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.

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, 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.

S. Recent Indian Accounting Standards (Ind AS)

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, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

a. Provident fund

The Company offers its employees, benefits under defined benefit plans in the form of provident fund scheme which covers all employees. Contributions are paid during the year into Provident fund. Both the employees and the company pay predetermined contributions into the fund.

b. Employees state insurance scheme

The Company offers its employees, benefits under defined benefit plans in the form of ESI scheme which covers all employees. Contributions are paid during the year into ESI fund. Both the employees and the company pay predetermined contributions into the fund.

c. Gratuity plan

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, an employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement Age.

The above sensitivity analysis may not be representative of the actual benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined obligation liability recognized in the balance sheet.

Risk analysis

The company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefits plans and management estimation of the impact of these risks are as follows:

Interest risk

A decrease in the interest rate on plan assets will increase the plan liability, however this will be partially offset by increase in the return on plan debt investment.

Longevity risk/Life expectancy

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

Deductions in Respect of Profits and Gains from industrial undertakings or enterprises engaged in infrastructure development (section 80IA)

This section applies to any undertaking which fulfils all the specified conditions. As generation or generation and distribution of power if it begins to generate power at any time during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 2010. The Company has 5 wind power generating units which are set up in 3 districts hence the company avail a tax holiday of 100% profits for a period of 15 years commencing from the year in which such generation begins. The company has 2 plants in Sikar, Rajasthan, 2 in Jaisalmer, Rajasthan and 1 in Krishna, Andhra Pradesh. However, the time limit for availing the above exemption is now available in respect of windmill at Krishna, Andhra Pradesh only.

Risk management framework 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 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 ?actuate because of changes in market prices. Market risk comprises interest rate risk, currency risk and commodity risk.

The sensitivity analyses given elsewhere in the following sections relate to the position as at March 31, 2024 and March 31, 2023.

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.

short-term investments etc. credit risk on receivables is limited as almost all credit sales are against letters of credit and guarantees of banks of good financial repute. 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.

RELATED PARTY DISCLOSURES (NOTE 32)

A. List of Related parties:

(i) Parties where control exists:

Subsidiary companies:

• CSL Infomedia Private Limited (wholly owned subsidiary)

(ii) Other related parties with whom transactions have taken place during the year:

a) Key management personnel:

• Mr. Surendra Kumar Surana, Managing Director & CEO

• Mr. Sanjeev Nigam, Chief Financial Officer

• Mrs. Swati Jain, Company Secretary and Compliance Officer (Up to: 31-01-2024)

• Mr. Vaibhav Surana, Whole Time Director

• Mrs. Varsha Ranee Chaudhary, Company Secretary and Compliance Officer (From: 01-02-2024)

b) Entities over which the key management personnel exercise significant influence:

• Rishabh Infotech Private Limited

• Sambhav Infotech Private Limited

• Compucom Technologies Private Limited

• Compucom Foundation

• Compucom (India) Private Limited

• Compucom Software Limited Employee Welfare Trust

c) Others:

• Mrs. Trishla Rampuria (Sister of Managing director)

• Mr. Ajay Kumar Surana, Director

• Mr. Vaibhav Surana, Director

• Surana Associates Inc. USA.

• ITneer Inc. USA.

Notes: Reasons of variances

1. Current ratio: Due to increase in current liabilities. However, it is still well above the benchmark 1.33.

2. Debt equity ratio: Due to increase in borrowings. However, it is still within benchmark range.

3. Debt service coverage ratio: Ratio is reduced to 7.63. However, it is still within benchmark range.

4. Trade Payable turnover ratio: Due to increase in purchases and better payment cycle.

5. Net capital turnover ratio: Due to increase in annual sales.

6. Return on quoted investment: Due to reduction in average cost of investment.

7. Return on unquoted investment: Due to increase in average cost of investment during the financial year.

ADDITIONAL REGULATORY INFORMATION (NOTE 33)

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.

For S. Misra & Associates For and on behalf of Board of Directors

Chartered Accountants For Compucom Software Limited

FRN - 004972C

Sd/- Sd/- Sd/- Sd/- Sd/-

CA. Sachindra Misra Surendra Kumar Surana Vaibhav Suranaa CA Sanjeev Nigam CS Varsha Ranee Chaudhary

Partner Managing Director Director Chief Financial Officer Company Secretary &

M. No. 073776 DIN: 00340866 DIN: 05244109 (CFO) Compliance Officer

UDIN: 24073776BKGUMR4191 ^{MNa: ACS39034}