అకౌంట్స్ గమనికలుVL E-Governance & IT Solutions Ltd.

Mar 31, 2025

2.2.15 Provisions

Provisions are recognized when the Company has a
present obligation, legal or constructive, as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation.

Where a provision is measured using the cash flows
estimated to settle the present obligation, it carrying
amount is the present value of those cash flows. If the
effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability.

2.2.16 Contingent Liabilities

A contingent liability is a possible obligation that arises
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 or a present obligation that is not recognized
because it is not probable that an outflow of resources
will be required to settle the obligation. The Company
does not recognize a contingent liability but discloses its
existence in the financial statements. Payments in respect
of such liabilities, if any are shown as advances.

1.2.17 Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equities
shares outstanding during the year.

Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to consider

• The after-income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

• Weighted average number of equity shares that
would have been outstanding assuming the
conversion of all the dilutive potential equity.

1.2.18 Equity Instruments

An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Incremental costs directly attributable
to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.

Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorized and no longer
at the discretion of the Company, on or before the end of
the reporting period but not distributed at the end of the
reporting period.

1.2.19 Exceptional items

When items of income or expense are of such nature,
size and incidence that their disclosure is necessary to
explain the performance of the Company for the year, the
company makes a disclosure of the nature and amount of
such items separately under the head "exceptional items.”

Note 3 - Critical Accounting Judgements and Estimates

The preparation of financial statements in conformity with
Ind AS requires judgements, estimates and assumptions
to be made that affect the reported amount of assets,
liabilities, revenue, expenses, accompanying disclosures and

the disclosures of contingent liabilities. The estimates and
associated assumptions are based on historical experience
and other factors that are relevant. Actual results could
differ from those estimates. These estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the
estimates is revised if the revision affects only that period, or
in the period of the revision and future periods if the revision
affects both current and future period.

Application of accounting policies that require critical
accounting estimates and the use of assumptions in the
financial statements are as follows:

3.1 Going concern

The preparation of financial statements in accordance
with Ind AS requires management to make judgements,
estimates, and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities, income, and expenses. Among the critical
judgements made by management is the assessment of
the entity''s ability to continue as a going concern.

Management has performed a detailed evaluation of
the Company''s ability to continue as a going concern,
considering relevant factors such as the Company''s
financial position, cash flow projections, funding plans,
operational performance, and other relevant information
available as at the date of approval of the financial
statements. Based on this assessment, the financial
statements have been prepared on a going concern basis,
as management has a reasonable expectation that the
Company will be able to meet its obligations as they fall
due for the foreseeable future.

In making this assessment, management has also
considered possible future outcomes and scenarios,
including the potential impact of economic uncertainties,
and has concluded that there are no material
uncertainties that may cast significant doubt on the
Company''s ability to continue as a going concern.

3.2 Defined benefit plans

The cost of the defined benefit gratuity plan and other
post-employment medical benefits and the present value
of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate; future salary increases and mortality
rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest
rates of government bonds in currencies consistent with
the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only at
interval in response to demographic changes. Future
salary increases and gratuity increases are based on
expected future inflation rates.

3.3 Fair value measurement of financial instruments

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques.
The inputs to these models are taken from observable
markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair
values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the
reported fair value of financial instruments.

3.4 Impairment of financial assets

The impairment provisions for Financial Assets are based
on assumptions about risk of default and expected cash
loss. The management uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on past history, existing market
conditions as well as forward looking estimates at the end
of each reporting period.

3.5 Expected Credit Loss of financial Instruments

The measurement of impairment losses under Ind AS 109
across all categories of financial assets in scope requires
assumptions, in particular, in the estimation of the amount
and timing of future cash flows and collateral values when
determining impairment losses and the assessment of
a significant increase in credit risk. These estimates are
driven by a number of factors, changes in which can result
in different levels of allowances

Trade receivables do not carry any interest and are
stated at their nominal value as reduced by provision for
impairment. The Company uses a provision matrix to
determine impairment loss allowance on the portfolio
of trade receivables. The provision matrix is based on its
historically observed default rates over the expected life
of the trade receivable and is adjusted for forward looking
estimates. Individual trade receivables are written off
when management deems them not to be collectible.

