1.15 Provisions

1. A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that is
reasonably estimable, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.

2. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre¬
tax rate that reflects current market assessments of the time value
of money and the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of time is
recognized as a finance cost.

1.16 Financial instruments

a. Recognition and Initial recognition

The Company recognizes financial assets and financial liabilities
when it becomes a party to the contractual provisions of the
instrument. All financial assets and liabilities are recognized at fair
value on initial recognition, except for trade receivables which are
initially measured at transaction price. Transaction costs that are
directly attributable to the acquisition or issues of financial assets

and financial liabilities that are not at fair value through profit or
loss, are added to the fair value on initial recognition.

A financial asset or financial liability is initially measured at fair
value plus, for an item not at fair value through profit and loss
(FVTPL), transaction costs that are directly attributable to its
acquisition or issue.

b. Classification and Subsequent measurement
Financial assets

On initial recognition, a financial asset is classified as measured at

- amortized cost;

- FVTPL

Financial assets are not reclassified subsequent to their initial
recognition, except if and in the period the company changes its
business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both of
the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is
to hold assets to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortized cost as
described above are measured at FVTPL. On initial recognition,
the Company may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortized
cost at FVTPL if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective of the
business model in which a financial asset is held at a portfolio level
because this best reflects the way the business is managed and
information is provided to management. The information
considered includes:

- the stated policies and objectives for the portfolio and the
operation of those policies in practice. These include
whether management's strategy focuses on earning
contractual interest income, maintaining a particular interest
rate profile, matching the duration of the financial assets to
the duration of any related liabilities or expected cash
outflows or realizing cash flows through the sale of the
assets;

- how the performance of the portfolio is evaluated and
reported to the Company's management;

- the risks that affect the performance of the business model
(and the financial assets held within that business model)
and how those risks are managed;

- how managers of the business are compensated - e.g.
whether compensation is based on the fair value of the
assets managed or the contractual cash flows collected;
and

- the frequency, volume and timing of sales of financial assets
in prior periods, the reasons for such sales and expectations
about future sales activity.

Transfers of financial assets to third parties in transactions that do
not qualify for derecognition are not considered sales for this
purpose, consistent with the Company's continuing recognition of
the assets.

Financial assets that are held for trading or are managed and
whose performance is evaluated on a fair value basis are
measured at FVTPL.

Financial assets: Assessment¹ whether contractual cash flows are
solely payments of principal and interest

defined as consideration for the time value of money and for the
credit risk associated with the principal amount outstanding during
a particular period of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative costs), as well as a profit
margin.

In assessing whether the contractual cash flows are solely
payments of principal and interest, the Company considers the
contractual terms of the instrument. This includes assessing
whether the financial asset contains a contractual term that could
change the timing or amount of contractual cash flows such that it
would not meet this condition. In making this assessment, the
Company considers:

- contingent events that would change the amount or timing of
cash flows;

- terms that may adjust the contractual coupon rate, including
variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company's claim to cash flows from
specified assets (e.g. non- recourse features).

A prepayment feature is consistent with the solely payments of
principal and interest criterion if the prepayment amount
substantially represents unpaid amounts of principal and interest
on the principal amount outstanding, which may include
reasonable additional compensation for early termination of the
contract. Additionally, for a financial asset acquired at a significant
discount or premium to its contractual paramount, a feature that
permits or requires prepayment at an amount that substantially
represents the contractual par amount plus accrued (but unpaid)
contractual interest (which may also include reasonable additional
compensation for early termination) is treated as consistent with
this criterion if the fair value of the prepayment feature is
insignificant at initial recognition.

Financial assets: Subsequent measurement and gains and
losses

Financial assets at FVTPL: These assets are subsequently
measured at fair value. Net gains and losses, including any interest
or dividend income, are recognized in profit or loss.

Financial assets at amortized cost: These assets are subsequently
measured at amortized cost using the effective interest method.
The amortized cost is reduced by impairment losses. Interest
income, foreign exchange gains and losses and impairment are
recognized in profit or loss. Any gain or loss on derecognition is
recognized in profit or loss.

Financial liabilities:

Classification, Subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortized cost or
FVTPL. A financial liability is classified as at FVTPL if it is classified
as held- for- trading, or it is a derivative or it is designated as such
on initial recognition. Financial liabilities at FVTPL are measured at
fair value and net gains and losses, including any interest expense,
are recognized in profit or loss. Other financial liabilities are
subsequently measured at amortized cost using the effective
interest method. Interest expense and foreign exchange gains and
losses are recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.

c. Derecognition

Financial assets

The Company derecognizes a financial asset when the contractual
rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a
transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks
and rewards of ownership and does not retain control of the
financial asset.

If the Company enters into transactions whereby it transfers assets
recognized on its balance sheet, but retains either all or
substantially all of the risks and rewards of the transferred assets,
the transferred assets are not derecognized.

