Hypersoft Technologies Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

Provisions And Contingent Liabilities

A provision is recognized when an enterprise has a present obligation (legal or constructive) as
result of past event and it is probable that an outflow embodying economic benefits of resources
will be required to settle a reliably assessable obligation. Provisions are determined based on
best estimate required to settle each obligation at each balance sheet date. 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. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of
meeting obligations under a contract exceed the economic benefits expected to be received,
are recognized when it is probable that an outflow of resources embodying economic benefits
will be required to settle a present obligation as a result of an obligating event, based on a
reliable estimate of such obligation.

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. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability
but discloses its existence in the standalone financial statements.

Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to
the contractual provisions of the instrument.

Financial assets are classified into amortized cost, fair value through profit or loss (FVTPL), or
fair value through other comprehensive income (FVOCI) based on the business model for
managing the assets and the contractual cash flow characteristics.

Trade receivables, cash and cash equivalents, and loans are subsequently measured at
amortized cost using the effective interest method, less expected credit losses.

Financial liabilities are classified as measured at amortized cost or at FVTPL.

The Company applies the Expected Credit Loss (ECL) model for impairment of financial assets
as per Ind AS 109. The ECL allowance reflects the credit risk inherent in the financial asset and
is updated at each reporting date.

Fair value of financial instruments is determined based on quoted market prices or, in the
absence of an active market, using valuation techniques including discounted cash flow
models.

Gains and losses arising from changes in the fair value of financial instruments are recognized
in the statement of profit and loss unless they are recorded in other comprehensive income.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits with banks, and other
short-term highly liquid investments that are readily convertible to known amounts of cash and
are subject to an insignificant risk of changes in value. These are held for the purpose of meeting
short-term cash commitments rather than for investment or other purposes.

Cash and cash equivalents are measured at amortized cost, which approximates their fair value
due to their short-term nature.

Trade Receivables and Expected Credit Loss

Trade receivables are amounts due from customers for services performed in the ordinary
course of business. Trade receivables are initially recognized at fair value and subsequently
measured at amortized cost using the effective interest method, less provision for expected
credit losses (ECL).

The Company applies the Expected Credit Loss (ECL) model prescribed under Ind AS 109 for
impairment of trade receivables. ECL is recognized based on the lifetime expected credit losses
for all trade receivables, considering historical credit loss experience, current conditions, and
forward-looking information.

The Company provides for impairment of trade receivables (other than inter-company
receivables) which are outstanding for more than 180 days from the due date, based on specific
identification and/or application of the ECL model. The provision is recognized as an expense in
the statement of profit and loss.

The amount of the loss allowance is updated at each reporting date to reflect changes in credit
risk since initial recognition. Trade receivables with significant balances and evidence of credit
risk are assessed individually for impairment.

Events After the Reporting Period

Events after the reporting period are those events, both favourable and unfavourable, that occur
between the end of the reporting period and the date when the financial statements are
authorized for issue.

The Company identifies two types of events after the reporting period:

• Adjusting events: Those that provide evidence of conditions that existed at the end of the
reporting period. The financial statements are adjusted to reflect such events.

• Non-adjusting events: Those that are indicative of conditions that arose after the reporting
period. Such events are disclosed in the notes to the financial statements, if material.

The financial statements are adjusted for such events before authorization for issue.

Related Party Transactions:

The Company’s related party comprises the Key Managerial Personnel (KMPs). Transactions, if
any, with the KMPs are undertaken in the ordinary course of business. Details of the related party
and a summary of related party transactions are disclosed in Note 31.

Earnings Per Share

The basic earnings per share is computed by dividing the net profit attributable to equity
shareholders for the period by the weighted average number of equity shares outstanding during
the period. 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 equity shares which could be issued on the conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless they have been issued at a later date. The diluted potential equity shares have
been arrived at, assuming that the proceeds receivable were based on shares having been
issued at the average market value of the outstanding shares. In computing dilutive earnings per
share, only potential equity shares that are dilutive and that would, if issued, either reduce future
earnings per share or increase loss per share, are included.

Recent Pronouncements

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.
During the year ended March 31,2025, MCA has notified Ind AS 117 - Insurance Contracts and
amendments to Ind As 116 - Leases, relating to sale and lease back transactions, applicable
from April 1,2024. The Company has assessed that there is no significant impact on its
financial statements.

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign
Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable.
The amendments are effective for annual periods beginning on or after April 1,2025. The
Company has assessed that there is no significant impact on its financial statements.

Current Vs Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification.

An asset is treated as current when:

¦ It is expected to be realised or intended to be sold or consumed in normal operating cycle.

¦ It is held primarily for purpose of trading.

¦ It is expected to be reaised within twelve months after the reporting period.

¦ Cash and cash equivalents unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

¦ It is expected to settle in the normal operating cycle.

¦ It is due to be settled within twelve months after the reporting date.

¦ There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current.

Advance tax paid is classified as non-current assets.

Our Report Attached

For ANANT RAO & MALLIK For HYPERSOFT TECHNOLOGIES LIMITED

Chartered Accountants

NARRA PURNA BABU NAGA MALLESWARI NARRA

Managing Director Director

DIN :10674419 DIN :10819020

---

Mar 31, 2024

K. PROVISIONS & CONTINGENCIES:

Provisions are recognized in the books when there is a present obligation as a result of past
events involving substantial degree of estimation and it is probable that there will be an outflow
of economic resources. contingent liabilities, if any, are not recognized but are disclosed in the
notes.

