Notes to Accounts of Neueon Corporation Ltd.

Mar 31, 2025

1.12 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 economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.

1.13 Contingent Liabilities / Assets

Contingent Liabilities

Contingent liabilities are not recognized but disclosed in Notes to the Accounts when the
company has possible obligation due to past events and existence of the obligation depends
upon occurrence or non-occurrence of future events not wholly within the control of the
company.

Contingent liabilities are assessed continuously to determine whether outflow of economic resources
have become probable. If the outflow becomes probable then relative provision is recognized in the
financial statements.

Where an entity is jointly and severally liable for an obligation, the part of the obligation that is
expected to be met by other parties is treated as a contingent liability. The entity recognises a
provision for the part of the obligation for which an outflow of resources embodying economic

benefits is probable, except in the extremely rare circumstances where no reliable estimate can be
made

Contingent Liabilities are disclosed in the General Notes forming part of the accounts
Contingent Assets

Contingent Assets are not recognised in the financial statements. Such contingent assets are
assessed continuously and are disclosed in Notes when the inflow of economic benefits becomes
probable. If it''s virtually certain that inflow of economic benefits will arise then such assets and the
relative income will be recognised in the financial statements.

1.14 Employee benefits

During the Liquidation all the employees are relieved from their services and no employee working in
the Company according to the order of Liquidation. Hence no provision made for Employee benefits.

1.15 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit
before tax'' as reported in the statement of profit or loss and other comprehensive income/statement
of profit or loss because of items of income or expense that are taxable or deductible in other years
and items that are never taxable or deductible. The Company''s current tax is calculated using tax
rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilized. Such deferred tax assets and liabilities are not recognized if the
temporary difference arises from the initial recognition (other than in a business combination) of
assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In
addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial
recognition of goodwill.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments
in subsidiaries and associates, and interests in joint ventures, except where the company is able to
control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments and interests are only recognized to the extent that it is
probable that there will be sufficient taxable profits against which to utilize the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Where current tax or deferred tax arises from the initial accounting for a business combination, the
tax effect is included in the accounting for the business combination.

However the Company is in Losses. So, there is no current tax for the current Financial Year

1.16 Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation (including
property under construction for such purposes). Investment properties are measured initially at cost,
including transaction costs. All of the Company''s property interests held under operating leases to
earn rentals or for capital appreciation purposes are accounted for as investment properties.

After initial recognition, the company measures investment property at cost.

An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from the disposal.
Any gain or loss arising on de recognition of the property (calculated as the difference between the
net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period
in which the property is derecognized.

Investment properties to be depreciated in accordance to the class of asset that it belongs and the
life of the asset shall be as conceived for the same class of asset at the Company.

1.17 Impairment

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the
relevant asset is carried at a revalue amount, in which case the impairment loss is treated as a
revaluation decrease.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is
carried at a revalued amount, in which case the reversal of the impairment loss is treated as a
revaluation increase. At the end of each reporting period, the company reviews the carrying amounts
of its tangible, intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is

estimated in order to determine the extent of the impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual asset, The Company estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent
basis of allocation can be identified, Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment at least annually, and whenever there is an
indication that the asset may be impaired.

Impairment of financial assets

Financial assets, other than those at Fair Value through Profit and Loss (FVTPL), are assessed for
indicators of impairment at the end of each reporting period. Financial assets are considered to be
impaired when there is objective evidence that, as a result of one or more events that occurred after
the initial recognition of the financial asset, the estimated future cash flows of the investment have
been affected. For Available for Sale (AFS) equity investments, a significant or prolonged decline in
the fair value of the security below its cost is considered to be objective evidence of impairment.

For all other financial assets, objective evidence of impairment could include:

• Significant financial difficulty of the issuer or counterparty;

• Breach of contract, such as a default or delinquency in interest or principal payments;

• It becoming probable that the borrower will enter bankruptcy or financial re-organisation; or the
disappearance of an active market for that financial asset because of financial difficulties.

For certain categories of financial assets, such as trade receivables, assets are assessed for
impairment on individual basis. Objective evidence of impairment for a portfolio of receivables could
include companies past experience of collecting payments, an increase in the number of delayed
payments in the portfolio past the average credit period of zero days, as well as observable changes
in national or local economic conditions that correlate with default on receivables.