It has been the company''s policy to regularly review
its model in the context of actual loss experience,
macro economical factors and adjust when necessary.
Financial Assets are written off when the company has
no reasonable expectations of recovering the financial
asset (either in its entirety or a portion of it). This involves
the Management''s assessment of whether the borrower/
debtor etc. does not have assets or sources of income
that could generate sufficient cash flows to repay the
amounts subject to the write-off.

3.6 Revenue from contracts with customers

The Company''s contracts with customers include
promises to provide the goods or services to the
customers. Judgement is required to determine the
transaction price for the contract. The transaction price
could be either fixed amount of customer consideration
or variable consideration with elements such as schemes,
incentives, cash discounts etc. The estimated amount
of variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue
recognized will not occur and is reassessed at the end of
each period.

Estimates of rebates and discounts are sensitive to
changes in circumstances and the Company''s past
experience regarding returns and rebate entitlements may
not be representative of customer''s actual returns and
rebate entitlements in the future.

RECENT ACCOUNTING PRONOUNCEMENTS

The 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. The Ministry of Corporate Affairs vide
notification dated 9 September 2024 and 28 September 2024
notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively, which
amended/ notified certain accounting standards (see below),
and are effective for annual reporting periods beginning on or
after 1 April 2024: (i)Insurance contracts - Ind AS 117; and (ii)
Lease Liability in Sale and Leaseback - Amendments to Ind AS
116.

The Company has reviewed the recent pronouncements and,
upon evaluation, concluded that these amendments have had
no impact on its Financial Statements or on any amounts
recognised in prior periods, and are not expected to materially
affect the current or future periods.

Note:- Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006) and Ageing
analysis of the age of trade payable amounts that are past due as at the end of reporting year. Refer Footnote 16

1) Terms and Conditions of Trade Payables: -

- Trade payables are non-interest bearing and normally settled as per the respective terms.

- For terms and conditions with Related parties refer to note 30.

2) Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October
2006, as amended on 1st June, 2020, certain disclosures are required to be made relating to Micro, Small and Medium
enterprises. .On the basis of the information and records available with the management, there are no outstanding dues as
at March 31,2025 to the MSME as defined in the Micro, Small and Medium Enterprises Development Act, 2006, except as
stated below. This has been relied upon by the auditors.

Note 31 ALLOWANCE FOR EXPECTED CREDIT LOSSES (ECL) and ACCOUNTING ON GOING CONCERN BASIS :

During the year under review, the Company has recognised a significant allowance towards Expected Credit Losses (ECL) on its
financial assets, in compliance with the requirements of Ind AS 109 - Financial Instruments. This provision has been presented
under the head "Exceptional Items” in the Statement of Profit and Loss.

The recognition of ECL is part of the Company''s forward-looking approach to credit risk assessment and prudent financial
management. This proactive measure underscores the Company''s commitment to maintaining the integrity of its financial
statements through accurate and transparent reporting.

The significant and prudent allowance of Expected Credit Losses (ECL) during the year consists, Allowance of ECL on Trade
Receivables of '' 1,16,418.22 Lakhs ('' 37.42 Lakhs in the previous year); Allowance of ECL on Loans of '' 3,092.97 Lakhs ('' Nill
in the previous year) and Allowance of ECL on Advances of '' 1,32,330.08 ('' Nil in the previous year Nil), which is provided in
compliance with the requirements of Ind AS 109 - Financial Instruments

The provision towards Expected Credit Losses (ECL) has led to a reduction in the Company''s net worth for the period.
Notwithstanding this impact, the Company continues to maintain a strong and resilient balance sheet, with a positive net
worth of ''4,569.66 lakhs and adequate liquidity. The core business operations remain fully operational and are generating
healthy revenue streams, reflecting the Company''s underlying strength and stability.

In accordance with Ind AS 1 - Presentation of Financial Statements, management has reviewed cash flow forecasts, working
capital requirements, budgets and key performance indicators. Based on this comprehensive assessment, there are no material
uncertainties that would materially affect the Company''s ability to continue as a going concern or to pursue its business objectives
in the foreseeable future.

