ArMee Infotech Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

n Provisions and Contingencies
Provisions

Provisions are recognised in the balance sheet when the Company has a present obligation (legal or
constructive) as a result of a past event, which is expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each provision is based on the best estimate of the
expenditure required to settle the present obligation at the balance sheet date. Where the time value of
money is material, provisions are measured on a discounted basis.

Constructive obligation is an obligation that derives from an entity''s actions where:

(i) by an established pattern of past practice, published policies or a sufficiently specific current statement,
the entity has indicated to other parties that it will accept certain responsibilities and;

(ii) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge
those responsibilities.

Contingencies

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company, or a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required or the amount cannot be reliably estimated.
Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying
economic benefits is remote.

o Contract Balances

(i) Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If
the Company performs by transferring goods or services to a customer before the customer pays consideration
or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract assets are recognised when there are excess of revenues earned over billings on contracts. Contract
assets are classified as unbilled receivables when there is conditional right to receive cash as per contractual
terms.

The amount recognised as contract assets is reclassified to trade receivables once the amounts are billed to
the customer as per the terms of the contract. Contract assets are subject to impairment assessment. Refer to
accounting policies on impairment of financial assets in section i Impairment.

(ii) Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due). Refer to accounting policies of
financial assets in section h Financial instruments - initial recognition and subsequent measurement.

(iii) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is recognised
when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as
revenue when the Company performs under the contract.

Unearned and deferred revenue (“contract liability”) is recognised when there are billings in excess of revenues.

p Income taxes

Tax expense for the year comprises current and deferred tax. The tax currently payable is based on taxable
profit for the year. Taxable profit differs from net profit as reported in the statement of profit and loss because
it excludes items of income or expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Company''s liability for current tax is calculated using tax rates
and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation
of taxable profit and is accounted for using the balance sheet method. Deferred tax liabilities are generally
recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised to the
extent that it is probable that future taxable profits will be available against which the temporary differences
can be utilised.

The carrying value 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted
by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax

consequences that would follow from the manner in which the Company expects, at the end of the reporting
period, to cover or settle the carrying value of its assets and liabilities.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax
authority and there are legally enforceable rights to set off current tax assets and current tax liabilities within
that jurisdiction.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except
when they relate to items credited or debited either in other comprehensive income or directly in equity, in
which case the tax is also recognised in other comprehensive income or directly in equity.

q Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) for the period/year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period/year. The
Company did not have any potential dilutive securities in any period presented.

r Investment in Subsidiary:

- A subsidiary is an entity that is controlled by another entity.

- The Company''s investments in its subsidiary are accounted at cost less impairment.

- The Company reviews its carrying value of investments carried at cost annually, or more frequently when
there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment
loss is recorded in the Statement of Profit and Loss.

s Impairment of Non Financial Asset:

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment testing for an asset is required, the Company estimates
the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating
unit''s (CGU) fair value less costs of disposal and its value in use. The recoverable amount is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount.]

t Borrowing Cost:

Borrowing cost includes interest, amortised cost of anciliarry cost incurred in connections with the
arrangement of borrowing and exchange differences arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest cost.

Borrowing cost, if any, directly attributable to the acquisition, construction or production of an asset that
necessarily takes substantial period of time to get ready for its intended use or sale are capitalised. all other
borrowing costs are expensed in the period in which they occur.

u Key Accounting Estimates and Judgments

The preparation of the Company''s Financial Statements requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

Critical Accounting Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below:

(i) Taxes

The Company''s tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for
the purpose of paying advance tax, determining the provision for income taxes, including amount expected
to be paid/recovered for uncertain tax positions.

Deferred tax assets are recognized for unused tax credits to the extent that it is probable that taxable profit
will be available against which the losses can be utilized. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies.

(ii) Property, Plant and Equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge
in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life
and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets
are determined by the management at the time the asset is acquired and reviewed periodically, including at
each financial year end. The lives are based on historical experience with similar assets as well as anticipation
of future events, which may impact their life, such as changes in technical or commercial obsolescence arising
from changes or improvements in production or from a change in market demand of the product or service
output of the asset.

(iii) Defined Benefit Obligation

The costs of providing pensions and other post employment benefits are charged to the Statement of
Profit and Loss in accordance with IND AS 19 Employee benefits'' over the period during which benefit is
derived from the employees'' services. The costs are assessed on the basis of assumptions selected by the
management. These assumptions include salary escalation rate, discount rates, expected rate of return on
assets and mortality rates.