For financial assets that are carried at cost, the amount of impairment loss is measured as the
difference between the asset''s carrying amount and the present value of the estimated future cash
flows discounted at the current market rate of return for a similar financial asset. Such impairment
loss will not be reversed in subsequent periods

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables; such impairment loss is reduced through the use of
an allowance account for respective financial asset. When a trade receivable is considered
uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts
previously written off are credited against the allowance account. Changes in the carrying amount of
the allowance account are recognized in profit or loss.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring after
the impairment was recognized, the previously recognized impairment loss is reversed through profit
or loss to the extent that the carrying amount of the investment at the date the impairment is
reversed does not exceed what the amortised cost would have been had the impairment not been
recognized.

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to control the transferred asset, The Company

recognises its retained interest in the asset and an associated liability for amounts it may have to
pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying
amount and the sum of the consideration received and receivable and the cumulative gain or loss
that had been recognized in other comprehensive income and accumulated in equity is recognized in
profit or loss.

1.18 Earnings per share

Basic earnings per equity are computed by dividing the net profit attributable to the equity holders of
the company by the weighted average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity
holders of the company by the weighted average number of equity shares considered for deriving
basic earnings per equity share and also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity
shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair
value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any shares splits and bonus shares issues including for changes effected prior
to the approval of the financial statements by the Board of Directors.

1.19 Discontinued operations

A discontinued operation is a component of the Company''s business that represents a separate line
of business that has been disposed off or is held for sale, or is a subsidiary acquired exclusively with
a view to resale. Classification as a discontinued operation occurs upon the earlier of disposal or
when the operation meets the criteria to be classified as held for sale.

1.20 Financial instruments

Non-derivative financial instruments
Non-derivative financial instruments consist of:

• financial assets, which include cash and cash equivalents, trade receivables, unbilled revenues,
finance lease receivables, employee and other advances, investments in equity and debt securities
and eligible current and non-current assets;

• Financial liabilities, which include long and short-term loans and borrowings, bank overdrafts,
trade payables, eligible current and non-current liabilities.

Non derivative financial instruments are recognized initially at fair value including any directly
attributable transaction costs. Financial assets are derecognized when substantial risks and rewards
of ownership of the financial asset have been transferred. In cases where substantial risks and
rewards of ownership of the financial assets are neither transferred nor retained, financial assets are
derecognized only when the Company has not retained control over the financial asset.

Subsequent to initial recognition, non-derivative financial instruments are measured as described
below:

a) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at
banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on
demand and are considered part of the Company''s cash management system. In the statement of
financial position, bank overdrafts are presented under borrowings within current liabilities.

b) Investments in liquid mutual funds, equity securities (other than Subsidiaries, Joint Venture and
Associates) are valued at their fair value. These investments are measured at fair value and changes
therein, other than impairment losses, are recognized in other comprehensive income and presented
within equity, net of taxes. The impairment losses, if any, are reclassified from equity into statement
of income. When an available for sale financial asset is derecognized, the related cumulative gain or
loss recognised in equity is transferred to the statement of income.

c) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They are presented as current assets, except for those maturing
later than 12 months after the reporting date which are presented as non-current assets. Loans and
receivables are initially recognized at fair value plus directly attributable transaction costs and
subsequently measured at amortized cost using the effective interest method, less any impairment
losses. Loans and receivables comprise trade receivables, unbilled revenues and other assets.

The company estimates the un-collectability of accounts receivable by analysing historical payment
patterns, customer concentrations, customer credit-worthiness and current economic trends. If the
financial condition of a customer deteriorates, additional allowances may be required.

d) Trade and other payables

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized
cost using the effective interest method. For these financial instruments, the carrying amounts
approximate fair value due to the short term maturity of these instruments.

e) Investments in Subsidiary, Associates and Joint Venture

The company accounts investment in subsidiary, joint ventures and associates at cost

An entity controlled by the company is considered as a subsidiary of the company.

Investments in subsidiary company outside India are translated at the rate of exchange prevailing on
the date of acquisition.

Investments where the company has significant influence are classified as associates. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but
is not control or joint control over those policies.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the joint arrangement is classified as a joint venture. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require unanimous consent of the parties sharing control.

1.21 Segment Information

The company is principally engaged in single business segment viz., “Power and Telecom Tower”,
and operates in one geographical segment as per on ‘Segment Reporting''. Accordingly, no segment
reporting has been made by the company.

1.22 Going Concern

The company has incurred loss during the year and has negative net worth as at 31^st March 2025
that may create uncertainties. However various initiatives taken by the company in relation to cost
saving, optimising revenue management opportunities and enhance ancillary revenues is expected
to result in improved operating performance, there are positive signs where most of the lenders have
accepted for a restructuring proposal. Accordingly the financial statements continue to be prepared
on a going concern basis, which contemplates realisation of assets and settlement of liabilities in the
normal course of business.