We have strong confidence in the quality of our assets and our credit-risk management system, which support our long-term
financial strength and future growth.The management is fully committed to closely pursuing the recovery from the underlying
assets all the receipts from these assets will be earning accretive.

Note 32 EMPLOYEE BENEFIT OBLIGATIONS

(i) Leave obligations

The leave obligations cover the Company''s liability for earned leave.

The Company follows Ind-AS 19 to make provision of leave encashment as per Ind-AS 19. However, as on March 31,2025, no
leave encashment was pending for settlement thus the company does not made any provisions for leave encashment.

(ii) Gratuity (post-employment benefits)

The Company provides for gratuity to 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 amount of gratuity payable on retirement/termination
is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of
years of service.

However, as on March 31,2025, no employee of the company has completed continuous service for a period of 5 years resulting
to the company do not require to make any provision/contribution for gratuity.

Note 33 SCHEME of ARRANGEMENT

The Board of Directors of Vakrangee Limited at their meeting held on November 12, 2021, considered and approved to restructure
the business by way of a Scheme of Arrangement for Demerger ("Scheme”) whereby the E-Governance & IT/ITES Business
(Demerged Undertaking) of Vakrangee Limited ("Demerged Company”) will be demerged into the Company ("Resulting Company”)
as a going concern basis. Pursuant to the Regulation 37 of the LODR, the Demerged Company has obtained No Objection
Letter from the BSE and NSE vide their letter dated March 11, 2022 and subsequently, an application was made to the National
Company Law Tribunal (NCLT) for further directions.

Pursuant to the Scheme, duly sanctioned by the National Company Law Tribunal, Mumbai Bench, vide its Order dated May 19,
2023 (''Order'') with effect from the Appointed Date, i.e. April 1, 2021, the Demerged Undertaking stands transferred to and vested
in the Company as a going concern. In accordance with Sections 230 to 232 of the Companies Act, 2013, the Company filed the
NCLT Order with Ministry of Company Affairs (MCA) on May 26, 2023. Consequent to the filing, the scheme became effective from
May 26, 2023.

Note 34 SEGMENT REPORTING

As per Indian Accounting Standard (IndAS) 108 "Operating Segment” and considering the nature of the Company''s business
and operations, the Company''s business falls within only one reportable operating segment viz. "E-Governance & IT/ITES
Business(B2B)”.

Note 35 FINANCIAL INSTRUMENTS

(i) Method and assumptions used to estimate the fair value

A number of the Company''s accounting policies and disclosures require the determination of fair value, for both financial as
well as non-financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes
that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability
or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal market or the
most advantageous market must be accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value
hierarchy is described as below:

Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2 : Inputs other than prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.

Level 3 : Unobservable inputs for the asset or liability.

The Board of Directors has overall responsibility for the establishment and overview of the company''s risk management
framework. The Board of Directors has established a risk management policy to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems
are reviewed periodically to reflect changes in market conditions and the company''s activities. The Audit Committee oversees
how management monitors compliances with the company''s risk management policies and procedures, and reviews the
risk management framework. The Audit Committee is assisted in its role by Internal Audit. Internal Audit covers review of risk
management controls and procedures, the results of which are reported to the Audit Committee.

The Company''s activities are exposed to various risk viz. Credit Risk, Liquidity Risk and Market Risk. In order to minimise any
adverse effects on the financial performance of the Company, it uses various instruments and follows policies set up by the
Board of Directors / Management of the Company

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the
contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of
customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

As disclosed in Notes of financial statement, cash and cash equivalents balances generally represent short-term deposits
with a less than 90-day maturity. Credit risks from balances with banks and financial institutions are managed in accordance
with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only
dealing with reputable banks and financial institutions having high credit ratings assigned by credit rating agencies.

