x) Provisions:

Provisions are recognised when there is a
present legal or constructive obligation that
can be estimated reliably, as a result of a
past event, when it is probable that an
outflow of resources embodying economic
benefits will be required to settle the
obligation and a reliable estimate can be
made of the amount of the obligation.
Provisions are not recognised for future
operating losses. Any reimbursement that
the Company can be virtually certain to
collect from a third party with respect to the
obligation is recognised as a separate asset.
However, this asset may not exceed the
amount of the related provision.

y) Contingencies:

Where it is not probable that an inflow or an
outflow of economic resources will be
required, or the amount cannot be
estimated reliably, the asset or the
obligation is not recognised in the statement
of balance sheet and is disclosed as a
contingent asset or contingent liability.
Possible outcomes on obligations / rights,
whose existence will only be confirmed by
the occurrence or non-occurrence of one or
more future events, are also disclosed as
contingent assets or contingent liabilities.

z) Prior period items:

In case prior period adjustments are
material in nature the Company prepares
the restated financial statement as required
under Ind AS 8 - "Accounting Policies,
Changes in Accounting Estimates and
Errors". Immaterial items pertaining to
prior periods are shown under respective
items in the Statement of Profit and Loss.

31. Quantitative Details:

The Company is engaged in providing digital marketing services, development of Computer Software and services. The
production and sale of such digital marketing services and software development services cannot be expressed in any
generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under
Paragraphs 5 (viii)(c) of general instructions for preparation of the Statement of Profit and Loss as per Schedule III to
the companies Act,2013.

32. Related Party Transactions:

During the financial year 2024-25 the Company has entered into some transactions, which can be deemed as related
party transactions. All these matters have been approved by the Board , wherever necessary.

33. Lease:

The company’s lease asset classes primarily consist of leases for land and buildings. Effective April 1, 2019, the company
adopted Ind AS 116, Leases and applied the standard to applicable lease contracts. On the adoption of the new standard
resulted in the recognition of ROU asset of Rs. NIL, and a lease liabilities of Rs.NIL at a standalone level. The effect of this
adoption is insignificant on the operating profit, net profit for the period and earnings per share

receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments.

The Company considers a counterparty who fails to pay according to the contractual terms or obligations as a defaulted
party. This is based on considering the market and economic forces in which the entities in the company’s are operating.
The Company creates provision for the amount if the credit risk of counter-party increases significantly due to its poor
financial position and failure to make payment with in the due date. In calculating expected credit loss, the Group has
also considered historical pattern of credit loss, the likelihood of increased credit risk and consequential default.

Trade receivables as contract asset:

The customer credit risk is managed by the Group’s established policy, procedures and control relating to customer
credit risk management. Before accepting any new customer, the Company uses an internal credit scoring system to
assess the potential customer's credit quality and defines credit limits by customer. Limits and scoring attributed to
customers are reviewed on periodic basis. Outstanding customer receivables are regularly monitored. The Company
receivables turnover is quick and historically, there were no significant defaults. Ind AS requires an entity to recognize in
profit or loss, 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 in accordance with Ind AS 109. The Company assesses at
each date of statements of financial position whether a financial asset or a Company of financial assets is impaired.

B. Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities.

C. 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 three types of risk: interest rate risk, currency risk and other market
changes. Financial instruments affected by market risk include loans and borrowings and deposits.

- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
change in market interest rates. The Compan/s exposure to the risk of changes in market interest rates is negligible.

- Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates
primarily to the Company operating activities (when revenue or expense is denominated in a foreign currency).

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and
other comprehensive income and equity, where any transaction references more than one currency or where
assets/liabilities are denominated in a currency other than the functional currency of the respective entities.

50. The figures of previous year have been regrouped wherever necessary.

51. SEBI passed a final order, WTM/AN/CFID/CFID_4/31187/2024-25 dated February 6, 2025 with regards to "Impairment of
assets” case. A writ petition was filed by the company challenging the SEBI order which imposed penalties under various
provisions of the SEBI Act and the Securities Contracts (Regulation) Act. The High Court, upon perusal of the material on
record, observed that there is no substantive evidence to justify the quantum of penalty imposed. Consequently, the
Hon'ble Court has directed an interim suspension of the recovery of the penalty and the remaining provisions of the
order dated 06.02.2025 are pending adjudication. SEBI had passed a different interim order on 22nd August, 2023, and
later passed confirmatory order on 28th Feb, 2024 on certain other matters. The conformity order has been appealed by
the company in SAT through appeal number 474 of 2024.The same is pending in SAT.

52. As referred in point no 177(g)(ii) of SEBI’s interim order cum show cause notice dated 13th April 2023, the internal team of

the company conducts and ensures the adequacy of internal audit function of the company.

53. The figures have been rounded off to the nearest lakhs and decimals thereoff.

As per our report of even date For and on behalf of the Board of

For P Ravi Chandra, BRIGHTCOM GROUP LIMITED

CHARTED ACCOUNTANTS
FRN: 018985S

P Ravi chandra M Suresh Kumar Reddy Raghunath A

Partner Chairman & Managing Director Executive Director

Membership Number: 230754 DIN: 00140515 DIN: 00060018

UDIN:25230754BMKULB4271

PLACE: HYDERABAD P LEO Ganesan

DATE: 01-09-2025 Director

DIN: 08983194