2.13.2 Rights attached to Equity Shares:

The company has one class of equity shares having a par value of Rs.10/- each. Each shareholder Is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2.13.3 Aggregate number and class of shares allotted as fully paid up for consideration other than cash, for the period of 5 years immediately preceding the Balance Sheet date: Nil

Primary Security: 100% Hypothecation of entire stock and receivables created out of bank finance (present & future)

Collateral Security:

Collateral Security:

1) Residential Flat No 401, 4th Floor, Plot No 14 & 16, Sy No 93, 94 & 95, located at S R Nagar, Hyderabad, Rangareddy, Hyderabad, Telangana -500038 (Metro), admeasuring total area : 1450 Sq, Feet, in the name of Shri V. Atchyuta Rama Raju

2) Commercial Building bearing Sy No. 619, 6th Floor, Maker Chambers, V Premises Co-op Society Ltd., Plot No.221 of Back bay reclamation, Nariman Point, Mumbai - 400021 (Metro) admeasuring total area 434 Sq.Feet in the name of M/s Reliance Tea Private Limited

3) Pledge of shares of promoters of 30% (No of shares pledged 67,68,550/-)

Personal Guarantee / Corporate Guarantee:

1. Shri V.Atchyuta Rama Raju, MD, S/o. Late V. Venkata Satynarayana Raju

2. Smt. V. Parvathi, Executive Director, W/o. Sri V. Atchyuta Rama Raju

3. Corporate Guarantee of M/s Reliance Tea Private Limited

Working Capital Term Loan (GECL) from State Bank of India:

Rate of Interest: 7.40%

Repayment: Moratorium period of 12 months and repayment of principal will commence after 12 months moratorium from the date of disbursement. It is repayable in 36 equated monthly instalments of Rs 4,19,445/- each commencing from Nov'21, balance of instalments being is 19 as on 31st March 2023.Fully paid in Jan 2024.

Working Capital Term Loan (GECL1.0 Ext Limit) from State Bank of India:

Rate of Interest: 7.40%

Repayment: Moratorium period of 24 months and repayment of principal will commence after 24 months moratorium from the date of disbursement. It is repayable in 36 equated monthly instalments of Rs 2,58,334/-each commencing from Jan'24. Loan was fully paid in Jan 2024

Bank Guarantee (BG) Facility from State Bank of India:

BG Limit of INR 200 lakhs (previous year - INR 506 Lakhs)

BG Commission Rate: Performance BG - 1.90% GST, Financial BG - 2.20% GST BG Issued will be valid till the date of expiry or till the date of revocation Security: As applicable to Cash Credit Limit, which is detailed above.

Bajaj Finance Limited (Unsecured)

Type Facility: Hybrid Flexi Business Loan (Working Capital Loan)

Rate of Interest: 18.00%

Repayment: It is repayable in 84 months with 12 month of moratorium period monthly instalments of Rs. 77,607/- each commencing from June'2022. Pending instalments - 38 (previous year 50)

Security: Unsecured

In accordance with the provisions of Ind AS 24 "Related Party Disclosures" and the Companies Act, 2013, Company's Directors, members of the Company's Management Council and Company Secretary are considered as Key Management Personnel. List of related parties of the company are given below:

The Company concluded that there is only one operating segment i.e., IT related services. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entitywide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108, to the extent applicable.

Note No 2.35: Employee BenefitContribution to provident Fund

The employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and employer each make monthly contributions to a government administered fund equal to 12% of the covered employee's qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs. 3.77 Lakhs and Rs. 3.76 Lakhs to the provident fund plan during the years ended 31st March 2023 and 2024, respectively.

Note No 2.36: Income Taxesa. Income tax expense/ (benefit) recognized in the statement of profit and loss:

Income tax expense/ (benefit) recognized in the statement of profit and loss consists of the following

The Company has evaluated the impact of Ind AS 116 on the financials. As per the terms and conditions stipulated in the lease deeds, the termination option is available with both lessor and lessee leading to the same being treated as short term and impact charged to "Rent Expenses" (Refer Note No 2.28)

Note No 2.39: Financial Risk Management

The Company's activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company's risk assessment and management policies and processes.

a. Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables and investments.