1.23 Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on
17.05.2025

For and on behalf of the Board Directors

for RPSV AND CO., Sudheer Rayachoti PVS Santharam

Chartered Accountants Managing Director Wholetime Director

FRN No. 0013151S DIN:01914434 DIN:07536846

M Murali Krishna V Naveen Babu Subrat Sahoo

M. No. 238030 Chief Financial Officer Company Secretary

Place: Hyderabad
Date:17.05.2025

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Mar 31, 2024

1.12 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 economic benefits will be required to

settle the obligation and a reliable estimate can be made of the amount of the obligation.

1.13 Contingent Liabilities / Assets Contingent Liabilities

Contingent liabilities are not recognized but disclosed in Notes to the Accounts when the company has possible obligation due to past events and existence of the obligation depends upon occurrence or non-occurrence of future events not wholly within the control of the company.

Contingent liabilities are assessed continuously to determine whether outflow of economic resources have become probable. If the outflow becomes probable then relative provision is recognized in the financial statements.

Where an entity is jointly and severally liable for an obligation, the part of the obligation that is expected to be met by other parties is treated as a contingent liability. The entity recognises a provision for the part of the obligation for which an outflow of resources embodying economic benefits is probable, except in the extremely rare circumstances where no reliable estimate can be made.

Contingent Liabilities are disclosed in the General Notes forming part of the accounts Contingent Assets

Contingent Assets are not recognised in the financial statements. Such contingent assets are assessed continuously and are disclosed in Notes when the inflow of economic benefits becomes probable. If it’s virtually certain that inflow of economic benefits will arise then such assets and the relative income will be recognised in the financial statements.

1.14 Employee benefits

During the Liquidation all, the employees are relieved from their services and no employee working in the Company according to the order of Liquidation. Hence, no provision made for Employee benefits.

1.15 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit or loss and other comprehensive income/ statement of profit or loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the near future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

However, the Company is in Losses. Therefore, there is no current tax for the current Financial Year

1.16 Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. All of the Company’s property interests held under operating leases to earn rentals or for capital appreciation purposes are accounted for as investment properties.

After initial recognition, the company measures investment property at cost.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on de recognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.

Investment properties to be depreciated in accordance to the class of asset that it belongs and the life of the asset shall be as conceived for the same class of asset at the Company.

1.17 Impairment

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalue amount, in which case the impairment loss is treated as a revaluation decrease.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

At the end of each reporting period, the company reviews the carrying amounts of its tangible, intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, The Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified,

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Impairment of financial assets

Financial assets, other than those at Fair Value through Profit and Loss (FVTPL), are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For Available for Sale (AFS) equity investments, a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment.

For all other financial assets, objective evidence of impairment could include:

• Significant financial difficulty of the issuer or counterparty;

• Breach of contract, such as a default or delinquency in interest or principal payments;

• It becoming probable that the borrower will enter bankruptcy or financial re-organisation; or the disappearance of an active market for that financial asset because of financial difficulties.

Categories of financial assets, such as trade receivables, assets are assessed for impairment on individual basis. Objective evidence of impairment for a portfolio of receivables could include companies past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of zero days, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For financial assets that are carried at cost, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables; such impairment loss is reduced through the use of an allowance account for respective financial asset. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognized.

De-recognition of financial assets

The Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, The Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss.

1.18 Earnings per share

Basic earnings per equity are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any shares splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

1.19 Discontinued operations

A discontinued operation is a component of the Company’s business that represents a separate line of business that has been disposed off or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon the earlier of disposal or when the operation meets the criteria to be classified as held for sale.

1.20 Financial instruments Non-derivative financial instruments

Non-derivative financial instruments consist of:

• financial assets, which include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances, investments in equity and debt securities and eligible current and non-current assets;

• Financial liabilities, which include long and short-term loans and borrowings, bank overdrafts, trade payables, eligible current and non-current liabilities.

Non-derivative financial instruments are recognized initially at fair value including any directly attributable transaction costs. Financial assets are de-recognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are de-recognized only when the Company has not retained control over the financial asset.

Subsequent to initial recognition, non-derivative financial instruments are measured as described below:

a. Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand and are considered part of the Company’s cash management system. In the statement of financial position, bank overdrafts are presented under borrowings within current liabilities.

b. Investments in liquid mutual funds, equity securities (other than Subsidiaries, Joint Venture and Associates) are valued at their fair value. These investments are measured at fair value and changes therein, other than impairment losses, are recognized in other comprehensive income and presented within equity, net of taxes. The impairment losses, if any, are reclassified from equity into statement of income. When an available for sale financial asset is derecognized, the related cumulative gain or loss recognised in equity is transferred to the statement of income.

c. Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date, which are presented as non-current assets. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost using the effective interest method, less any impairment losses. Loans and receivables comprise trade receivables, unbilled revenues and other assets.