Trade receivables are typically unsecured and are derived from revenue earned from customers. The Company uses
expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward looking
information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit
loss allowance for trade receivables and Loans & Advances. The outstanding trade receivables are regularly monitored and
appropriate action is taken for collection of overdue receivables. The Company''s maximum exposure to credit risk for the
components of the balance sheet at March 31, 2025 and March 31,2024 is the carrying amounts as disclosed in Note 8 and
Note 5.

b) Liquidity Risk :

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. The Company''s approach for managing liquidity is to ensure
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to Company''s reputation, typically the company ensures that it has
sufficient cash on demand to meet expected operational expenses, servicing of financial obligations.

c) Market Risk :

Market risk is the risk of loss of future earnings or 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
exchange rates and other market changes that affect market risk sensitive instruments.

(i) Market Risk - Foreign Exchange

The Company does not operate internationally and all of its business transactions, including sales, purchases, and
borrowings, are conducted in Indian Rupees. As such, the Company is not exposued to foreign exchange risk arising
from regular operations.

However, the Company is exposed to foreign exchange risk with respect to foreign currency loans extended to a related
party. The interest receivable on these loans remains outstanding and is denominated in foreign currency. (refer note-5
and 30)

ii) Market Risk - Interest Rate

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.

Company has interest rate risk exposure mainly from changes in rate of interest on deposit with bank. The interest
rate are disclosed in the respective notes to the financial statements of the Company. The following table analyse the
breakdown of the financial assets and liabilities by type of interest rate:

Note 36 STATUTORY INFORMATION

(a) There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(b) The Company has not entered into any transactions with struck off companies during the year.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company does not have any such transaction which is not recorded in the books of accounts 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)

(f) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) to or in any other person or entity, including foreign entities ("Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Further, the Company has not received any funds from any person or entity, including foreign entities ("Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(g) The Company has complied with the number of layers prescribed under clause (87) of the Section 2 of the Companies Act
read with the Companies (Restrictions on Number of Layers) Rule, 2017.

(h) The Company is not declared wilful defaulter by bank or financial institutions or any lender during the financial year.

(i) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

(j) The Company has not availed or used the borrowings from banks and financial institutions.

Note 37

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, for the
financial year commencing April 1,2023, every company which uses accounting software for maintaining its books of account,
shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an
edit log of each change made in the books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled.

The Company has used one accounting software for maintaining its books of account which have a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software.
Further no instance of audit trail feature being tampered with was noted in respect of software.

Note 39 EVENTS AFTER THE END OF THE REPORTING YEAR

No subsequent event has been observed which may require an adjustment to the statement of financial position.

Note 40 PREVIOUS YEAR FIGURES

The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015
(Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the
extent applicable. The previous year''s figures have been regrouped / reclassified wherever necessary, to make them comparable.

As per our report of even date attached

For BKG & Associates For and on behalf of the Board of Directors

Chartered Accountants VL E-Governance & IT Solutions Limited

Firm''s Registration No. : 114852W CIN : L74110MH2016PLC274618

G.L Gupta Sanjay Nandwana Nishikant Hayatnagarkar

Partner Managing Director Chairman and Director

Membership No.: 034914 DIN : 03565954 DIN: 00062638

Pradeep Somani Nilesh Champalal Wadode

Chief Financial Officer Company Secretery

Place : Mumbai Place : Mumbai

Date : May 26, 2025 Date : May 26, 2025

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Mar 31, 2024

l. Provisions

Provisions are recognized when the Company has a present obligation, legal or constructive, as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where a provision is measured using the cash flows estimated to settle the present obligation, it carrying amount is the present value of those cash flows. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.

m. Contingent Liabilities

A contingent liability is a possible obligation that arises 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 or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Payments in respect of such liabilities, if any are shown as advances

n. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equities shares outstanding during the year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to consider

• The after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• Weighted average number of equity shares that would have been outstanding assuming the conversion of all the dilutive potential equity.

o. Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), and highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

p. Leases:

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a year of time in exchange for consideration.

Ind AS 116 Leases replaces existing lease accounting guidance i.e. Ind AS 17 Leases. It sets out principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases, except short-term leases and leases for low-value items, under a single on-balance sheet lease accounting model. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located, less any lease incentives received. Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using incremental

borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option.

