Safa Systems & Technologies Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

(k) Contingent liabilities and provisions

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognised because it cannot be measured
reliably.

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of
one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognised when the Company has a present obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not
disclosed to their present value and are determined based on best estimates required to settle the
obligation at the reporting date. These estimates are reviewed at each reporting date and are adjusted
to reflect the current best estimates.

(l) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
The weighted average numbers of equity shares are adjusted for events such as bonus issue, bonus
element in the rights issue, share split and reverse share split (consolidation of shares) that have
changed the number of equity shares outstanding, without corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

(m) Cash, Cash Equivalents and Bank Balances

Cash, Cash Equivalents and Bank Balances for the purpose of Cash Flow Statement comprise Cash at
Bank, Cash in Hand, Cheques / Drafts in Hand, Deposits with Bank within 12 months maturity and
other permissible instruments as per Accounting Standard AS-3.

(n) Borrowing Cost:

Borrowing Cost attributable to the acquisition or construction of a qualifying asset is capitalized as
part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which
they are incurred.

(o) Segment Information:

Based on the principles for determination of segments given in Accounting Standard 17 “Segment
Reporting” issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008,
the Company is mainly engaged in the activity surrounded with main business of the Company hence
there is no reportable segment

(p) Leases

Operating leases - As a lessee

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases are charged to Statement of
Profit and Loss on a straight-line basis over the period of lease.

(q) Others

Amounts related to previous years, arisen / settled during the year have been debited / credited to
respective heads of accounts.

30 Employee benefits plans
A. Defined contribution plans:

The Company makes Provident fund and Employee State Insurance Scheme contribution which are defined contribution plans, for qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to the fund. The contribution
payable to these plans by the Company are at rates specifed in the rules of the schemes. Employers''s contribution to Provident Fund and
Employee’s State Insurance Scheme recognised as expenses in the Statement of Profit and Loss for the year are as under:

iii) Economic assumptions:

The principal assumptions are the discount rate and salary growth rate. The discount rate is generally based upon the market yield available on the
Government bonds at the accounting date with a term that matches that of the liabilities and the salary growth rate takes account of inflation,
seniority, promotion and other relevant factors on long term basis.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to
occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end
of the reporting period) has been applied which was applied while calculating the defined benefit obligation recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to prior period.

31 Loans are secured by way of hypothecation of following primary security, collateral security and personal guarantee:

A Primary Security

Hypothecation of Stocks and Receivables of the company, both present and future.

B Collateral Security:

a) Equitable Mortgage of residential building and land bearing Survey Number: 484/2, situated at Poonithura village, Ernakulam, Admeasuring Total
Area: 3.65 ares , Belongs to: FAIZAL BA, Partner, (Doc No: 6495/05, Registered On:23-DEC-05, at: MARADU, KERALA,

b) Equitable Mortgage of residential Building and land bearing Survey Number: 8/3-4, 8/3-3 & 8/8-2, situated at Kizakambalam Village,
Ernakulam, Admeasuring Total Area :8.97 ARES, Belongs to: FAIZAL B A & SRUTHI MUHAMMEDALI, Partners, Title Deed No:
8578/07, Registered On: 08-OCT-07, at: ALUVA, KERALA,

c) Equitable Mortgage of Commercial Building Door No cc 33/2308 F Kochi Corporation and bearing Survey Number : 455/1,456/3,457/1,
situated at Poonithura village , Ernakulam, Admeasuring Total Area : 12.765 ARES (31.62 CENTS),Belongs to 1) ANAS B A, Partner, Title Deed
No : 5219/04, Registered On : 08-OCT-04, at : MARADU, KERALA; 2) Belongs to : AYOOB B A , Partner, Title Deed No : 2497/1/02,
Registered On : 12-JUL-02, at : MARADU, KERALA,3) Belongs to : FAIZAL BA, Partner Title Deed No : 2549/01, Registered On: 03-JULY-
01, at : MARADU, KERALA, 4) Belongs to : PATHUKUNJU P A, Partner, Title Deed No : 2709/2000, Registered On : 05-JUN-00, at :
MARADU, KERALA, and Title Deed No : 1867/92, Registered On : 30-APR-92, at : MARADU, KERALA,

d) Equitable Mortgage of Residential Building and land bearing survey Number: 553/4,454/3,454/6 situated at Poonithura village, Ernakulam,
Admeasuring Total Area: 9.28 ARES Belongs to: AYOOB, FAIZAL, ANAS, Partners, Title Deed No: 734/1999, Registered On: 02-MAR-99, at:
POONITHURA, KERALA

