12. Provisions:
A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to its present value and are determined based on the best estimate required to settle
the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates.
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 Company. A present obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle or reliable estimate of the amount cannot be made, is also
termed as contingent liability. A contingent asset is neither recognized nor disclosed in the financial statements.
13. Employee Benefits
Short term employee benefits are recognized on an accrual basis.
Leave encashment
The Leave obligations cover the company's liability for casual leaves and earned leaves. These liabilities are treated as
current liabilities since the company has the policy to compulsorily encash the unavailed leaves at the end of quarter
in which they are credited to the employee's leave balance.
14. Post Employee Benefits:
i. Defined Benefit Plans: Gratuity, which is a defined benefit plan, is accrued based on an independent actuarial
valuation, which is done based on project unit credit method as at the balance sheet date. The Company
recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses
through re-measurements of the net defined benefit liability / (asset) are recognized in other comprehensive
income. In accordance with Ind AS, re-measurement gains and losses on defined benefit plans recognized in OCI
are not to be subsequently reclassified to statement of profit and loss. As required under Ind AS compliant
Schedule III, the Company transfers it immediately to retained earnings.
15. Earnings per share
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per shares is computed by dividing the profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per shares and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
16. Segment information:
Operating segments are defined as components of an enterprise for which discrete financial information is available
that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing
performance. The Group's chief operating decision maker is the Chief Executive Officer and Managing Director
The Group has identified business segments: 1) IT Hardware & 2) Software Development Service
Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses
which are not directly identifiable to each reporting segment have been allocated since associated revenue of the
segment or manpower efforts. All other expenses which are not attributable or allocable to segments have been
disclosed as un allocable expenses.
The assets and liabilities of the Group 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.
Note 1 : During the current period, the Company has sold 45% stake in equity of Moodscope Al Private limited and subsequently
the stake is reduced to 6% and therefore it is no longer as a subsidiary.
Note 2 : Shares held in National Stock Exchange of India are now entirely bonus shares issued by the company, and
accordingly, the cost of these shares is recorded as zero.
Note 3: During the year, the Company applied & were alloted 46,50,000 equity shares pursuant to the rights issue offered by
Shradha Realty Limited(Formerly Known as Shradha Infraprojects Limitedjat as price of Rs.40 per share amounting to
Rs. 18,60,00,000.
Note 4: As at 31 March 2026, the Company held 1,24,00,000 equity shares in Shradha Realty Limited(Formerly Known as
Shradha Infraprojects Limited). The shareholding comprises 77,50,000 bonus equity shares and 46,50,000 equity shares
subscribed pursuant to the rights issue.
Rights, restrictions and preferences attached to equity shares
i) Each shareholder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
ii) The company declares and pays dividend in Indian Rupees. The dividend proposed by Board of directors is subject to the approval of members in
the ensuing annual general meeting.
Note 14 (C): Sub Division of Equity Shares
1. The subdivision of existing equity share of face value of Rs.5/- (five) each fully paid up into equity shares of face value of Rs.2/- (two) each fully paid
up was proposed by the Board of Directors in their meeting held on Wednesday, 23rd October 2024. The members of the Company in the Extra
Ordinary General Meeting held on 19th November 2024 has approved the above sub-division and the Record date for determining the eligibility of the
shareholders for sub-division/ split of equity shares was fixed on 10th December 2024.
Notes:
1. Liabilities are very sensitive to discount rate, salary inflation and withdrawal rate.
2. Liabilities are very less sensitive due to change in mortality assumptions. Hence, sensitivities due to change in mortality are
ignored.
Impact of New Labour Code
On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code,
2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to
enable assessment of the financial impact due to changes in regulations. The Company has considered restructured compensation
of its employees with effect from April 1, 2026, and assessed the impact of the changes, consistent with the Labour Codes, draft
rules, FAQs etc.. Considering the materiality and regulatory-driven, nature of this impact, the Company has accounted for this
impact in the employee benefit expenses in the statement of profit or loss for the year ended March 31,2026. The Company
continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour
Code and would provide appropriate accounting effect on the basis of such developments as needed.
A Credit risk
Credit Risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables
and unbilled revenue) and from its financing activities including deposits with banks and financial institutions,
investments, foreign exchange transactions and other financial instruments.
i Trade receivables
Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control
relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basis for clients. The maximum exposure
to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold
collateral as security.
The Company evaluates the concentration of risk with respect to trade receivables as low as they are spread across
multiple geographies and multiple industries.
ii Financial instruments and deposits with banks
Credit risk is limited as we generally invest in deposits with banks and financial institutions with high credit ratings
assigned by international and domestic credit rating agencies. Counterparty credit limits are reviewed by the Company
periodically and the limits are set to minimize the concentration of risks and therefore mitigate financial loss through
counterparty’s potential failure to make payments.
B Liquidity risk
Liquidity 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 treasury department is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by senior management.
Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements.
Accordingly no liquidity risk is perceived.
The break-up of cash and cash equivalents, deposits and investments is as below.
Note 34B : Fair value hierarchy
Level 1: - Quoted price (unadjusted) in active markets for identical assets or liabilities
Level 2: - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
Note: All Investments are measured at cost.
Note 35: Financial instruments
The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current
transaction between willing parties other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair value:
(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities,
approximate their carrying amounts largely due to the short-term maturities of these instruments.
b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, if require, allowances are taken to
account for the expected losses of these receivables.
10) Declaration of Final Dividend (FY 2025-26): The board of directors has recommended a final dividend of Rs. 0.60/-
(sixty paise only) per equity share of face value Rs 2/-(two rupees) i.e.30% on the equity shares in the capital of the
company for the financial year 25-26 ended 31st March 2026 subject to the approval of the shareholders.
Declaration of Final Dividend (FY 2024-25): The Company has approved and paid a final dividend of Rs.0.60Paise
[Sixty Paisa Only] per equity share of face value of Rs. 2/- (Rupees Two) each i.e@30% on the equity shares in the
capital of the Company for the financial year 2024-2025 ended 31st March 2025 at the Annual General meeting held
on 29th August,2025. The Final Dividend was paid on 12th September,2025
11) Other Statutory Information:
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv) The Company have not advanced or loaned or invested funds to any other person or entity, 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.
v) The Company have not received any fund from any person or entity, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company 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.
vi) The Company does not have any such transaction which is not recorded in the books of accounts 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.
12) Previous year's figures have been regrouped / re-arranged wherever necessary. Some of the balances are subject to
confirmation.
13) In the opinion of the Management, the balances shown under Sundry Debtors, Loans and Advances have
approximately the same realizable value as shown in Accounts. Party balances are subject to confirmation.
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