4.14 Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required
to settle the obligation. Provisions are measured at the present value of management's best estimate of the
expenditure required to settle the present obligation at the end of the reporting period.

Provisions are reviewed and adjusted, when required, to reflect the current best estimate at the end of each
reporting period.

The Company recognizes decommissioning provisions in the period in which a legal or constructive obligation
is incurred. A corresponding decommissioning cost is added to the carrying amount of the associated
property, plant and equipment, and it is depreciated over the estimated useful life of the asset.

4.15 Contingent Liabilities

Contingent liability is disclosed in case of:

• A present obligation arising from past events, when it is not probable that an outflow of resources will
be required to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible;

• A possible obligation arising from past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the control of the Company where the
probability of outflow of resources is not remote.

4.16 Contingent Assets

Contingent assets are not recognized but disclosed in the Financial Statements when an inflow of economic
benefits is probable.

4.17 Fair Value Measurements

Company follows the hierarchy mentioned underneath for determining fair values of its financial instruments:

• 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); and

• Level 3 - Inputs for the asset or liability that are not based on observable market data.

The fair value of financial instruments traded in active markets is based on quoted market prices at the
reporting dates. A market is regarded as active if quoted prices are readily and regularly available from
an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices
represent actual and regularly occurring market transactions on an arm's length basis. The fair value
for these instruments is determined using Level 1 inputs.

The fair value of financial instruments that are not traded in an active market (for example, over the
counter derivatives) is determined by using valuation techniques. These valuation techniques maximize
the use of observable market data where it is available and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
fair valued using level 2 inputs.

If one or more of the significant inputs is not based on observable market data, the instrument is fair
valued using Level 3 inputs. Specific valuation techniques used to value financial instruments include:

• Quoted market prices or dealer quotes for similar instruments.

• The fair value of interest rate swaps is calculated as the present value of the estimated future cash
flows based on observable yield curves.

• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the
reporting dates, with the resulting value discounted back to present value.

• Other techniques, such as discounted cash flow analysis, are used to determine fair value for the
remaining financial instruments.

4.18 Revenue Recognition

The Company derives revenue primarily from providing Financial Inclusion Services to Banks and Financial
Institutions (“Customers”). Revenue is recognized when Company satisfies a performance obligation on the
basis of approved contracts (“Business Correspondent Agreements”) regarding provision of services to a
customer.

The Company also derives revenue from sale of goods and related support services to its customers.
Revenue is recognized upon transfer of control of promised products and services in an amount that reflect
the consideration that is expected to be received in exchange of those products and related services.

The Company considers the terms of the contract in determining the transaction price. The transaction price
is based upon the amount the Company expects to be entitled to in exchange for transferring promised
goods and services to the customer.

4.19 Other Income
Interest Income

For all debt instruments measured either at amortized cost or at FVTOCI, interest income is recorded using
the Effective Interest Rate (“EIR”). EIR is the rate that exactly discounts the estimated future cash payments
or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the
gross carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not
consider the expected credit losses. Interest income is included in finance income in the Statement of Profit
and Loss.

Interest income on fixed deposits is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate.

Dividend Income

Dividend income is recognized at the time when right to receive the payment is established, which is generally
when the shareholders approve the dividend.

4.20 Foreign currency transactions
Functional and Presentation Currency

The Financial statements are presented in Indian Rupee (INR/?) which is also the functional and presentation
currency of the Company.

Transaction and Balances

Transactions in foreign currencies are translated to the functional currency of the Company, at exchange
rates in effect at the transaction date. At each reporting date monetary assets and liabilities denominated
in foreign currencies are translated at the exchange rate in effect at the date of the Financial Statement.
The translation for other non-monetary assets and liabilities are not updated from historical exchange rates
unless they are carried at fair value.

4.21 Earnings Per Share

Basic earnings per share are calculated by dividing the profit attributable to owners of the Company by
the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to
take into account, the after income tax effect of interest and other financing costs associated with dilutive
potential equity shares and the weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.