Financial liabilities

The Company derecognizes a financial liability when its
contractual obligations are discharged or cancelled, or expire.

The Company also derecognizes a financial liability when its terms
are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based
on the modified terms is recognized at fair value. The difference
between the carrying amount of the financial liability extinguished
and the new financial liability with modified terms is recognized in
profit or lose.

d. Offsetting

Financial assets and financial liabilities are offset and the net
amount presented in the balance sheet when and only when, the
Company currently has a legally enforceable right to set off the
amounts and it intends either to settle them on a net basis or to
realize the asset and settle the liability simultaneously.

e. Impairment

The Company recognizes loss allowances for expected credit
losses on financial assets measured at amortized cost;

At each reporting date, the Company assesses whether financial
assets carried at amortized cost and debt securities at fair value
through other comprehensive income (FVOCI) are credit
impaired. A financial asset is ‘credit- impaired' when one or more
events that have a detrimental impact on the estimated future cash
flows of the financial asset have occurred.

Evidence that a financial asset is credit- impaired includes the
following observable data:

- Significant financial difficulty of the borrower or issuer;

- The restructuring of a loan or advance by the Company on
terms that the Company would not consider otherwise;

- It is probable that the borrower will enter bankruptcy or other
financial reorganization; or

- The disappearance of an active market for a security
because of financial difficulties.

The Company measures loss allowances at an amount
equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected credit
losses:

- Debt securities that are determined to have low credit risk at
the reporting date; and

- Other debt securities and bank balances for which credit risk

(i.e. the risk of default occurring over the expected life of the
financial instrument) has not increased significantly since
initial recognition.

Loss allowances for trade receivables are always measured at an
amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that
result from all possible default events over the expected life of a
financial instrument.

12-month expected credit losses are the portion of expected credit
losses that result from default events that are possible within 12
months after the reporting date (or a shorter period if the expected
life of the instrument is less than 12 months).

In all cases, the maximum period considered when estimating
expected credit losses is the maximum contractual period over
which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has
increased significantly since initial recognition and when
estimating expected credit losses, the Company considers
reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the
Company's historical experience and informed credit assessment
and including forward- looking information.

Measurement of expected credit losses

Expected credit losses are a probability weighted estimate of credit
losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the
Company in accordance with the contract and the cash flows that
the Company expects to receive).

* Licence fee assessment

Company has received revised license fee assessment notice from Department of Telecommunications-AP circle for the years 2005-06 to
2010-11,2011-12 to 2013-14 and 2014-15 to 2020-21 w.r.t ISP(IT) License fee for Rs.782.77 Lakhs and Interest due up to 31-12-2024 for
Rs.1560.73 Lakhs and Penalty and Interest on penalty due up to 31-12-2024 for Rs.994.66 Lakhs

In the light of judgment dated 24.10.2019 of Hon'ble Supreme Court on the dispute between DoT and Telecom Service Providers (TSPs)
regarding interpretation of AGR, DoT vide communication dated 05.12.2019 requested submission of a comprehensive representation
since all the demands are being re-examined w.r.t. the Hon'ble Supreme Court Judgement. The company has represented to DoT stating
inter-alia that the demands raised are not sustainable either in law or on facts as the nature of license in case of telecom service providers is
different and distinct from the licenses given to the company

**GST

(i) Demand of Rs.3.04 Lakhs on M/s Nettlinx Limited, towards the CGST ITC irregularly availed by them during the period from 07 /2019 to
06/2020, under the provisions of Section 74 of the cGsT Act,2017.

(ii) Demand of Rs.3.04 Lakhs on M/s Nettlinx Limited, towards the SGST ITC irregularly availed by them during the period from 07 /2019 to
06 /2020, under the provisions of sub-Section (1) of Section 74 of the TGST Act,2Ol7.

(iii) Imposition of penalty of Rs.647.63lakhs-under Section 122(1)(vii) and Section122(1)(ii) simultaneously, these two provisions cover
separate contraventions i.e. availment of ITC without actual receipt of goods /services and issuance of invoice without underlying supply.

ORDER-IN-APPEAL NO. HYD-GST-HYC-APP1-COMMR-o13 & 014-23-24 dt 12-01-2024

The Company intends to file an appeal against the said Order with the Appellate Tribunal Authorities. The Company is hopeful of a favorable
outcome thereof and does not expect the said Order to have any material financial impact on the Company

The appellate tribunal has not been constituted yet and therefore the appeal cannot be filed within three months from the date on which the
order sought to be appealed against is communicated. ln order to remove difficulty arising in giving effect to the above provision of the Act,
the Government, on the recommendations of the Council, has issued the Central Goods and Services Tax (Ninth Removal of Difficulties)
Order,2019 dated 03.12.2019. lt has been provided through the said Order that the appeal to tribunal can be made within three months (six
months in case of appeals by the Government) from the date of communication of order or date on which the President or the State
President, as the case may be, of the Appellate Tribunal enters office, whichever is later.