The company estimates the un-collectability of accounts receivable by analysing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

d. Trade and other payables

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. For these financial instruments, the carrying amounts approximate fair value due to the short term maturity of these instruments.

e. Investments in Subsidiary, Associates and Joint Venture

The company accounts investment in subsidiary, joint ventures and associates at cost

An entity controlled by the company is considered as a subsidiary of the company.

Investments in subsidiary company outside India are translated at the rate of exchange prevailing on the date of acquisition.

Investments where the company has significant influence are classified as associates. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement is classified as a joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

1.21 Segment Information

The company is principally engaged in single business segment viz., “Power and Telecom Tower”, and operates in one geographical segment as per on ‘Segment Reporting’. Accordingly, the company has made no segment reporting.

1.22 Going Concern

The Group has incurred loss during the year and has negative net worth as at 31March 2024 that may create uncertainties. However various initiatives taken by the company in relation to cost saving, optimising revenue management opportunities and enhance ancillary revenues is expected to result in improved operating performance, there are positive signs where most of the lenders have accepted for a restructuring proposal. Accordingly, the financial statements continue to be prepared on a going concern basis, which contemplates realisation of assets and settlement of liabilities in the normal course of business.

1.23 Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 27.05.2024.

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Mar 31, 2016

1. RETIREMENT BENEFITS

Gratuity is a unfunded defined benefit plan and the gratuity scheme provides for a lump sum benefit, subject to a vesting period of 5 years in case of early separation, based on final last drawn salary and completed years of service.

2. Few Sundry Debtors, Sundry Creditors, Loans and Advances, Unsecured Loans are subject to confirmation of balances and consequential adjustments, if any.

3. Previous years’ figures have been regrouped and reclassified wherever necessary in conformity to the Current Period’s classification.

(i) Term loans from Banks carry interest @11% are secured by first charge on all fixed assets of the Company, excluding fixed assets of Khanapur plant, present and future and secured by personal guarantees of promoter directors and repayable in quarterly installments as per CDR package.

(a) Working capital demand loan from banks carry interest @ 11.5% is secured by way of pari passu first charge on the current assets and pari passu second charge on the fixed assets of the Company, both present and future, and further secured by the personal guarantee of promoter directors of the Company.

(b) Finance lease obligations secured by the assets purchased out of the said loan.

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Mar 31, 2015

1. CONTINGENT LIABILITY (Rs in Lakhs)

Particulars As at As at 31.03.2015 31.03.2014

Bank Guarantees availed from Banks 3970.42 5675.13

Disputed Excise Liability not provided for 30.98 30.98

Disputed Sales tax liability for which the 72.02 72.02 company preferred an appeal

2. RETIREMENT BENEFITS

Gratuity is a unfunded defined benefit plan and the gratuity scheme provides for a lump sum benefit, subject to a vesting period of 5 years in case of early separation, based on final last drawn salary and completed years of service.

3. SEGMENT REPORTING

The company is principally engaged in single business segment viz., "Power and Telecom Tower", and operates in one geographical segment as per Accounting Standard 17 on 'Segment Reporting'. Accordingly no segment reporting has been made by the company.

4. LEASE COMMITMENTS

The Company has finance Lease agreements for vehicles, the minimum lease rental outstanding as on 31st March 2014 are as follows:-

5. Few Sundry Debtors, Sundry Creditors, Loans and Advances, Unsecured Loans are subject to confirmation of balances and consequential adjustments, if any.

6. Previous years' figures have been regrouped and reclassified wherever necessary in conformity to the Current Period's classification.

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Mar 31, 2014

1. CONTINGENT LIABILITY (Rs in Lakhs)

Particulars As at 31.03.2014 As at 31.03.2013

Bank Guarantees availed from Banks 5675.13 3115.27

Disputed Excise Liability not provided for 30.98 30.98

Disputed Sales tax liability for which the company 72.02 72.02 preferred an appeal

2 SEGMENT REPORTING

The company is principally engaged in single business segment viz., "Power and Telecom Tower", and operates in one geographical segment as per Accounting Standard 17 on ''Segment Reporting''. Accordingly no segment reporting has been made by the company.

3. LEASE COMMITMENTS

The Company has finance Lease agreements for vehicles, the minimum lease rental outstanding as on 31st March 2014 are as follows:-

4. Few Sundry Debtors, Sundry Creditors, Loans and Advances, Unsecured Loans are subject to confirmation of balances and consequential adjustments, if any.

