N. Provisions and Contingent liabilities
1. General
Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past
events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an
obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows to net present value using an appropriate pre- tax discount rate that reflects current market assessments
of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is
recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and
are adjusted to reflect the current best estimate.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Group or a present obligation that arises from past events where it is either not probable that
an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognized nor disclosed in the financial statements.
2. Restoration, expenses and handover costs:
Provision is made for costs associated with restoration, expenses & handover of projects as soon as the obligation
to incur such costs arises. Such costs are on estimate basis and they are normally incurred as and when the event
probable to the outflow of economic benefits takes shape. The costs are estimated on the basis of various reports
and estimates made by the competent personnel present and the sites and after due verification and also are based
on the amounts as prescribed in the contracts entered on earlier. The provision made for various expenses has been
estimated to such extent as required to settle the obligations. The management estimates that the settlement of the
provisions will be done in current year and hence no discounting is necessary.
O. Foreign currency translation
The functional currency for the Company is determined as the currency of the primary economic environment in which it
operates. For the Company, the functional currency is the local currency of the country in which it operates, which is Indian
Rupee.
In the financial statements of the Company, transactions in currencies other than the functional currency are translated into
the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated
in other currencies are translated into the functional currency at exchange rates prevailing on the reporting date. Non¬
monetary assets and liabilities denominated in other currencies and measured at historical cost or fair value are translated
at the exchange rates prevailing on the dates on which such values were determined.
All exchange differences are included in the Statement of Profit and Loss except any exchange differences on translation
of foreign operation which are recognized in the other comprehensive income as a part of foreign currency translation
reserve.
P. Earnings per share
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated
by dividing the profit attributable to equity shareholders of the Company by the weighted average number of equity shares
outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders
and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.
Q Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Executive Officer
i.e. CEO. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of
the segment.
Revenue and expenses, which are not allocable to segments on a reasonable basis, are included under "Unallocated
revenue/ expenses". It is practically not possible for the company to ascertain segmental assets and liabilities due to the
location and swap use of assets and some liabilities despite management's constant effort.
R Cash dividend to equity shareholders of the Company
The Company recognizes a liability to make distribution to equity shareholders of the Company when the distribution is
authorized and it is no longer at the discretion of the Company. Interim dividend is paid as and when declared by the Board.
Final dividend is paid after obtaining shareholders' approval. Dividends are paid in Indian Rupees.
During the year, the Company did not remit any dividends in foreign currency.
S. Recent accounting pronouncement
Recent accounting pronouncements Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year
ended March 31, 2026, MCA has notified below new standards or amendments:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to
classification of liabilities as current or noncurrent and non-current liabilities with covenants. In the context of classifying
a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after
the reporting date and instead requires that the said right should exist on the reporting date and have substance. The
amendment also introduces guidance on classification of liabilities with covenants. The amendments have no
impact on the Company's financial statements in its classification criteria of current and non-current liabilities.
2. Ind AS 12 - International Tax Reform—Pillar Two Model Rules:
In August 2025, the MCA notified amendments to Ind AS 12 Income Taxes in response to the OECD's BEPS Pillar Two
rules:
The amendments have no impact on the Company's financial statements as the Company is not in scope of the Pillar
Two model rules.
3. Amendment to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangement:
In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of
financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash
flows and exposure to liquidity risk. The amendments have no impact on the Company's financial statements as
there is no supplier finance agreement by company.
4. Ind AS 21 - Lack of exchangeability:
The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting Standards) Amendment Rules,
2025, which amend Ind AS 21, The Effects of Changes in Foreign Exchange Rates to specify how an entity should
assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability
is lacking. The amendments also require disclosure of information that enables users of its financial statements to
understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the
entity's financial performance, financial position and cash flows. The amendments are effective for annual reporting
periods beginning on or after April 01,2025. The amendments have no impact on the Company's financial statements.
The below amendments are notified but not yet effective
Amendment to Ind AS 1 'Presentation of Financial Statements'- Classification of Liabilities as current or non-current
and non-current liabilities with covenants:
The amendment includes specific provisions that will take effect for reporting periods beginning on or after 1 April
2026, retrospectively, as outlined below:
• Breach of material covenant for long-term loan arrangement on or before end of reporting period with effect that
liability becomes payable on demand as on reporting date, then it shall be classified as current liability, if lender
agreed after reporting period and before approval of financial statements to not demand payment as a
consequence of breach.
