Terms / Rights attached to Equity Shares (Dividend rights, Voting Rights)

The company has only one class of equity shares having a par value of 71 Per share. Each Holder 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 in the proportion to the number of equity shares held by the shareholders.

Notes and other explanatory information to Financial Statements for the Year Ended 31st March, 2024 (Amounts are in ? Lakhs unless specified)

30 Exceptional Items

(A) For the year ended 31st March, 2024

(i) The management has entered into an agreement for sale of Property Plant and Equipment and its related softwares at factory situated at Raj Bollaram for ? 100 Lakhs. As required under Ind AS 105 the exoess carrying value of ? 43.49 Lakhs has been recorded as the impairment of Property Plant and Equipment as on 31st March 2024. (Refer Note no. 32 below).

(ii) The current management has obtained the control of the Company with effect from 28th March 2023 upon successful implementation of Resolution Plan. The management was in the process of reconciling the balances with debtors, banks balances, deposits with banks and others and balances with Government authorities in the books of accounts.During the year some of these balances have been written off amounting to ? 30.28 lakhs.

The above balances are recorded as exceptional items in the Statement of Profit and Loss Account

(B) For the year ended 31st March, 2023

The Company was admitted into Corporate Insolvency resolution Process under the Insolvency and Bankruptcy Code, 2016 (“the Code”) by Mon’ble National Company Law Tribunal, Hyderabad (“Hon’ble NCLT”) vide order dated 2nd December 2019 (“Admission Order”). Mr. Chinnam Poorna Chandra Rao was appointed as Resolution Professional.

Vide Order dated 10th March 2022 (“Approval Order”), the Hon’ble NCLT has approved the Resolution Plan submitted by Kinex India Private Limited (Formerly known as Antanium India Private Limited, referred as “Resolution Applicant/ Currently Promoter/Current Management of the Company”), as voted by the majority of the Committee of Creditors. The Plan is binding on the Company, its creditors, guarantors, members, workmen, employees, government and statutory authorities both at central and state level and other stakeholders in accordance with Section 31 of the Code.

Further to successful implementation of Resolution Plan, the Current Promoters of the Company has obtained control over the Company from the Monitoring Agent (erstwhile Resolution Professional) on 28th March 2023. The Financial Statement captures the transactions contemplated in the approved resolution plan in accordance with applicable accounting standards and legal framework. Following are the certain significant transactions contemplated in the resolution plan which have been considered in preparation of the Financial Statement:

(i) The resolution plan envisages extinguisment of the stake held by erstwhile Promoters and reduction of share capital by reducing the face value from ? 10 per share to f 1 per share. Further, the resolution plan envisaged allotment of 2,741.19 Lakhs equity shares of face value ? 1 per share to Kinex India Private Limited (Formerly known as Antanium India Private Limited).

(ii) Difference in the admitted liability of operational and employees dues and the proposed settlement has been credited to the Statement of Profit and Loss.

(iii) The admitted liability of the Financial Creditors have been proposed to be settled with ? 2,500 Lakhs as principal and Interest of 154.53 Lakhs for the delayed period which was paid as full and final settlement of the admitted claim of ? 1,04,194.79 Lakhs. The Resolution Applicant has effected remittance of payments to Financial Creditors in accordance with approved Resolution Plan.

Pursuant to implementation of the Resolution Plan, the Company has written off/derecognised or provided for impairment of its assets, based on current management’s estimate, to the extent not receivable/recoverable and written back/derecognised its liabilities, based on current management's estimate, to the extent not payable/extinguished/waived/ cancelled to the Statement of Profit and Loss amounting to f 15,752.20 Lakhs (net).

32 Disclosures under Ind AS 105 for Non Current Assets Held for Sale

During the year ended 31st March 2024, on conclusion of implementation of Resolution Plan, approved by the Honourable National Company Law Tribunal, the Company has initiated indentification and evaluation of potential buyers for its Property, Plant and Equipment along with its related softwares situated at Raj Bollaram. The Company has identified the buyer, entered into an agreement for sale and has received advance from the buyer against the intended sale of Property Plant and Equipment and its related software. Clearance from the Excise and Custom Department are pending and therefore the Company has not concluded the formalities regarding such sale. The Company anticipates the completion of formalities and accordingly, classified the assets as "Assets Held for Sale". On such reclassification, the Property, Plant and Equipment along with its related computer software has been measured at the lower of the carrying value and fair value less cost to sale and accordingly recorded impairment loss as exceptional item in the Statement of Profit and Loss Account.

