M. Srinivasan & Associates Chartered Accountants INDEPENDENT AUDITORS' REPORT To the Members of Electronics Corporation of Tamil Nadu Limited Report on the Audit of the Standalone financial statements Opinion We have audited the accompanying standalone financial statements of Electronics Corporation of Tamil Nadu Limited ("the Company"), which comprise the balance sheet as at March 31, 2024, and the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act 2013 ("Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its profits, total comprehensive income, the changes in equity and its cash flows for the year ended as on that date. Basis for opinion We conducted our audit in accordance with the standards on auditing (SAs) specified under section 143 (10) of the Act. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the code of ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAl's code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Reporting of Key Audit matters as per SA 701, Key Audit Matters are not applicable to the company as it is an unlisted company. information other than the standalone financial statements and auditors' report thereon The Company's Board of Directors is responsible for the preparation of the other information. The oth RN 4 information comprises the information included in the Management Discussion and Analysis, Board's c001050S Chartered #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail: admin@msaca.com Chennai Hyderabad Mumba! j Bangalore M. Srinivasan & Associates I Chartered Accountants Report including Annexures to Board's Report, Business Responsibility Report, Corporate Governance and Shareholder's information, but does not include the standalone financial statements and our auditor's report thereon. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Management's responsibility for the standalone financial statements The Company's Board of Directors is responsible for the matters stated in section 134 (5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company's financial reporting process. Auditors' responsibilities for the audit of the standalone financial statements Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not s guarantee that an audit conducted in accordance with SAs will always detect a material misstatem 004 a s when it exists. Misstatements can arise from fraud or error and are considered material if, individually or Chennar Chartered * Accountants #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax : (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad [ Murnbai J Bangalore M. Srinivasan & Associates I Chartered Accountants in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143 (3) (i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with rel ethical requirements regarding independence, and to communicate with them all relationships an 045 #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalal, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail: admin@msaca.com Chennai Hyderabad Mumbai Bangalore M. Srinivasan & Associates Chartered Accountants other matters that may reasonably be thought to ear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on other legal and regulatory requirements 1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Govemment of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in Annexure "A" a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by Section 143(3) of the Act, we report that: (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except for the matters stated in the paragraph 2(h) below, on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014. (c) The balance sheet, the statement of profit and loss including other comprehensive income, statement of changes in equity and the statement of cash flows dealt with by this report are in agreement with the books of account; (d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act; (e) On the basis of the written representations received from the directors as on March 31, 2024, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, from being appointed as a director in terms of Section 164 (2) of the Act; (f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting; (g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197 (16) of the Act, as amended, in our opinion and to the b,, of our information and according to the explanations given to us, the remuneration pa ,i s 004050S Ch0 * #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai j Hyderabad Mumbai Bangalore M. Srinivasan & Associates Chartered Accountants the Company to its directors during the year is in accordance with the provisions of section 197 of the Act; and (h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: a. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note no 34 to the standalone financial statements; b. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; and c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company d. The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, i. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), 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 or entities identified in any 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; and ii. No funds have been received by the company from any person(s) or entity(ies), including foreign entities 'Funding Parties', with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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. iii. Based on audit procedures carried out by us, that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) contain any material misstatement. e. In our opinion and according to the information and explanations given to us, th dividend declared or paid during the year by the company is in compliance with se 0 123 of the Companies Act, 2013. #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chenna I Hyderabad j Mumbai j Bangalore M. Srinivasan & Associates Chartered Accountants f. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2024 which does not have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Hence we are unable to comment on audit trail feature of the said software. Place: Chennai Date: 11-12-2024 UDIN : 24022959BKGEQS3881 For M. SRINIVASAN & ASSOCIATES Chaitered Accountants Wj4FRN 004050S M. SRINIVASAN Partner M.Nc.022959 #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad j Mumbai Bangalore M. Srinivasan & Associates Chartered Accountants Annexure "A" to the Independent Auditor's Report (Referred to in paragraph 1 under 'Report on other legal and regulatory requirements' section of our report to the members of Electronics Corporation of Tamil Nadu Limited of even date; 1 (a) In our opinion and according to the information and explanations given to us, the Company is maintaining proper records showing full particulars, including quantitative details and situation of property, plant and equipment, intangible assets and relevant details of right-of-use assets. (b) The Company did not have a program of verification to cover all the items of property, plant and equipment in a phased manner over a period of three years. (c) In our opinion and according to the information and explanations given to us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as property, plant and equipment in the standalone financial statements, the lease agreements are in the name of the Company. (d) The Company has not revalued its property, plant and equipment (including right of use asset) during the year. Accordingly, paragraph 3 (i) (d) of the Order is not applicable. (e) In our opinion and according to the information and explanations given to us, there are no proceedings 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. Accordingly, paragraph 3 (i) (e) of the Order is not applicable. 2. (a) The Company has no inventories except the inventory of VHF Equipments. Though the NRV of the stock is NIL as on date, the company is carrying the stock at nominal value as final orders from Hon'ble High court of Madras is awaited. (b) The Company has no sanctioned working capital limit in excess of Rs. Five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. and hence the filing of quarterly returns or statements does not arise. 3. In our opinion and according to information and explanation given to us, the Company has not made investments in/ provided any guarantee or security/ granted any loans or advances in the nature of loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties in which the directors are interested. Accordingly, paragraph 3 (iii) of the Order is not applicable. 4. In our opinion and according to information and explanation given to us, the Company has not granted any loans or provided any guarantees or given any security to which the provisions 0 section 185 of the Act are applicable. 0 N s M In respect of investments made by the Company and loans given to arties other than tho Chnni #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006, Tel: (+91-44) 2820 2381 / 83 Fax : (+91-44) 2820 2384 e-mail: admin@msaca.com Chennai Hyderabad Murbai Bangalore M. Srinivasan & Associates n SChartered Accountants covered in Section 185 of the Act, the Company had complied with the provisions of section 186 of the Act. 5. in our opinion and according to the information and explanations given to us, the Company has not accepted any deposits or amounts which are deemed to be deposits during the year. Accordingly, paragraph 3 (v) of the Order is not applicable. 6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the same. 7. In our opinion and according to the information and explanations given to us: (a) Amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including goods and services tax, provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues have been generally regularly deposited by the Company with the appropriate authorities. No undisputed amounts payable in respect of goods and services tax, provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues were in arrears as at March 31, 2024, for a period of more than six months from the date they became payable. (b) Details of statutory dues referred to in sub-clause (a), which have not been deposited on account of dispute are given below: Statute Nature of Amount due Period to Forum where dues (as per IT which the the dispute is Department) amount pending (INR in * relates Lakhs) Income Tax Act, 1961 Income 50.01 High Court of Tax* Madras Income Tax Act, 1961 Income 22.67 2003-04 High Court of Tax* Madras Income Tax Act, 1961 Income 52.16 2006-07 ITAT, Chennai Tax* Income Tax Act, 1961 Income 300.62 2TAT, Chennai Tax 2007-08 [T,Chna Tax* Income Tax Act, 1961 Income 19.80 2008-09 [TAT, Chennai Tax* Income Tax Act, 1961 Income 270.49 2009-10 CIT Appeal, 40 Tax* Chennai A as Income Tax Act, 1961 Income 127.92 High Court o chennae Cn I Tax* 1 #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad j Mumbai I Bangalore M. Srinivasan & Associates Chartered Accountants Income Tax Act, 1961 Income 84.09 High Court of Tax* Madras Income Tax Act, 1961 Income 248.44 2014-15 High Court of Tax* Madras Income Tax Act, 1961 Income 300.83 High Court of Tax* Madras Income Tax Act, 1961 Income 22.01 2016-17 ITAT, Chennai Taxt Income Tax Act, 1961 Income 658.99 2017-18 CIT Appeal, Tax* Chennai Income Tax Act, 1961 Income 135.93 2021-22 CIT Appeal, Tax* Chennai Net of taxes paid under protest and adjusted by the department against refund due for other assessment years. 8. In our opinion and according to the information and explanations given to us, there are no instances found where transactions not recorded in the books of account that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, paragraph 3 (viii) of the Order is not applicable. 9, (a) in our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year. (b) In our opinion and according to the information and explanations given to us, the Company is not declared as a wilful defaulter by any bank or financial institution or other lender. (c) In our opinion and according to the information and explanations given to us, the term loans obtained during the year were applied for the purpose for which they were availed. (d) in our opinion and according to the information and explanations given to us, funds raised on short term basis have not been utilised for long term purposes. (e) According to the information and explanations given to us and on an overall information of the standalone financial statements of the company, we report that the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures. (f) According to the information and explanations given to us and procedures performed by us, we report that the company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies. 10. (a) In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public o (including debt instruments) during the year. Accordingly, paragraph 3 (x) (a) Order is not applicable. 