• Classify as non-current liability, if lender agreed by end of reporting period to provide grace period ending at least
12 months after reporting period within which entity can rectify the breach provided lender does not demand
immediate repayment
• Disclose information about the timing of settlement to understand the impact of the liability on the financial
statements.
The amendments have no impact on its operations or standalone financial statements.
Note:-
Trade Receivables of Rs.446.61 lacs (previous year 446.61 lacs) shown under non-current trade receivable (Shown in the
Balance Sheet under Non-Current Assets) relate to the Board of Secondary Education, Rajasthan (BSER) Project and are
outstanding for more than 10 years. In respect of these receivables the Company was in the Arbitration Proceedings as
directed by The Honorable Rajasthan High Court on a plea filed by the Company. The arbitration proceeding was decided in
favour of the company. The BSER then preferred an appeal with the Commercial Court. The Commercial Court has rejected
the appeal of BSER. The BSER filed an appeal with Honorable Rajasthan High Court, against the order of Honorable
Commercial Court. The Company filed its objections before the Rajasthan High Court. The Rajasthan High Court in its order
dated 4.01.22 stayed the order of Commercial Court with the condition that 50% of the amount as decreed by the Commercial
court shall be deposited by BSER with the Commercial Court and the company shall be at liberty to withdraw that amount on
the condition that if BSER succeeds in the appeal the amount shall be refunded by the company with 9% interest p.a.
Accordingly the company was received a sum of Rs. 396.44 lacs during the financial year 2021-22, and the remaining
amount of Rs. 446.61 lacs is shown above.
NOTE 30 SEGMENT REPORTING
a. Basis of segmentation
The company is engaged in following reportable segments:
i) Software development
ii) Wind power generation
iii) Learning solution
iv) Hotel
The assets and liabilities are used interchangeably amongst segments. Allocation of such assets and liabilities is not
practicable and any forced allocation would not result in any meaningful segregation. Hence, assets and liabilities have not
been identified to any of the reportable segments.
Each of the reportable segments derives its revenues from its main products and hence these have been identified as
reportable segments by the company's management. Segment profit amounts are evaluated regularly by the management,
which is regularly engaged, in deciding how to allocate resources and in assessing performance.
Introduction
The Securities and Exchange Board of India (“SEBI”) issued the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (hereinafter referred to as the 'Listing Regulations') on September 02, 2015, effective from December 01,
2015. The Regulation 21 mandate listed entities to formulate a policy on risk management. It is in the context that the policy
on risk management (“Policy”) is being framed and implemented from 11.02.2016 and approved by the board.
This policy is modified and/or amended with the approval of the Board of directors as on 29.05.2018.
Objective and purpose of policy
The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active
approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the
policy establishes a structured and disciplined approach to risk management, in order to guide decisions on risk related
issues.
The specific objectives of the Risk management policy are:
1. To ensure that all the current and future material risk exposures of the company are identified, assessed, quantified,
appropriately mitigated, minimized and managed i.e. to ensure adequate systems for risk management.
2. To establish a framework for the company's risk management process and to ensure its implementation.
3. To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices.
4. To assure business growth with financial stability.
Treasury management
The Company's treasury function provides services to the business, co-ordinates access to domestic financial markets,
monitors and manages the financial risks relating to the operations of the Company through internal risk reports which
analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value
interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.
Treasury management focuses on capital protection, liquidity maintenance and yield maximization.Day-to-day treasury
operations of the Company are managed by the finance team within the framework of the overall Company's treasury
policies. A monthly reporting system exists to inform senior management about investments, currency and, commodity
derivatives. The Company has a strong system of internal control which enables effective monitoring of adherence to
Company's policies. The internal control measures are effectively supplemented by regular internal audits.
Market risk
Market risk is the risk that the fair values of future cash flows of a financial instrument will flactuate because of changes in
market prices. Market risk comprises interest rate risk, currency risk and commodity risk.
The sensitivity analysis given elsewhere in the following sections relate to the position as at March 31, 2026 and March 31,
2025.
