1.13 PROVISIONS AND CONTINGENCIES

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may
probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained
with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of
resources is remote, no provision or disclosure is made.

1.14 CASH AND CASH EQUIVALENTS

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other
short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an
insignificant risk of changes in value where original maturity is three months or less.

1.15 CASH FLOW STATEMENT

Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the
transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments
and items of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the company are segregated.

1.16 BORROWING COST

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalized as a part of Cost of that assets, during the period till all the activities necessary to
prepare the Qualifying assets for its intended use or sale are complete during the period of time that is required to

complete and prepare the assets for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.17 EARNINGS PER SHARE

Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number
of equity shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity
shares unless impact is anti'-dilutive.

1.18 SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating
Decision Maker (CODM).

The Company has identified its Executive Director as CODM which assesses the operational performance and
position of the Company and makes strategic decisions.

1.19 EXCEPTIONAL ITEMS

When an item of income or expense within profit or loss from ordinary activity is of such size, nature or incidence that
their disclosure is relevant to explain the performance of the Company for the year, the nature and amount of such
items is disclosed as exceptional items.

31. Financial Instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly orindirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
marketdata.

34. Risk Management

Financial risk management objectives and policies

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company'sactivity expose it to market risk, liquidity risk, commodity risk and credit risk. In order to minimise any
adverse effects on thefinancial performance of the Company, The Company's financial risk management policy is set
by the Chairman along with CFOand governed by overall directions of Board of Directors of the Company.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the
price of afinancial instrument. The value of a financial instrument may change as a result of changes in the interest
rates, foreigncurrency exchange rates, equity prices and other market changes that affect market risk sensitive
instruments. Market risk isattributable to all market risk sensitive financial instruments including investments and
deposits, foreign currency receivables,payables and loans and borrowings.

A. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assesses financial reliability of customers, taking into account the financial
condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual
credit period and limits are set accordingly. The Company considers the probability of default upon initial recognition
of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting
period. To assess whether there is a significant increase in credit risk the Company compares the risk of default
occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
reasonable and supportive forwarding-looking information to decide on this such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
meet its obligations

iv) Significant increase in credit risk on other financial instruments of the same counterparty. The Company
categorises financial assets based on the assumptions, inputs and factors specific to the class of financial assets
into High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets, moderate credit risk;
Substandard assets, relatively high credit risk; Low quality assets, very high credit risk; Doubtful assets, credit-
impaired. Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor
failing to engage in a repayment plan with the Company. The Company categorises a loan or receivable for write
off when a debtor fails to make contractual payments greater than one year past due. Where loans or receivables
have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable
due. Where recoveries are made, these are recognized in profit or loss.

Information about major customers

Revenue from Software and IT enabled services to largest customers (greater than 10% of total services) is Rs. 224,683
Thousands (Previous Year Rs. 161,236 Thousands)

B. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a
reasonable price. The Company's liquidity, funding as well as settlement management processes policies and such
related risk are overseen by management. Management monitors the Company's net liquidity position through rolling
forecasts on the basis of expected cash flows.

C. Market risk-interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of
changes in market interest rates. In order to optimize the Company's position with regard to interest income and
interest expenses and to manage the interest rate risk, Company performs a comprehensive corporate interest rate
risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

D. Market risk-foreign currency risk

The Company accrue all of its revenue in US Dollars and its expenditure is incurred in the Indian Rupees. Therefore.
there is risk exposure due to adverse fluctuation of exchange rate between the US Dollar and the Indian Rupees. In
order to mitigate the risk the management tracks foreign currency movement closely.

The Company believes in conservative leverage policy. Company's moderate capex plan over the medium term shall
be largely funded through internal accruals and suppliers credit. The Company is a debt free company.

B. The Company follows the policy, as decided by Board of directors considering financial performance, available
resources, other internal and external factors and upon recommendation from Audit Committee for the declaration
of dividend.

36 Disclosure pursuant to Ind AS - 19 "employee benefits"

i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement
plan ("The Gratuity Plan") covering eligible employees. The gratuity plan provides for a lump sum payment to vested
employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or

The sensitivity analysis 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 projected 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 projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognised in the balance sheet.

Notes:

a) *During earlier years, the fair value of investments in a subsidiary i.e. HOVS LLC has decreased (due to decrease
in quoted prices of underlying investment held by the aforesaid subsidiary) and accordingly, provision of Rs.
660,770 thousands for diminution in itsvalue had been made.

b) # During the financial year 2017-18 the Company has made provision of Rs.99,089 thousands towards loan
receivable includinginterest receivable thereon from a subsidiary (HOV Environment Solutions Private Limited) in
view of the substantial slow down in itsbusiness activities. However, during the previous year ended March 31,
2024, the said subsidiary has made repayment of Rs. 20,700 thousandstowards receivable and accordingly
provision made earlier has been reversed and disclosed as an exceptional item in the statement ofprofit and loss
for the previous year ended March 31, 2024.

c) No amounts in respect of related parties have been written off/ written back during the year or has not made any
provision fordoubtful debts/ receivable except as disclosed above

41. It has only one reportable segment i.e. 'IT and IT Enabled services' in terms of requirement of IND AS 108.

42. The Company's lease assets classes primarily consist of leases for buildings.

The Company has used following practical expedient when applying IND AS 116 to leases :

(a) the Company did not recognize Right to Use and lease liabilities for lease for which the lease terms ends within
12 months on thedate of transaction and low value assets

(b) The weighted average lessee's incremental borrowing rate applied to the lease liabilities is 10% On transition to
the IND As 116, theimpact thereof is as follows :

Note :- Detail explanations for the ratios with significant changes (i.e. change of 25% or more as compared to the
immediately previous financial year) in the above mentioned ratios

(a) Due to addition in current Lease liability and increase in trade receivable due to increase in turnover.

(e) Due to increase in salaries payable for the month which is paid in next month.

(f) Due to increase in turnover compared to last year, net capital turnover ratio gone up in current year.

47. a) There are no transactions or balance with struck off companies

b) No proceeding has been initiated or pending against the Company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

e)There were no transactions relating to previously unrecorded income that have been surrendered and
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

f) The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

g) The Company has not received any fund from any person(s) or enti'ty(is), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall

(i) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

48. The Company uses TallyPrime Edit Log version, an accounting software for maintaining its books of account which has
inbuilt feature of recording audit trail (edit log) facility and the same has operated throughout the year for all
transactions recorded in the accounting software. Further the software is updated regularly, and no instance of audit
trail feature being tampered with was noted. The log feature has been activated at the application level and the access
to application continues to be restricted to limited set of users who necessarily require this access for maintenance
and administration. The database continues to be restricted to limited set of users who necessarily require this access
for posting accounting entries.

49. Previous year's figures have been regrouped/reclassified wherever necessary conform to the current year's
classification.

Signatures to Notes 1 - 49 For and on behalf of the Board

Parvinder S Chadha Sunil Rajadhyaksha

Chairman & Executive Director Executive Director

(DIN: 00018468) (DIN: 00011683)

Place : Pune Place : Pune

Date : May 30, 2025 Date : May 30, 2025

Bhuvanesh Sharma Nilesh Bafna

VP-Corporate Affairs Chief Financial Officer

& Company Secretary

Place : Pune Place : Pune

Date : May 30, 2025 Date : May 30, 2025