(iv) Impairment of Financial Assets

The impairment provisions for trade receivables are made considering simplified approach based on
assumptions about risk of default and expected loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation based on the Company''s past history
and other factors at the end of each reporting period. In case of other financial assets, the Company applies
general approach for recognition of impairment losses wherein the Company uses judgement in considering
the probability of default upon initial recognition and whether there has been a significant increase in credit
risk on an ongoing basis throughout each reporting period.

v Recent Accounting Pronouncements:

The Ministry of Corporate Affairs vide notification dated May 7, 2025 and August 13, 2025 notified the
Companies (Indian Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting
Standards) Second Amendment Rules, 2025 , respectively, which amended certain accounting standards (see
below), and are effective for annual reporting periods beginning on or after April 1, 2025:

(a) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants-
Amendments to Ind AS 1

(b) Supplier Finance Arrangements - Amendments to Ind AS 7 and Ind AS 107

(c) International Tax Reform - Pillar Two Model Rules - Amendments to Ind AS 12

(d) Lack of Exchangeability - Amendments to Ind AS 21

The Company has assessed that there is no significant impact on its financial statements with respect to the
amendments in Ind AS 1, Ind AS 21 and Ind AS 12. The Company has evaluated and provided disclosure with respect
to supplier financing arrangement in note no 15A.

New standards or amendments not yet adopted classification of Liabilities as Current or Non-current and Non-current
Liabilities with Covenants -

Amendments to Ind AS 1

This amendment also includes specific provisions that will take effect or reporting periods beginning on or after April
1,2026, as outlined below.

Under the existing Ind AS 1, where there is a breach of a material provision of a long-term loan arrangement on or
before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting
date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the
approval of the financial statements for issue, not to demand payment as a consequence of the breach.

However, the amended requirements stipulate that entities will no longer be permitted to consider lender waivers that
are granted after the reporting date but before the financial statements are approved for the purpose of classification
of loans. This amendment is required to be applied retrospectively in accordance with Ind AS 8. The Company does
not expect this amendment to have an impact on its operations or financial statements.

b. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is
eligible for one vote per share. The dividend, if proposed by the Board of Directors is subject to the approval of
shareholders, except in case on interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company in proportion of their shareholding, after distribution of all preferential
amounts.

Note: No 15 (A) - FINANCIAL LIABILITIES - BORROWINGS

Terms of repayment of unsecured long term borrowings:

* Note 1: The term loans were applied for the purpose for which it was availed.

Note 2: The company does not have any charges or satisfaction which is yet to be registered with ROC beyond statutory
period except creation of charge for borrowings availed from Indian Renewable Energy Development Agency Limited,
which is pending as at the reporting date due to completion of procedural/documentary formalities.

Note 3: The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender
in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

Note 4: Cash Credit facility, repayable on demand is secured by a hypothecation of current assets, mortgage of Plot &
Office property, lien on certain Fixed Deposits of the Company and personal guarantee of Promoters.

Note 5: The Promoter/Director has provided personal guarantees and personal properties for the borrowings obtained
by the Company.

Note 6: The Loan taken from Indian Renewable Energy Development Agency Limited are secured by first pari-
passu charge on all movable fixed assets, current assets, receivables, bank accounts, project documents, licenses,
insurance proceeds and other project related assets of the Company, both present and future. The loan is further
secured by equitable mortgage of immovable properties relating to the project and personal guarantee of
Mr. Ridhish Kiritbhai Patel.

Company as lessee

The Company has lease contracts for its office premises, Experience stores and assets for projects with lease term
between 3 years to 30 years. The Company''s obligations under its lease are secured by lessor''s title to lease assets. The
Company has also certain leases with lease terms of 12 months or less.

The Company applies the short-term lease recognition exemptions for these leases.

Details of carrying amount and movement during the period of right-of-use assets is disclosed under note no 3(B)

32. RELATED PARTY TRANSACTIONS

The company''s related parties principally consist of its associates, Key managerial personnel and relatives thereto. The
company routinely enters into transactions with these related parties in the ordinary course of business at market
rates and terms.

The following tables summarises related party transactions and balances included in the financial statements of the
Company for the year ended March 31, 2026 and March 31, 2025 as required by Indian Accounting Standard - 24
“Related Parties Disclosures”:

The financial instruments are categorised in to three levels, based on the inputs used to arrive at fair value measurement
as described below :

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.

Level 3 — Inputs based on unobservable market data.

Valuation Methodology

Financial Instrument measured at Amortised Cost

The management assessed that cash and cash equivalents, other bank balances, trade receivables, other financial
assets, trade payables, lease liabilities and other financial liabilities approximate their carrying amounts largely due to
the short-term maturities of these instruments.

For assets which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by
category is summarized below:

35. Capital risk management

The Company manages its capital structures and makes adjustment in light of changes in economic conditions and
requirements of financing covenants. To this end the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The primary objective of the Company''s Capital Management is
to maximize the shareholder value by maintaining an efficient capital structure and healthy ratios and safeguard
Company''s ability to continue as a going concern. The Company also works towards maintaining optimal capital
structure to reduce the cost of capital. No changes were made in the objectives, policies, process during the year
ended 31st March, 2026.

The Company monitors capital using gearing ratio, which is net debt (total debt less cash and bank balances) divided
by total capital plus net debt.