L. FINANCIAL INSTRUMENTS:

Non-Derivative Financial Instruments:

Non-derivative financial instruments are recognized initially at fair value when the Company
becomes a party to the contractual provisions of the instrument.

Dividend and interest income are recognized when earned.

Non-derivative financial instruments consists of

a) Financial Assets which includes Cash and Cash equivalents, trade receivables, unbilled
revenue and eligible current and non-current assets.

b) Financial Liabilities includes short term and long term borrowings bank overdrafts, trade
payables and eligible current and non-current liabilities.

Cash and cash equivalents

Cash and cash equivalents include all cash balances and short-term highly liquid investments
with an original maturity of three months or less that are readily convertible into known amounts
of cash which are subject to insignificant risk of change in value. Bank overdraft, if any are
shown within borrowings in current liabilities in the Balance Sheet.

Receivables

Trade and other receivables

Receivables are initially recognized at fair value, which in most cases approximates the nominal
value. If there is any subsequent indication that those may be impaired, they are reviewed for
impairment.

Trade and other payables

Liabilities are recognized for amounts to be paid in future for goods or services received,
Whether billed by the supplier or not.

M. EVENTS AFTER THE REPORTING PERIOD

Adjusting events are events that provide further evidence of condition that existed at the end of
the reporting period. The financial statements are adjusted for such events before authorization
for issue.

Note No.30: Employee Benefits

a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to registered
Provident fund administered by Central Government. The contribution of Rs.5,95,236/-(Previous year
Rs.4,15,320/-) including administrative charges is recognized as expense and is charged in the Statement of
Profit and Loss. The obligation of the Company is limited to the amount contributed and it has no further
contractual nor any constructive obligations.

b) Gratuity: Gratuity is non funded Defined Benefit Plan payable to the qualifying employees on separation.
Company provides for gratuity for employees based on the present value of the Defined Benefit obligation and
the related current service costs which are measured on actuarial valuation carried out as on Balance Sheet date.
The liability has been assessed using Projected Unit Credit Method.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the
year ended March 31,2024 are as follows.

The carrying amounts of above Financial Assets and Liabilities are considered to be same as their fair values due
to the nature of the contractual obligations.

Fair Value Hierarchy

Management considers that, the carrying amount of those financial assets and financial liabilities that are not
subsequently measured at fair value in the Financial Statements approximate their transaction value. No financial
instruments are recognized and measured at fair value for which fair values are determined using the judgments
and estimates. The fair value of Financial Instruments referred below has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active market for identical assets or liabilities. (Level-1 measurements) and lowest priority to unobservable
(Level-3 measurements). The categories used are as follows:

• Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in
active markets.

• Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

• Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on
observable market data (unobservable inputs).

Valuation Process:

For Level-3 financial instruments, the fair values have been determined by applying the Net Book value method.

The carrying amounts of receivables, payables, bank balances and cash and cash equivalents are considered to be
same as their fair value due to their contractual obligations.

For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
Financial Risk Management:

The Company’s activities expose to a variety of financial risks viz. market risk, credit risk and liquidity risk. The
Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The primary market risk to the Company is credit risk and liquidity risk. The
Company’s exposure to credit risk is influenced mainly by, dealings with Government and Government agencies
being the top customers.

a. Management of Market Risk:

Market risks comprises of Price risk and Interest rate risk. The Company does not designate any fixed rate financial
assets as fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to
any interest rate risk. Similarly, the Company does not have any Financial Instrument which is exposed to change in
price.

b. Foreign Currency Risks:

The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with
respect to the US Dollars (USD) for the services rendered by the Company to foreign customers.

Credit risk is the risk of financial loss to the Company if a customer or a counter party fails to meet its contractual
obligations. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables.

The company considers that, all the financial assets that are not impaired and past due as on each reporting dates
under review are considered credit worthy.

Credit risk exposure

An analysis of age-wise trade receivables at each reporting date is summarized as follows:

The company''s liquidity needs are monitored on the basis of monthly projections. The principal sources of liquidity
are cash and cash equivalents, cash generated from operations and availability of cash credit and overdraft facilities
to meet the obligations as and when due.

Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee dues during
the normal course of business. The company maintains sufficient balance in cash and cash equivalents and working
capital facilities to meet the short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal
accruals and committed credit lines.

NOTE 37: PLANT PROPERTY & EQUIPMENT

During the year the Company has sold its Buildings with book value of Rs.225.79 lakhs which form substantial
portion of Plant Property & Equipment.

NOTE 38: EXCEPTIONAL ITEMS

Exceptional items represent Loss on Write down of Inventory for Rs.36.50 lakhs and Loss on Sale of Buildings for
Rs.3.05 Lakhs

NOTE 39: OTHERS

i. No proceeds have been initiated or pending against the company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii. The company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.

iii. In the opinion of the Board of Directors, the Company does not have any impaired assets.

iv. Trade payables to Micro, Small, Medium Enterprises has been identified based on information
available with the company. This has been relied upon by the auditor.

v. Company has used accounting software for maintaining its books of account for the financial year
ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the software.

vi. Amounts in the financial statements are presented in Rupees in Lakhs, unless otherwise specified. All
figures have been rounded to the nearest Lakhs with two decimals.

---

Mar 31, 2009

1 Forfeited shares represents 9,61,900 Equity shares of Rs.10/-each forfeited on 20th June, 1998 against which the company had received Rs.2.50 on each share.

2 Current liabilities do not include any amounts outstanding to small-scale industrial units

3 Balances of Sundry Debtors, Creditors, Loans and Advances, which were not confirmed, are as per books of account only.

4 Previous year figures are regrouped or reclassified wherever necessary to confirm to the presentation of the current year.