004comes #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail: admin@msaca.com Chennai lHyderabad [ Mumbai Bangalore M. Srinivasan & Associates Chartered Accountants (b) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, paragraph 3 (x) (b) of the Order is not applicable. 11. (a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by any person has been noticed or reported during the year. Accordingly, paragraphs 3 (xi) (a) and (b) of the Order are not applicable. (b) To the best of our knowledge and according to the information and explanations given to us, no whistle-blower complaints, have been received by the Company during the year. 12. The Company is not a Nidhi Company and accordingly, Paragraphs 3 (xii) of the Order is not applicable. 13. In our opinion and according to the information and explanations given to us, the transactions with the related parties are in compliance with section 177 and 188 of the Act. Where applicable, the details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards. 14. (a) In our opinion and according to the information and explanations given to us, the Company has an internal audit system, commensurate with the size and nature of its business. (b) The reports of the internal auditors for the year under audit were considered by us, as part of our audit procedures. 15. In our opinion and according to the information and explanations given to us, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3 (xv) of the Order is not applicable. 16. (a) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. (b) In our opinion and according to the information and explanations given to us, the Company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934. (c) In our opinion and according to the information and explanations given to us, the Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, paragraph 3 (xvi) (c) of the Order is not applicable. (d) In our opinion and according to the information and explanations given to us oo40os tx Company is not a Core Investment Company (CIC) and it does not have any other MnP #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chernai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad Mumbai Bangalore M. Srinivasan & Associates j Chartered Accountants companies in the Group. Accordingly, paragraph 3 (xvi) (d) of the Order is not applicable. 17. The Company has not incurred cash losses in the financial year and in the immediately preceding financial year. 18. There has been no resignation of the statutory auditors during the year. Accordingly, paragraph 3 (xviii) of the Order is not applicable. 19. In our opinion and according to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the board of directors and management plans, there are no material uncertainty exists as on the date of the audit report that Company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. 20. (a) In our opinion and according to the information and explanations given to us, in respect of other than ongoing projects, there are no unspent amounts to be transferred to a fund specified in Schedule Vil to the Act. (b) In our opinion and according to the information and explanations given to us, there are no amount remaining unspent under sub-section (5) of section 135 of the Act, pursuant to any ongoing project, to be transferred to special account in compliance with the provision of sub-section (6) of section 135 of the said Act. 21. In our opinion and according to the information and explanations given to us, the Company have investments in subsidiaries/ associates or joint venture companies. Further according to the information and explanations given to us, there have been no qualifications or adverse remarks by the respective Auditors in their Auditor's Report. Place: Chennai Date : 11-12-2024 UDIN: 24022959BKGEQS3881 For M. SRINIVASAN & ASSOCIATES Chaitered Accountants FRN 004050S M. SRINIVASAN Partner M.Nc. G22959 #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad Mumbai j Bangalore M. Srinivasan & Associates Chartered Accountants Annexure "B" to the Independent Auditor's Report (Referred to in paragraph 2 (f) under 'Report on other legal and regulatory requirements' section of our report to the Members of Electronics Corporation of Tamil Nadu Limited of even date) Report on the internal financial controls over financial reporting under clause (i) of sub - section 3 of section 143 of the Companies Act, 2013 ("the Act") We have audited the internal financial controls over financial reporting of Electronics Corporation of Tamil Nadu Limited ("the Company") as at March 31, 2024, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management's responsibility for Internal Financial Controls The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditors' responsibility Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the standards on auditing prescribed under Section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those standards and the guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement in the standalone financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial control system over financial reportin #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad Mumbai j Bangalore M. Srinivasan & Associates o IChartered Accountants Meaning of Internal Financial Controls over financial reporting A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the standalone financial statements. Inherent limitations of internal financial controls over financial reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management of override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the intemal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion and according to the information and explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, subject to the control relating to accounting software of the company for maintaining its books of accounts and recording the transactions for the financial year ended March 31, 2024, which does not have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Hence we are unable to comment on the control relating to audit trail feature of the said software. Place: Chennai For M. SRINIVASAN &ASSOCIATES Date: 11-12-2024 Chaitered Accountants UDIN: 24022959BKGEQS3881 FRN 0040505 M. SRINIVASAN Partner M.N. 022959 #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalal, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail: admin@msaca.com Chennai Hyderabad Mumbai Bangalore M. Srinivasan & Associates Chartered Accountants Annexure C Report to the Comptroller and Auditor General of India under Sub section 5 of section 143 of the Companies Act, 2013 ['the Act'J In response to the sub directions uls 143 [5] of the Act issued by the Comptroller an Auditor General of India [C & AG]. Our comments are given below: 1. Whether the Company has taken adequate measures to prevent encroachment of the idle land owned by it ? Whether any land of the company is encroached, under litigation, not put to use of declared surplus? Details may be provided Based on our enquiry and verification we had with the management, we were informed that the Company has taken adequate measures to prevent encroachment like regular inspection of site by officials to monitor encroachment. Further we were informed by the company that it has constructed Compound walls around the campus in all the SEZ's except Tirunelveli. The company owns Eight Special Economic Zones, out of which Seven Special Economic Zones were secured by compound walls. The Tirunelveli Special Economic Zone does not have compound wall and we were told that the company is in the process of obtaining budget approval for constructing the wall. The status remains same as it was in the last year and reported in the current year also. Based on our scrutiny, enquiry and verification we were informed that there is no encroachment of the land held by the Company or no litigation pending in relation to such encroachments. 2. Whether system for monitoring the execution of work vis--vis milestone stipulated in the agreement is in existence and the impact of cost escalation, if any, revenues / losses from contracts etc., have been properly accounted for in the books? Based on our scrutiny, enquiry and verification of Contracts, Agreements, documents, RA Bills etc. the Company has the system of monitoring the execution of works vis-6-vis milestone stipulated in the agreement. Our analysis of "PSK Engineering Construction & Co" which carries out the project in Coimbatore and Trichy reveals that the Contractor has asked for the extension of time. For the project in Coimbatore, it has extended from 01.03.2024 to 29.09.2024 due to delay in obtaining EB Supply, testing and commissioning of transformer and fixing of HT Panel and for the Project in Trichy it has extended from 04.01.2024 to 30.04.2024 due to incompletion in Sewage Treatment Plant Works, testing and commissioning of treatment plant and works like erection of Diesel tank, Panel Boards and obtaining EB Services connection delayed due to want of DTCP and Local body approval. The request letter from contractor does not carry any request for escalation. There is a system of analyzing the revenue / losses from contracts and the same is accounted in books properly. 3. Whether funds received for specific schemes from Central / State agencies were properly accounted for I utilized? List the cases of deviation Based on our review of the information provided, documents produced and related discussion with the Company's management. The funds received for the specific schemes from the Central / State agencies were accounted properly as per its terms and conditions. #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail : admin@msaca.com Chennai Hyderabad j Mumbai Bangalore M. Srinivasan & Associates Chartered Accountants 4. Whether the bank guarantees have been revalidated in time? Yes, the Company has the process of revalidating the guarantees in time. 5. The cost incurred on abandoned projects may be quantified and the amount actually written off shall be mentioned. Based on the review, enquiry and explanation provided by the management, we were informed that there were no projects that were abandoned by the Company for which the costs are written off in books of account. Place: Chennai Date: 11-12-2024 UDIN :24022959BKGEQS3881 For M. SRINIVASAN & ASSOCIATES Chai tered Accountants FRN 004050S ktSR IN IVASAN Partner M.Nc.G22959 #5, B Wing, Parsn Manere, 9th Floor, 442, Annasalai, Chennai - 600 006. Tel: (+91-44) 2820 2381 / 83 Fax: (+91-44) 2820 2384 e-mail: admin@msaca.com Chennai Hyderabad Mumbai Bangalore EUtrivnics rprminrari,oi nI 1f Tiiilinavlitadu L.iiigicLl N,6692. knnaSali. Nandanam. 