8.1 Of the receivables, as on the date of these financials, INR 16,876 in thousands represents dues towards supply of software and related services rendered to Genexx Private Limited, Nopal which Is an export receivable in Indian Rupees. As U«e hApuil ui service was on benati ot M/S fetatro Limited, uk, the same has been assigned to that entity as per the Receivable Transfer Agreement dated 2nd February 2024 between I'elahu Limited, UK, (Jt-neAA l’vl. Ltd. and Pelatro t imbed India The management is confident of realising the entirp dues from this entity in the financial vear 2024-25 and accordingly, no provision is considered necessary in respect of these amounts. As the assigned receivables are in respect of Export of Services to Nepal, it is opined that there is no lequlieuient ul declaiatiuu oi vApoils/iepuilmg lu lcgulalwiv Mullioidics lor the delayed realization ol export pfOCCCdO and no restrictions for uitigiumml of dues.

8.2 In determining the allowance tor doubtful trude receivables, Ihe Company has used a piadical OApodlent by computing the expected credit allowance fui trade receivables based on a provision matrix. Ihe provision matrix takes into account historical credit loss experience and is adjusted lor forward looking information. The expected credit loss allowance Is based on the ageing ul the ivceivables that aie due and iales used in the provision matrix. Tills Is not applied to receivables that are due from holding company and its subsidiaries.

(b) Detail of the rights, preferences and restrictions attaching to each class of shares outstanding Equity shares of Rs. 100/- each:

The Company has only one class of equity shares, having a par value of Rs.10/-. The holder of equity shares is entitled to one vote per share. In the event the Company plans any dividend payments, the same will be declared and paid in Indian rupees. Any such dividend proposed by the Board of Directors will be subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution to all other parties concerned. The distribution will be in proportion to number of equity shares held by the shareholders.

Nature of CSR activities:

Contribution to Indian Institute of Technolog}' (IIT) - Madras

Note: Cons£que*tf*4p Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022 dated 20 Septemb^SS§24l^^H]’^any is not required to spend any sum towards CSR duting the year.

34 Earnings Per share

Hasir l-I^S. amounts are calculated by dividing the profit for the year attributable to equity holders bv the weighted aveiage numbei of equity shares outstanding during the year.

Diluted UPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number ot equity shares outstanding during lire vear plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

37. Employee benefit plans 37.1 Defined contribution plans

The employees of the Company are members of a state-managed retirement benefit plan operated by the government. The Company is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund tire benefits. The only obligation of the Company with respect to the retirement benefit plan is to make the specified contributions.

37.2 Defined benefit plans

The Company provides for gratuity' for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service of 5 years are eligible for gratuity under this Act. The amount of gratuity payable on termination / retirement is the last drawn basic salary per month of the employee proportionate for a period of 15 days per completed year of sendee. During the year 2017, the Company had constituted a Group Gratuity Trust and the above liability is funded through the Group Gratuity' Trust with Life Insurance Corporation of India.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability' recognised in the balance sheet.

38. Segment reporting (a) Operating segment

Ind AS 108 'Operating Segments' (Mnd AS 108’) establishes standards for the way that business enterprises report information about operating segments and related disclosures about revenue, geographic areas and major customers. Based on the 'management approach' as defined in Ind AS 108, the Managing Director monitors and reviews the operating results of the Company as one segment i.e., 'Software Solutions for various aspects of Precision Marketing'. Since the entire business falls within a single operational segment, these restated consolidated and standalone financial information are reflecting the information required by Ind AS 108

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company’s operations. The Company's principal financial assets include trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. Tire Company's senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

(i) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31, 2024 and March 31, 2023. The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt

The analysis excludes the impact of movements in market variables on the carrying values of gratuity' and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

(ii) Interest Rate Risk:

interest rate tisk is tne nsK rnar me rair vaiue or rurure casn nows oi a financial instrument wm nucruaie Decause or cnanges in mar tee t interest rates. The Company's exposure to the risk of changes in market interest rafpc rolatps primarily to the Company's short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. Tire Company does not enter into any interest rate swaps.

(iii) Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team. The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend.

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

(iv) Liquidity Risk:

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans. The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:

Note 40: Capital management

The Company's policy' is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future development of tine business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of issued share capital and all other equity reserves.