Based on the recommendation of the Nomination, Remuneration and Compensation Committee, all decisions relating to the remuneration
of the Directories of the Company, in accordance with shareholder's approval, wherever necessary
Terms and Conditions of transactions with Related Parties:

The sale to related parties are made in the normal course of business and on terms equivalent to those that prevail in arm's length
transactions. Outstanding balances at the year-end are unsecured and interest free.

For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related
parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in
which the related party operates.

Note 31

Defined Benefit Plan

The Company provides its employees with benefits under a defined benefit plan, referred to as the “Gratuity Plan”. The Gratuity Plan
entitles an employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed
service (service of six months and above is rounded off as one year) at the time of retirement / exit.

The following tables summarize the components of net benefit expense recognized in the statement of profit or loss and the amounts
recognized in the balance sheet for the plan:

Reconciliation of opening and closing balances of the present value of the defined benefit obligations:

Note 33

As stipulated in IndAS-36, the Company has assessed its potential of economic benefits of its business units and is of the view of that the
assets employed in continuing business are capable of generating adequate returns over their useful life in the usual course of its business.

Note 34

Financial risk management objectives and policies

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance and support Company's operations. The Company's principal financial assets include trade and other receivables,
cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management overseas the management of
these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises two types of risk, interest rate risk and other price risk, such as equity price risk and commodity/ real estate risk.
Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the
following sections relate to the position as at March 31,2025 and March 31,2024.

The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the
debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the
financial assets and financial liabilities held at March 31,2025 and March 31,2024

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's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt
obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company
does not enter into any interest rate swaps.

ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including
deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted
after obtaining necessary approvals for credit. The collection from the trade receivables is monitored on a continuous basis by the
receivables team.

As per the Management estimation, the company is confident of recovering the present Trade Receivables. Hence no ECL (Expected
Credit Loss) has created.

Customers accounted for more than 5% of the revenue as of March 31,2025 is

1. The Principal Secretary, ITE&C Department Hyderabad, Telangana for Rs.859.04 Lakhs

2. The Commissioner of Police Hyderabad, Telangana for Rs.228.00 Lakhs

3. Dy.lnspector General of Police TSiCCC Hyderabad, Telangana for Rs.378.44 Lakhs

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions.

iii) Liquidity risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:

Note 35

Capital management

The Company's policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity
ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprises of issued share
capital and all other equity reserves excluding Debenture Redemption Reserve.

Note 36

Corporate Social Responsibility:

Committee

The provisions of Section 135 of the Companies Act, 2013 are applicable to the Company from the current Financial Year i.e. 2024-2025 as
the net profit of the Company for the year 2023-2024 is more than Rs.5.00 Crores. The utilization of the 2% of the net profits towards the
activities mentioned in the Companies (Corporate Social Responsibility Policy) Rules, 2014, and same has been taken up in during the
current Financial Year 2024-2025. (Refer Annexure.)

In this regard, the Board of Directors constituted the Corporate Social Responsibility Committee consisting of • Mr. Vijaya Bhasker Reddy
Maddi • Dr. Manohar Loka Reddy • Mr. M Vijay Kumar

Note 37

Details of foreign exchange Inflow or Out flow during the year: - NIL_-
Note 38

The Company is in the process of obtaining confirmations for the Balances of Trade Payables, Trade receivables, Advances from the
Customers and other balances.

41. Title deeds of immovable properties

The title deeds of all the immovable properties, as disclosed in note 4.1 to the financial statements, are held in the name of the company.

42. Valuation of Property Plant & Equipment, intangible asset

The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

43. Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under
Companies Act, 2013,) either sverally or jointly with any other person, that are repayable on demand or without specifying any terms or
period of repayment.

44. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

45. Borrowing secured against current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets
filed by the Company with banks are in agreement with the books of accounts.

46. Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

47. Relationship with struck off companies

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

48. Registration of charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

49. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies
(Restriction on number of layers) Rules, 2017.

50. Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

51. Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person or entity, including foreign entities (“Intermediaries”) with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The
Company has not received any fund from any party(Funding Party) with the understanding that the Company shall whether, directly or
indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries

52. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded previously in the books of account.

53. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

54. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans
were taken.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date.

For M/s. NIRANJAN & NARAYAN For and on behalf of the Board of Directors

Chartered Accountants
Firm Registration No. 005899S

Sd/- Sd/- Sd/-

P. VENUMADHAVA RAO Rohith Lokareddy JEETEN ANIL DESAI

Partner Managing Director Director

Membership No.202785 DIN:06464331 DIN:07254475

UDIN:25202785BMIUWE4645

Sd/-

^{Place: Hyderabad} N.Venkateswara Rao

^{Date: 27-05-2025} Chief Financial Officer

1

For the purposes of this assessment, ‘principal' is defined as the
fair value of the financial asset on initial recognition. ‘Interest' is