2.15 Provisions and contingencies
A provision is recognized when the Company has a present obligation as a result of past events and 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 (excluding retirement benefits) are not discounted to their 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 in the Notes to accounts. Contingent assets are not recognised in the financial statements.
2.16 Operating Cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and noncurrent. As a result, current assets comprise elements that are expected to be realised within 12 months after the reporting date and current liabilities comprise elements that are due for settlement within 12 months after the reporting date.
2.17 Cash Flow Statements
Cash flow are reported using indirect method, whereby net profit before tax is adjusted for the effects of transaction of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the Company are segregated.
(c) Disclosure for ESOP as per Guidance note issued by ICAI on Share Based Payments:-
• Under Employee Stock Option Scheme (ESOP) of the Company, share options of the company are granted to employees subject to achievement of targets as defined in ongoing vision of the company.
• Vesting period range from 1 to 4 years. Each option carries the right to the holder to apply for share of the company granted at par.
• The share options are valued at the fair value/market price of the options as on the date of grant using Black Scholes pricing model.
• There is no cash settlement alternative.
• During the financial year 2023-24, the Board of the company has granted 10,000 options on 15th September, 2023 under ESOP to the eligible employees under the existing scheme.
• The company has used market price of Rs. 163.30/- as on grant date for computing ESOP expenses.
• Accordingly, ESOP expenses for the options granted have been recognised in the Financial Statements.
28.6. Additional Regulatory Information Required by Schedule III
(i) The Company has not taken any secured loan hence no need to create any charge.
(ii) 'The Company is in compliance with number of layers of companies as per clause 87 of section 2.
(iii) No scheme of arrangement have been approved by competent authority in terms of section 230 to 237 of companies Act 2013.
(iv) The Company has not taken borrowings from any banks or financial institutions on the basis of security of current assets.
(v) 'The Company has not revalued it's proprty plant and equipment during the financial year.
(vi) The Company has no Capital WIP projects,hence ageing schedule of CWIP prescribed are not required to report.
(vii) The Company has no Underdeveloped Intangible Assets, hence ageing schedule prescribed for underdeveloped intangible assets is not required to report.
(viii) Specified Ratio has been Calculated as per "Annexure-1" Attached.
(ix) There is no income surrendered or disclosed as income during the current or previous year in the tax assessment under the Income Tax Act,1961 that has not been recorded in the books of accounts.
(x) No Loans and Advances in that nature of loan granted to Promoters, directors, KMPs, and Related Parties (as defined in companies Act 2013), either jointly or severally with any other person, that are
(a) repayable on demand or
(b) without specifying any terms or period of repayment
(xi) 'The Company has no transactions with struck off companies
(xii) 'The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.
(xiii) The company does not hold any immovable properties, both during the current year or previous year for which title deeds are not held in the name of company.
(xiv) 'The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(xv) No Advance or loan or invested funds have been given by company to any person(s) or entity(ies),including foreign entities (intermediaries) with the understanding that the intermediary shall
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the ultimate Beneficiaries.
(xvi) No fund received by company from any person(s) or entity(ies), including foreign entities(funding party) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the ultimate Beneficiaries.
(xvii) 'The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(xviii) Based on information available with the Company regarding the status of suppliers as defined under the Micro, Small and Medium Enterprises , there is no amount remaining unpaid to Micro Small and Medium Enterprises as at the close of the year.
(xix) Value of Investment in Alletec Retail Solutions Private Limited (Wholly owned subsidiary) has been reflecting at NIL since
FY 2021-22 due to permanent diminution in the value of investment.
(xx) Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification/disclosure.
(xxi) Company operates in a single reportable operating segment. Hence there are no separate reportable segments.
(xxii) The above standalone financial statements have been reviewed and recommended for adoption by the audit committee to the Board of Directors and have been approved by the board at its meeting held on 20th May. 2024.
(xxiii) There are no investor complaints received/pending as on 31st March 2024
28.7 During the financial year 2022-23, one of company's customer's (Flamboyant Technologies Pvt. Ltd.) cloud space got hacked by cybercriminals. Hackers misused many servers which were used by them for mining of money. This consumption of infrastructure on the cloud led to generation of a humongous bill and till Previous Year it was reflecting as Contingent Liability as per Note No. 28.17.
However during the Current financial year management has settled this issue by raising the invoice to Flamboyant Technologies Pvt. Ltd. dated 30th September, 2023 and 4th October, 2023 of Rs. 26,94,099 /- and 1,32,43,881 /- respectively. Furthermore, the company has also agreed to pay Vendor (Microsoft) Rs.1,48,26,027.20 (Including GST) in 12 equal monthly installments starting from January 2024.
28.8 Notes To The Accounts
During the financial year ended 31st March, 2023, the company has completed its initial public offer (IPO) of 53,55,200 equity shares of face value of 10/- each at an issue price of Rs. 90 per share aggregating to Rs. 48,19,68,000 comprising fresh issue of 48,64,000 shares aggregating to Rs. 43,77,60,000 and offer for sale of 4,91,200 shares by selling shareholders aggregating to Rs. 4,42,08,000. The equity shares of the company were listed on National Stock Exchange of India Limited Small and Medium Exchange (NSE SME) on 21st December, 2022.
The Company has incurred Rs. 4,64,14,710 as IPO related expenses and allocated such expenses between the Company and selling shareholder to the extent of Rs. 4,21,78,975 and Rs. 42,35,735 respectively. Such amounts were allocated based on agreement between the company and the selling shareholder (ESOP Trust) and in proportion to the total proceeds of the IPO. The Company's share of expenses of Rs. 4,21,78,975 includes payment to Auditors for Audit of Restated Financial Statements and Certification charges, which have been collectively shown in Non- Current Assets schedule as Deferred IPO Expenses to be written off over a period of 5 years in equal installments. Accordingly out of the above company has written off an amount of Rs. 84,35,795 /- and balance of Rs. 3,37,43,180 /- has shown as deferred IPO expenses under Note No. 14 of financial statements.
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