The lease liability is subsequently re-measured at amortized cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Lease liability and the right of use asset will be separately presented in the balance sheet and lease payments will be classified as financing activities.

The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the lease payments associated with these leases as an expense in standalone statement of profit and loss over the lease term. The related cash flows are classified as operating activities

q. Employee Benefits

• Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employee''s services up to the end of the reporting period and are measured at the

undiscounted amounts of the benefits expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet:

• Other Long-term employee benefit obligations

The liabilities for compensated absences (annual leave) which are not expected to be settled wholly within 12 months after the end of the period in which the employee render the service are treated and presented as non-current employee benefits obligations. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the Projected Unit Credit method. The benefits are discounted using the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligations. Remeasurements as a result of experience adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains) are recognized in the Statement of Profit and Loss.

The obligations are presented as current in the balance sheet if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur

• Post- employment obligations

Defined benefit plan - Gratuity Obligations

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan”) covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is actuarially determined using the Projected Unit Credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have a term

approximating to the terms of the obligation..

The net interest cost, calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the plan assets, is recognised as employee benefit expenses in the statement of profit and loss.

Re-measurements gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the other comprehensive income in the year in which they arise and are not subsequently reclassified to Statement of Profit and Loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost..

Note 3 - Critical Accounting Judgements and Estimates

The preparation of financial statements in conformity with Ind AS requires judgements, estimates and assumptions to be made that affect the reported amount of assets, liabilities, revenue, expenses, accompanying disclosures and the disclosures of contingent liabilities. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results could differ from those estimates. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period.

Application of accounting policies that require critical accounting estimates and the use of assumptions in the financial statements are as follows:

• Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques.

The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

• Revenue from contracts with customers

The Company''s contracts with customers include promises to provide the goods or services to the customers. Judgement is required to determine the transaction price for the contract. The transaction price could be either fixed amount of customer consideration or variable consideration with elements such as schemes, incentives, cash discounts etc. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and is reassessed at the end of each period.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company''s past experience regarding returns and rebate entitlements may not be representative of customer''s actual returns and rebate entitlements in the future

New Amendments issued but not effective

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.

Scheme. Provision for tax for the accounting periods commencing from April 1,2021 has been recomputed post giving effect to the Scheme.

Pursuant to the Scheme, the Company issued 10,59,40,564 equity shares to the shareholders of Vakrangee Limited in the ratio of 1 equity share of '' 10/- each of the Company for every 10 shares of '' 1/- each held by the shareholders of Vakrangee Limited on April 01,2021, the effect of which has been given in these financial statements as on the appointed date of the Scheme.

Further, in accordance with the terms of the Scheme, the authorised share capital of the Company is increased to '' 11,000 lakhs represented by 1,100 lakhs equity shares of '' 10 each.

The Company is having initial share capital of '' 1,200 lakhs. As per the order of NCLT, upon scheme becoming effective, original share capital of '' 1,200 lakhs stands automatically cancelled and reinstated to '' 10,594.06 lakhs by payment of applicable stamp duty and compliance of ROC formalities.

Note 33 - Employee Benefit Obligations

(i) Leave obligations

The leave obligations cover the Company''s liability for earned leave.

The Company follows Ind-AS 19 to make provision of leave encashment. However, as on March 31,2024, no leave encashment was pending for settlement thus the company does not made any provisions for leave encashment.

(ii) Gratuity (post-employment benefits)

The Company provides for gratuity to 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 amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

However, as on March 31,2024, no employee of the company has completed continuous service for a period of 5 years resulting to the company do not require to make any provision/contribution for gratuity.

Note 34 - SCHEME of ARRANGEMENT

The Board of Directors of Vakrangee Limited at their meeting held on November 12, 2021, considered and approved to restructure the business by way of a Scheme of Arrangement for Demerger ("Scheme”) whereby the E-Governance & IT/ITES Business (Demerged Undertaking) of Vakrangee Limited ("Demerged Company”) will be demerged into the Company ("Resulting Company”) as a going concern basis. Pursuant to the Regulation 37 of the LODR, the Demerged Company has obtained No Objection Letter from the BSE and NSE vide their letter dated March 11, 2022 and subsequently, an application was made to the National Company Law Tribunal (NCLT) for further directions.