1h benri - 6041) 4135 fIN 127209TN1977Mh( D007291 BALANCE SIlLET AS ON 31ST IARCIl, 2024 Note Ars at 1st March, At 3st mNirrli, As at 1st April. Partilar:ksr 2023 21122 No. 21124 (Restalted) (IRestatel) 1. ASSETS (1) Non - eur-rent assets (a) Property,Plant and Equipment 2 1.09784 1,056.51 1,123 10 (b) Right of Use Assets 2 630,34 659,20 1,138.72 (c) Capiial Work in progress 2 23.085,84 19.146.71 12.424 82 (d) Investment Properties 2 47J6667 47,089.10 46,601.26 (e) Inlangible assels under developient 2 6.12 4 88 (1) Financial assets (i) Investments 3 8.43190 8.431.94 8,431,94 (ii) Loans and advances 4 2.97 279 3.64 (iii) Trade receivables I 45 92 49.22 134.92 (iv) Oliers- Fixed Deposir with TNPFC 6 36,600.00 58.200,.0 42,70008 1,) Deferred tax assels (t) 18 (35 18 271.63 868.25 Ihi Othernon -correnassets 7 11,68260 [4.52837 12,382.14 (2) Current assets (a) Inventories 8 001 17.37 17.37 (b) Financinl assers (t Trade reocivables 9 395.29 292.99 987.10 (ii Cash and cash equivalents 10 4.389,A5 4.219 78 6.34048 (iii) Losns and advances Il 145.58 635 12.09 (Vi) Others- Fixed Depoit viih TNPFC 12 19.200.00 11.300.00 16,700.00 (c) Other currentassets 13 1.0 [7 27 [177,96 1.271.08 TOTAL 1,53.856,51 1,66,656.02 1.51,24181 11. EQUITY AND LIABILITIES (1) Ejuits () Equity Share capital 14 2.593.05 2.593.05 2,593.05 (b) Other equity 15 30.727.98 29,148.57 28.549.88 (2) Ljabilities Non - current liahilities [a) Financial liabilities 16 (i) Long Term Borrowinos - - (ii) Other Fnancial Liabilitics 3,788,44 3.51 8.54 1,822,56 (bl Provision.s 17 45.2 87981 1.013 71 (e) Deferred Tax Liability (ne) (d; Other Non - current liabilitics 19 49.292.25 49.394.64 50,433 77 Current liabilitics ýal Financial liabilities (i) Trade payables 26 a)Tcral outstandinsues of micro enterprises and small enterprises lb)Tolal outstanding dues of credirors others than miero eriterpises and small eierprises 3.643 93 1.11945 987.31 (ii Other finincial liabilitics (b) Other current liabilities 21 62.87653 79,27729 64,894.42 [e) Provisions 22 88839 729.65 947 1I TOTAL 1.53.856.91 166656.2 1.51241.81 Si ni firam accounting policies and esltmates. The accomtpfaiy,ing notes 2 to 22 are an integra! Pat ofhe fin ncinj sime CS N. 9rvahlsa De,ikan V, Ku raresan R'Kannn Kumar layani Company Secreary Geral Manager [F & Aj Mana rnu Diiertor Chairmrarn Fl1879 MAN: ADGlV§4161l DIN: 08562757 DIN 01820616 Vide our Report of even tiale For Mf Srinivasan & Assomates Chattered Accountanis Firn Registration No.: 004050S NN FR N Ml. Srinirsan ~ 0040503 Patner Chali co \emiersihip No. 02959 Chaitred Dale: 111i1.202-9 AccounlanlJs UDIN:^LVUA 96k 0 :lec,ronies (ororalion oflamilnadu Limfited No.692. Anna Sna naanm. Chennai - 60 035 CIN U:27209TN l 977SC00729 i STATENIENT 01 PROFITAND LOSS FOR THE YEAR ENDED 31FS ARCII, 2024 (Rs. lakhs) Note Venr m[cd i Year ende! 1arlticulars 31st March, 2023 No. list larch, 2024 Revenue frm operantona 23 6.009.67 5,35080 Ii. Other incone 24 6,775.19 5431 .83 1II. To9al Income ( 1+11) 12,784.86 10,73263 IV. Expenses; COSt of materials consumed 25 1,633.03 1,482.42 Employee benefits Cae SC 26 1,541.80 1,77897 Finance costa 27 4,379.42 3,682,76 Dcpreciation and amortizauon expense 2 260.79 306.3 1 Otier expenscs 28 1.697,64 1,442.47 Total expenses (IV) 9,12.67 ,692.93 V. Proflirl(Loss) befort, exeptional lems and lax (I-1IV) 3,272.19 2,089.70 VI. Exceptional items VII. Profitl(Loss) after exceptional items and before tan (V-VI) 3,27219 2,089.70 VIII. Tax expense: Cunentax 83 95 520.50 Deferrd lax 117 87 329,08 1,01.83 849.58 IX Profit /(Loss for the peiod from continuing operations (VIA-VIII) 2,270.36 1,240.12 X Profit / (Loss from discontinued operations Xt Tax expenses of discontinued operations X1I Profit (Iloass) from Discontinued operations (after tax) (X-XI) - - XtD Profit/i(Lss) for the period (IX+Xl) 2,270.36 1,240.12 X EV Other comprelenasive income (i) hens that will not be reclassified to proi or loss Reneastuemsent oftlte net defined benefit liability/asset 29 122.70 187.73 (ii) lnconic tax relating to items that will not be rceclassi Fied ta pinof5t or loss 35.73 54.67 Total other conprelensive income 86.97 133.06 XV Total comprehensive ineome for the year ccmprising Profit /I (Loss) and other Comprelhensive Income for the periocid 2,357.33 1,373.18 V Earnings per equity share (for continuing operations) (Nominal vnalue per share Rs. /-) -Basiv (Rs.) 909.10 529.56 - Dfluied (Rs) 909.10 529,56 XVI Earnings per equity share (for discontinued operations) (Nominal vale per share Rl -) Basic (Rs) - Diluted (Rs.) XVIE Farnings per equity share (for coninuing & discantinued operrlions) (Nominal value er share Rs. 1-) - Basic (R,.) 909.10 529.56 Diluted (Rs.) 909.10 529.56 SiLoilicait accoting policies and estimartes The accompaning nes 21 Io 29 arean integral part of tlie ianici al satemooel For and on behalfof lthe Borrd C N Srivahsa aDesikan V Knumiesan R an Kumnar Jayan Company Secrelary General Managet [F & Al Manaping Dueclor Chlnman Fl 1079 PAN: ALiPV54 16L DIN: 08562787 DIN: 0182041b Vide our Report of even dale For Mo! Srinivasatn & Assciates Chajtered AccouatIS Firon Registration No.: 004050S M. Srinlivaanli co Partiner C mi Menhetrship No.: 022959 * Chrnred * Date[ 2 2 CheNa t:дггггп�.пiгs ['игрw�агiь,гь �д`Г:гнпЕ S:ьды 1.iмiггд . \п.б'12. �ппп `wлl,ii, \пнгlа:ьмт. ('hепп:ьl-(�п�103� С1'; Сд�2п9'Г�1ьlг75Г11RгП?2п1 4'ГА1'4::\1И:А'l' f)F' Г,t.у11 FLO\� 1Rs. Еп 1мRL5) For гЭгг ссаг епдгд F'ur [Ье crar епдгд Pnrtiгulars 3151 1lагдь 2112Э 31st \lаггЬ 2023 11ies[afeuy А_ Cяsh. Лпы• Gam 0lьегтггп;; Лctiritie5 � Mct prutit i[Ln>s] Iдг1`аге ся«аигдапаЛ' iгегпs апЛ 1ах 3,З'2.19 �,p99.7i1 . _4djгutnunts fпг : . Аст�sиыетеп2 (Loss)f Gain ри Ge шig' & Lеаие )йпслзhтегд7 1?2.7t1 � у7,73 Non Cash iпсюгпе -Рппг F'criad Adjustmcm спггу - р.ба [Эсргесiабоп апд апюпiгааiоп �U11 7/ 30G31 Рiпапге Cnsts othcr [hап 1в¢rest оп ипиsсд prams аггд ]лгегеsl пл � .lдчапсе Ггдт Guvt 1,�3G.73 3,3�F9.8i tлlcres[ дае оп Gпчеттелг GranrS 1 Non easlv дгаrЕе) ?,9q?.GS 332 э2 Tnterest lпсогпе {с 2р5.Э2у� (i.?77,72} �ividcnd [пготс (643.44) (3l.1,9�1)' -- ЛrоГ[ ап 5л1е иГ 1'chicle (i7 3 � Т f 6.71) � Rental lпгопц [гот lrsvesmaeпt Prppcпics б.bp (17.2+) , � ftenlallncomcfromiпveslrnert[Prnpcпics-ПHuildings 11,р1?:б) 177_'.9д) Lлпд Lnsc Перочi[ cPi_fЫг fprfciturc 12,'_94.39у �',565.16) Income 7а� Paid . _ б[hег lпсстгп с f 9:i.63 ] 1.`�:с.;91 5иЬ-'S'огаl (+,3ZJ.i3) µ,60').85) CNяngr9 in �Vurking Сярi[я1 : Adiu7men¢3 fnr fiпсгсаSеЭ / decrensc in l�оегагfпи лssets 'i'гадс Rccei nпЫсS Е9о Ад) 779,51 lпгстобсs I7.3( � .. � lnccsCmentS б.р; _ 5hoп-rcnn Loaлs а!од Adcanccs ? 9,a6q.io { � g.;o} а 1 р Вдпk balances olher tбan Cash апд cлsh гqпfvalen[s 17,70й.дtll S.�Од.рц . D11rer Cunerst апд 1'ап cutren[ Assets 3,pU4 а5 �',цSЭ. 1 I1 >di ustmenvs far f increueV dcerease in Oreraein е£iahi 1i.ri�es Trade F'sраЫеS '_.52-7� д3 13'.1д Qther Cuпeпl Liabiiitics-o[her дгап lпгсгс5l� ап Гаееттепt 6rants 119,ЭЗ8 �-1) 14,UdJ9i " 01ЬегLапц-tегп! LiaЬ�ilitie5 1о7.�2 G5G fti 5bnrti-tem! Pmvisiuns (�pi.Sp) 19.3$ hfAT Credit Emirlemcnt Лdjusled agaь�nst �cli�ered 1шч 1ai6i1ity 1$3_'(1 ? Э?.39 -.... Lpng-u;rm Лгоа'гS�рпS 1333.69Э 1133;9U) ' 5иытагяl {вдз.zиу з,.[ьЬ,ц7 ГагЬ F1pa� Ггот Ехпаогдiпаry 1[етг Саьh generaled from opeгatians {2.8эS.4�) 9.{5.41 Гlыигои,ст,х[paid]Irefuпds �зz3.71у (Ты.172) tirr Cash Паw Гrвт !]veed'ьnj (3pcrиting Artisftics [.`<] (3,419.f5}. 1 gi.9p � 13. Cлsh F1ow fram inveыing.artit�iгics " Gxynrdimee ап Ргореп}•, plant апд cyuipments ьпгlидiпц слрi[а1 adeances 1а,'%3.9i} �b,97!).деу tmercStRerei+'ед -Fгsed Aegasiu 5,?р5.32 � 3'г7.7? Dit'Sdend Rcгeived -1oin1 \'enmrc Соту!anics ei-13.9д'� ,уц 94 Rtn1a] Inpdnte frpm lпve5tment Properties - Ой!ers р,Ор 17_2i � Renta! fncome Fmm fncestmcnt Properties- ГГ Buгldina ],р12.26 Т72_9J Land Lcяse Dcposы eligiбc farfcituгc . 2,т9о.gд �,>33.16 5а1е of ацс[ р_Э 1 4.71 Одгсг Iueomr 9•.i.ti.: ..:1_g7 Net Cash Поа� trpm 1 �used т� Ina�csking Aгeiиities �U] i,9p3.�3 Y,922J3� С. Cмsh F1пw frnm Finпnciлg Acйvides � . Financc С�s[л paid (1.d36.7J} {7_3J9 %1) I]ividcлd Раод t77T.92) 1777А?} \et Cas1! i1ии� Ггвт ! �used in] !'inнnring яcгivitics [С] Э2,21 д.6Ь) (Э,127,7д) " Ле( lпгггатеl [бгсгеаггЭ in Cash & Cash F.yuiaalcncs 149.Ь7 {2J2p.7i) СаsЬ апд ca5h гqиiчдlеп[5 а[. ihe Ueg?nnin% af 1hc рсаг J.71 �f>.76 ь, idП,-i8�. ЕКес[ of exchange д�Е1'егепсе ап resrat¢тспг р1' furei�n сгьпг•.nt д? 1')., 79 р%.Ер .16 CaSh & Cash Equivalcnl а[ [Ъе епд вГгhсЗ•саг .1.79J.дS J,d19.'9 �\nze СаsЬ 1Этс statcmcnt рге :rsed ипдгг tndireг[ mcthed ulrich tlгс £ртр,уп�� Ct+ns3stдnda=!'о19тг1пс_. � FпгнпдипЬгhаlГиГд L1aag гд � ,J�(ja1.-( а�"'-�. CS N. 5п ��'si]:�ап V. Кипгаге�лп 1i К� ��. �rJ� Contpan}' Sееге[агч Gепегл� \lапа¢ег [f' С.д.] :\1,:n;гins; Оогеетг C1iaSrпlли F11979 PAN-ЛITGPV'3-01ЬL h1� дgч6273Т I)fN G163рьч16 �'idc оиг Rсроп оГ гееп дпге � For Ь5 4пааiцаsап А. :lssaciaгcs - � -- - � - - Chauгcred lесоип[апtс , F:rrn Re>_.iaгralion'~•и,: цtl lS4g G\�^��^J -)с з rf� �� �гlд�ц :ы.5ппivдsan � Q и �� � � � �. Раппсг су Z ч�i � ш ё ЧстL ег5hгр Na.� р?29�п Z [�у ci r� 4 Uзге: М��1.�-1 rS7� 'сЛ °� U it г`� • Chennai (( � ��`�' Upгrv.�c��aoг.a596K � ���� �л $ ) Eirctronics Corporation of"Faniiinadu Limited STA,TEIIENTOF CHANGES IN EMATV FOR THE YEAR ENDFD 31ST MARCH. 2024 (it) Equity Share capi(al 1) Current reporting period (Its.in Inklis) I Changes in Restated balance Charges ill Balance at the Equity Share beginning of the Capital due to 'It the beginning equity share Balance at (he f the rrporting, capital during end of th e vear year prior period 0 errors year the year For the year ended 3 1 st March, 2024 2.593.05 2,593.05 2) Previous reporting period iRs.in lakbs) Changes in Balance at the Equity Share Restated balance Changes in beginning ofthc Capital due to a t the beginning equity share Balance at the ofthe reporting capi(al during end oftite year year prior period year (he vetur errois For the year ended 3 Ist March, 2023 2.59-11.05 1593,05 (b) Other Equity (Rsmi lakhs) 1) Current reporting Period Resciwes and Surplus F Other RetainCEI Revaluation comprehensive Earnings rcierve income-defined Total benefit Balance as at Ist April, 2023 1 23,324.28 5,897.55 t73.26) 29,14S-57 Chan.cs, in accounting policy or prior period errors or reclassilication 0.0D Profit for the Year 2,270.36 2. 2 7 0 - 3 6 Les Dividend for the year (77792) - MT92) Other Comprehensive Income (Net ot'laxes) for the period - 36.97 8697 Balance as at 31 March 2024 24,816.721 -5,897.i.51 - - 13.71 30,727.98 I) Previous repo rting Period (Rs.in Inklis) e.serves and Surplus Other Retqincd Revaluation comprehensive Total Earnings rescrVe incorrie-defined henefit Bakinceis at Ist April, 2022 (Restated) ?2'85&64i 5,997 55 29,756 20 Changes in acimunting policy or prior period crrors or rcclassificatioll 3.43 - 3,43 Profit for the Year 1 210 12 240 1 1 I.L:.ss Dividendfrorthe%eir 777,92 1 - (777A2) Other Coniprehensivc Income (Net 01'taNUS) fior the fi riod - - 171261 173.26) Hibrice as at 31 March 2023 (Restated) 23,324.28 5,897.55 (73.26) 29,148.57 b. Movernent of Equity Shares during [he year Particulars As at As at 31-03-2024 31-03-2023 Shares orusianding at the beLinning ofthe year 2,59.30i 00 1,59.3C6.00 S hares issued during the year Shares bought back during the year Shares oulswd rg at the end QI'd7e V at 2-9,305.00 2,-59,305.00 Electronics Corporation of Tamilnadu Limited No.692, Anna Salai, Nandanam. Chennai - 600 035 CIN: U27209TN1977SGC007291 Notes on Standalone Financial Statements Note : 1 A. Brief description of the Company Electronics Corporation of Tarnilnadu Limited ("the Company") is a public sector undertaking of the Government of Tamilnadu incorporated on 21st day of March 1977. The main objects of the Company are to promote, establish and run State Public Enterprises and Development of IT Parks, SEZ and other computer and electronics related services. . ELCOT has so far developed eight SEZ across Tamilnadu and managed independently The registered office of the Company is situated at MHU Complex, 11 Floor, 692, Anna Salai, Nandanam, Chennai - 600 035. B. Basis of Preparation of Financial statements (i) Statement of Compliance These Standalone Financial Statements of the Company for the year ended March 31, 2024, have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with Companies (Indian Accounting Standards) Rules as amended from time to time, other relevant provisions of the Act The financial information for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 has been adjusted using recognition and measurement principles of Ind AS. (ii) Functional and presentation currency These Standalone financial statements are presented in Indian Rupees (INR), which is also Company's functional currency. All amounts have been rounded-oft to the nearest lakhs, unless otherwise indicated. (iii) Basis of preparation The standalone financial statements have been prepared on the historical cost basis, except for certain financial instruments and defined benefit plans which are measured at fair value at the end of each reporting period, Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the ice that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The books of accounts are maintained on accrual basis as a going concern. (iv) Use of Estimates The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reflected in financial statements and notes thereto. The management believes that these estimates are reasonable and prudent. However, actual result could differ fiom these estimates. Any revision to accounting estimates is recognised prospectively in the current and future period. This note provides an overview of the areas that inv olved a hiOheTdgree of udgement or complexity, and ofitems which are more likely to be materially adjusted due to estimates