7. Provisions and contingent liabilities
Provisions are recognized when the Company has a present legal or constructive obligation as
a result of past events and it is probable that an outflow of resources will be required to settle
the obligation and the amount can be reliably estimated. Provisions are not recognized for
future operating losses.
Provisions are measured at the present value of management's best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
discount rate used to determine the present value is a pre tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in
the provision due to the passage of time is recognized as interest expense.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past
events but their existence will be confirmed by the occurrence or non occurrence of one or
more uncertain future events not wholly within the control of the Company or where any
present obligation cannot be measured in terms of future outflow of resources or where a
reliable estimate of the obligation cannot be made.
8. Income Recognition
Revenue is primarily derived from software development and related services. Arrangement
with customers with software development and related services are either on fixed price, fixed
timeframe or on time-and-material basis. Revenue is recognized on achieving measurable
milestones and when there is no uncertainty as to measurability and collectability. The
Company presents revenues net of indirect taxes in its Statement of Profit and loss.
Revenue for sale of goods is derived from sale of Raw materials and allied products related to
ethanol production.
Revenue from subsidiaries is recognized based on transaction price which is at arm's length.
Other Income is comprised primarily of interest income, dividend income and gain on
investments.
Interest income is recognized on time proportion basis after taking into account the
materiality.
Dividend income is recognized when right to receive is established.
9. Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the
related service are recognized in respect of employees' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled.
10. Income tax
Current Income Tax
The income tax expense or credit for the period is the tax payable on the current period's
taxable income based on the applicable income tax rate adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred Tax
Deferred income tax is provided in full, using the liability method on temporary differences
arising between the tax bases of assets and liabilities and their carrying amount in the financial
statement. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realized or the deferred income tax
liability is settled.
Deferred tax assets are recognized for all deductible temporary differences and unused tax
losses, only if, it is probable that future taxable amounts will be available to utilize those
temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances relate to the same
taxation authority. Current tax assets and tax liabilities are off set where the Company has a
legally enforceable right to offset and intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.
Current and deferred tax is recognized in the Statement of Profit and Loss, except to the
extent that it relates to items recognized in other comprehensive income or directly in equity.
In this case, the tax is also recognized in other comprehensive income or directly in equity,
respectively.
11. Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- The profit attributable to owners of the Company
- By the weighted average number of equity shares outstanding during the financial year,
adjusted for bonus elements in equity shares issued during the year and excluding treasury
shares.
Diluted earnings per share.
Diluted earnings per share is determined by adjusting the profit and loss attributable to
ordinary shareholders and weighted average number of ordinary shares outstanding,
adjusted for own shares held and considering the effect of all dilutive potential ordinary
shares.
12. Foreign Currency Transactions
The financial statements are presented in Indian Rupees (INR), which is company's functional
and presentation currency.
a) Transactions denominated in foreign currencies are recorded at the exchange rate
prevailing on the date of the transactions.
b) Monetary items denominated in foreign currencies at the year-end are restated at year-end
rates. The resultant exchange differences are recognized in the statement of Profit and Loss.
c) Non-monetary items are carried at cost.
d) Any income or expense on account of exchange difference either on settlement or on
translation is recognized in the Statement of Profit & Loss.
13. Critical estimates and judgments -
The preparation of standalone financial statements in conformity with the recognition and
measurement principles of Ind AS requires the use of accounting estimates which by
definition will seldom equal the actual results. Management also needs to exercise judgment
in applying the accounting policies.
This note provides an overview of the areas that involved a higher degree of judgment or
complexity, and items which are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally assessed. Detailed information
about each of these estimates and judgments is included in relevant notes together with
information about the basis of calculation for each affected line item in the financial
statements.
The estimates and judgments used in the preparation of the financial statements are
continuously evaluated by the Company and are based on historical experience and various
other assumptions and factors (including expectations of future events) that the Company
believes to be reasonable under the existing circumstances. Differences between actual
results and estimates are recognized in the period in which the results are known/
materialized.
