2.16. Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources, 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. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate. 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 a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also 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. Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

Current Assets, Loans & Advances:

In the opinion of the Board, current assets, loans and advances have a value at least equal to the amount shown in the balance sheet, if realized in the ordinary course of the business. The provisions for all known liabilities are made and not in excess of the amount considered reasonably necessary.

Note 22

Impairment

In the view of management, no impairment conditions existed on 31st March 2024. Hence, no provision is required in the accounts for the year under review.

Note 23

Auditor's Remuneration

Auditors' remuneration for the financial year 2023-24 is Rs 60 thousand Excluding GST (Previous Year Rs. 60 thousand)

Note 24

Foreign Exchange Earnings

The particulars regarding foreign exchange earnings during the year are Rs. 18743 Thousand only (Previous year Rs. 18979 Thousand) and expenditure in foreign currency is Rs. 589 Thousand only (Previous year 528 Thousand).

Note 25

Contingent Liabilities and Litigations

In view of accounting policies. Contingent Liability is not provided for Disputed Income Tax Demand against which the company has gone into appeal in view of facts of the cases/ opinion obtained Rs. 21271 Thousand.

Employee Benefits

A. Defined Contribution Plans - The Company has a defined contribution plan in respect of provident fund. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to a registered provident fund administered by the Government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

During the year, the Company has recognised the following amounts towards the defined contribution plan in the Statement of Profit and Loss -

B. Other Long term benefits - The leave obligations cover the Company's liability for earned leave.. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next twelve months.

C. Defined Benefit Plans - Contribution to Gratuity Funds - The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The company does not have any employees who are in continuous service for a period of 5 years Hence The Company doesn't operate a defined benefit gratuity plan, which requires contributions to be made to the recognised fund.

Note 28

Foreign Travelling Expenses

Rs. 400 Thousand was incurred on foreign travelling during the financial year under review as compared to Rs. 487 Thousand during the preceding financial year. The entire amount was incurred on foreign travelling expenses of the director.

Up to the year ended March 31, 2024, the company has completed the construction of an IT plot at 1-46, Sector-83 Alpha, I.T. City, SAS Nagar, Punjab,160055. The work in progress amount of 48371 thousand capitalized during the year to building, office equipment. Furniture & fixtures, and computers. The present work in progress is 6696 thousand [Previous year: 44285 Thousand) yet to be completed. Since construction is in progress and the amount shown under head Capital work in progress in the Schedule of Fixed Assets (Notes 3).

Note 30

Related Party Disclosures:

In accordance with the requirements of IND AS 24, on related party disclosures, name of the related party, related party relationship, transactions and outstanding balances, including commitments where control exits and with whom transactions have taken place during the reporting period, are:

The Industrial plot allotment by GMADA at I.T. City, SAS Nagar Punjab at Lease and freehold basis and allotment and its possession is in the name of the Company. The Company has already paid the full amount of 32405 thousand. The company has already made an application for the freehold of the plot with GMADA. The Company owns a plot no. Gl/34 measuring 400.06 sq meter at DLF Velly Panchkula Haryana. The title deed of the plot in favour of the company is yet to be registered.

Note 33

The company filed a case against Godrej Estate Developers Pvt Ltd on 31/07/2020 in State Consumer Dispute Redressal Commission, U.T. Chandigarh regarding the refund of full money of Rs 13842 thousand along with interest paid for the purchase of a commercial space Unit No. W-3D, 3rd Floor of Tower No. Plot No. 70, Industrial Area, Phase 1, Chandigarh. On 18th April 2022, The court ordered Godrej Estate Developers Pvt Ltd to refund the entire amount to the company along with interest of @12% p.a. and the Cost of litigation of Rs. 50 thousand. Estimated Interest will be approximately Rs 16600 thousand and Final interest is yet to be determined by the court. Godrej Estate Developers Pvt Ltd filed an appeal against the order, pending at the National Consumer Disputes Redressal Commission New Delhi.

Note 34

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956,.

Note 35

Previous Year Figures Regrouping/Reclassification

Previous year figures have been regrouped/reclassified to conform to the current year classification.

As per the report of the event date attached.

For and on the behalf of Board of Directors

For Sanjay Arora & Associates „„ , , ».

* ³ MohneshKohli Rajnesh Sharma

Chartered Accountants (Director) (Director & CFO)

ICAI Firm Registration Number: 008445N DIN: 01784617 DIN: 02528435

Neelkant Gargya

Partner Manju Bala

Membership Number: 093624 Company Secretaiy &

Place of Signature: Chandigarh Compliance Officer

Date: 24th May 2024 M.No: ACS 67831