
(iv) Significant estimates and judgements
Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss
rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on
the company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due
and to close out market positions. Company's treasury maintains flexibility in funding by maintaining availability under deposits in
banks.
37. Capital management
Capital management and Gearing Ratio
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders. The primary objective of the company's capital management is to maximise the
shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company
includes within debt, interest bearing loans and borrowings.
41. Additional disclosure under the regulatory requirements:
(i) There are no proceeding initiated or pending against the Company as at 31 March 2025 and as at 31 March 2024, under
Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016).
(ii) The Company is not declared a wilful defaulter by any bank or financial institution or other lender.
(iii) The Company has no such transaction which is not recorded in the books of account 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).
(iv) The Company have not advanced or loaned or invested funds (either from borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (intermediaries) with the
understanding that the intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(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 entered
into any transaction with the companies struck off as per Section 248 of the Companies Act, 2013 or Section 560
of the Companies Act, 1956.
(vii) The Company has not traded or invested in crypto or virtual currency during the current year and previous year.
(viii) There are no Loans or Advances except as disclosed in note 12, in the nature of loans are granted to promoters, directors,
KMP's and the related parties (as defined under the 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.
(ix) Compliance with number of layers if companies prescribed under clause (87) of Section 2 of the Companies Act, 2013
read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
(x) The Company has not borrowed any money from banks or financial institutions on the basis of security of current assets
during the current year and previous year.
(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
(xii) There is no dividend declared by the Company during the current year and preceding year.
42. There is a pending legal dispute against the immovable property located at Manikonda village, Ranga Reddy Dist. However the
Company is of the hope in resolving the matter positively.
43. Previous year's figures have been regrouped/reclassified/recasted wherever necessary to confirm to the current year's
presentation.
44. The Company did not have any long-term contract including derivative for which there were any material foreseeable losses.
45. All amount less than INR 0.01 have been disclosed as INR 0.00.
As per our report of even date For and on behalf of the Board
For RAMANATHAM & RAO
Chartered Accountants
Firm Rf^sfraton. No. °°2934S M. SATYENDRA M.SUNITHA
Chairman & Managing Director Director
VTl.KSHMI PRASANNA A 01843557) (DIN*™2,,
Partner
M.No.243569 Sd/- Sd/-
J V RAMAKRISHNA DIVYA AGRAWAL
Place: Hyderabad CFO Company Secretary
Date: 24.05.2025 (M NO: 48143)
UDIN: 25243569BMMIPH1479
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