5. Previous years'' figures have been regrouped and reclassified wherever necessary in conformity to the Current Period''s classification.

(i) Term Loans from IDBI Bank carry interest @11% are secured by first charge on all the fixed assets of the Company, excluding fixed assets of Khanapur Plant, present and future, and secured by personal guarantees of promoter directors and repayable in quarterly installments as per CDR package.

(ii) Finance lease obligations against Hypothecation of Vehicles repayable in Monthly Installments.

(iii) 14 years Interest free Sales Tax Deferment Loan received from Government of Andhra Pradesh. Repayment Commences from March 24, 2014 based on the deferment availed in respective years.

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Mar 31, 2013

1. Contingent Liability

(Rs. in Lakhs)

Particulars As at 31.03.2013 As at 31.03.2012

Bank Guarantees availed from Banks 3115.27 9,963.85

Disputed Excise Liability not provided for 30.98 30.98

Disputed Sales tax liability for which the Company preferred 72.02 72.02 an appeal

2. Segment Reporting

The Company is principally engaged in single business segment Viz., "Power and Telecom Tower", and operates in one geographical segment as per Accounting Standard 17 on ''Segment Reporting''. Accordingly no segment reporting has been made by the Company.

3. Lease Commitments

The Company has finance Lease agreements for vehicles, the minimum lease rental outstanding as on 31st March 2013 are as follows:-

4. Few Sundry Debtors, Sundry Creditors, Loans and Advances, Unsecured Loans are subject to confirmation of balances and consequential adjustments, if any.

5. Previous years'' figures have been regrouped and reclassified wherever necessary in conformity to the Current Period''s classification.

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Mar 31, 2012

1. Contingent Liability (Rs in Lakhs)

Particulars As at 31.03.2012 As at 31.03.2011

Bank Guarantees availed from Banks 9,963.85 9,135.17

Joint Corporate Guarantee executed by the Company Nil USD 2,000,000 along with Sujana Universal Industries Limited (SUIL) and Sujana Metal products Limited (SMPL) in favor of Alpha ventures Limited which is a wholly owned subsidiary of SMPL and Sujana Holdings Limited which is a Subsidiary of SUIL.

Claims against the Company not acknowledged as Debts - 1.71

Disputed Excise Liability not provided for 30.98 30.98

Disputed Sales tax liability for which the Company 72.02 Nil preferred an appeal



2. Segment Reporting

The Company is principally engaged in single business segment Viz., "Power and Telecom Tower", and operates in one geographical segment as per Accounting Standard 17 on 'Segment Reporting'. Accordingly no segment reporting has been made by the Company.

3. Few Sundry Debtors, Sundry Creditors, Loans and Advances, Unsecured Loans are subject to confirmation of balances and consequential adjustments, if any.

4. Previous years' figures have been regrouped and reclassified wherever necessary in conforming to the Current Period's classification.

5. Current year figures are not comparable with the previous period figures, as the previous period figures are for 18 months.

Notes :

(a) Term loans from IDBI Bank secured by first charge on all the fixed assets excluding fixed assets of Khanapur plant, present and future and secured by personal guarantees of Promoter Directors and repayable in quarterly installments @ Rs.2,813,551/- each with a interest rate of 13.5% and repayment started from 01-07-2007 to 01-07-2016.

(b) Term Loan from L&T Infrastructure Finance Co. Ltd secured by mortgage and charge on the fixed assets of Khanapur plant, procured out of this borrowing and second pari passu charge on the entire current assets, present and future. It is also guaranteed by Promoter Directors and repayable in quarterly installment @ Rs.55,112,500/- each with a interest rate @ 14.75% and repayment started from 01-07-2010 to 01-04-2014.

(c) Finance lease obligations against Hypothecation of Vehicles Repayable in Monthly Installments.

(d) Interest Free Unsecured Loans taken from others repayable on 30.09.2013.

(e) 14 years interest free Sales Tax Deferment loan received from Government of Andhra Pradesh. Repayment Commences from March 24, 2014 based on the deferment availed in respective years.

Notes :

(a) Working Capital demand loan from banks secured by way of pari passu first charge on the current assets and pari passu second charge on the fixed assets of the Company both present and future and further secured by the personal guarantee of Promoter Directors of the Company. Default of SICOM Short Term Loan for an amount of Rs. 11,93,44,015/- from last 9 months upto 31.03.2012.

(b) Term Loan taken from L & T Infrastructure Finance Co. Ltd secured by first charge on all the fixed assets, present and future and secured by personal guarantees of Promoter Directors. The Default arising from last three quarters for an amount of Rs.16,53,37,500/- upto 31.03.2012.