e) Equitable Mortgage of Commercial Building and land bearing Survey Number: 38/12, situated at Edapally South, Ernakulam, Admeasuring Total
Area: 1.58 Ares Belongs to: FAIZAL B A, AYOOB B A, Partners, Title Deed No: 111/2015, Registered On: 12-JAN-15, at: EDAPALLY SRO,
KERALA,

f) Equitable Mortgage of Residential Building and land bearing Survey Number: RESY NO: 7/11-3& 7/12-3, situated at at Kizhakambalam
Village, Pookattupady, Ernakulam, Admeasuring Total Area: 4.55 ARES, Belongs to: AYOOB B A, Partner, Title Deed No: 9021/07, Registered
On: 23-OCT-07, at: Puthencruz SRO, ALUVA, KERALA

g) Equitable Mortgage of Factory Buildings and land bearing Survey Number: 184/10-2-4-3 &,184/10-2-4-2, block No 35situated at ALUVA
EAST VILLAGE, ERNAKULAM, Admeasuring Total Area: 18.62 ARES, Belongs to: AYOOB BA & FAIZAL BA, Who is: PARTNERS,
Title Deed No: 4474/1/2007, Registered On: 24-JUL-07, at: ALUVA,KERALA

C Personal Guarantee

Shri Abdulkhader B H, Smt Pathukunju P A, Shri Fazail B A, Shri Anaz B A, Shri Ayoob B A, Smt Soumya A A and Smt Sruthi Muhammed Ali

# The details of amounts outstanding to micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 are as per available informatio n with the
Company.

33 The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four Labour Codes, namely the Code on Wages, 2019, the Code on Social
Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the “New Labour Codes”).
These Codes have become effective from November 21, 2025. The Ministry of Labour and Employment has issued draft Central Rules and related FAQs to facilitate assessment of the
financial impact arising from the implementation of the New Labour Codes.

The Company has assessed the implications of the New Labour Codes and, based on management’s evaluation, does not expect any material impact on employee benefit obligations.
Accordingly, no adjustment has been considered necessary in these financial results/financial statements.

34 In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the
Balance Sheet.

35 Balance appearing under loans & advances, trade receivables, trade payables, current assets and current liabilities are subject to confirmations in certain cases.

36 Additional regulatory information

(i) There are no proceedings that have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act,
1988 (as amended from time to time) (earlier Benami Transactions (Prohibition) Act, 1988) and the rules made thereunder.

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

(iii) There are no transactions / relationship with struck off companies.

(iv) The Company does not have any transaction 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). Further, there was no previously unrecorded income and no
additional assets were required to be recorded in the books of account during the year.

(v) The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year ended March 31, 2026. Further, the Company has also not received any
deposits or advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.

(vi) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during the current year.

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

(ix) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person or entity,
including foreign entities (“’’Intermediaries””) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall, whether directly or indirectly lend or
invest in other persons/ entities identified in any other manner whatsoever by or on behalf of the Company (‘ultimate beneficiaries’) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

(x) 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 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 provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, and
there are no companies beyond the specified layers.

37 The Company has a single reportable segment for the purpose of Accounting Standard 17.

38 Figures for the previous year have been regrouped/reclassified/reinstated, wherever considered necessary.

This is the summary of significant accounting policies and other explanatory information referred to

(b) Rights, preferences and restrictions attached to equity shares Equity Shares

The Company has one class of equity shares having par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share. All shareholders are equally entitled to dividend. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts, if any) in the proportion of equity shares held by the shareholders.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied which was applied while calculating the defined benefit obligation recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to prior period.

31 Loans are secured by way of hypothecation of following primary security, collateral security and personal guarantee:

A Primary Security

Hypothecation of Stocks and Receivables of the company, both present and future.

B Collateral Security:

a) Equitable Mortgage of residential building and land bearing Survey Number: 484/2, situated at Poonithura village, Ernakulam, Admeasuring Total Area: 3.65 ares , Belongs to: FAIZAL BA, Partner, (Doc No: 6495/05, Registered On:23-DEC-05, at: MARADU, KERALA,

b) Equitable Mortgage of residential Building and land bearing Survey Number: 8/3-4, 8/3-3 & 8/8-2, situated at Kizakambalam Village, Ernakulam, Admeasuring Total Area :8.97 ARES, Belongs to: FAIZAL B A & SRUTHI MUHAMMEDALI, Partners, Title Deed No: 8578/07, Registered On: 08-OCT-07, at: ALUVA, KERALA,

