a) Out of the above Trade Receivables, an amount of Rs 423.91 lakhs (PY Rs 551 lakhs) due from Egyptian National Railways (ENR) is outstanding pending mile stones of the contract to be achieved.

b) Further an amount Rs 2,064.5 lakhs (PY Rs 2,056 lakhs) receivable from Konkan Railways Corporation Ltd (KRCL) is under arbitration / in the process of filing arbitration and provision for expected credit losses upto the extent of Rs 2062.74 is made in respect of this outstanding.

c) Due from Related party i.e Comptek Computer systems Pvt Ltd Rs 414.57 (PY 410.8)

d) Excludes unbilled revenue of Rs 183.47 (PY 203.47) against which allowance has been created for expected credit losses to an extent of Rs. 20 (PY nil)

a) Balances with statutory/government authorities represent input credit on goods and services purchased/received of Rs. 269.05 (PY 253.13 lakhs) lakhs and VAT claims receivable of Rs. 12.40 lakhs (PY 75.61 lakhs).

b) Unbilled revenue gross is 203.47 (PY 203.47) and allowance for expected credit loss is 20 lakhs and net unbilled revenue is 183.47 (PY 203.47)

Rights attached to the equity shares

The company has only one class of shares having a face value of Rs. 10/- per share. All equity shareholders rank pari-passu in respect of dividend and voting rights. Each holder of equity shares is entitled to one vote per share.In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of preferential amounts, in proportion to their shareholding.

a. Cash credit facilities from State Bank of India are secured by first charge of hypothecation on all current assets of the Company present and future and collaterally secured by extension of first charge on the fixed assets (movable and immovable) of the Company both present and future and extension of equitable mortagage of land and buildings situated at TSIIC Hardware park. The applicable interest rate is 3.0 % spread on EBLR ranged between 9.65 % to 12.15 %

b. Guaranteed Emergency Credit Term Loan (Unsecured) is repayable by May 2024 carrying interest rate at 9.25 %

c. Unsecured Loan from directors are repayable on demand and carrying interest at 18 %

d. Inter corporate Loan is repayable on demand and carrying interest rate of 15%.

e. Other Loans are interest free and repayable on demand

29 DETAILS OF CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

The company is not required to spend on corporate social responsibility under section 135 of the Companies Act, 2013 as the Company does not meet the criteria thereunder.

30 EMPLOYEE BENEFITS

a. Defined contribution plan

Eligible employees of the Company receive benefits from a provident fund, which is a defined contribution plan. Both the employee and Company make monthly contributions to the provident fund plan equal to a specified percentage of the eligible employee’s qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed INR 18.74 Lakhs (Previous year INR 13.62 Lakhs) towards provident fund plan during the years ended 31-Mar-23.

b. Defined Benefit Plan

The Company provides for gratuity, a defined benefit plan ("Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee’s last drawn salary and the years of employment with the Company.

The following table sets out the amounts recognised in the financial statements in respect of retiring gratuity plan:

f. Local Agent Commission

i. The Company received an Order dated 19/02/2020 from Cairo Economic Court, Egypt, directing the Company to pay an amount of USD 3.42 Lakhs and Egyptian Pounds 4.98 Lakhs along with an interest of 5% to M/s Alkan Consult, Cairo, towards the Local Agent commission in relation to Egyptian National Railways contract that has been executed by the Company in Cairo, Egypt. The commission payable to the Local Agent is being deducted by the contractor, Egyptian National Railways who in turn have to pay to the Local Agent. The current claim of the Local Agent is even for the works that are yet to be executed. The Company is in the process of filing a suitable case against the Local Agent wherein the Company is confident of getting a favourable order.

35 OTHER SIGNIFICANT LITIGATIONS

In view of dispute with Konkan Railway Corporation Limited (KRCL), the company has filed arbitration on 09.05.2016 in respect of dues amounting to INR 1518.00 Lakhs . The Arbitration proceedings are under progress. Further the company has failed in the conciliation proceedings against KRCL for outstanding dues of INR 518.00 Lakhs and is in process of filing Arbitration petition. In view of the above, the company has made a provision of INR 2062.74 Lakhs in the books of accounts.

36 CAPITAL MANAGEMENT

The company manages its capital to ensure that it will be able to continue as going concern while creating value for share holders by facilitating the meeting of long term and short term goals of the Company.