36. FINANCIAL RISK MANAGEMENT

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and
credit risks. The company''s senior management has the overall responsibility for establishing and governing the
Company''s risk management framework. The Company has constituted a risk management committee, which
is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk
management policies are established to identify and analyse the risks faced by the company, to set and monitor
appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes
in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the
Company.

A. MANAGEMENT OF MARKET RISK

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk ,such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, and equity investments.

The Company''s size and operations result in it being exposed to the following market risks that arise from its use
of financial instruments:

i) Foreign Currency Risk

ii) Interest Rate Risk

The above risks may affect the Company''s income and expenses, or the value of its financial instruments. The
Company''s exposure to and management of these risks are explained below:

i) FOREIGN CURRENCY RISK

The company does not have any instrument denominated or traded in foreign currency at the reporting date. Hence,
such risk does not affect the company.

ii) INTEREST RATE RISK

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and
interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company, interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities,
the analysis is prepared assuming that the amount of the liability outstanding at the end of the reporting period
was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate
risk internally to key management personnel and represents management''s assessment of the reasonably possible
change in interest rates.

B. CREDIT RISK

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other
financial instruments. Credit risk arising from investment in mutual funds, derivative financial instruments and other
balances with banks is limited and there is no collateral held against these because the counterparties are banks and
recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

Credit risk arising from trade receivables is managed in accordance with the Company''s established policy, procedures
and control relating to customer credit risk management. Credit quality of a customer is assessed based on an
extensive evaluation and individual credit limits are defined in accordance with this assessment.

Three customers accounted for 64.80% of the revenue for the year ended March 31,2026. Three customer accounted
for 67.67% of the revenue for the year ended March 31,2025.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

(C) LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including, debt
and overdraft / credit facilities from both domestic and international banks at an optimised cost. It also enjoys
strong access to domestic capital markets across equity. The table below summarises the maturity profile of the
Company''s financial liabilities based on contractual payments:

37. SEGMENT

“The Company has presented segment information in the consolidated financial statements which are presented
in the same report.

Accordingly, in terms of Paragraph 4 of Ind AS 108 Operating Segments'', no disclosures related to segments are
presented in these standalone financial statements.”

38. POST RETIREMENT BENEFIT PLANS AS PER INDIAN ACCOUNTING STANDARD 19

(I) DEFINED BENEFIT PLANS:

The Company operates gratuity plan in the nature of defined benefit plan wherein every employee is entitled to
the benefit as per scheme of the Company, for each completed year of service. The same is payable on retirement
or termination whichever is earlier. The benefit vests only after five years of continuous service. The gratuity plan
was governed by the Payment of Gratuity Act, 1972 upto November 20, 2025 and Code on Social Security, 2020
effective from November 21, 2025 . The Company''s gratuity plan is funded with Life Insurance Corporation of
India.

Notes:

1) The increase in Debt equity ratio is due to increase in borrowings.

2) The increase in the inventory turnover ratio during the year is mainly attributable to higher inventory sales.

39. Armee Infotech Limited (the Company'') formerly known as Armee Infotech Private Limited was converted from
a private limited company to a public limited company, pursuant to a special resolution passed in the extraordinary
general meeting of the shareholders of the Company held on February 20, 2024 and consequently, the name of
the Company has been changed to Armee Infotech Limited pursuant to a fresh certificate of incorporation by the
Registrar of Companies dated April 24, 2024

40. Code on social security:

The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four
Labour Codes, which were made effective from November 21, 2025. The corresponding supporting rules under
these codes are yet to be fully notified.

Based on the best available information and estimates, the Company has assessed the impact of implementation
of the Labour Codes on its defined benefit obligations. Accordingly, the impact of such implementation has been
recognised in the financial statements as employee benefit expense during the year ended March 31, 2026

The Company continues to monitor the finalisation of Central and State Rules, as well as further clarifications from
the Government on various aspects of the Labour Codes and will recognise the consequential impact, if any, based
on such developments.

41. Other statutory information

“i) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

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

iii) 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.

iv) 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.”

v) The Company does not have any such 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).

vi) 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.

vii) The Company does not have any transactions with companies which are struck off.

viii) The Company has been maintaining its books of accounts in the Tally Prime edit log which has feature of
recording audit trail of each and every transaction, creating an edit log of each change made in books of
account along with the date when such changes were made and ensuring that the audit trail cannot be
disabled, throughout the year as required by proviso to sub rule (1) of rule 3 of The Companies (Accounts)
Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021. Additionally the audit trail has been
preserved by the company as per the statutory requirements of records retention.

ix) Details of Loans given, Investments made and Guarantee given or security provided covered u/s 186 (4) of the
Companies Act, 2013 are given under respective heads (refer note 4, 5, and 11). The said loans and guarantees
has been given for business purpose.

x) The company has not revalued its Property Plant and Equipment, Other Intangible Assets and Rights of Use
Assets.

42. Events after reporting period

There were no significant adjusting events that occurred subsequent to the reporting period.

43. The Company has not entered with any Scheme(s) of arrangement in terms of
sections 230 to 237 of the Companies Act, 2013.