The said estimates are based on the facts and events, that existed as at the reporting date, or
that occurred after that date but provide additional evidence about conditions existing as at
the reporting date.
14. Cash & Cash Equivalents
Cash and cash equivalents comprise cash in hand and deposit with banks.
15. Cash Flow Statement
The Statement of Cash flows are reported using the indirect method, whereby profit before
tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of
past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.
27. Contingent Liabilities
• The company has not been registered under PF and ESIC Acts. The liability arising out of the same cannot be
ascertained.
• The company has provided for the gratuity as retirement benefits of employees. The impact of the same has
been reported in financials.
28. Segment Reporting
The Company has identified business segments as reportable segments. The business segments comprise:
1) Information Technology
2) Biofuels
3) Investment
Revenue and expenses directly attributable to segments are reported under each reportable segment. Similarly,
assets and liabilities directly attributable to segments are reported under each reportable segment. The assets
and liabilities which are not directly identifiable to each reporting segment have been disclosed as unallocable
corporate assets and liabilities.
32. Tax provision is governed by using tax laws, rules, notifications, circulars, instructions, etc. that
are enacted as on the balance sheet date.
33. Financial Risk Management:
A. Credit Risk:
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed.
To manage this, the Company periodically assesses financial reliability of customers and other counter parties,
taking into account the financial condition, current economic trends, and analysis of historical bad debts and
ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a
significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive
forwarding-looking information such as:
i. Actual or expected significant adverse changes in business,
ii. Actual or expected significant changes in the operating results of the counterparty,
iii. Financial or economic conditions that are expected to cause a significant change to the counterparty's ability
to meet its obligations,
iv. Significant increase in credit risk on other financial instruments of the same counterparty,
v. Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.
Financial assets are written off when there are no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company.
B. Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when due
and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury
maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors
rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash
flows.
C. Capital Risk Management
(a) Risk Management
The Company aim to manage its capital efficiently so as to safeguard its ability to continue as a going concern
and to optimize returns to our shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key
elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to
risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of
the underlying assets. In order to maintain adjust the capital structure, the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders or issue new shares.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditors and market confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The Basic and Diluted earnings per share is restated for the comparative period after taking into consideration
the effect Share Warrants Conversion along with conversion of Bonus shares kept in abeyance for unallotted
warrants on 8th May 2024 and Bonus issue on 16th July 2024.
37. M icro enterprises and small enterprises under the Micro, Small and Medium Enterprises Development Act,
2006 have been determined based on the confirmations received from the Management. The Company owes
dues to micro, small and medium enterprises, which are outstanding for more than 45 days as at 31st March,
2025. Interest in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 is
payable as at March 31, 2025. The information as required to be disclosed under the Micro, Small & Medium
Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the
basis of information available with the Company.
40. 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 charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
iii. The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956 during the year.
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(is), 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(is), 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 does not have 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 is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful
defaulters issued by the Reserve Bank of India.
ix. The Company has complied with the number of layers for its holding in downstream companies prescribed
under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of
Layers) Rules, 2017.
x. The Company has not revalued any of its Property, Plant and Equipment during the year.
41. Previous year's figures have been regrouped, rearranged, reworked & reclassified wherever necessary. All
the regroupings and reclassifications are on account of change in the presentation or classification of items. The
above regrouping & reclassification have no impact on profit of the current & previous financial year.
For Patki & Soman For and on behalf of the board of
Chartered Accountants Alphalogic Techsys Limited
F. R. No. 107830W
Rahul D. Kulkarni Anshu Subhash Goel Neha Anshu Goel
Partner MD & CFO Director
M.No.158616 DIN:08290775 DIN:08290823
Place: Pune
Date: 27-05-2025
UDIN: 25158616BMIDFB5042
Vanshika Sharma
Company Secretary
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