4.22 Segment Reporting

Operating segments are identified and reported in a manner consistent with the internal financial reporting
provided to the chief operating decision makers, responsible for allocating resources and assessing
performance of the operating segments.

4.23 Events after Reporting Date:

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the
end of the reporting period, the impact of such events is adjusted within the Financial Statements. Non
Adjusting events after the Balance Sheet date which are material size or nature are disclosed separately in
the Financial Statements.

(B) 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 INR 100 Lakhs. As required under Ind AS 105
the excess carrying value of INR 43.49 Lakhs has been recorded as the impairment of Property Plant
and Equipment as on 31st March 2024. (Refer Note no. 35 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 INR 30.28 lakhs.

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

During the previous year ended 31st March 2024, on conclusion of implementation of Resolution Plan, approved
by the Honorable National Company Law Tribunal, the Company had initiated identification and evaluation of
potential buyers for its Property, Plant and Equipment along with its related softwares situated at Raj Bollaram.
The Company had identified the buyer, entered into an agreement for sale and had 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 were pending and therefore the Company had not concluded the formalities
regarding such sale. The Company had accordingly, classified the assets as “Assets Held for Sale”. On such
reclassification, the Property, Plant and Equipment along with its related computer software had 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. During the current year ended 31st March 2025, the sale
transactions has been concluded.

Defined Contribution Plans

In respect of the defined contribution plan (Provident fund), an amount of INR 18.57 lakhs (31st March 2024:
INR 17.75 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 INR 5.74 lakhs (31st March 2024: INR
5.42 lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

Other Employee Benefits

In respect to of the leave encashment, an amount of INR 14.05 lakhs (31st March 2024: INR 38.74 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 INR 7.07 lakhs (31st March 2024: INR 6.58
lakhs) as expenditure in the Statement of Profit & Loss..

37 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 of the Balance Sheet. 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.

38 Financial Risk Management Objectives and Policies
Financial Risk Management Framework

Company's principal financial liabilities comprises of borrowings, 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, Investments, 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 monitors 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 2025 with floating
rate of interest. The Company has availed the vehicle loan from bank/FI with fixed rate of interest during the
year.

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.

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 that 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:

39 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).

Level 3: Inputs for the asset or liability that are not based on observable market data.

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.

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 against 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 has filed a writ petition with the Hon'ble High Court of Telangana for quashing
the said demands.

42 Segment Reporting

Company's business relates to the providing Automatic Identification & Data Capture along with Financial 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.

44 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
Short term and Low value lease was INR 36.54 lakhs (31st March 2024: INR 35.25 lakhs).

45 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. However the Company
has provided the income tax on capital gain arisen out of transfer of Property Plant and Equipment.

46 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.

47 The Company had not transferred INR 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.

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

As at Balance Sheet date, amounts aggregating to INR 7.67 lakhs were due to Micro, Small Enterprises as per the
provisions of the Micro, Small and Medium Enterprises Development Act, 2006.

49 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.

50 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 Prohibition of Benami Property
Transactions Act, 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 in any subsidiary(ies), therefore, the 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) Details of transactions of advances or loans or investments of funds (either from the borrowed funds
or share premium or any other sources or kind of funds), as prescribed to any other person(s) or
entity (ies), including foreign entities (intermediaries)

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 entity(ies), 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).

(vi) 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.

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

52 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 one thousands are appearing as zero.

In Terms of our Report of even date

For Brahmayya & Co. For and on Behalf of the Board of

Chartered Accountants Bartronics India Limited

Firm Registration Number 000511S

Lokesh Vasudevan N. Vidhya Sagar Reddy Vilasitha Dandamudi

Partner (Managing Director) (Director)

Membership No. 222320 (DIN: 09474749) (DIN: 08272465)

Kosuri Kanaka Ramya Diksha Omer

(Chief Financial Officer) (Company Secretary)

Place: Chennai Place: Hyderabad ^(MNo. ^ACS64120)

Date: 27th May 2025 Date: 27th May 2025