Financial risk
The Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest and pricing
through proven financial instruments.
a. Liquidity risk
The company requires funds both for short-term operational needs as well as for long-term investment program mainly in
growth projects. The company generates sufficient cash flows from the current operations which together with the available
cash and cash equivalents and short-term investments provide liquidity both in the short- term as well as in the long-term.
The company remains committed to maintaining a healthy liquidity, gearing ratio and strengthening the balance sheet. The
maturity profile of the company's financial liabilities based on the remaining period from the date of balance sheet to the
contractual maturity date is given in the table below. The figures reflect the contractual undiscounted cash obligations of the
company.
b. Foreign exchange risk
Fluctuations in foreign currency exchange rates may have an impact on the statement of profit and loss, where any transaction
references more than one currency other than the functional currency of the company.
The company during the year is not prone to any exchange risk as it has not entered in any foreign exchange contracts. The
difference in exchange rates on outstanding balance of sundry debtor has been duly accounted for through statement of
profit and loss.
c. Interest rate risk
The Company is exposed to interest rate risk on short-term and long-term borrowings. The Company's policy is to maintain
a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by
current market interest rates. The borrowings of the Company are denominated in Indian Rupees with mix of fixed and
floating rates of interest. The floating rate is linked to Bank's base rate. These exposures are reviewed by appropriate levels
of management on frequent basis. The Company invests cash and liquid investments in short-term deposits to achieve the
Company's goal of maintaining liquidity, carrying manageable risk and achieving satisfactory returns. The returns on these
financial assets fluctuate with interest rate movements dictated by the Reserve Bank of India (RBI), historical trends
demonstrate that these changes are minimal, thereby keeping the associated risk well within manageable limits.
d. Counterparty and concentration of credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
company. The company has adopted a policy of obtaining sufficient security, where appropriate, as a means of mitigating the
risk of financial loss from defaults. The company is exposed to credit risk for receivables, cash and cash equivalents, short¬
term investments etc. The Company is mainly engaged in projects awarded from Government of Rajasthan and derives its
key revenue from these projects. The release of funds from Government of Rajasthan depends upon availability of budget.
Consequently, the dues from the State Government may rise significantly at times. However, the company expects no major
credit risk therefore the company has not impaired any financial instruments regarding the same.
Derivative financial instruments
The company does not acquire or issue derivative financial instruments for trading or speculative purposes. The company
does not enter into complex derivative transactions to manage the treasury and commodity risks. The company is not
enrolled in any hedging contracts and is not party to any derivative financial instruments either directly or indirectly through
any party
4. Inventory Turnover Ratio: Due to reduction in average inventory.
5. Trade Receivable turnover ratio: Due to reduction in average receivables.
6. Trade Payable turnover ratio: Due to decrease in purchases.
7. Net capital turnover ratio: Due to reduction in working capital.
8. Return on quoted investment: Due to no income from investments
9. Debt/Equity ratio: Due to increase in Debts.
10 Net Profit: Due to higher net profit.
NOTE 34 ADDITIONAL REGULATORY INFORMATION
a. The company has not granted any loan or advance, in the nature of loans which are repayable on demand or without
specifying any terms or period of repayment, to KMP (as defined under companies act, 2013), either severally or jointly
with any other person.
b. No proceedings have been initiated or are pending against the company for holding any benami property under benami
transactions (prohibition) act, 1988, hence the rules specified thereunder does not apply.
c. The company is not a declared willful defaulter by any bank or financial institution or other lender.
d. The company has not been involved in any transactions with companies struck off under section 248 of the companies
act, 2013.
e. There are no charges or satisfaction yet to be registered with roc beyond the statutory period.
f. The company has complied with the number of layers prescribed under clause (87) of section 2 of the act read with
companies (restriction on number of layers) rules, 2017.
g. There are no such transactions which are not recorded in the books of account but have been surrendered or disclosed
as income during the year in the tax assessments under the income tax act, 1961.
h. The company has not traded or invested in crypto currency or virtual currency during the financial year.
i. The company has used the borrowings from banks for the specific purpose for which it was taken.
j. The company has borrowings from banks on the basis of security of current assets and statement of current assets filed
by the company with banks are in agreement with the books of accounts.
k. 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(s) or entity (ies), 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).
l. The company has not received any fund from any party(s) (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.
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