Trade Receivables - The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The total trade and other receivables impairment loss is provided Rs. NIL as at 31st March 2024 and NIL at 31st March 2023. On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, the Company took into consideration the weighted average number of delays taking into consideration deviation of receivables turnover ratio from normal credit period.

The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.

Financial assets that are neither past due nor impaired - None of the Company's cash equivalents, including deposits with banks, were past due or impaired as at 31 March 2024.

Liquidity Risks:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.

As of 31^st March, 2024 and 2023, the Company has utilized working capital credit limits (fund based) from banks of Rs.9.31 Lakhs and Rs 395.39 Lakhs respectively.

As of 31 March 2024, the Company had working capital (current assets less current liabilities) of Rs. 1,109.26 Lakhs including cash and cash equivalents of Rs.44.36 Lakhs. As of 31 March 2023, the Company had working capital of Rs. 1,453.83 Lakhs, including cash and cash equivalents of Rs. 82.81 Lakhs.

Market Risks:

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company's financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

Currency Risk

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. The company mitigates the currency risk with natural hedge arising on export of goods and services.

CAPITAL MANAGEMENT

The Company's objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.

The company has filed an appeal with CIT(A), Income Tax Department for AY 2017-18 on January 21, 2020 against tax demand of INR 86.38 lakhs against the order u/s 143(3) of the Income Tax Act, 1961 dated December 22, 2019, passed by the Assistant Commissioner of Income Tax, Circle-13(3)(2), Mumbai. The company received an order dated February 19, 2024 under Section 250 of the Income Tax Act, 1961 after appearing on various dates and providing of information as requested where the order stated that ""order of AO is upheld and all the grounds of the company are noted as dismissed.

Aggrieved by the order, the company has filed appeal with Income Tax Appellate Tribunal, Mumbai Benches, Mumbai on April 13,2024. The matter is pending for decision as on the date of signing of these financials.

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Note No 2.42: Exceptional items

The Company during the year ended March 2024 has sold land at Izzathnagar, which has resulted in profit and the same is shown as exceptional item.

Note No 2.44E: Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken

Note No 2.44F: Borrowing secured against current assets

The company has availed the borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks are in agreement with the books of accounts.

The difference is mainly because the bank doesn't finance debtors with ageing above 90 days and also there is income accrued but not due on which the bank doesn't finance loan and as such the same was not reported in the statement submitted to bank. With regards to inventory there has been differences due to non-updation of the workings and error in formula in the reports submitted to banks, leading to difference.

Note No 2.44G Relationship with struck off companies

The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013

Note No 2.44H Registration of charges or satisfaction with Registrar of Companies (ROC)

During the year, the company has modified the Charge (ID: 10170092) which was created in favour of State Bank of India, on account of downward revision in the credit facilities from Rs.11.08 Crores to Rs.2.10 Crores. Further, The Company has sold its freehold immovable property (land) admeasuring 450.0 Sq. yards or 376.20 Sq. Meters situated at Izzathnagar Village, Hyderabad through sale deed dated 08.01.2024.

For the unsatisfied charges please refer the below table:

Note No 2.44I: Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.

Note No 2.44J: Title Deeds of Immovable Properties

Land was sold in FY 2023-24, which is also shown as an exceptional item (refer note 2.42). As on the reporting date there is no immovable property present in the books of the company as such reporting under this clause is not applicable.

Note No 2.44K: Valuation of Property Plant & Equipment, Intangible Asset

The company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

Note No 2.44L: Loans or advances to specified persons

No loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

Note No 2.44M: Details of benami property held

No proceedings have been initiated on or pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

Note No 2.44N: Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

Note No 2.44O: Compliance with number of layers of companies

The company has complied with the number of layers prescribed under Section 2(87) of Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

Note No 2.44P: Details of Crypto currency or virtual currency

The company has not traded or invested in Crypto Currency or virtual currency during the current or previous year Note No 2.44Q: Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities ("intermediaries") with the understanding, whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the company (Ultimate beneficiaries). The company has not received any fund from any party (Funding Party) with the understanding that the company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note No 2.44R: Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.