U. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent
liabilities are not recognized but are disclosed in notes.

Show cause notices issued by various government authorities are not considered as obligation. When the demand
notice are raised against such show cause notice and are disputed by the company then these are classified as
possible obligations.

V. Leases

Leases where significant portion of risk and reward of ownership are retained by the lessor are classified as
operating leases and lease payments are recognised as an expense on a straight line basis in Statement of Profit
and Loss over the lease term.

Finance leases that transfer substantially all of the risks and benefits incidental to ownership of the leased item,
are capitalized at commencement of the lease at the fair value of the leased property or, if lower, at the present
value of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction
in the lease liability so as to achieve a constant rate of interest on the remaining balance of liability. Finance
charges are recognised in finance cost in the statement of profit and loss.

W. Proposed Dividend

The final dividend on shares is recorded as liability on the date of approval by the shareholders, and interim
dividends are recorded as a liability on the date of declaration by the Company's Board of Directors.

X. Cash and Cash Equivalent

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly
liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of
cash and which are subject to an insignificant risk of changes in value.

Y. Earnings per Share

The earnings considered in ascertaining the company's Earnings per Share ('EPS') comprise the profit/ (loss) for
the year. The number of shares used in computing basic EPS is the weighted average number of shares
outstanding during the year. The weighted average number of equity shares outstanding during the year is
adjusted for event of bonus element in a rights issue to existing shareholders.

The number of shares used in computing diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share, and also the weighted average number of shares, if any which
would have been used in the conversion of all dilutive potential equity shares.

Z. Impairment

• Financial Assets

The Company recognizes loss allowances using the expected credit losses (ECL) model for the financial assets
which are not fair valued through statement of profit and loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets,
expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of
expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognised as an impairment gain or loss in statement of profit and
loss.

• Non-Financial Asset

Intangible Assets and Property, Plant and Equipment

Intangible assets and property, plant and equipment are evaluated for recover ability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use)
is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, there coverable amount is determined fort he Cash
Generating Unit to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss
is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount
of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the
estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for
the asset in prior year.

25. An amount of Rs. 42.82 crore (PY Rs. 2.82 crore, cr.) being advances from customers classified under the head
“Other Current Liabilities” are in process of being settled for a long time. An amount of Rs. 2.26 crore (PY 2.26
crore, cr.) being Sundry Creditors classified under the head “Trade Payables” are in process of being settled for a
long time .An amount of Rs. 28.10 cr (PY 28.10 crore, dr.) being Loan to Subsidiary Classified under “Loans-
Doubtful”. The company had already made a provision of Rs. 28.10 (PY 28.10crore)against such doubtful
advances in previous years. All the above-mentioned amounts are long overdue and Company is following up
for approvals.

26. In the earlier years, the Company had invested in the share capital of wholly owned subsidiary Shyam Telecom
Inc. (STI), USA and given advance against share capital and extended long term loans to STI and accordingly, an
amount of Rs. 20.74 Lacs (PY Rs 20.74 Lacs, Dr.) and Rs. 2789.31 lacs (PY Rs 2789.31 Lacs, Dr.) are
outstanding as on the year end against such advance and loans, respectively. The Subsidiary company had
liquidated all assets and had accumulated losses amounted to Rs. 2124.63 lacs (PY Rs 2124.63 Lacs,). Shyam
Telecom Inc. (Corporation), erstwhile subsidiary of the Company has been dissolved as per the certificate issued
by State Of Delaware (USA) pursuant to Section 275 and 391 (a) (b) (c) with effect from 22^nd December, 2015.
Accordingly, The Company had made provisions against advances given for share capital and long term loans
amounting to US$ 33,94,344 (33,69,294 25,050) and provided impairment loss against investment made, in
the earlier years. An application to write-off the same post dissolution has been made which is subject to
approval from Reserve Bank of India. Since the corporation has already been dissolved w.e.f. 22^nd December,
2015, the same will be written off after taking necessary approval from RBI. However, full provision and
impairment loss for the same is already been made in the books of account.

27. The Company is exposed primarily to market risk, credit risk and liquidity risk which may adversely impact the
fair value of its financial instruments. The Company assesses the unpredictability of the financial environment
and seeks to mitigate potential adverse effects on the financial performance of the Company.

Market Risk:

Market risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. It is a risk of changes in market prices due to foreign exchange rate changes and interest
rates that will fluctuate affecting company's revenue and the value of its financial instruments.

(a) Interest Rate Risks

The company does not have any floating interest bearing borrowings as on 31^st March 2025 and 31^st March 2024.
Hence, company is not exposed to any significant interest rate risks.

(b) Foreign Currency Risks

The company has following un-hedged foreign currency risks on financial assets and financial liabilities

Credit Risk:

Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the
amounts due, causing financial loss to the company. Credit risk arises from company's activities in investments
and outstanding receivables from customers.

Liquidity Risk:

Liquidity risk arises from the inability to meet cash flow commitments on time. Prudent liquidity risk
management implies maintaining sufficient stock of cash and marketable securities.

30. The figures of Long-term / Short-term borrowings, Trade payable, Trade receivables & Other Current Assets
and Loans and Advances shown in the foregoing Balance sheet are subject to confirmation.

31. In the opinion of Board of Directors, PPE ,Current Assets, Loans and Advances have a value on realisation
in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and
provision for all liabilities have been made in the Accounts, which has been relied upon by the auditors.

32. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of
service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

These benefits are funded. The following tables summarises the components of net benefit expense
recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance
sheet.

The Company has calculated the various benefits provided to employees as under:

A. Provident Fund & Other fund

During the year the Company has recognized Rs.8.59 Lacs (previous Year Rs. 7.79 lacs) towards contribution to
PF in the Statement of Profit and Loss .

B. State Plans

During the year, the Company has recognised Rs. 0.65 Lacs (Previous year Rs. 0.71lacs) towards contribution to
ESI in the Statement of Profit and Loss.

C. Defined Benefit Plans

The actuarial valuation carried out is based on following assumption:
a). Contribution to Gratuity Fund - Employee's Gratuity Fund.

33. None of the creditors have informed that they comprise Micro, Small & Medium Enterprises as defined
under MSMED Act, 2006. Hence there are no creditors which comprise amount outstanding for more than
45 days at Balance Sheet date. Based on information available with company, the balance due to micro and
small enterprise as defined in MSMED Act, 2006 in current year is Rs. NIL and no interest during the year
has been paid or payable under terms of MSMED Act, 2006.

34. The Company has incurred a loss of Rs. 183.75 (PY Loss of Rs. 312.55 Lacs) during the year and the net
worth has been fully eroded for the year under report. Considering the losses and negative net worth on
account of settlement of pending arbitration cases in earlier years, the management has made an assessment
of its ability to continue as a going concern. The Company is in the process of continuing with its trading
operations and expected to generate profits in coming years. Such aspects are considered by the
management while preparing the financial statements, and an assessment of an entity's ability to continue as
a going concern is made accordingly.

For Padam Dinesh & Co For and on behalf of Board of Directors

Chartered Accountants of Shyam Telecom limited

(FRN: 009061N)

Sd/- Sd/- Sd/-

CA. Rakesh Aggarwal Alok Tandon Sunil Rai

Partner Director Director

M.No.: 084226 DIN: 00027563 DIN: 01568405

UDIN: 25084226BMIUPB1609

Place: New Delhi VP _{d R} . • •

_{D 27 05 2025} Vinod Raina Kamini

^{ae: --} Chief Financial Officer Company Secretary