Pursuant to the Scheme, duly sanctioned by the National Company Law Tribunal, Mumbai Bench, vide its Order dated May 19,

2023 (''Order'') with effect from the Appointed Date, i.e. April 1,2021, the Demerged Undertaking stands transferred to and vested in the Company as a going concern. In accordance with Sections 230 to 232 of the Companies Act, 2013, the Company filed the NCLT Order with Ministry of Company Affairs (MCA) on May 26, 2023. Consequent to the filing, the scheme became effective from May 26, 2023.

The Scheme has been given effect to in these financial statements by transferring the carying amount of assets and liabilities pertaining to the Demerged Undertaking with effect from the Appointed Date to the Company.

Consequent to the above, the comparative information for the year ended March 31, 2022 is restated to give the impact of the

Note 35 - Financial Instruments

(i) Method and assumptions used to estimate the fair value

A number of the Company''s accounting policies and disclosures require the determination of fair value, for both financial as well as non-financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal market or the most advantageous market must be accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:

Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2 : Inputs other than prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Unobservable inputs for the asset or liability.

The Company''s activities are exposed to various risk viz. Credit Risk, Liquidity Risk and Market Risk. In order to minimise any adverse effects on the financial performance of the Company, it uses various instruments and follows policies set up by the Board of Directors / Management of the Company.

a) Credit Risk :

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit ratings assigned by credit rating agencies.

The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables and loans and advances.

(ii) Financial Risk Management

The Board of Directors has overall responsibility for the establishment and overview of the company''s risk management framework. The Board of Directors has established a risk management policy to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the company''s activities. The Audit Committee oversees how management monitors compliances with the company''s risk management policies and procedures, and reviews the risk management framework. The Audit Committee is assisted in its role by Internal Audit. Internal Audit covers review of risk management controls and procedures, the results of which are reported to the Audit Committee.

b) Liquidity Risk :

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach for managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company''s reputation, typically the company ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial obligations..

c) Market Risk :

Market risk is the risk of loss of future earnings or 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 exchange rates and other market changes that affect market risk sensitive instruments..

(i) Market Risk - Foreign Exchange

Foreign currency Risk is that risk in which fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign exchange rates.

The carrying amount of the Company''s foreign currency denominated monetary assets and liabilities as at the end of the reporting period is as follows:.

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

(ii) Market Risk - Interest Rate

The 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.

Note 36 - Statutory Information

(a) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder..

(b) The Company has not entered into any transactions with struck off companies during the year except as mentioned below.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company does not have any such transaction which is not recorded in the books of accounts 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).

(f) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person or entity, including foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Further, the Company has not received any funds from any person or entity, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries..

(g) The Company has complied with the number of layers prescribed under clause (87) of the Section 2 of the Companies Act read with the Companies (Restrictions on Number of Layers) Rule, 2017..

(h) The Company is not declared wilful defaulter by bank or financial institutions or any lender during the financial year. .

(i) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

(j) The Company has not availed or used the borrowings from banks and financial institution

Note 37

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, for the financial year commencing April 1,2023, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used one accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. Further no instance of audit trail feature being tampered with was noted in respect of software.

Note 39 - Previous year figures

The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the extent applicable. The previous year''s figures have been regrouped / reclassified wherever necessary, to make them comparable.

As per our report of even date attached

For BKG & Associates For and on behalf of the Board of Directors

Chartered Accountants VL E-Governance & IT Solutions Limited

Firm''s Registration No. : 114852W CIN : U74110MH2016PLC274618

G.L Gupta Dinesh Nandwana Amit Sabarwal

Partner Whole Time Director Director

Membership No.: 034914 DIN : 00062532 DIN: 06478938

Pradeep Somani

Chief Financial Officer

Place : Mumbai Place : Mumbai Place : Mumbai

Date : April 19, 2024 Date : April 19, 2024 Date : April 19, 2024