2.17 Provisions, Contingent Liabilities and contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes on accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

2.18Tax Expenses:

Tax expense for the year comprises current tax and deferred tax. Tax is recognized in Statement of Profit and Loss except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

Current Tax

Current tax assets and liabilities are measured at the amounts expected to be recovered from or paid to the taxation authorities, based on the tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

2.19 Financial Instruments:

As per Ind AS 109, Financial Instruments, all financial assets and liabilities are recognized at fair value on initial recognition, expect for trade receivables which are initially measured at transaction price. Financial assets are subsequently measured at amortized cost, fair value through profit or loss or fair value through other comprehensive income as the case may be.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest method less impairment losses, if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value

Financial assets not measured at amortised cost are carried at fair value through profit or loss (FVTPL) on initial recognition, unless the company irrecoverably elects on initial recognition to present subsequent changes in fair value in 'other comprehensive income' for investment in equity instruments which are not held for trading.

The Company, on initial application of IND AS 109 Financial instruments, has made an irrevocable election to present in 'other comprehensive income', subsequent changes in fair value of equity instruments not held for trading.

Financial asset at FVTPL, are measured at fair values at the end of each reporting period, with any gains or losses arising on remeasurement recognized in the Statement of profit or loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest rate method or at FVTPL. For financial liabilities carried at amortised cost, the carrying amounts approximate fair values due to the short term maturities of these instruments. Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised in a business combination, or is held for trading or it is designated as FVTPL. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in in the Statement of profit and loss.

13.5 Nature and Purpose of Reserves

(a) Capital Reserve:

The amount of Rs.44.86 lakhs on Preferential Warrants convertible to equity shares and forfeited of other equity shares amounting to Rs.2.00 lakhs are recognised under Capital Reserve.

(b) Share Premium:

Share Premium Reserve is to record the premium on issuse of shares. The Reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

(c) General Reserve:

General Reserves represent amounts transferred from retained earnings in earlier years under the provisions of the erstwhile Companies Act, 1956. Mandatory transfer to genreal reserve is not required under the Companies Act, 2013.

(d) Retained Earnings:

These are the accumulated earnings after appropriation of total comprehensive income and related transfers.The Company uses retained earnings in accordance with the provisions of the Companies Act.

(e) Other Comprehensive Income:

Re-measurements of Non- Current Investments (Mutual Funds) valued at Fair Value, net of Income Tax.

34. Other Statutory Information:

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

ii) The Company does not have any transactions with companies struck off.

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

iv) The Company has not traded or invested in Crypto currency or Virtual currency during this financial year.

v ) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

vi) The Company has not utilized short term funds for long term users.

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

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

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

viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

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

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

ix) The Company has not any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

35. Figures have been rounded off to the nearest rupee in Lakhs.

36. Reclassification:

Previous years' figures have been recast / restated wherever necessary.

Note 1 to 36 form part of the Balance Sheet and have been authenticated.

In terms of our report attached for and on behalf of the Board

for Suryanarayana & Suresh

Chartered Accountants Murty Gudipati R S Sampath

Firm Reg. No: 006631S Managing Director & CEO Chairman

V Nagendra Rao DIN: 01459606 DIN: 00063633

Partner

Membership No.227679

Place : Hyderabad S Mohan Rao P.Jayanthi

Date : May 23, 2024 Chief Financial Officer Company Secretary