c) Equitable Mortgage of Commercial Building Door No cc 33/2308 F Kochi Corporation and bearing Survey Number : 455/1,456/3,457/1, situated at Poonithura village , Ernakulam, Admeasuring Total Area : 12.765 ARES (31.62 CENTS),Belongs to 1) ANAS B A, Partner, Title Deed No : 5219/04, Registered On : 08-OCT-04, at : MARADU, KERALA; 2) Belongs to : AYOOB B A , Partner, Title Deed No : 2497/1/02, Registered On : 12-JUL-02, at : MARADU, KERALA,3) Belongs to : FAIZAL BA, Partner Title Deed No : 2549/01, Registered On: 03-JULY-01, at : MARADU, KERALA, 4) Belongs to : PATHUKUNJU P A, Partner, Title Deed No : 2709/2000, Registered On : 05-JUN-00, at : MARADU, KERALA, and Title Deed No : 1867/92, Registered On : 30-APR-92, at : MARADU, KERALA,

d) Equitable Mortgage of Residential Building and land bearing survey Number: 553/4,454/3,454/6 situated at Poonithura village, Ernakulam, Admeasuring Total Area: 9.28 ARES Belongs to: AYOOB, FAIZAL, ANAS, Partners, Title Deed No: 734/1999, Registered On: 02-MAR-99, at: POONITHURA, KERALA

e) Equitable Mortgage of Commercial Building and land bearing Survey Number: 38/12, situated at Edapally South, Ernakulam, Admeasuring Total Area: 1.58 Ares Belongs to: FAIZAL B A, AYOOB B A, Partners, Title Deed No: 111/2015, Registered On: 12-JAN-15, at: EDAPALLY SRO, KERALA,

f) Equitable Mortgage of Residential Building and land bearing Survey Number: RESY NO: 7/11-3& 7/12-3, situated at at Kizhakambalam Village, Pookattupady, Ernakulam, Admeasuring Total Area: 4.55 ARES, Belongs to: AYOOB B A, Partner, Title Deed No: 9021/07, Registered On: 23-OCT-07, at: Puthencruz SRO, ALUVA, KERALA

g) Equitable Mortgage of Factory Buildings and land bearing Survey Number: 184/10-2-4-3 &,184/10-2-4-2, block No 35situated at ALUVA EAST VILLAGE, ERNAKULAM, Admeasuring Total Area: 18.62 ARES, Belongs to: AYOOB BA & FAIZAL BA, Who is: PARTNERS, Title Deed No: 4474/1/2007, Registered On: 24-JUL-07, at: ALUVA,KERALA

C Personal Guarantee

Shri Abdulkhader B H, Smt Pathukunju P A, Shri Fazail B A, Shri Anaz B A, Shri Ayoob B A, Smt Soumya A A and Smt Sruthi Muhammed Ali

Principal amount due to suppliers registered under the MSMED Act and remaining unpaid as at year end. - -

Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end. - -

Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year. - -

Interest paid by the Company in terms of Section 16 of MSMED Act, 2006, along with the amount of the payment made to the suppliers and service providers beyond the appointed day during the year.

Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year.

Interest paid, other than under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year.

Amount of interest due and payable for the year of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act.

Interest accrued and remaining unpaid as at the end of year. - -

Amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are

actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the MSMED Act. - -

# The details of amounts outstanding to micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 are as per available informatio n with the Company.

33 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and postemployment received Presidential assent on 28th September 2020 and has been published in the Gazette of India. However, the date on which the provisions of the Code will come into effect has not been notified. Further, related Schemes and Rules are also awaited. The Company will evaluate the impact of the code after it has been notified.

34 In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

35 Balance appearing under loans & advances, trade receivables, trade payables, current assets and current liabilities are subject to confirmations in certain cases.

36 Additional regulatory information

(i) There are no proceedings that have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) (earlier Benami Transactions (Prohibition) Act, 1988) and the rules made thereunder.

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

(iii) There are no transactions / relationship with struck off companies.

(iv) The Company does not have any transaction 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). Further, there was no previously unrecorded income and no additional assets were required to be recorded in the books of account during the year.

(v) The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year ended March 31, 2025. Further, the Company has also not received any deposits or advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.

(vi) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current year.

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

(ix) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entities (“^Intermediaries””) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall, whether directly or indirectly lend or invest in other persons/ entities identified in any other manner whatsoever by or on behalf of the Company (‘ultimate beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(x) 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 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 provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, and there are no companies beyond the specified layers.

37 The Company has a single reportable segment for the purpose of Accounting Standard 17.

38 Figures for the previous year have been regrouped/reclassified/reinstated, wherever considered necessary.

This is the summary of significant accounting policies and other explanatory information referred to