o) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event. It is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. If the effect of the time value of money is material, provisions are discounted using
equivalent period government securities interest rate. Unwinding of the discount is recognised in the
statement of profit and loss as a finance cost. Provisions are reviewed at each balance sheet date and
are adjusted to reflect the current best estimate.

Contingent liabilities are 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 or 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. Information on contingent liability is
disclosed in the Notes to the Financial Statements.

Contingent assets are not recognised. However, when the realisation of income is virtually certain,
then the related asset is no longer a contingent asset, but it is recognised as an asset.

p) Segment Reporting

An operating segment is a component of the Company that engages in business activities from which
it may earn revenues and incur expenses, whose operating results are regularly reviewed by the
company's chief operating decision maker to make decisions for which discrete financial information
is available. Based on the management approach as defined in Ind AS 108, the chief operating decision
maker evaluates the Company's performance and allocates resources based on an analysis of various
performance indicators by business segments and geographic segments.

The activities of the Company can be broadly classified into two segments, viz., Internet Service
Provider (ISP), Manufacturing of Bio Diesel. The ISP division provides Internet Bandwidth to the
Corporate Clients, Operators, Educational Institutions, Cyber Cafes, & Individual etc. The Bio Diesel
division manufactures the Bio Diesel.

Income and direct expenses relation to segments are categorized based on items that are individually
identifiable to that segment, while the remainder of cost is apportioned on appropriate basis. Certain
expenses which are not specifically allocable to individual segments as the relevant services are used
interchangeably. The company therefore believes that it is not practical to provide segment
disclosures relating to such expenses. Accordingly, they are separately disclosed as unallowable and
directly charged against total income.

Detailed Segment wise Information are mentioned in Note No 36 of Financial Statements.

q) Related Party Disclosures

A summary of the related party transactions entered into by our Company, as per Ind AS 24 - Related
Party Disclosures are detailed in Note No 37 of Financial Statements.

Note 38: Legal Cases filed by the Company

a. Company Filled Case Against Bank of India regards to the certain refunds of Rs. 27,74,327 /- and Improper
reporting with Credit Agencies, Non Removal of Mortgage of Company Assets etc., with ref of IA (IBC)/320/2021,
CP(IB) No.343/7/HDB/2018.

b. Company Paid towards Electricity Department of APEPDCL to an amount of Rs. 29,69,421 / - towards earlier dues
prior to E-Auction period which were treated as Conditional Deposit.

c. Company Filed Writ Petition in High Court of Andhra Pradesh of Amaravathi. The Company paid deposit to an
amount of Rs. 20.00 Lakhs without prejudice to his contention that no amount is payable., there shall be interim
direction to the APIIC & APSEZ (APIIC - Visakhapatnam) to issue a “No Objection Certificate" for allowing the
Company operations.

d. Before Liquidation proceedings - Dy. Controller of Communication Accounts (LF), Hyderabad with “subject:

SHORT PAYMENT OF QUARTERLY LF Dated: 25th July, 2017" on 29th July, 2017. Accordingly, to them Under
Erstwhile Management, Company made short payments of quarterly license fee @8% Rs.98,50,849/- against
Pass through charges claimed by Company to the tune of Rs.12,31,35,614/-. The said department communicated
to Company to pay Rs.98,50,849/- along with applicable Interest against the same. Company approached The
Hon'ble TDSAT vide Telecommunication Petition No. 77 of 2017. The Hon'ble TDSAT through an interim order
declined to stop DOT from taking any cohesive steps like en-cashing the bank guarantees given by SBTL to DOT
unless Company pay 50% of the amount demanded by DOT until the matter is decided by The Hon'ble TDSAT.
DOT has en-cashed the said bank guarantee. However, Company approached the Hon'ble Delhi High court
against the interim order of The Hon'ble TDSAT.

Later Hon'ble NCLT, Hyderabad bench on 16th July, 2019 passed an order in IA No. 565/2019 preferred by the
resolution professional for liquidating the Company by appointing Mrs. CA G Kalpana as Liquidator of the Company.
Thereafter the Company was sold to Dr. Devaiah Pagidipati as a going concern which was approved by Hon'ble NCLT
vide its Order dated November 26, 2019.

The said NCLT Passed orders stating that in the interim Order CP(IB)343/7/HDB/2018, Page No 3, 2 (d), IA.No
1038/2019 in CP(IB) No 343/7/HDB/2018 stating that “A Direction be issued that the cases pending / decreed against
the Corporate debtor by any court and / or tribunal and / or any quasi - judicial authority will not be enforced against
the applicant or the corporate debtor" The same representation has been shared to the Competitive Authorities &
DOT and waiting for their reply.

Note 40: Previous period figures have been regrouped, wherever necessary, for the purpose of comparison
Note 41: Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on May 30, 2024
As per our report of even date

For Darapaneni and Co., For Southern Online Bio Technologies Limited

Chartered Accountants
FRN: 000685S

Sree Rama Chandra Murthy Ch Dr. Pagidipati Devaiah Mr. Brij Mohan Venkata Mandala

Partner Chairman & Managing Director Director

Membership No: 233010 (DIN: 05147621) (DIN: 00295323)

Place: Hyderabad Mr. U U V Ravikanth Mr. R Naresh Babu"|02

Date : May 30, 2024 Chief Financial Officer Company Secretary