Kratikal Tech Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

2.11 Provisions and Contingencies

A provision is recognised when the Company has a present obligation from past events and it is probable that an outflow
of resources will be required to settle it, with a reliable estimate obtainable.

3.1 Deferred Tax

Deferred T ax is measured using tax rates and laws enacted or substantively enacted by the Balance Sheet date, recognised
and carried forward only to the extent of reasonable certainty of realisation.

3.0 Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the transaction date. Exchange
gains/losses on transaction or settlement are recognised in the Profit & Loss Account.

Shares issued during the period

i. The Board of Directors, in their meeting held on 26th November 2025, allotted 76,47,000 bonus shares of Rs. 10/- per
share. Bonus shares were allotted in the ratio of (600) Six Hundred bonus shares for every one (1) equity share held. The
Board of Directors, in their meeting held on 17th November 2025, approved the allotment of Bonus Shares; the
Extraordinary General Meeting (EGM) was held on 24th November 2025.

ii. The Company has converted 1,856 CCPS into 1,856 equity shares on 27th August, 2025, in accordance with the
approved conversion terms.

iii. The Company has allotted 601 equity shares as ESOPs on November 17, 2025 at an issue price of Rs. 100/- per
equity share. Since the ESOPs were granted/issued after the reporting date, the same has been considered in the financial
statements for the year ended 31st December, 2025.

iv. The Company has issued 5,00,800 equity shares of Rs.10/- per share through private placement of securities on
December 8, 2025.

Terms/rights attached to equity shares

i. The Company has one class of equity shares each having par value of Rs. 10 per share. ii. Each holder of equity shares
is entitled to one vote per share. iii. In the event of liquidation of the Company, the holders of equity shares shall be
entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The amount
distributed will be in proportion to the number of equity shares held by the shareholders.

Terms/rights attached to preference shares

i. As on the cut-off date, the Company has no outstanding Compulsorily Convertible Preference Shares. ii. The CCPS
were issued and allotted on 3rd September 2018, 22nd October 2018, 22nd November 2018, and 26th March 2019 at an
issue price of Rs. 21,870 per CCPS, including a premium of Rs. 21,770 per CCPS, pursuant to the approvals of the
Board of Directors and shareholders of the Company. CCPS were converted into Equity on 27th August, 2025. iii. The
CCPS were compulsorily convertible into equity shares of the Company at a conversion ratio of one equity share for
every one CCPS, upon approval and request from CCPS shareholders.

The CCPS carried the following rights until conversion: (a) preference in payment of dividend and repayment of capital
in the event of liquidation; (b) voting rights as applicable under the provisions of the Companies Act, 2013; and (c) such
other rights as provided in the Articles of Association and relevant agreements. The CCPS were not redeemable and
were converted into equity shares in accordance with the agreed conversion terms. The CCPS have been accounted for
in accordance with the applicable accounting standards; as the CCPS were compulsorily convertible into equity shares,
they were considered as equity instruments/potential equity shares for the purposes of financial reporting.

Authorised Share Capital

The Board of Directors, in their meeting held on 17th November 2025, and the shareholders, in the Extraordinary General
Meeting (EGM) held on November 24th 2025, approved an increase in the Company’s authorised equity share capital

to Rs. 12,00,00,000 (Twelve Crore) divided into 1,20,00,000 (One Crore Twenty Lakh) Equity Shares of Rs. 10/- each.

The Company had cancelled and converted unissued shares of one class, i.e. 5,000 Preference Shares of Rs.100/- each,
and increased shares of another class, i.e. into 50,000 Equity Shares of Rs. 10/- each, and consequently altered the capital
clause in the Memorandum of Association of the Company, pursuant to a special resolution passed at the Extra-Ordinary
General Meeting held on September 09, 2025.

For the purpose of computation of basic earnings per share, the CCPS outstanding as on the cut-off date have not been
considered. For the purpose of computation of diluted earnings per share, the CCPS have been considered as potential
equity shares, assuming full conversion in accordance with the conversion terms. The effect of the CCPS conversion
(27th August, 2025) has been disclosed as an event occurring after the reporting period. The issuance and conversion of
CCPS are in compliance with the provisions of the Companies Act, 2013, the Articles of Association of the Company,
and applicable regulatory requirements.