34 Employee Benefits Defined Benefit Plans

The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The liability for the same is recognized on the basis of actuarial valuation

Note : Sensitivity due to mortality and withdrawals are not material and hence impact of change not calculated.

Defined Contribution Plans

In respect of the defined contribution plan (Provident fund), an amount of f 17.75 Lakhs (Previous year : ? 11.40 Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

In respect of the State Plans (Employee State Insurance), an amount of ? 5.42 Lakhs (Previous year: ? 1.99 Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

Other Employee Benefits

In rspect to of the leave encashment, an amount of ? 38.74 Lakhs (Previous Year: ?3.97 Lakhs) has been recognised as expenditure/(income) in the Statement of Profit and Loss.

During the year the Company has provided Bonus and incentive of t 6.58 Lakhs (Previous Year: ? NIL) as expenditure in the Statement of Profit & Loss.

The Company has received communications from BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") (collectively "Stock Exhanges") related to the various SOP based non compliances. The Company has represented to the Stock Exchanges that the new Board of Directors and Management has been inducted based on the approved resolution plan by Honorable National Company Law Tribunal, Hyderabad vide its order dated 10th March 2022. The new management has obtained control on the Company with effect from 28th March 2023. The non-compliances pertains to the period prior to or during the Corporate Insolvency Resolution Period. The management has requested waiver of the penalties and accordingly, no adjustments have been to these financial statements.

C Vide Hon'ble National Company Law Tribunal ("NCLT") order dated 10th March 2022 all debts, loans, claim, liabilities, provision for liabilities and the contingent liabilities including any litigations agains the Company in any forum (which were capable of being crystalized or not), related to pre-CIRP period stand extinguished pursuant to the approved Resolution Plan and the same is binding on all stakeholders of the Company. Furthermore, the resolution plan, provide that except to the extent of amount payable to the relevant creditors, in accordance with the Resolution Plan, all liabilities of the Company, relating to any manner to the period prior to the order date immediately irrevocably and unconditionally stand fully and finally discharged and settled. There being no further claims whatsoever and all the rights of all creditors including government authorities to invoke or enforce the same stands waived off. It is also provided that any and all legal proceedings initiated before any forum by or on behalf of the any creditors including government authorities to enforce any rights or claims against the Company also stands extinguished. In respect of the Tax Demands, the Company is in the process of filing a writ petition with the Hon'ble High Court the quashing the said demands.

36 Capital Management

The objective of the Company’s capital management structure is to ensure sufficient liquidity to support its business, to ensure the Company's ability to continue as a going concern and provide adequate return to shareholders. The Company monitors capital and the long term cash flow requirements including externally imposed capital requirements of the business on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face.Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

37 Financial Risk Management Objectives and Policies a. Financial Risk Management Framework

Company's principal financial liabilities comprise trade payables and Other financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include Trade receivables, loans, cash and bank balances and other financial assets.

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for managing each of these risks, which are summarised below, i) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowing. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has constantly monitoring mechanism for credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost. Interest rate risk is managed by the Company on an on-going basis with the primary objective of limiting the extent to which interest expense could be affected by an adverse movement in interest rates. There are no hedging instruments to mitigate this risk. The Company is not exposed to any risk of changes in market interest rates as there are no borrowings availed by the Company during the year and as on 31st March 2024.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in foreign exchange rates. The Company is not exposed to material foreign exchange risk arising from transactions i.e. imports of materials, recognised liabilities denominated in a currency that is not the Company's functional currency. The Company’s foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company's policies, ii. Credit risk

Credit risk is the risk of financial loss to the Company if the customer or that counterparty to the financial instrument fails to meet its contractual obligations and arises principally from the Company's receivables from customers, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of counterparty to which the Company grants credit terms in the normal course of business.

b. Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assesses the credit risk for each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

The risk parameters are same for all financial assets for all periods presented. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due . A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Trade Receivables: The Company has exposure to credit risk from trade receivables on financial inclusion services to banks and sale of traded goods. The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers. The Company ensures concentration of credit does not significantly impair the financial assets since the customers to whom the exposure of credit is given are well established and reputed industries and banks engaged in their respective field of business. The creditworthiness of customers to which the Company grants credit in the normal course of the business is monitored regularly. The Company provides for expected credit loss under simplified approach.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. The Company's treasury team 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 liquidity position through rolling forecasts on the basis of expected cash flows.