and assumptions turning out to be different Ohat those originally assessed. Detailed information about each of these estimates and judgements is included in the relevant notes together with information about the basis of calculation for each affected line in the financial statements. C. Si!nificant AecountinE Policies a) Property, Plant and Equipment (i) Freehold Land is carried at historical cost. All other items of Property Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation/amortization and impairment. Cost includes purchase price, taxes and duties (adjusted for tax credits, wherever applicable), labour cost and directly attributable overheads incurred up to the date the asset is ready for its intended use, ii) Subsequent costs are included in the carrying amount of respective asset or recognized as a separate asset when it is probable that the future economic benefits associated with the items will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate asset is derecognized when replaced. iii) The Company has not revalued its property, plant and equipment during the year and since the Company has adopted cost model as its accounting policy to an entire class of property, plant and equipment in accordance with the accounting standard. iv) Right of use of Assets, the Lease agreements are made in the name of the Company and the value carried as Lease carrying cost and on surrender of Lease settlement value shown as deduction/ adjusted from the carrying cost. The original carrying cost amortised @5% over a remaining period. Details are given under leases. iv) The value of property, plant and equipment funded out of Grants-in-Aid received from the Government, though not the property of the Company, are treated as the Assets of the Company and Depreciation is charged on those assets as well. v) Gains and losses arising from the retirement or disposal of property, plant and equipment are credited/charged to Profit and Loss Account vi) Assets costing Rs.5000/- or less is not capitalized and charged off to Profit and Loss Account. vii) Replacements are either capitalised or charged to revenue based on the nature and the long-term utility viii) Capital work in progress represents property, plant and equipment that are not yet ready for their intended use as at the balance sheet date. b) Intangibe Assets i) Intangible Assets are carried at cost less accumulated amortization and impairment losses, if any. ii) The cost of an intangible asset comprises its purchase price, including duties and taxes and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. e) Depreciation and Amortisation i) Depreciation has been provided on a straight-line basis and according to the useful life prescribed in Schedule II of the Companies Act, 2013 from EY 2014-15. ii). Depreciation or amortization is provided so as to write-off, on a straight-line basis, the cost / deemed cost of property, plant and equipment and intangible assets if any, including right-of-use assets to their residual value. These charges are cornenced from the dates the assets are available for their intended use and are spread over their estimated useful economic lives or, in the case of right-of-use assets, over the lease period, if shorter. The estimated useful lives of assets, residual values and depreciation method are reviewed regularly and, when necessary, revised. d) Impairment of Assets The company shall assess at the end of each reporting period whether there exist any indications that an asset may be impaired. If such indication exists, the entity shall estimate the recoverable amount of the asset and treatment shall be given in accordance with id-AS 36. e) Cash flow statement Cash Flow Statement is prepared under "Indirect Method". Prescribed in Ind AS 7 'Statement of Cash Flows'. Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow for the year is classified by operating, investing and financing activities. f) Revenue recognition The Company has applied Ind AS 115 Revenue from Contracts with Customers which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to receive in exchange for those products or services. The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition: * Step I : Identify the contract(s) with a customer * Step 2 Identify the performance obligation in contract * Step 3 : Determine the transaction price * Step 4 : Allocate the transaction price to the performance obligations in the contract * Step 5 Recognise revenue when (or as) the entity satisfies a performance obligation. Under Ind AS 115, an entity recoEnises revenue when (or as) a performance obligation is satisfied. i.e. when contol - of the oods or services uinderking the partiClar performni ice obligation is transferred to the customer. i) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is recognized to the extent that it is highly probable, and a significant reversal will not occur. Revenue from rendering of services is recognized as and when the services are rendered as per the terms of agreement with the customers and is disclosed net of credit notes towards deductions by customers as per the terms of the agreement. ii) Service charges receivable on the applicable schemes are recognised phase wise based on orders issued by the Govermnient of Tamilnadu. iii) Pro-rata development expenses are collected from lessees as per applicable agreements for development of infrastructure facilities, iv) All other income is recognised on accrual basis except income on certain specified Government Schemes which are recognized in Cash Basis only. v) Interest income is recognised on a time proportion basis considering the amount outstanding and the rate applicable. In case of interest charged to on receivables, interest is accounted for on availability of documentary evidence that the customer has accepted the liability. vi) plant and equipment that was held for rentals of IT Parks are classified as operating activities and other Rentals under Non-Operating Income as per Ind AS vii) Land lease deposits collected from the allottees are recognised as revenue on a pro rata basis over a period uniformly. g) Government Grants i) Grants related to infrastructure development / improvement is treated as Current Liabilities till such time they are expended. Grants related to specific purposes with conditions are treated as Current Liabilities till such time they are transferred for the purpose for which they are granted Grants from Government of India and Government of Tamilnadu are treated as Deferred liability and disclosed under "Non-current Liability". ii) Revenue Grants are recognized on a systematic basis in the Statement of Profit and Loss over the periods necessary to match with the related costs. iii) Grant and Subsidy received are transferred to Statement of Profit and Loss after completion of the related project. iv) Any unspent Grants beyond Validity of Schemes, the Company either returns or transfer to other schemes as per Government order. v) Based on the guidelines issued by the Finance Department of the Government of Tamilnadu vide letter no 1943/Finance (BPE)/2020 dated 06.02.2020 and the Accountant GeneraVs letter no AG(E& RSA)/OAD [c]/II/234, dated 08.01.2020, interest earned on the deposits of unutilised grants is treated as a part of current liability and the same will be remitted to government of Tamilnadu, h) Current and Non-Current Classification The Company presents assets and liabilities in the balance sheet based on current/non-current classification. Cash and Cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability for at least twelve months. In respect of other assets, it is treated as current when it is expected to be realised or intended to be sold or consumed in the normal operating cycle. It is held primarily for the purpose of trading, expected to be realised within twelve months after the reporting date. All other assets are classified as non-current. A liability is treated as current when expected to be settled in the normal operating cycle. It is held primarily for the purpose of trading. It is due to be settled within twelve months after the reporting period. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non- current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between acquisition of asset for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle. i) Investments a) The Company has made investments / further investments in associate and joint- venture Companies and other establishments as per the directions issued by the Government of Tamil Nadu from time to time as disclosed in the standalone financial statements. b) The Company assesses at the end of each reporting period, if there are any indications that the said investments may be impaired. If so, the Company estimated the recoverable value / amount of the investment and provides for known impairment, if any, i.e., the deficit in the recoverable value over cost. c) Investments in inactive and struck off Companies have been fully written off. d) Gains and losses arising from disposal of Investments are credited to Profit and loss account. e) Dividends from associates and Joint venture Companies are recognised in the Statement of profit and loss account when right to receive the payment has been established. j) Inventories Inventories are valued at the lower of cost and net realisable value. i) Cost of raw materials, components, stores, spares, work-in-progress and finished goods are ascertained at the lower of cost and net realisable value. ii) Cost of finished goods and work-in-progress comprise of direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is determined as estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Materials and supplies held for use in production of inventories are not written down if the finished products in which they will be used are expected to be sold at or above cost. Slow and non-moving material, obsolescence, defective inventories are duly provided for. k) Employee benefits Employee Benefits includes provident fund, Leave salary and Gratuity fund. 1.Short-term employee Benefits All employee benefits payable wholly within twelve months of rendering service are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange of services rendered by the employees is recognised as expenses during the period. 2.Long-tenn employee benefits a) Provident fund Provident fund contributions are made to a trust admini&tered by the trustees. Interest payable to the provident fund members, shall not be at a rate lower than the statutory rate.Liability is recognised for any shortfall in the income of the fund vis--vis liability of interest to the members as per statutory rates. b) Gratuity plan The Company has entered into an agreement with the Life Insurance Corporation of India under group gratuity Scheme to discharge its liability under the Payment of Gratuity Act ,1972 and the amount payable by the Company's liability towards Gratuity is provided on the basis of actuarial valuation by Life Insurance Corporation of India. The Actuarial Valuation of Accrued Gratuity liability will be forming part of Notes to Accounts c) Leave Salary Provision for leave salary in respect of encashable leave is provided for according to the service rules of the Company based on actuarial valuation. The necessary disclosures as per Ind-AS 19 are made as part of Notes on Accounts. The liability or asset recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on governnient bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the plan assets. This cost is included in employee benefit expense in the statement of profit and loss. Actuarial gains or losses are recognized in other comprehensive income net of Deferred taxes. Re-measurements comprising actuarial gains or losses are not reclassified to profit or loss in subsequent periods. Changes in the present value of the defined benefit obligation resulting from plan amendments or enhancements are recognised in profit and loss as past service cost. 1) Leases Company as Lessee: The Company has adopted Ind AS 116 Leases in the current year. Ind AS 116 introduces a new lease accounting model, wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including, determination of the discount rates and the lease term. The company needs to evaluate if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. Company as Lessor: The company's lease agreements wherein the assets that are to be returned to the Lessor at the end of