26. Financial instruments - Fair values and risk management

A. Measurement of fair values

The fair values for investments are calculated based on the value expected to be
received by the management on the sale of such investments. They are classified as
level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

B. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk

- Liquidity risk

- Market risk

- Currency risk

(i) Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and
oversight of the Company's risk management framework. The Board of Directors along
with the top management are responsible for developing and monitoring the
Company's risk management policies.

The Company's risk management policies are established to identify and analyse the
risks faced by the Company, to set appropriate risk limits and controls and to monitor
risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Company's activities. The
Company, through its training and management standards and procedures, aims to
maintain a disciplined and constructive control environment in which all employees
understand their roles and obligations.

(ii) Credit risk

Credit risk arises when a counter party defaults on its contractual obligations to pay,
resulting in financial loss to the Company and arises primarily from the Company's
trade receivables, deposits with banks and other financial assets. The Company has
adopted a policy of dealing with only creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial
loss from defaults. The Company uses information supplied by independent rating
agencies where available and, if not available, the Company uses other publicly
available financial information and its own past records to rate its counterparties. The
Company's exposure and credit ratings of its counterparties are continuously
monitored, and the aggregate value of transactions concluded is spread amongst
approved counterparties. Credit exposure is controlled by counter party limits that are
reviewed and approved by the risk management committee periodically.

Credit risk on cash and cash equivalent and bank deposits is limited as the Company
generally transacts with banks and financial institutions with high credit ratings
assigned by international and domestic credit rating agencies.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the
obligations associated with its financial liabilities that are settled by delivering cash or
another financial asset. Ultimate responsibility for liquidity risk management rests with
the Board of Directors, which has established an appropriate liquidity risk management
framework for the management of the Company's short, medium and long-term
funding and liquidity management requirements. The Company manages liquidity risk
by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.

(iv) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market prices such as foreign exchange rates,
interest rates etc. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimizing the return.

(v) Currency risk

The Company undertakes transactions denominated in foreign currencies;
consequently, exposures to exchange rate fluctuations arise. The Company's exposure
to currency risk relates primarily to the Company's operating activities when
transactions are denominated in a currency different from the Company's functional
currency.

(vi) Sensitivity analysis

A reasonably possible strengthening (weakening) of the INR against US dollar as at
March 31 would have affected the measurement of financial instruments denominated
in a foreign currency and affected equity and profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact of forecast sales and purchases.

29. Financial Instruments - Fair value measurements

The management assessed that loans, cash and cash equivalent, trade receivable,
borrowings, trade payables and other current liabilities approximate their carrying
amounts largely due to the short-term maturities of these instruments. The fair value of
the financial assets and liabilities is included at the amount at which the instrument
could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.

Fair valuation measurement hierarchy

Carrying amounts and fair values of financial assets and financial liabilities and their
levels of fair value hierarchy are as follows:

32. Taxes of Income:

Deferred Tax Asset amounting to Rs.20.40/- (in Lakhs) has been recognized due to the
differences arising on account of Depreciation during the year under consideration.
[Previous Year Rs. 0.06/- (in Lakhs) deferred tax liability].

33. Balances of trade receivables, Loans and Advances are Subject to Confirmation.

34. Additional Regulatory Information

I. The Company does not hold any immovable properties.

II. The Company has not revalued its Property, Plant and Equipment.

III. The Company has not granted any loans or advances in the nature of loans to
promoters, directors, KMPs and other related parties.

IV. There are no proceedings initiated or are pending against the company under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there
under.

V. The Company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets at any point of time during the year.

VI. The Company is not declared as wilful defaulter by any bank or financial institution or
others lenders

VII. The Company did not have any transactions with Companies struck off under Section
248 of Companies Act, 2013.

VIII. There are no charges or satisfactions yet to be registered with ROC beyond the
statutory period by the Company.

IX. The company does not have any Scheme of Arrangements which is to be approved by
the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013
during the year.

X.

i. (A) To the best of our knowledge and belief, other than those disclosed in the note
to accounts, 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 persons or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”)
by or on behalf of the Company or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

ii. (B) To the best of our knowledge and belief, other than those disclosed in the note
to accounts, no funds have been received by the Company from any persons or
entities, including foreign entities (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall directly or
indirectly, lend or invest in other persons or entities identified in any manner
whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

XI. The company does not have any transactions which are not recorded in the books of
accounts that has been surrendered or disclosed as income in the tax assessments
under the Income Tax Act ,1961 during any of the years.

XII. The company is not covered under the provisions of section 135 of the Companies Act,
2013.

XIII. The company did not trade or invest in the crypto currency or virtual currency during
the financial year. Hence, disclosures relating to it is not applicable.

35. Previous year figures have been regrouped and rearranged wherever found
necessary, to be in confirmative with current year classification.

36. All the figures have been presented in Lakhs and rounded off up to 2 decimals.

SIGNATURE TO NOTES 1 To 36

As per our report of even date For and on behalf of the Board

For JMT & Associates., M/s Blue Cloud Softech Solutions Limited

Chartered Accountants,

Firm Registration No: 104167W

Sd/- Sd/- Sd/-

Vijaya Pratap M Ravi Janarthanan Krishna Babu Vankineni

Partner Executive Director Director

M. No: 213766 DIN : 02368598 DIN: 02570799

UDIN: 25213766BMIXWA5518

Sd/- Sd/-

Place: Mumbai Venkata Seshavataram Varada Shraya Jaiswal

Date:27.05.2025 CFO Company Secretary