(c) Term loans from IDBI Bank secured by first charge on all the fixed assets excluding fixed assets of Khanapur plant, present and future and secured by personal guarantees of Promoter Directors.

(d) Finance lease obligations secured by the assets purchased out of the said loan.

(e) Inter corporate deposits taken from various Companies and the amount defaulted is Rs. 4,95,00,000/- which includes :

(i) Aidek Property Private Limited for Rs. 50,00,000/- for a period of 7 months.

(ii) Bhiragacha Finance Company Pvt. Ltd for Rs. 1,50,00,000/- for a period of 3 months.

(iii) Gateway Leasing Pvt. Ltd for Rs. 1,00,00,000/- for a period of 6 months.

(iv) Nalikul Private Limited for Rs. 25,00,000/- for a period of 9 months.

(v) Spectrum Trimpex Pvt. Ltd for Rs. 70,00,000/- for a period of 3 months and

(vi) Zenith Infotech Limited for Rs. 1,00,00,000/- for a period of 8 months.

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Mar 31, 2011

1. SHARE CAPITAL

During the Year the company with the approval of the Members sub divided 18,80,00,000 Equity shares of nominal value of Rs. 5 each/- in the authorised share capital of the company into 94,00,00,000 Equity shares of Rs. 1/- each.

1% Cumulative Redeemable Preference Shares (CRPS) are redeemable in 12 quarterly Instalments commencing from 01.10.2013

2. SHARE WARRANTS

In terms of the approval of the shareholders of the Company, the Company on 21.12.2009 had issued and allotted 3,13,00,000 Compulsorily convertible warrants on preferential basis to entities in the Promoter Group at a premium of Rs.50/- per warrant to be converted into equity shares at a later date before expiry of 18 Months from the date of issue in one or more trenches. out of the warrant issued warrants aggregating to 2,58,00,000 have already been converted into equity shares during the period. The balance 55,00,000 warrants is reflected under Equity Share Warrants in the Balance sheet pending exercise thereof.

3. SECURED LOANS

Term loans availed from Financial Institutions, Banks and others are secured by way of first charge on the entire fixed assets of the Company, both present and future and further secured by the personal guarantee of certain Directors of the Company

Working Capital facilities availed from banks are inter alia secured by way of pari passu first charge on the current assets and pari passu second charge on the fixed assets of the Company both present and future and further secured by the personal guarantee of certain Directors of the Company. one of the working capital facilities availed from Bank is also secured by Corporate Guarantee fo Sujana Unviersal Industries Limited.

Hire Purchase loans are secured by the assets purchased out of the said loan.

4. UNSECURED LOANS

Unsecured Loans of Rs. 304.67 Lakhs (Previous Year Rs. 304.67 lakhs) includes Sales Tax Deferment sanctioned by the Commercial Taxes Department, Government of Andhra Pradesh. The Sales tax deferred Liability is repayable at the end of the 14th year from the date of availment, without any interest.

5. CONTINGENT LIABILITYRs. Rs. In Lakhs

Particulars As at 31.03.2011 As at 30.09.2009

Bank Guarantees availed from Banks 9,135.17 4,115.78

Letter of Credit issued by Banks 29,260.05 6,094.64

Joint Corporate Guarantee executed by the Company along with sujana 65,000,000 USD 65,000,000 USD Universal Industries Limited (SUIL) and Sujana Metal products Limited (SMPL) in favour of Alpha ventures Limited which is a wholly owned subsidiary of SMPL and Sujana Holdings Limited which is a Subsidiary of SUIL.

Claims against the Company not acknowledged as Debts 1.71 1.71

Disputed Excise Liability not provided for 30.98 —

6. CAPITAL COMMITMENTS

Estimated amount of Contracts remaining to be executed on Capital Account and not provided for, net of advances is Rs.7,400.00 Lakhs (As on 30.09.2009 Rs.6,361.57 lakhs).

8. RETIREMENT BENEFITS

Gratuity is a unfunded defined benefit plan and the gratuity scheme provides for a lump sum benefit, subject to a vesting period of 5 years in case of early separation, based on final last drawn salary and completed years of service.

9. SEGMENT REPORTING

The company is principally engaged in single business segment Viz., "Power and TelecomTower" , and operates in one geographical segment as per Accounting Standard 17 on Segment Reporting. Accordingly no segment reporting has been made by the company.