the lease period are classified as Operating Leases and the Cost of those assets and rentals are recognized in the statement of profit and loss over the lease term as prescribed in Ind-AS 116. The Company, as a lessor, have given land for development of It parks on leases for a period of 99 years on a renewable basis for a further period on mutual agreeable terms. Land lease for development of IT parks A Based on the decision of Board dated 15th Feb 2011, land lease deposits received thereafter ar., treated as follows: i)15% of Land lease deposits which arc ot non-refundable ill nature to the land lessees even in case where the allotment is surrendercd within a period of 3 years is treated as revenue for the first ycar of lease. ii)From year 4th year to 17th year, 5% of the amount on land lease deposits is treated as revenue and shown in statement of profit and Loss account. (iii) and the balance 15% of land lease deposits is repayable to land lease holders after the expiry of the lease period and shown under non-current liabilities which carries no interest as per terms of agreement. Based on directions and guidelines issued from time to time by the Government of Tamilnadu, lands allotted to corporates and other entities in the developed IT parks at all SEZ, on receipt of one-time lease deposits on fully refundable basis. Land lease deposits shown under non-current liabilities also includes. i)Land lease deposits received for lands leased before the Board decision dated 15.02.2011, which refundable 100% after the expiry of lease period/surrender. (ii)Amount received from the lessees as advance prior to land allotment. The refundable land deposits settled within period of twelve months after the reporting date have been classified as current liabilities. m) Income Taxes Current income tax: Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws enacted or substantively enacted by the reporting date. Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or simultaneously. Deferred tax: Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements. Deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each reporting date. Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income. n) Investment property Recognition and measurement Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Upon initial recognition, an investment property is measured at cost, including related transaction costs. Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and accumulated impairment losses, if any. Investment property is derecognised either when it has been disposed of or when it is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on disposal of investment property (calculated as the difference between the net proceeds from disposal and the canrying amount of the item) is recognised in profit or loss. Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. Depreciation Based on technical evaluation and corisequent advice, the management believes a period of 60 years representing the best estimate of the period over which investment property (which is quite similar) is expected to be used. Accordingly, the company depreciates investment propertyexcept Land which is also includes in Investment Property over a period of 60 years on a straight-line basis. Reclassification from / to investment property Transfers to (cr from) investment property are made only when there is a change in use. Transfers between investment property, owner-occupied property and inventories do not change the carrying amount of the property transferred and they do not change the cost of that property for measurement or disclosure purposes. Fair value disclosure The fair values of investment property is disclosed in the notes. o) Financial instruments (i) Investments and other financial assets Classification The Company classifies its financial assets in the following measurement categories: i) those to be measured subsequently at fair value (either through other comprehensive income ('OCI'), or through profit and loss), and ii) those measured at amortised cost The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in statement of profit and loss or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. For investment in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI. The Company reclassifies debt investments when and only when its business model for managing those assets changes. Debt instruments At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Subsequent measurement of debt instrinents depends on the Company's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: Amortised cost Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method. Fair value through other comprehensive income ('FVTOC') Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVTOCEj Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised as gains/ (losses) within other income or other expense, Interest income from these financial assets is included in other income using the effective interest rate method. Fair value through profit or loss ('FVTPL') Assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognised in profit or loss and presented net in the Statement of Profit and Loss as gains/(1osses) within other income or other expense in the period in which it arises. Interest income from these financial assets is included in other income. Equity instruments The Company subsequently measures all equity investments at fair value. Where the Company's management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as Other Income when the Company's right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised as gains/ (losses) in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value. Cash and cash equivalents The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage. De-recognition of tinancial assets A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset; or retains the contractual rigtlhts to receive the cash flow s of the financial assets but assLImes a contractual obligation to pay the cash flows to one or more recipients. Where the Company transfers an asset, it evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. Where the Company has transferred substantially all risks and rewards of ownership, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the Company has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset. (ii) Debt and equity instruments (liabilities) Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. (iii) Financial liabilities The Company's financial liabilities comprise trade payables and other liabilities. These are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the arnortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Changes to the carrying amount of a financial liability as a result of renegotiation or modification of terms that do not result in derecognition of the financial liability, is recognised in the Statement of Profit and Loss. De-recognition of financial liabilities The Company derecognises financial liabilities when, and only when, its obligations are discharged, cancelled or they expire. (iv) Offsetting of financial instruments Financial assets and financial liabilities are offset when it currently has a legally enforceable right (not contingent on future events) to off-set the recognised amounts and the Company intends either to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. p) Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the year/period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period adjusted for bonus elements, if any. issued during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year/ period attributable to equity shareholders after taking into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares. q) Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period. 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 the 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 passage of time is recognised as interest expense. r) Contingent Assets and liabilities ' The Company uses significant judgements to disclose contingent liabilities and the same are disclosed when there is a possible obligations 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 the past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is probable. s) Prior period Adiustments Prior period adjustments are resorted to for material adjustments applicable to prior periods arising from changes in accounting policy, transformation to Ind AS and from the correction of fundamental errors. They do not require the normal recurring corrections and adjustments on the items of the previous years except on transformation adjustments on account of financial statements prepared under Ind As. t) Borrowing Costs Borrowing costs that are atributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of respective assets. A qualilying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to Revenue. u) Segment Reporting An operating Segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relates to transactions with any of Company's other components, and for which discrete financial information is available. All operating segments operating results are reviewed regularly by the Company's Board to make decisions about resources to be allocated to the segment and assess their performance. The Company has identified business segments as reportable segments. The business segments comprise: 1) Development of IT Parks, 2) Aadhar Permanent Enrolment Centre (PEC), 3) Procurement and other Services. v) Claims by/against the Company Claims for liquidated damages and others by the Company against Vendors/service providers/Agents and against the Company by the Customers/others are recognised in the books of accounts on acceptance. Insurance claims, Octroi refunds, Excise duty, custom duty refund claims refund claims, Income tax refund claims are considered at the time of admission by the concerned authorities and accordingly accounted in the books of accounts. w) GST Input Credit Relevant GST input credit claimed and accounted in the books in the period in which the underlying services are received, or goods purchased. The eligible GST input credit only be claimed and adjusted against the GST output. The ineligible GST input credit as posted in the GST site have not considered in the Books of account. Reversal of such input GST credit to be considered only after due reconciliation which the Company presently under implementation. x) Other Comprehensive Income The statement of Profit and Loss is bifurcated into two sections. 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Е -°°O ��_ - _ _ __ _ - _ i- °А С = ' _г _ � Л _ - 1' У �F 9 ' -с} - - _ 1 _ ; � _ _ . t.� - - �. � � �с¢� _ _ _ � _ о � _ v ' % '� С ,. С ' '7_ - м. - т т - _ ., о � � � Н с ю N N � � � � � � �� У � _ .. i ,. � у .�° - . . - = СС - ° „ � 'г..,! ^р - � - _ r о � - _ � � с , ю � o-- ,� - _ , гг г а _ _ ° е�� � й - - ' й - :i й ' - _ � �. � С - _ _ .i _ - W ,Л� , - _ г- .-. w �,у = - � >' с м ° У' . . . . ,�,'..;' . _ � � - - 'G' _ .> с � " �i � �+ _ F - _ оit^� 2 L j `р � С. -�? У^J r � - �л 'у: г-, � +э - м � г 1 � � Vi 6 � у °'� ` � .�, - _ � с h. й � - г 4: � N _ ' I � - Ь. - G - U _ V - � � _ � � _ С _ � - - `с � - _ - __ __ й � д - ' - � ` _ � "у "7 � : _ � ' L �. . _ ` ° _ - _ ' - = J - � - - _ - Л ' - - - т С - с f - � - _ ! � , . ' . �) � � � f / �, - г' - .., f � -. .ч .-. _. Z Е _ � . _ . � _ _ - _ ' ' _ i Ё � L - - - - I .1ectronics ( orporation o f 'I aini I nadu Linu I ed Forming part ol' I- inaricial StalcmenIN Note No : 23 Revenue 1, rout Operalions As at 31st March, As at 31st March, Parliculars 2024 2023 (Restated) Sale of Products 1-Tender Revenue 15,30 14,00 Sales - ED Cards - 0_57 Service Inconic Sm,icc Charges - Aadhaar L38T02 983.87 Service Charges - Righ ol'Way (R.O.W) 171.68 7&36 Service Charges - F-Gov Sollwarc Maintenance 1.48 14.68 Service Charges - Advertisement 36.27 31.39 Service Charges - EN ent Managenicut - VCS Projects 23.27 28.81 Service Charges - Manpower 0.34 118 Service Charges - JT Infra Projects 10,43 327 17 Service Charges - Procurement 67999 280J2 Service Charges - Projects 4JO 23.95 ITPD Division Income 36T24 203.20 S EZ Income Rent lioni. IT Parks 92339 76146 Retital/sc7 Madurai Duct Cable 0.98 - RentaUSEZ Tirunck-cli Duct Cable 0.33 Interest on Late PaVincnl 9.37 1 U.48 Land Lease Dcposi ts Forl"cited 299.89 2,587_19 Land Lease Processing Fees (0.01) 077 Project Extension Penalty - SEZ 0.75 - Lease Rental Income 0.00 Service Charges - Tide[ Park 77.43 - 6,1109.67 5,350.80 Note No. 24 Other Income As at 31st March, As at 31st Islarch, Particulars 2024 7023 (Restated) Interest Income Interest on Income Tax 37.76 - Interest On Deposits/Advances (Includes TDS) -.16 7. 