1. Corporate Information

California Software Company Limited (CIN: L72300TN1992PLC022135) was incorporated on 6th June 1992 under the provisions of the Companies Act and is registered with the Registrar of Companies, Chennai, Tamil Nadu. The Company's equity shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The registered office of the Company is situated at: Workflo, Greeta Towers, Industrial Estate, Perungudi, OMR Phase 1, Chennai - 600096.

Business Overview

Over the last three decades, the Company has transitioned from a traditional IT services enterprise into a multiproduct SaaS provider, delivering digital transformation for SMEs and enterprises. The business model now emphasizes Al, automation, and customer engagement, ensuring seamless integration of commerce, communication, and intelligence.

Product Ecosystem

The Company has developed and commercialized a suite of integrated SaaS platforms:

• dSpeedllp - Al-enabled e-commerce and marketplace solution that enables businesses to launch, scale, and optimize digital stores with predictive insights.

• dBotMinds - Al-powered conversational commerce and chatbot engine for WhatsApp, web, and voice automation, covering lead capture, sales enablement, and customer support.

• dllltima - Modular super-app ecosystem integrating e-commerce, payments, logistics, loyalty, and personalized recommendations.

• dRyZe CRM - End-to-end customer lifecycle management platform with Al-driven sales automation, marketing intelligence, service workflows, and real-time analytics.

These products function as a unified SaaS ecosystem, empowering businesses to thrive in a digital-first economy.

Strategic Direction

Aligned with the theme "Empowering Tomorrow with Today's Innovations", the Company continues to:

• Leverage Al-first architecture to automate decision-making and engagement.

• Provide affordable and scalable SaaS solutions tailored for SMEs and microbusinesses.

• Strengthen governance and compliance, adhering to SEBI (LODR) Regulations, 2015.

• Focus on sustainable growth through digital inclusion and empowerment of small businesses.

The standalone financial statements were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 30, 2025.

2. Significant Accounting Policies

2.1 Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, read with amendments, as applicable under Section 133 of the Companies Act, 2013.

• Prepared on a historical cost basis, except certain financial instruments measured at fair value.

• Assets and liabilities classified as current or non-current based on operating cycle and realization/settlement expectations.

• Deferred tax assets/liabilities are always classified as non-current

• The Company's operating cycle is 12 months.

2.2 Use of Estimates

Preparation requires management judgment, estimates, and assumptions that affect reported assets, liabilities, income, and expenses. Key areas include:

• Revenue recognition on SaaS contracts.

• Useful life and capitalization of internally developed software.

• Impairment of intangible assets.

• Provisions for doubtful receivables.

Actual results may differ. Changes in estimates are accounted for prospectively.

2.S Property, Plant and Equipment (PPE)

• Carried at cost less accumulated depreciation and impairment.

• Cost includes purchase price, duties, and directly attributable expenses.

• Major improvements are capitalized; routine maintenance is expensed.

• Derecognized upon disposal or when no economic benefits remain.

• Gains/losses on disposal recognized in the Statement of Profit & Loss.

2.4 Depreciation

2.5 Intangible Assets & Amortization

• Includes internally developed SaaS products (dSpeedUp, dBotMinds, dUltima, dRyZe CRM) and acquired licenses.

• Carried at cost less amortization and impairment.

• Amortized over 3-5 years, aligned to SaaS industry product lifecycles.

• Reviewed periodically for impairment triggers.

2.6 Impairment of Assets

• Assets reviewed annually for indicators of impairment.

• Impairment recognized when carrying value > recoverable amount (higher of fair value less cost to sell or value in use).

• Reversals allowed only to the extent that carrying value does not exceed depreciated cost had no impairment been recognized.

2.7 Inventory

The Company is engaged in SaaS-based services and does not deal in physical goods. Hence, Ind AS 2 - Inventories is not applicable.

2.8 Cash and Cash Equivalents

Includes cash in hand, demand deposits, and short-term liquid investments with maturities up to three months.

2.9 Cash Flow Statement

Prepared using the Indirect Method. Operating, investing, and financing activities are presented separately.

2.10 Revenue Recognition

Revenue is recognized under Ind AS 115:

• Subscriptions - over the subscription period.

• Implementation & setup fees - upon completion of obligations.

• Transaction-linked revenue - on transaction completion.

• Custom services - on percentage-of-completion basis.

Revenue excludes GST and similar taxes collected.

2.11 Employee Benefits

• Provident Fund - defined contribution plan, expensed when incurred.

• Gratuity & Leave Encashment - recognized based on actuarial valuation.

• ESOPs (if applicable) - fair value recognized over vesting period.

2.12 Taxation

• Current tax based on enacted tax laws.

• Deferred tax recognized on temporary differences using balance sheet approach.

• Deferred tax assets recognized when future taxable profits are probable.

2.13 Earnings Per Share (EPS)

• Basic EPS - net profit attributable to equity shareholders r weighted average shares.

• Diluted EPS - adjusted for potential dilutive shares.

2.14 Foreign Currency Transactions

• Transactions recorded at transaction-date rates.

• Monetary items revalued at closing rates.

• Exchange differences recognized in Profit & Loss.

2.15 Borrowing Costs

• Capitalized if directly attributable to qualifying assets.

• Otherwise expensed in the period incurred.

2.16 Events after the Reporting Period

Evaluated for adjustments/disclosure. No material events occurred post March 31, 2025.

2.17 Audit Trail Feature

MCA has mandated use of accounting software with audit trail from April 1, 2023. The Company uses Tally Prime.

• Due to technical issues, the audit trail module was not functional in FY 202A-25.

• Books are properly maintained with supporting evidence.

• Management is working to activate this feature at the earliest.

3. Trade Payable Aging Schedule

As on March 31, 2025, the Company has no outstanding trade payables.

A. Dividend Disclosure

The Company has not declared or paid dividends in the last five years. The Board has resolved to conserve resources until operations and profitability stabilize. Dividend distribution will be considered thereafter.

5. Compliance with Benami Transactions Act

The Company confirms no benami transactions were undertaken during FY 202A-25.

6. Utilization of Proceeds from Rights Issue

The Company raised ?A6.37 crores via Rights Issue of partly paid-up equity shares. As of March 31, 2025, ?11.59 crores (25%) has been collected.

7. Promoter Shareholding

As of March 31, 2025, the promoters hold 62.26% of the Company's paid-up equity share capital.

8. Trade Receivables Aging

As on March 31, 2025, the Company's receivables stood at ?18.00 crores, comprising:

• ?5.00 crores outstanding for less than 180 days, and

• ? 13.00 crores outstanding for more than 180 days.

The management is actively pursuing recovery of long-outstanding dues.

9. Segment Information

In compliance with Ind AS 108, the Company has identified a single reportable segment - Software Development and Services.

10. Contingent Liabilities

The Company has no contingent liabilities as on March 31, 2025.