11. RELATED PARTY DISCLOSURE

As Per Accounting Standard -18 notified under The Companies (Accounting Standard ) Rules 2006 , the disclosures of transactions with related parties as follows:-

S. No. Name of the related party Relationship

1 Sujana Transmission Ltd

2 Telesuprecon Limited

Subsidiary Companies

3 Digitech Business Systems Limited

4 STL Africa Limited

1 Shri .HanumanthaRao

Key Managerial

2 Shri. K.Raghavaiah

Personnel

3 Shri .Y.Kamesh

13. The Company had extended Inter free unsecured loans to its overseas subsidiary out of GDR proceeds. RBI vide their letter dated 20.01.2011 had directed the company to convert the same into Equity and company had given their consent for such conversion. Pending conversion into equity these amounts have been reflected under advances to subsidiary and since this amount is likely to be converted into equity the balance outstanding as at the end of the period (31.03.2011) has not been restated, and the exchange loss of Rs.644.23 lakhs has not been considered..

16. The provision for Current Tax, Deferred Tax, and has been made based on the Computation of Income prepared by the company.

17. Confirmation of balances from certain creditors, debtors, loans advances and other liabilities are yet to be received.

18. Additional information pursuant to the provisions of Paragraph 3, 4C and 4D of part II of Schedule VI to the Companies Act.

19. Loans and advances in the nature of loans given to subsidiaries as per clause 32 of Listing Agreement.

20. Previous years figures have been regrouped and reclassified wherever necessary in conforming with the Current Periods classification.

21. Previous year figures are for 12 months and are not comparable with the current period figures, as the current period figures are for 18 months.

22. Schedules 1 to 17 form integral part of the balance sheet.

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Sep 30, 2009

1. Share Capital

Share Capital Includes 3,89,33,035 (3,89,33,035) Equity Share of Rs. 5/- each fully paid up issued pursuant to the scheme of arrangement and amalgamation without payment being received in cash.

The Share Capital includes 25,00,000 (25,00,000) Equity Shares of Rs.5/- each Fully Paid Up issued on a preferential basis to the Promoters Group during the previous period at a premium of Rs.160/- per share.

1 % Cumulative Redeemable Preference Shares (CRPS) are redeemable in 12 quarterly Instalments commencing from 1st October 2013

2. Equity Share Warrants

The option for conversion of pending 55,00,000 Equity Share Warrants has not been exercised by the warrant holders, consequent to that, the amount received on account of Equity Share Warrants, has been forfeited and the forfeited amount has been transferred to Capital Reserve A/c.

3. Optionally Convertible Debentures

The Optionally Fully Convertible Debentures allotted to IFCI Ltd. pursuant to the discharge of Rs. 800 lakhs due by the company have not been converted into Equity Shares and the amount outstanding to IFCI Ltd. has been converted into Short Term Rupee Loan carrying the same interest rate (i.e., 13%) applicable to Convertible Debentures. The outstanding amount of Short Term Rupee Loan as on 30.09.2009 is Rs. 600 lakhs. The Short Term Rupee Loan and the interest thereon is secured by first charge on the entire assets of the Company both present and future ranking pari-passu with the charges already created in favour of the existing term lenders and subject to prior charges created for working capital borrowings and further secured by the Guarantee of Sri. Y. S. Chowdary, Chairman of the Company.

4. Secured Loans

4.1 Term Loans from IDBI Bank of Rs. 787.79 lakhs (previous year 900.34 lakhs) and the interest thereon is secured by first charge on the entire assets of the company both present and future ranking paripasu with the charges already created in favour of existing term lenders and subject to prior charges created for working capital borrowings and further secured by the Guarantee of Sri. Y.S. Chowdary Chairman, Sri G. Srinivasa Raju, Director of the Company and Sri. S. T. Prasad, relative of the Chairman.

4.2 Term Loan from Kamataka Bank of Rs. 500.00 Lakhs (previous year 1283.33 lakhs) and the interest thereon is secured by an Exclusive charge on the equipment purchased out of the loan availed, Pari pasu first charge on the residual value of Fixed Assets of the Company, Paripasu second charge on the Current assets of the company and Personal Guarantees of Sri Y.S. Chowdary and Sri. G. Srinivasa Raju.

4.3. Revolving Short term loan of Rs. 25 Crores (Previous year 25 Crores) and interest thereon from SICOM Limited, is secured by exclusive first charge by way of Equitable Mortgage on the land admeasuring 17355 Sq. yards at Kondapur village, Serilingampatty Mandal, Ranga Reddy District, Hyderabad owned by Heritage Infra Developers Limited, and further secured by Pledge of shares of the Company, and Sujana Metal products Limited. These facilities are further secured by personal guarantee of Sri. Y.S. Chowdary Chairman of the company.