55 5,277.72 Dividend Income -JV companies (I ncludcs TDS) 643.94 80.94 Other Non- Operating Income Rent - 17.25 Deprecialion on Fixed Assets Ainded out ol"I'DCH/NIORAD Grant - 0.34 Family Benifit Fund 0.14 - Protit on Sale of Assets 0.31 0.7 1 Scrap Sales 2 7. 6 1 7.85 Security Deposit Forleited 2.54 Sitting Fees - 010 Liquidated Damages Income - SF7. 883.91 - Miscellancuus Income-Reversal ofProvisioii for GratuitN 1397 44 3 8 6,775.19 5,431.88,11 Note No: 25 Cost of materials consumed As at 31st March, Particulars As at 31st lardh 2023 (Restated) Cost of Material Consumed Purchase ofID Card 0.41 Direct Expenses SEZ Expenses IT Building Revenue Expenses 1,05549 897.23 Project Expenses Aadhaar PEC Expenses 54867 555.91 Land Lease Deposit -Forfeiture(SIPCOT) 2887 28.87 1,633.03 1,482.42 Note No : 26 Employee Benefit expenses As at 31st March, ParticularsAs at 31st March, 22 Particulars 242023 (Restated) Salaries & Waies 1.174.24 1.465.37 Contribution to Provident & Other Funds 136,28 147.48 Gratuity- Scheme I 5r86 16.86 Gratuity- Scheme II - 2.38 Staff 1Velfarc Expenses 122.82 134,43 Current Service Cost-IND AS 37.61 13.38 Interest Cost-IND AS 64.99 (0.93) 1,541.80 1,778.97 Note No: 27 Finance Costs As at 31st Mlarch,1 As at 31st March, 3 Particulars 2042023 (Restated) Interest Expenses -Interest on Government ofTamil Nadu - Advance [or Supplies 2,700.83 3,28940 Interest to Government on unutised Grants 241.85 332.92 -interest onl TNPFC Loan 1.023.53 31.19 Interest - GST - 0,89 Interest - Others 17.85 25.75 Preclosure Charges-TNPFC 392.36 - Bank CharLes 3.00 2.61 4,379.42 3,682.76 Note No :28 Other lxpenses As ai 31st March. Particulars 204 t 1st Mrc 21123 Pavnent to Auditors - Audit FcC 5.16 516 Branch Expenses 0.07 Out ofPocket Expenses 0.39 Bad Debts- written tll' 63.28 38.09 Round Off 0 10 - Conveyance & Travelling 25.95 31.71 Seminar Participation Fee 0.10 - STF 23-24 - Web Hosting 218.10 Training Expenses (0.72) - Insurance 9.84 15.65 Miscellaneous Expenses 0.21 0.21 Repairs & Maintenance 26.79 45.94 Printing & Stationen 17.99 13.83 Professional Fees 78.26 19.29 Rates & Taxes 16.21 15.17 Vehicle Hire Charges 75.02 40.73 Advertisement 36.29 35.07 Communication Expenses 11.51 7.01 Development Expenses 389.48 594.95 Manpower Outsourcing 485.18 425.44 Office Maintenance 29.47 I8 4 t Data Centre Expenses 0.74 1.09 I lonorariuto Fee 1.62 0.78 Security Charges 31.58 12.28 Power & Fuel 88.09 47.54 Refreshment Expenses 6.39 1.79 R.O.W.Expenses - 0.59 Books & Periodicals 0.92 0.02 Subscription to Bodies 10.00 10.00 Corporate Social Responsibility 66.59 58.52 Water Charges 3.10 3.20 Investments Written Off 0.04 L___ 1,69.64 1,442.47 Note for Auditor's Remuneration As at 31st March, Particulars As at 31st arh 2023 (Restated) Statutory Audit Fees 2.50 2.50 Tax Audit Fees 0.50 0.50 Concurrent Audit Fees 2.16 2.16 5.16 5.16 Note No :29 Other comprehensive income As at31st March, Particulars As at 31st Mrch, 2023 2(124 (Restated) Items thalt will not be reclassified to profit or loss Re- measurement of defined benefit plans net actuarial (gain)/ loss recognised in OCI 122.70 187.73 Deferred tax (35.73) (54.67) 86.97 133.06 Electronics Corporation of Tamiinadu Limited No.692, Anna Salai, Nandanam, Chennai - 600 035 CIN: U27209TNI 977SGC007291 Note no 30: Employee Benefit Plans Disclosures required under Indian Accounting Standard (Ind-AS) 19 "Employee Benefits" notified in the Companies (Indian Accounting Standards) Rules 2015: As per the Company's accounting policy actuarial gains and losses are recognized as per paras 127,128 and 129 of Ind AS 19. A liability for Compensated absences arises in respect of leave to credit as on valuation date on account of i) availment in future ii) encashment during service in future iii) on separation. Accordingly, in carrying out an actuarial valuation of compensated absence liability, it is assumed that part of the accumulated leave as on the valuation date will get availed in future and a part will get encashed. The leave which gets availed whilst in service is valued on employee's cost to company [CTC] basis whereas the leave encasluent is valued on the basis of the criteria specified in the company's leave encashment policy. Assurmntion relating to leave consumed on account of various contingencies is given later in the Report. This assumption is based on LIFO basis i.e. Last in first out. This means that leave availed and encashed is first taken out of entitlement after the valuation date and then only, if necessary, out of balance brought forward from the valuation date. i) 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 recognised in respect of employees' service upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. The monthly contributions of employee pension and Provident fund are remitted to the fund administered by the Regional Provident Commissioner and the Trust respectively. ii) Other Long term employee benefit: The liabilities for earned leave and Gratuity are settled on cash payment basis as and when the same arises. (A) GRATUITY For the Financial year ending 31" March 2024 (Rs.in lakhs) Group Gratuity Scheme of Eiplovees-Policy No-407658 Average age 56.83 Average Monthly Salary 1.10 Valuation method Projected Unit Credit method Withdrawal Rate 1% to 3% depending on age Discount rate 7.25% p.a Salary Escalation 5% RESULTS OF VALUATION a. Present Value of Past Service Benefit 906.54 b. Current service Cost 3.31 c. Total Service Gratuity 1070.86 d. Accrued Gratuity 1039.52 Recommended Contribution e. Fund value as on 3 1.03.24 984.62 f. Additional Contribution for existing fund 0 g. Current Service Cost 0 Total Amount Payable (f+g) 0.29 1. Assumption As On 31/03/2023 31/03/2024 Discount Rate 7.250% 7.250% Salary Escalation 5.00% 5.00% 2. Table Showing changes in present value of Obligation As on 31/03/2024 Present value of obligations as at beginning of year | 10,04,06,600.00 Interest cost I 72,79,479.00 Current Service Cost 3,09,256.00 Benefits Paid (1,60,00,000.00) Actuarial (gain)/ loss on obligations (13,41,761.00) Present value of obligations as at end of year I 9,06,53,574.00 3. Table showing changes in the fair value of plan assets As on 31/03/2024 Fair value of plan assets at beginning ofyear I 11,24,61,813.00 Expected return on plan assets 77,97,209.60 Contributions 00.78 Benefits Paid (1,60,00,000.00) Actuarial gain/(loss) on Plan assets I NIL Fair value of plan assets at the end of year I 10,42,59,023.38 4. Table showing fair value of plan assets Fair value of plan assets at beginning of year 11,24,61,813.00 Actual return on plan assets 77,97,209.60 Contributions 00.78 Benefits Paid (1,60,00,000) Fair value of plan assets at the end of year 10,42,59,023.38 Funded status 1,36,05,449.38 Excess of Actual over estimated return on plan assets NIL (Actual rate of return--Estimated rate of return as ARD falls on 31st March) 5. Actuarial Gain/Loss recognized As On 31 /03/2024 Actuarial (gain)/ loss on obligations 13,41,761.00 Actuarial (gain)/ loss for the year - plan assets NIL Total (gain)/ loss for the year (13,41,761.00) Actuarial (gain)/ loss recognized in the year (13,41,761.00) 6. The amounts to be recognized in the balance sheet and statements of profit and loss Present value of obligations as at the end of year f 9,06,53,574.00 Fair value of plan assets as at the end of the year 10,42,59,023.38 Funded status J 1,36,05,449.38 Net asset/(liability) recognized in balance sheet | 1,36,05,449.38 7. Expenses Recognised in statement of Profit and loss Current Service cost 3,09,256.00 Interest Cost 72,79,479.00 Expected return on plan assets (77,97,209.6.00) Net Actuarial (gain)/ loss recognized in the year (13,41,761.00) Expenses recognised in statement of Profit and loss I (15,50,236,00) Group Gratuity Scheme of Employees Policy No-605004529 Average age 38.13 Average Monthly Salary 0.88 Valuation method Projected Unit Credit method Withdrawal Rate 1% to 3% depending Discount rate 7.25% p.a Salary Escalation 5% RESULTS OF VALUATION a. Present Value of Past Service Benefit 36.94 b. Current service Cost 5.13 c. Total Service Gratuity 213.97 d. Accrued Gratuity 53.69 Recommended Contribution e. Fund value as on 31.03.24 33.15 f. Additional Contribution for existing fund 3.79 g. Current Service Cost 5.13 Total Amount Payable (f+g) 9.33 1. Assumption As On 31/03/2023 31/03/2024 Discount Rate 7.250% 7.250% - Salary Escalation 5.00% 5.00% 2. Table Showing changes in present value of Obliation As on 31/03'2024 Present value of obligations as at beginning of year 26,83,184.00 Interest cost | 1,94,531.00 Current Service Cost 4,33,091.00 Benefits Paid (2,03,923.00) Actuarial (gain)/ loss on obligations 5,87,470.00 Present value of obligations as at end of year I 36,94,353.00 3. Table showing changes in the fair value of plan assets As on 31/03/2024 Fair value of plan assets at beginning of year I 32,34,777.28 Expected return on plan assets 2,56,969.70 Contributions 8,71,845.78 Benefits Paid (2,03,923.00) Actuarial gain/(loss) on Plan assets NIL Fair value of plan assets at the end of year 41,59,669.81 4. Table showing fair value of plan assets Fair value of plan assets at beginning of year 32,34,777.28 Actual return on plan assets 2,56,969.75 Contributions 8,71,845.78 Benefits Paid (2,03,923.00) Fair value of plan assets at the end of year 41,59,669.81 Funded status 4,65,316.81 Excess of Actual over estimated return on plan assets NIL (Actual rate of return=Estimated rate of return as ARD falls on 31st March) 5. Actuarial Gain/Loss recognized As On 31/03/2024 Actuarial (gain)/ loss on obligations | (5,87,470.00) Actuarial (gain)/ loss for the year - plan assets | NIL Actuarial (gain)/ loss on obligations 5,87,470.00 Actuarial (gain)/ loss recognized in the year 5,87,470.00 6. The amounts to be recognized in the balance sheet and statements of profit and loss Present value of obligations as at the end of year 36,94,353.00 Fair value of plan assets as at the end of the year 41,59,669.81 Funded status 4,65,316.81 Net asset/(liability) recognized in balance sheet I 4,65,316.81 7. Expenses Recognised in statement of Proft and loss Current Service cost 4,33,091.00 Interest Cost 1,94,531.00 Expected return on plan assets (2,56,969.75) Net Actuarial (gain)/ loss recognized in the year 5,87,470.00 Expenses recognised in statement of Profit and loss | 9,58,122.00 (B) LEAVE SALARY 1.0 The following table sets out the additional disclosures required under IND AS 19 1.1 Date of valuation 31-03-2024 31-03-2023 1.2 Average Duration of Defined Benefit Obligations 2.3 6.0 [in yearsf 1.3 Sensitivity Analyses A. Discount Rate + 50 BP 7.43% 7.65% Defined Benefit Obligation [PVO] 886.72 t,04266 Current Service Cost 25.06 29.24 B. Discount Rate - 50 BP 6.43% 6.65% Defined Benefit Obligation [PVOJ 903.34 1,101.61 Current Service Cost 25.56 31.21 C. Salary Escalation Rate + 50 BP 10.50% 10.50% Defined Benefit Obligation [PVOI 903.07 1,10065 Current Service Cost 25.55 31.17 D. Salary Escalation Rate - 50 BP 9.50% 9.50% Defined Benefit Obligation [PVOJ 886.91 1,043.26 Current Service Cost 25.07 29.26 BP denotes "Basis Points" 1.4 Expected Contributions in Following Years [mid-year cash flows] Year 1 304.94 93.46 Year 2 316.40 294.01 Year 3 138.45 152.80 Year 4 71.19 153.27 Year 5 52.77 108.80 Next 5 Years 51.55 278.80 "NA " denoted " Not Available" 1.5 Expected Benefit Payments in Following Years [mid-year cash flows] Year 1 304.94 93.46 Year 2 316.40 294.01 Year 3 138.45 152.80 Year 4 71.19 153.27 Year 5 52.77 108.80 Next 5 Years 51.55 278.80 3.0 The following sets out the details of inputs given by the Enterprise, Assumptions made and Results of the valuation. 