The following table details the remaining contractual maturities of the Company's financial liabilities at the end of the reporting period, which are based on the contractual undiscounted cash flows and the earliest date the Company is required to pay:

38 Fair value measurements (i) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the financial statement are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices).

Valuation Process and Technique Used to Determine Fair Value

Specific valuation techniques used to value financial instruments include:

(a) The use of quoted market prices or dealer quotes for similar instruments

(b) The fair value of the remaining financial instruments is determined based on the following methods:

i. Net assets value method

ii. Valuation of investment in unquoted equity shares has been made using the Discounted cash-flow method and Net assets value method, as deemed fit by the Company's management.

Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit risk grading determined by the Company’s internal credit risk management group.

39 Segment Reporting

Company's business relates to the providing Automatic Identification & Data Capture along with Fininaical Inclusion Services (Technology Solutions) which in context of Indian Accounting Standards 108 (Ind AS 108) as notified under Section 133 of the Companies Act, 2013 is considered as the only segment.

41 Leases Company as lessee

The Company has entered into certain cancellable lease agreements mainly for office premises, land and infrastructure facilities' which are renewable on mutual agreement with the parties. At the date of commencement of the lease, the Company recognises a right of use asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for short-term leases and low value leases. The Company applies the "short term lease" & “low value leases" recognition exemptions for these leases.

Rent Expenses recorded for Shortterm and Low value lease was ? 35.25 Lakhs (Previous Year: ? 33.10 Lakhs).

42 Income Tax

The Company has opted for the new tax regime U/s 115BAA of the Income Tax Act from Financial Year ended 31st March 2023. The Company has carried forward losses and unabsorbed depreciation of earlier years. Therefore, the Company has not accounted any Income Tax on the profits earned during the year.

43 The current promoters and management of the Company took control of the Company on 28th March 2023, upon successful implementation of the Resolution Plan. Subsequently, it has been noticed that the Foreign Subsidiaries are not being functional and current management do not have any control over these subsidiaries. In order to give a transparent view of the Company’s Assets, the current management had written off such investments. Further, the Company confirms that this has not resulted in any adverse impact on the financials as there are no operations in these foreign subsidiaries. The management of the Company is in the process of regularizing the Compliances related to Foreign Subsidiaries and closure of such subsidiaries under the applicable legal framework in respective jurisdiction.

44 The Company had not transferred ? 4.91 Lakhs pertaining to the dividend for the Financial Year 2010-11 to the Investor Education and Protection Fund in the year in which it was payable. The current management is in the process of reconciliation and coordination with the respective authority to facilitate the payment.

45 Disclosures required under Section 22 of MSMED Act 2006 under the Chapter on Delayed Payments to Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2024. These information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the to the extent such parties have been identified on the information available with the Company.

46 Disclosures of the transactions with Struck Off Companies

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

48 Additional Regulatory Information Required by Schedule III to the Companies Act, 2013

(i) The Company does not have any Benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(iii) The Company does not hold any investments, therefore, provisions for compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended) are not applicable.

(iv) Utilisation of borrowed funds and share premium

A 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 loan to or on behalf of the ultimate beneficiaries

B The Company has not received any fund from any person(s) or entities), 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 loan on behalf of the ultimate beneficiaries

(v) The Company does not have such transactions 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

(vl) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vii) No Scheme of Arrangements have been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the year.

49 Previous year figures have been regrouped/reclassified where ever necessary, to conform to those of the current year.

50 As allowed under Schedule III of the Companies Act, 2013, Financial Statements are prepared in Lakhs and rounded off to two decimals. The amounts / numbers below five thousands are appearing as zero.