4.4 Term Loan of Rs. 63.18 Crores (Previous Year - Nil) from L & T Infrastructure Finance Company Limited, an interest thereon is secured by exclusive charge on the entire assets of Khanapur project, which is yet to commence the production. Limit Sanctioned for the project by L&T Infrastructure Finance Company Limited is Rs. 100 Crores and company has availed Rs. 63.18 Crores till 30.09.2009 and the balance Rs. 36.72 Crores is yet to be disbursed by L&T Infrastructure for the project.

4.5 Working Capital Loans from IDBI bank, Kamataka Bank, UCO Bank and Working Capital Term Loan from Exim Bank is secured First Charge on the Current assets of the Company ranking pari-pasu with the other working capital lenders. The Loan is further secured by the Second charge on the entire fixed assets of the company, and also by the Personal Guarantees of Sri. Y.S.Chowdary and G. Srinivasa Raju.

4.6 Factoring facility and Bills discounting facility from SBI Factors and commercial services Private Limited is secured by Hypothecation by way of first charge on the Companys book- debts and receivables in respect of agreed customers of the company by the Lender. The Loan is further secured by Equitable mortgage of Industrial property belonging to Charminar Granites Exports Limited, Personal Guarantee of Sri. Y.S.Chowdary Chairman of the Company, and corporate Guarantee of Charminar Granite Exports Limited. Bills Discounting Facility availed from SICOM Limited is secured by Pledge of unencumbered equity shares not covered under non disposal undertaking given to institutions and Banks in D mat form of the Company and Bartronics India Limied. These facilities are further secured by the Personal Guarantees of Sri Y.S.Chowdary and Sri. G.Srinivasa Raju.

4.7 Hire Purchase loans are secured by the assets purchased out of the said loan.

5. Unsecured Loans

Unsecured Loans represents Sales Tax Deferment sanctioned by the Commercial Taxes Department, Government of Andhra Pradesh. The Sales tax deferred Liability is repayable at the end of the 14th year from the date of availment without any interest.

6. Contingent Liability (Amount Rupees in Lakhs)

Particulars As at As at 30.09.2009 30.09.2008

Bank Guarantees availed from Banks 4115.78 3417.88

Letter of Credit issued by Banks 6094.64 1993.71

Corporate Guarantee issued in favour of Sujana Holdings Limited, Dubai and Alpha Ventures Limited 960.80 938.80

Claims against the Company not acknowledged as Debts 1.71 NIL

7. Capital Commitments

Estimated amount of Contracts remaining to be executed on Capital Account and not Provided for, net of advances is Rs. 6361.57 lakhs( As on 30th September 2008 Rs. 653 lakhs)

8. Segment Reporting

The company is principally engaged in single business segment Viz.," Power and Telecom Tower", and operates in one geographical segment as per Accounting Standard 17 on Segment Reporting. Accordingly no segment reporting has been made by the company.

9. Related Party Disclosure

As Per Accounting Standard -18 issued by the Institute of Chartered Accountants of India, the disclosures of transactions with related parties as defined in the Accounting Standard are given below:-

S. No. Name of the Related Party Relationship

1 Sujana Transmissions Limited Subsidiary

2 Telesuprecon Limited Companies

3 Digitech Business Systems Limited (Control Exists)

4 Sujana Metal Products Limited

5 Sujana Universal Industries Limited

6 Yalamanchili Finance and Trading Private Limited

7 Foster Infin and Trading Private Limited

8 Sujana Finance and Trading Private Limited Associate

9 Glade Steels Private Limited Companies

10 Sujana Holding Limited

11 Aplha Ventures Limited

12 Gamma Machinery and Equipment Private Limited

13 Shri Y.S Chowdary

14 Shri S. Hanumantha Rao

15 Shri V.S.R. Murthy Key Managerial

16 Shri K.Raghavaiah Personnel

17 Shri R.K. Birla

18 Shri Y.Kamesh

10 Disclosures Under Micro Small And Medium Enterprises Development Act 2006

The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payablb hi ider this Act have not been given.

11. The provision for Current Tax, Deferred Tax, and Fringe Benefit tax has been made based on the Computation of Income prepared by the company.

12. Confirmation of balances from certain Creditors, Debtors, Loans and Advances, other Liabilities and certain Bank accounts are yet to be received.

13. Previous Period figures have been regrouped and reclassified wherever necessary in conforming with the Current Periods classification.

14. Previous year figures are for 15 months and are not comparable with the current period figures, as the current period figures are for 12 months.

15. Schedules 1 to 17 form integral part of the balance sheet.