3.1 Date of valuation 31-03-2024 31-03-2023 3.2 Employee Profile Age of Retirement 60.00 60.00 Number of employees 74.00 82,00 Total monthly relevant salary tr leave 84.39 88.01 Average monthly relevant salary for leave 1.14 1.07 105.48110.02 Total monthly cost to company [CTC] 105.48 Average monthly cost to company[CTC] 1.43 t.34 Average Age 53.33 52.58 Average past service 28.77 28.55 Total Number of Leave days [EL] carried forward 21,645.00 24,583.00 Average Number of Leave days [EL carried forward 292.50 299.79 Estimated Average Future working life 2.23 6 76 3.3 Assumptions: Discount rate as per para 83 of Ind AS 19 6 93% 7.15% Expected rate of return on Plan Assets 0.00% 0.00% Rate of increase in compensation levels 10.00% 10.00% Attrition rate fixed by Enterprise 28.00% 1.00% Expected Utilization Pattern of Carried Forward Leave Days. o Proportion of Leave availment 1000% 10.00% o Proportion of encashment during service 10.00% 10.00% o Proportion of encashment on separation 80.00% 80.00% 4.1 SUMMARY OF KEY RESULTS PRESENT VALUE OF OBLIGATION 894.94 1,071.14 I. PRINCIPAL ACTUARIAL ASSUMPTIONS [Expressed as weighted averages 31-03-2024 31-03-2023 Discount Rate 6.93% 7.15% Rate of increase in compensation levels 10.00% 10.00% Attrition Rate 28.00% 1,00% Expected rate of return on Plan Assets 0.00% 0.00% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) PVO as at the beginning of the period 1,071.14 1,198.82 Interest Cost 70.79 74.42 Current service cost 30.19 74.79 Past service cost Benefits paid (162.02) (139.09) Actuarial loss/(gain) on obligation (balancing figure) (115.16) (137.79) PVO as at the end of the period 894.94 1,071.14 I. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: Fair value of plan assets as at the beginning of the period- Expected.returni.on plan assets - Contributions 162.02 139.09 Benefits paid (162.02) (139.09) Actuarial gain/(loss) on plan assets [balancing figure] - - Fair value of plan assets as at the end of the period - - IV. ACTUAL RETURN ON PLAN ASSETS Expected return.on plan assets Actuarial gain (loss) on plan assets t Actual return on plan assets - - V. ACTUARIAL GAINS AND LOSSES RECOGNIZED Actuarial gain (loss) for year - obligation 115.16 137.79 Actuarial gain (loss) for year -plan assets - - Subtotal 115.16 137.79 Actuarial (gain) / loss recognized (115.16) (137,79) Unrecognized actuarial gains (losses) at the end of the period VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSES Present value of the obligation 894.94 1,071.14 Fair value of plan assets - Difference 894.94 1,071.14 Liability recognized in the balance sheet 894.94 1,071.14 VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: Current service cost 30.19 74.79 Interest on obligation 70.79 74.42 Expected return on plan assets Net actuarial (gain)/1oss recognised during the period j (115.16) (137.79) Past service cost - Expenses recognized in the statement of profit and loss -14.17 11.42 VIII. MOVEMENTS IN THE LIABILITY RECOGNIZED IN THE BALANCE SHEET Opening net liability 1,071.14 1,198.82 Expense as above (14.17) 11.42 Contribution paid (162.02) (139.09) Closing net liability 894.94 1,071.14 IX. AMOUNT FOR THE CURRENT PERIOD Present Value of obligation 894.94 1,07114 Plan Assets - - Surplus (Deficit) (894.94) (1,071.14) Experience adjustments on plan liabilities -(loss)/gain 27.65 59.85 Impact of change in assumptions on plan liabilities - (loss) / gain 87.51 77.94 Experience adjustments on plan assets -(loss)/gain X. MAJOR CATEGORIES OF PLAN ASSETS (AS PERCENTAGE OF TOTAL PLAN ASSETS) Government of India Securities State Government Securities High Quality Corporate Bonds - Equity shares of listed companies - Property Special Deposit Scheme Funds managed by Insurer Others (to specify) - - Total - XI. ENTERPRISE'S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR TYPE OF EMPLOYEE BENEFIT EARNED LEAVE(Rs.in lakhs) CURRENT COMPONENT OF PVO- LONG TERM LEAVE 397.24 NON-CURRENT COMPONENT OF PVO-LONG TERM LEAVE 497.70 TOTAL PVO 894.94 Table of Leave encasunent salary provision recognised in the financial statement (Rs.in Laldis) Particulars 31" March 2024 31" March 2023 Short term Leave salary liability on employees 397.24 191.33 Long Term Leave salary liability on employees 497.70 879.81 Total 894.94 1071.14 Note No 31: Investments 1) The Company has invested the following in the nature of investment: (Rs.in lakhs) Year enided Year ended Type of Entity YaendYarnedPercentage March 31, 2024 March 31, 2023 Associates 7703.02 7703.03 70.08 Joint Venture Companies 769.36 769.42 29.92 TOTAL 8472.38 8472.42 2) Market Value of Quoted Investments: - (Rs. in Lakhs) Market price per Market value as on Name of the Associates share as on No. of Shares Held 31.03.2024 31.03.2024 Elnet Technologies Ltd 330.65 10,40000 3,438.76 Lakhs lykot Hi-Tech Tool Room Ltd 33.88 15,81,600 535.85 Lakhs Total 3,974.61 Lakhs Suitable provision made in the Books for impairment in value of investments -Refer Note no 3 of financial statements. The details of Investments and the position as on the reporting date given as under: (Rs. In Lakls) Face . Closing Current Total % Name ofofSthValue pemng Provision Balance status Capital Shares Company No of Shares Balance ASSOCIATES Elnet Technologies 40,000 104.00 - 104.00 Active I 04.00 26 Lirnited Ivcot Hi-Tech Tool 15.81,600 5 I - 001 Active 79.08 7.80* Rioom Ltd 0.1790 AGT Elec-tronics Ltd 4,00,000 10 40.00 40-00 Active 40.00 26 Kody Tech Limited 1.73,805 10 17.38 1738 Active 17.38 26 RLich,iadra S\stcms & Cot,er11C Serric,' 23)9.000) 0 210 22(oo I 11,i00 Tide] Park Coimb iwrt! 7,51.96.295 10 >1.375 19.03 Actiw 741.6 Liiuited 7.519.63 7.419.6 JV COMPANIES Tide Park Limited 26,00,000 10 768.26 768.26 Active 260.00 6 Savant India Institute [ L10 Strike off I of Technology P ltd 11.000.00 1.10 . S.10 TOTAL 1 8,472.42 40,48 8,431.90 Note: *Quoted company Note No 32: Provisions not made a) No interest is charged on the amount recoverable from Joint Venture Companies except for interest bearing Loans and Advances sanctioned to them wherever applicable. b) Rent amounting to Rs. 0.16 Lakhs due from Staff Quarters (previous year Rs, 0.16 lakhs/-) at Hosur occupied by ELNET Ltd has not been provided in the Accounts since the said Company's is Liquidated/ Dissolved. c) Stock worth Rs, 173.66 Lakhs (Reference to Note No.8 of Inventories) which was earlier purchased for executing single channel VHF Equipment order from DOT could not be disposed-off, as final orders of Hon'ble High court are awaited. During the year 2006-07, as per the advice of the Accountant General and in accordance with AS - 2, 10% of the Inventory was valued at the NRV and the balance 90% amounting to Rs. 156.29 Lakhs written off. Being NRV of the remaining stock worth Rs. 17.37 Lakhs is nil as on date the company is carrying the stock at nominal value pending final orders from Hon'ble High court. d) M/s. Elnet Technologies Ltd., an associate Company, has been given land on lease at Taramani, Chennai for 90 years on a receipt of Rs. 1139.10 Lakhs fully refindable lease deposit on 14"' January 1999. In this regard, Elcot has claimed an interest amount on delayed payment of lease deposit for the period from May 18, 2000 to October 24, 2023 which amounts to Rs. 1,383.72 lakhs. The issue has been taken to Government intervention for constitution of Committee of Experts to resolve the issue. No provision has been considered in the books of account for the reporting year. e) The financial commitments to Elcot by M/s. Tidel Park Coimbatore Ltd., an associate Company of Elcot are furnished below for which no provisions have been considered in the books since the issue is under final verification and confirmation: Lease interest on Lease deposits Rs 141.04 Lakhs (previous year Rs 141.04 Lakhs) Interest on Service Charges Rs. 412.95 lakhs (previous year Rs 339.35 Lakhs) The Interest on Service Charges as mentioned as above is been demanded by ELCOT vide Letter Dated 08.11.2023 and being followed up. Note no 33: Disclosure of assets on Lease A. Lease as Lessee -Land From SIPCOT For development of IT park at Gangaikondan. Tirunelveli, SIPCOT has originally allotted 500 acres of Land in the year 2011. An amount of Rs 2,50626 Lakhs has been paid to SIPCOT one time on the date of signing of agreement and an amount of Rs 375.27 Lacs have amortised till 31" March 2024 and the balance shown under schedule of Property, Plant and Equipment in Right of Use of Assets. The details are given as under: (Rs in Lakhs) PARTICULARS ACRES FY2023-24 FY2022-23 GROSS BLOCK As at 1 April 500 1005.61 1456.26 Additions - - . Disposals 300.13 - 450.65 Balance at 31 March 199.87 1005.61 1005.61 ACCUMULATED DEPRECIATION AND IMPAIRMENT As at 1 April 346.40 317.54 Depreciation 28.87 28.87 Disposals - - Balance at 31 March 199.87 375.27 346.40 CARRYING AMOUNTS As at 1 April 199.87 659.20 1138,72 Balance at 31 March 199.87 630.34 659.20 B. Leases as Lessor Operating Lease Based on the opinion of Institute of Chartered Accountants India, allotments made under non- refundable lease deposits liable for forfeiture and the anount forfeitable in the current year of Rs. 2,299.89 lakhs has been recognised as Land Lease Deposits Forfeited in Profit and Loss account and in the next twelve months of RS 2,323.73 lakhs classified under current liabilities. Rental income recognised by the Company during the year ended 31 March 2024 is Rs 55.34 lakhs. Details of Land lease deposits given as under: For the year ending 31 March 2024 (Rs. in Lakhs) Non- Particulars Forfeitable Forfeitable/returnable Total as on 31.03.2024 Non Current 18,909.11 27,172.95 46,082.05 Current 2,323.73 2,323.73 Total 21,232.84 27,172.95 48,405.78 For the year ending 31" March 2023 (Rs. in Lakis) Non- Particulars Forfeitable Forfeitable/return able Total as on 31.03.2023 Non Current 20,010.10 27,134.07 47,144.17 Current 2,300.89 2,300.89 Total 22,310.99 .27,134.07 49,445.06 Land lease deposits received for allotments made upto the year 2010-11 are in the nature of returnable deposits classified under Non-Current Liabilities. Note No 34: Continient liabilities and commitments a) Claims against the Company not acknowledged as debt - Rs.925.31 Lakhs (Rupees Nine Crores Twenty-Five Lakhs Thirty-One Thousand Four Hundred and Eighty-Two only) claimed by DOT under arbitration award during 2000-01 due to delay in deliveries during the financial years 1990-1992. ELCOT has gone on appeal and obtained stay orders from the Hon'ble High Court of Madras. b) The Commissioner of Service Tax (by way of Show cause notices) has claimed service taxes amounting to Rs.1540.36 Lakhs for the services rendered by the Company in supplying laminated computerized Driving License Cards and Family Cards to the Government. Reply to the show-cause notice sent on 13.02.2018. Thereafter, the Company has not received any summons or communication in this regard. The case is still pending before the authorities. c) Challenging the Award of Arbitration both the parties vic, ELCOT and M/s. ICMC Corporation Ltd, is about to file a fresh Petition as per directions of Division Bench in OSA.No. 118 of 2020 and OSA.No.218 of 2021 in the High court of Madras. Meanwhile, M/s. ICMC Corporation Ltd has filed an execution petition against ELCOT in E.P.No.63 of 2024 amount 3,730.79 Lakhs on set aside of award in their favour. ELCOT is about to challenge the petition. d) The Arbitral Tribunal in the matter of Arbitration between ELCOT and United Telecom Limited, directs ELCOT to pay Rs. 1728.87 Lakhs towards Interest on delayed payments. ELCOT has gone on appeal and obtained stay orders from the Hon'ble High Court of Madras. Note No 35: Income Taxes and deferred tax liability. (A) Amounts recognised in profit and loss 31 March 2024 31 March 2023 (Restated) Current tax expense / (credit) 883.95 520.50 Deferred tax (refer note D below) 117.87 329.08 Tax expense of continuing operations 1,001.83 849.58 (B) Amounts recognised in Other Comprehensive Income PARTICULARS 31-Mar-24 31-Mar-23 (Restated) Current Tax in respect of CurTent Year 35.73 54.67 Total 35.73 54.67 Classification of Income Tax recognised in Other Comprehensive Income Income Tax related to items that will not be reclassified to 54.67 profit or loss Income Tax related to items that will be reclassified to profit or loss Total 35.73 54.67 (C) Reconciliation of effective tax rate The reconciliation between the statutory income tax rate applicable to the Company and the effective Income tax rate of the Company is as follows: Particulars 31-Mar-24 31-Mar-23 Profit before tax from continuing operations 3.272.19 2,089.70 Company's domestic tax rate 29.12% 29.12% Current tax using Company's domestic tax rates 952.86 608.52 Tax Effect of the amount which are not deductible/Taxable in calculatini Taxable Income Non-deductible tax expenses 62.71 41.83 Excess Depreciation deductible for tax purpose -131.62 -129.85 Income tax expense recognised in profit or loss k, 883.95 520.50 from continuing operations Effective Tax Rate 27.01% 24.91% (D) Deferred