The company determines the amount of capital required on the basis of annual business plan and five year's corporate plan coupled with long term and short term strategic investment and expansion plans.

The Company monitors the capital structure on the basis of net debt to equity ratio on a periodical basis.

37 Financial Risk Management

In couse of its business, the company is exposed to certain financial risk such as market risk , credit risk and liquidity risk that could have significant influence on the company's business and operational/financial performance. The Board of directors and the Audit Commitee reviews and approves risk management framework and policies for managing these risks and monitor suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

a. Credit risk

Credit Risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has a prudent and conservative process for managing its credit risk raising in the course of its business activities. Credit risk is managed through continuously monitoring the creditworthiness of customers and obtaining sufficient collateral, where appropriate, a means of mitigating the risk of financial loss from defaults.

The company makes an allowance for doubtful debts/advances using expected credit loss model. i. Trade Receivables:

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgment. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

ii. Cash and Cash Equivalents

The Company held cash and cash equivalents of Rs. 11.26 Lakhs at 31-Mar-23 (Previous year INR 626.41 Lakhs). This includes the cash and cash equivalents held with the bank and the cash on hand with the Company.

b. Liquidity risk

Liquidity Risk refers to the risk that the company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has obtained fund and non-fund based working capital loans from banks. The borrowed funds are generally applied for Company’s own operational activities

c. Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. The company’s exposure to the risk of changes in the market interest rate relates primarily to the company’s long term debt obligations with floating interest rates. The company’s interest rate exposure is mainly related to variable interest rates debt obligations. The Company manages the liquidity and fund requirements for its day to day operations like working capital, suppliers/buyers credit

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The risk estimates provided assume a change of 25 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date assuming that all other variables, in particular foreign currency exchange rates, remain constant. The period end balances are not necessarily representative of the average debt outstanding during the period.

d. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices such as commodity prices, foreign currency exchange rates and other market changes.

e. Exchange rate risk

The company foreign exchange arised from its foreign operations, foreign currency revenues and expenses, (Primarly in US Dollars and Egyptian pounds). Consequently, the company is exposed to foreign exchange risk thourgh its sales, services and purchases from overseas suppliers in various foregin currencies.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

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

Level 3: Unobservable Inputs for the asset or liability.

39 CAPITAL RISK MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company’s Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Segment Reporting

As per the assessment undertaken by CODM, the allocation of resources and assessment of the financial performance is undertaken at the company level. The Company has only one reportable business segment, which is safety systems for railways . Accordingly, the amounts appearing in the financial statements relate to the Company’s single business segment.

43. Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with struck off companies

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vii) The Company has not entered in to any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

(x) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.

Notes 6, 8 & 12

44. The Company’s assessment of recoverability and impairment loss allowance on its trade receivables, income tax assets and other long pending dues from government authorities as on 31 Mach 2023 is subject to number of management judgments and estimates that are based on prevailing conditions and circumstances as on the date of approval of these standalone financial statements. However, actual results may differ from these estimates as on the date of approval of these standalone financial statements due to the following reasons.

A. Recoverability of income tax assets (Note 6) Rs 277.83 lakhs (PY Rs 260 lakhs) for respective years will depend on the outcome of the assessment proceedings which are yet to be closed. Recoverability of MAT credit would depend on the Company's ability to earn taxable profits in future before expiry of the time limit prescribed for carry forward of mAt Credit. Further, the department may adjust the refunds against demands raised detailed in Note 34.

B. Dues from government authorities (Note 12) Rs 282.83 lakhs (PY Rs 328.74 lakhs) mainly comprise of Input Tax Credits under GST Act and depend on actions of government authorities, outcome of assessments and availability of Input Credit against future output liabilities.

C. Unbilled Revenue (Note 12) of Rs 183.46 Lakhs (PY 203.46 Lakhs) is net of allowance for expected credit loss made in books of Rs. 20 lakhs (PY Nil) and is subject to customer's acceptance.

D. Trade receivables (Note 8) Rs 937.79 Lakhs (PY 1137.82 lakhs) may be affected due to delay in final deliverables, acceptance of performance claims by customers, Claims/ counter claims on quantum of work and company's decision for continuing the projects and on account of COVID 19.

45. Previous year figures have been regrouped/reclassified wherever necessary to conform to the current year’s classification.