9. Property, Plant & Equipment

Net block as at 31st March 2026: Computers Rs.1,389.01 (2025: Rs.1,727.54); Laptops Rs.55,635.69 (2025:
Rs.35,434.98); Printers Rs.54.49 (2025: Rs.147.92); Furniture & Fixtures Rs.17.74 (2025: Rs.23.94); Office Equipment
Rs.125.19 (2025: Rs.168.93); Motor Vehicles Rs.2,582.99 (2025: Rs.3,485.35); Air Conditioners Rs.116.93 (2025:
Rs.187.53); CCTV Camera Rs.137.18 (2025: Rs.249.74); Fan Rs.16.83 (2025: Rs.30.64); Mobile Rs.4,234.49 (2025:
Rs.3,580.37); Other Office Equipment Rs.2,368.27 (2025: Rs.856.41). Total Tangible Assets net block: Rs.66,678.81
(2025: Rs.45,893.35). Software (Intangible) net block: Rs.3,08,580.35 (2025: Rs.1,887.46). Grand Total net block:
Rs.3,75,259.16 (2025: Rs.47,780.81). Software Development (WIP): Rs.8,63,081.31 (2025: Rs.7,42,214.69). Total
depreciation charge for the year: Rs.82,770.60 (2025: Rs.30,255.32).

21—23.

In the opinion of the Board of Directors, all current assets, loans and advances have a value on realisation in the ordinary
course of business at least equal to the amount at which they are stated. Provision for all known liabilities is adequate.
No provision has been made for liability for leave encashment; these are accounted for as and when paid. The Company
has a system of identifying amounts due to Micro Enterprises or Small Enterprises on the basis of the Entrepreneur’s
Memorandum Number (EM Number) printed on their invoices, supply orders/letterheads/other relevant documents (and
relied upon by the auditors). Based on the Management Certificate, none of the suppliers of the Company are micro
enterprises or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore,
disclosures under section 22 of the said Act are not necessary.

27. Disclosure on Revaluation of Assets

There is no revaluation of assets during the year.

28. Disclosure on Loans / Advances to Directors / KMP / Related Parties

NIL.

29. Capital Work-in-Progress (CWIP)

There are no Capital Assets which are under CWIP.

30. Intangible Assets under Development

As on 31st March, 2026, the Company is engaged in the development of software projects that are currently classified
as Intangible Assets Under Development (IAUD). The total amount recognized as IAUD as of the reporting date is Rs.
8,63,081.31, which includes costs directly attributable to the development activities.

31. Details of Benami Property Held

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

32. Working Capital/Borrowings

The Company has availed an overdraft facility of ?4.74 crores from ICICI Bank Limited, secured by hypothecation of

its current assets, including trade receivables, carrying interest @9.15% per annum, repayable on demand.

33. Wilful Defaulter & End Use of Funds

The Company is not having any borrowings from Banks/Financial Institutions & therefore no such instance.

34. Relationship with Struck off Companies

No transaction/relationship persists with struck off companies during the year.

35. Registration of Charges or Satisfaction with Registrar of Companies

Charge of ?4.74 crores has been created in favour of ICICI Bank Limited in respect of overdraft facility availed, secured
by hypothecation of the Company’s current assets, and the charge has been duly registered with the Registrar of

Companies.

36. Compliance with Number of Layers of Companies

The Company is not maintaining relationship with any other company as its subsidiary, accordingly there is no violation
of Companies (Restriction on Number of Layers) Rules, 2017.

37. Compliance with Approved Scheme(s) of Arrangements

Not Applicable, as the Company has not sought any such approval for any scheme of Arrangements in terms of sections
230 to 237 (Corporate Restructuring) of the Companies Act, 2013 during the year.

38. Undisclosed Income

No income earned by the Company has escaped any assessment. There is no undisclosed income.

39. CSR Activities

The Company is not covered under Section 135 of the Companies Act 2013, therefore the Company is not required to
incur any expenditure for CSR Activities. Also, no expenditure has been incurred voluntarily by the Company towards
CSR Activities.

40. Crypto Currency or Virtual Currency

The Company has not traded or invested in any Crypto/Virtual Currency, during the year.

41. Rounding off of Figures

The figures have been rounded off to the nearest hundred rupees.