Exato Technologies Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

(xiv) Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that
an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the
best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed 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 in
the control of the company or a present obligation that arises from past event where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

(xv) Cash and cash equivalents

Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments
with original maturities of three months or less at the date of purchase/ investment.

b) Rights, preferences and restrictions attached to equity shares

Equity shares:

The company has one class of equity shares having face value of ^10 each. Each shareholder is eligible for one vote per
share held. The dividend proposed if any by the Board of Directors is subject to the approval of share holders in the
ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the financial year, the Company has continued investment in internally developed software platforms, applications
and technology solutions which are disclosed under "Intangible Assets Under Development".

Intangible Assets Under Development primarily represents expenditure incurred on internally developed software
platforms/applications under various stages of development. The capitalization includes directly attributable development
costs incurred in accordance with Accounting Standard (AS) 26 - "Intangible Assets".

Based on management assessment of technical feasibility, future economic benefits and recoverability of the projects, the
said expenditure has been capitalized as Intangible Assets Under Development. The projects have not yet been put to use
as at 31 March 2026 and accordingly amortization has not commenced. There are no material delays or overdue timelines
compared to original estimates.

Other Statutory Information

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

b) The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters,
directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms
or period of repayment.

c) The Company has utilised funds raised borrowings from banks for the specific purposes for which they were issued/taken.

d) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a
wilful defaulter at any time during the financial year or after the end of reporting period but before the date when
financial statements are approved.

e) 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:

(i) 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

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

f) 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:

(i) 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

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

g) There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies
Act, 2013.

h) The Company does not have any transaction which is not recorded in the books of accounts but 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).

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

j) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

k) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies
(ROC) beyond the statutory period.

l) During the year no Scheme of Arrangement has been formulated by the Company/ pending with competent
authority.

Reason for variation more than 25%

a) Current ratio : Ratio is increased due to substantial increase in cash and bank balances and reduction in current
borrowings and trade payables during the year

b) Debt- Equity ratio : Ratio is decreased due to increase in Equity (IPO) and reduction in external debt (paid during
the year).

c) Debt service coverage ratio : Ratio is negative primarily due to significant debt repayments made during the current
fiscal year, combined with the impact of additional funds borrowed in the previous year.

d) Inventory turnover ratio : Ratio is increased due to higher revenue and corresponding higher COGS for current
year as compared to previous year

e) Trade payables turnover ratio : Ratio is increased due to decrease in trade payables as compared to previous year.

f) Net Profit ratio : Ratio is increased due to operational efficiency in employee benefits & finance cost and reduction
in bad debts as compared to previous year.

38 Details of loan given and investments made covered under section 186(4) of the Companies Act, 2013

a) In respect of investments made - refer Note 14-Non Current Investment

b) In respect of loans and guarantees given - Nil

40 All amounts disclosed in these financial statements and notes have been rounded off to the ^ lacs, unless otherwise stated.

41 Previous year figures have been regrouped/reclassified, where necessary, to confirm with current year''s classification, as
far as possible.