42. FIRST TIME ADOPTION OF IND AS

These financial statements are the first financial statements of the Company under Ind AS. 'Ihe accounting policies set out in Note. 2 have been applied in preparing thesp financial statements for the year ended 31st March, 2024, the comparative information presented in these financial statements for the year ended 31st March, 2023 and in the preparation of an opening Ind AS balance sheet as at 1st April, 2022 (i.e. the Company's date of transition). In preparing the opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in the financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act. An explanation of how the transition from previous GAAP to Ind AS has affected the company's financial position, financial performance and cash flows is set out in Note 42.2 and Note 42.3 hereto.

a. Tlx? transition to Ind AS was carried out from the accounting principles generally accepted in India ('Indian GAAP') which is considered as "Previous GAAP" as defined in Ind AS 101. "First Time Adoption". An explanation of how the transition to IndAS has impacted the Company's equity and profits/loss is provided in the Reconciliation of Equity as at April 1 2022 to March 31 2023 and Reconciliation of statement of profit/loss for the year ended March 31, 2023. The preparation of these Ind AS Financial Information resulted in changes to the accounting policies as compared to most recent annual financial statements prepared under Indian GAAP. The impact arising from the adoption of IndAS on the date of transition (1 April 2022) has been adjusted in other equity.

b. This note explains the principal adjustments made by the Company in transition from previous Indian GAAP to Ind AS.

42.1 Exemptions and exceptions applied

A. Exemptions

IndAS!01 First-Time Adoption allows first- time adopters certain exemptions from the retrospective application of certain requirements under IndAS. For transition to IndAS , the Company has applied the following exemptions:

(i) Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April I, 2022 (the transition date).

B. Exceptions

IndAS 101 First-Time Adoption provides first-time adopters certain exceptions from the retrospective application of certain requirements under IndAS. For transition to IndAS, the Company has applied the following exceptions:

(i) Recognition of financial assets and liabilities

The Company has recognised financial assets and liabilities on transition date which are required to lx? recognised by IndAS and were not recognised under previous GAAP

(ii) Classification and measurement of financial assets

IndAS 101 requires that an entity should assess the classification of its financial assets on the basis of facts and circumstances exist on the date of transition. Accordingly, in its Opening Ind /\S Balance Sheet, the Company has classified all the financial assets on basis of fads and circumstances that existed on the date of transition, i.e. April 1,2022.

(iii) Impairment of financials assets

The Company has applied the impairment requirements of IndASl09 retrospectively; however, as permitted by IndASlOl, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the dale that financial instruments were initially recognised in order to compare It with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to IndASs, whether there have been significant increases in credit risk since initial recognition, as permitted bv Ind AS 101.

(iv) Estimates

The entity's estimates in accordance with IndAS at the date of transition to IndAS shall be consistent with estimates made for the same dale in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

IndAS estimates as at April 1, 2022 are consistent with the estimates as at the same date made in conformity with previous GAAP except for the following items where application of Indian GAAP did not require estimation

Notes to first time adoption:

A Leases - Company as Lessee

Jnd AS 116 requires the company to recognises right-of-use asset representing its right to use die underlying asset for the lease term at the lease commencement date. The right-of-use asset is depreciated using the straight-line method from the commencement date over die shorter of lease term or useful life of right-of-use asset.

The receipts from the lessee are structured to increase in line with expected general inflation to compensate for the lessor's expected inflationary cost increases. Lease payments are apportioned between finance costs and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of die liability. Finance costs are recognised in statement of profit and loss over die lease period.

Consequent to this change, right-of-use asset for INR 2336.16’Ihs has been created with a corresponding credit to Lease Liability as at 31 March 2023. The profit for die year and total equity as at 31 March 2019 decreased by INR 977.02Ths due to amortisation of right-of-use asset & finance cost of INR 164.12Ths.

B Borrowings

lnd AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the earning amount of borrowings on initial recognition. These costs are recognised in die profit or loss over die tenure of the borrowing as part of the interest expense by applying die effective rate of interest.

Under previous GAAP, Uiese transaction costs were charged to statement of profit and loss as and when incurred. Consequently borrow'ings as at 31 March 2019 have been reduced by INR 1005Ths with a corresponding adjustment to processing fee and rates & taxes. The interest cost on borrowings is charged to Profit & LossioriNR644.34Ths _____

C Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31,2019 decreased by 1NR 167.96 Tits.

D Deferred tax

Adjustments to deferred tax reflect changes in other equity consequent to the above lnd AS adjustments.

E Other equity

Ollier equity as at April 1,2022 and March 31,2023 has been adjusted consequent to the above Ind AS transition adjustments.