tax workings in line with Ind AS Deferred Tax workings are calculated in accordance with applicable Ind AS.Workings for the year 2023-2024 (Rs. in Lakhs) Deferred Tax Liability 2023-24 2022-23 (Restated) Particulars Amount Amount WDV as per Income Tax 43,523.27 43,856.36 WDV as per Books of Accounts 48894.85 48,804.81 Taxable Temporary Difference in WDV of Assets 5,371.58 4.948.45 Add : 43(B) Liability earlier disallowed paid in previous year Provision for Bonus 0.84 0.84 Provision for Audit Fees 0.90 Provision for Leave Salary 162.02 Provision for Gratuity 162.04 249.80 Taxable Temporary Difference (1) 5,697.38 5,199.09 Disallowance u/s 43(B) Provision for Gratutity 1.62 13.78 Provision for Bad & Doubtful Debts 45.92 Provision for Pension Contribution 0.32 Provision for Bonus 0.76 0.84 Provision forLeave Salary 100.98 6.22 Labour Welfare Cess Payable - 35.27 Disallowance u/s 40 Auditor's Fee 0.90 0.90 Deductible Temporary Difference (2) 150.50 57.00 Taxable Temporary Difference - Net (1 & 2) 5,546.88 5,142.09 Deferred Tax Rate 29.12% 29.12% Deferred Tax Liability Year End 1,615.25 1,497.38 Deferred Tax Liability Year Beg 1,497.38 1,168.30 Provision for the Year 2022-23 (DTL) 117.87 329.08 (F) Status of Income Tax Assessments (Rs. in Laklis) Amount of Refund Tax implications Forum where dispute / Assessment Year a e as per Returns a per Assessment is pending IT Department 2001-02 34.00 50.01 High Court, Chennai 2003-04 64.62 22.67 High Court, Chennai 2006-07 89.32 52.16 IT Appellate Tribunal 2007-08 203.89 300.62 IT Appellate Tribunal 2008-09 164.02 19.80 IT Appellate Tribunal 2009-10 337.42 270.49 CIT Appeal 2011-12 275.15 127.92 High Court, Chcnnai 2012-13 323.97 84.09 High Court, Chennai 2014-15 130.78 248.44 High Court, Chennai 2015-16 13.66 300.83 High Court, Chennai 2016-17 2,378.99 22.01 IT Appellate Tribunal 2017-18 476.21 658.99 CIT Appeal 2021-22 25.06 135.93 CIT Appeal Note No 36: Related Party Disclosures Related parties and their relationship where control exists Associate companies: Elnet Technologies Ltd. lykot Hi-Tech Tool Room Ltd Tidel Park Coimbatore Ltd. Kody Tech Ltd Joint Venture Companies: Tidel Park Ltd Key Management Personnel: Shri, A John Louis IAS as Managing Director ELCOT Dr.Aneesh Sekhar, IAS Managing Director Shri, Praveen Nair IAS as Managing Director ELCOT Shri Srivathsa Desikan, Company Secretary Transactions with related parties (Rs.in lakhs) Nil Reniuneration to Key Management Personnel: Shri, A John Louis, I.A.S., as MD ELCOT: Rs 1.16 lakhs Dr.Ancesh Seklhar. I.A.S., MD: R(s. 17.13 lakhs r Shri Srivathsa Desikan: Rs. 13.18 lakhs [Previous year: Rs. 11.61 lakhsl Dividend received from Associate & JV Companies: > Elnet Technologies Ltd.: Rs. 20.80 lakhs [Previous year: Rs. 20.80 lakhs] > AGT Electronics: Rs. Nil [Previous year: Rs. 6.40 lakhsJ > TIDEL Park Ltd: Rs. 52.00 lakhs [Previous year: Rs. 52.00 lakhs] > TIDEL Park Ltd-Coinbatore : 569.40 lakhs [Previous year: Rs. Nil] > Kody Tech Ltd: Rs. 1.74 lakhs [Previous year: Rs. 1.74 lakhsl Note No 37: Corporate Social Responsibility (Rs. in Lakhs) During the FY 2023-24 an amount of Rs. 40 Lakhs was released to Nanma School Foundation and an amount of Rs. 20 Lakhs was provided to Tamilnadu State Disaster Management Authority (TNSDMA) CSR Expenditure 2023-24 2022-23 a) Gross amount required to be spent during the year 59.85 59.41 b) opening unspent balances of previous years c/f 0.00 0.00 b) Amount approved by the Board to be spent during the year 60.00 66.00 c) Amount spent during the year on 60.00 66.00 d) Short fall at the end of the year - - e) Total of Previous year short fall - - f Reason for short fall Promoting g) Nature of CSR activities Educational Activities Sports activities h) Details of related party transaction - i)Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year I - SNo Paid Yet to be paid Total i) Construction / Acquisition of any asset._ ii) On purposes other than (i) above 60.00 - 60.00 Corporate Social Responsibility (CSR) movement given as under: (Rs. in Lakhs) Particulars Net Profit before Tax Years For 2023-24 For 2022-23 2019-20 2,327.51 2020-21 3,646.96 3,646.96 2021-22 3,227.56 2,936.48 2022-23 2 102.19 Average Net profit before Tax (A) 2,992.24 2,970.31 CSR Payable for the year ((A)*2%) 59.85 59.41 Add: Opening CSR Liability 0.00 0.00 Less: CSR spent during the year (60.00) (66.00) CSR.Excess spent (0.15) _(6.59) Balance to be c/f for set off against future CSR Liability 0.00 6.59 Note No 38: Government Grants Provision for Interest due on unspent grants Rs 241.85 lacs (previous year Rs 332.92 lacs) is created and grouped under Other Current Liabilities which is payable to the Government. The Company has received various grants from the Government for implementation of schemes as per the orders and the details of government grant movement for the year given in the schedule as under: (Rs.in Lakhs) PARTICULARS Z G.O.(D) NO.31I 9.02.2015(NL.DRC) 120.63 Present - - 20.63 3.44 Open Govemminent Data 16.83 - Cmpleted - 16.83 - - 0.09 G.O.(D)No.16 IT(B4) Dept. Present dt.26,03.19-Grants 37.26 - - 37.26 - - - 0.43 G.O.(2D)No.2 IT(B4) Dept. Present dt.14.02.20-Grants 41.66 8.26 - 8.26 - - - 33.40 2.61 G.O.(D).No.21 dated.07.05.19-Grants 236.76 0.18 - Present - 236.58 16.57 G.O.(D).No.25/28.05.2019 Cyber Present Security Architec TN 584.40 59.11 - 5911 - 600.00 - 25.00 (4971) 10.51 G.O.(D).No43 Dt 01.11.2019_Fnhanceiment ofCoud In- Present Grants 382.76 43,18 0.52 . 43.18 - - - - 340.11 25.82 G.O.(2D)No. /IT(D I )Dept./1 9.02.2021 Present TNSDC Pl Termil-Grants 76.42 0.39 - 0.39 - 37.47 - - 38.56 3.37 G.O.(D)NO. 13.'lT(14)Dept.Redundatt Present 25.3.19 441.48 - - - - - - - 441.48 30.90 G.O.(D)No.3 IT (1B4) Dept. Present dt.03,01,2020-Granis 250.15 - - - - - - 250.15 17.51 Connect Kanvakumari 2022 0.90 - - Present- - - - 0.90 0.06 G-O.(D).No.10 IT (DI) Dept,TNSDC Present dt.24,03.2022 - 2.89 2.89 - . 26.98 24,09 0.68 G.O.(D) NO.30 IT(E2) Dept dt, Present 17.11.21 Seenet Lan 106.62 116.95 116.95 16 98 - 37.26 (0.05) 2.82 G.O.(D)No.34 IT (E2)Dept. 02.12.2021 35.86 - Present - - - 35.86 2.51 G.O.(D)NO.41T Dept. (E2)1IGpbs NKN 35.89 - - Present - - - - - 35.89 2.51 G.0 (2[D) No.3 IT(DI) ) Dept Present dt.17.05.2022 2513 - - - 13.08 - - 12.05 1.27 G.O.(D.) No.17 dt. 29.03.2023 - TNDRC - 318.76 507.84 Present 318.76 - - - - 189.08 8.01 G.O.(D) No.2I 11(E2) Dept (11 Preset 08.07.2022 TNS PH Il 898.20 575.93 3.36 575.93 - - 325.63 31.86 G.O.(D)No.34 IT(DI) Dept Presnt dt.02 12.2022 TNDRC 246,59 247.84 10.62 247.84 - - - 9.36 7.30 Grant Due for TNSDC II (GO(D) 9 Present dt.7.2.23 (207.171 725.45 1,345.65 725.45 - 00 - - 412.02 20.34 Grant for UMAGINE 2022-23 - 758.00 completed 758.00 - - - 758.00 - CH Conneet-Chennai - 20 00 20.00 00 - - - - - 0.08 CII-Connect Madurai-2023 - 100 Present - - - - 5.00 7 4i - 24 46 243,46 -4A G.0.tDI) No.02 Di.04.01.2t24 TNSDC-1 - Term-Il Rs.8.15 Crore - 8 00 - - 7I50- 7 S^0 56 G.O4D.) No.20 d. 17.04.2023 - Presem TNSDC Phase i - 985.15 1.171 55 985.15 I.00 187.40 15.52 G.0.(D) No.27 IT & DS (E2) Dpt PrcsC dt,23.06.2023 - 1,1 17.18 1,295.55 ,117.1 - - - - 178.38 9.80 Grant for Global ln,estor Meet(GIM) Completed 2023-24 - 41.30 41p30 41.30 - - - - 0,04 Grant for Umagine - 2023-24 - 625.00 625.00 Completed 625.00 - - - - - 4.18 NASCCOM-What'sNext-2023 - 5.00 5.00 Completed- - - - - 0.06 Aadhaar PEC Grant for Enrolment Completed TABS-TNEGA 11.53 - 11.53 - - (0.00) 0.06 Govt. OfIndia Grant for Aadhaar PEC 176.62 Present - - - - - 176.62 12.36 Total 3,5_,3 3,788.44 241.85 Note No 39: SEZ expenses Recoverable: Expenditure incurred towards development of infra at SEZ are recovered at actuals on pro rata basis fi-orn the allotted companies/ to be allotted at time of future allotment or agreements executed with the companies from time to time. The project wise details are given under: (Rs.in Lakhs) Madura i- Madurai- Coimbat Illadaik Vadapala Salem- Sholinganal Tirunelv Particulars ore Hosur ulam nji Jaggi lur eli Trichy Total Opening Recoverable 570.79 591.45 258.51 925.38 228.64 4,079.45 763.40 1,121.28 8,538.89 Capital Exps- W alkway I - - - - 73.16 - -73.16 Scrub Jungle Cleaning - 2.54 - - - - - 2.54 Conducting Survey - 1.86 - - - 1.86 Scrutiny Fees paid - 4.00 - - - - - - 4.00 Capital Exps- Garden/Park ing arrangement s - - - 6.41 - 305.78 - - 312.19 Capital Exps- External strret light - - - 24.78 - - - - 24.78 Manpower - - - - - 15.87 - 15.87 Dewatering - - - 0.23 - - 0.23 Nwork Publishing Tender for Com1pund wall - - - - - - 1.33 - 1.33 Other Infra Charges paid - - - 2.55 - - - - 2.55 Tree Plantation - - - 0.74 - - - 0.74 Recovered (2,201.7 Infra (20.92) (22.42) (353.46) (44.91) (188.19) (1,277.93) (275.85) (18.12) 9) Recovered (1,013.8 Maintenance (92.24) - (411.71) (28.16) (95.98) (231.60) (150.40) (3.75) 4) Transfer to Capital expenditure Building- - - - - - - (254.77) (254.77) 457.63 577.43 (506.66) 886.79 (55.53) 2,964.96 338.48 844.64 5,507.73 Note No 40: Tidel Park Dividend write-back: Dividend due from M/s Tidel Park Chennai for earlier years has not been received which was shown as Receivable from Tidel Park During the discussion with Tidal Park, it is noticed that dividend due to Elcot has been adjusted against Start-up warehouse project amount due from Elcot to Tidel Park. In view of above, the adjustment entry has been made in FY 2023-24 by setting off the receivables from Tidel Park against Grant receivable from Government for Start-up warehouse projects. Note No: 41 - Earning per share The basic earnings per share ("EPS") is computed by dividing the net profit after tax for the year available for the equity shareholders by the weighted average number of equity shares outstanding during the year. (Rs in Lakhs) S.No. Particulars 2023-2024 2022-2023 (Restated) A Total comprehensive income for the year 2,357,33 1,373.18 comprising Profit / (Loss) and other Comprehensive Income for the period -1 B Shares outstanding (No.) 2,59,305 2,59,305 C Basic and diluted Earnings per share (A / B) 909.10 529.56 (Face value - ' 1000 per share) Note No 42: Disclosure under Micro, Small and Medium Enterprises Development Act, 2006. On the basis of the information and records available with the Company, the Company had not paid any interest during the year to any parties who are classified as Micro, Small and Medium Enterprises on account of default in payment of their dues. Also there are no amounts outstanding as on 31.03.2024 in excess of Rs. 1,00,000/- to any party classified as Micro, Small and Medium Enterprises. PARTICULARS FY 2023-24 FY 2022-23 L The principal amount and interest due thereon remaining Unpaid to any supplier as at the end of each accounting year. Nil Nil 2. he amount of interest paid by the buyer in terms of Section 16 Of the Act along with the amount of the payment made to The supplier beyond the appointed day during each accounting year Nil Nil 3. The amount of interest due and payable for the period 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 Act Nil Nil 4. he amount of interest accrued and remaining unpaid at The end of each accounting year. Nil Nil 5. The amount of further interest remaining due and payable Even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under Section 23 of the MSME Development Act, 2006. Nil Nil Note No 43: Financial instruments A) Accounting classification and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities CARRYING AMOUNT PARTICULARS FVTPL FVOCI AMORTISED TOTAL COST/COST Financial assets Non-Current Assets Investments - - 8,431.90 8,431.90 Loans and Advances - - 2.97 2.97 Trade receivables - - 45.92 45.92 Others- Fixed Deposit with - 36,600.00 36,600.00 TNPFC Current Assets Loans and Advances 145.58 145.58 Trade receivables 395.29 395.29 Others- Fixed Deposit with 19,200.00 19,200.00 TNPFC Cash and cash equivalents 4,389.45 4,389.45 - - 69,211.12 69,211.12 Financial liabilities Non-Current Liabilities Other financial liabilities - - 3,788.44 3,788.44 Current Liabilities Trade payables - - 3,643.93 3,643.93 - - 7,432.37 7,432.37 B) Valuation technique to determine fair value The following methods and assumptions were used to estimate the fair values of financial instruments: (i) Financial assets and liabilities such as cash and cash equivalents, trade receivables, Others- Fixed Deposit with TNPFC, loans and Advances, trade payables and other financial liabilities are stated at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their predominant sholt term nature except ESI Deposit which is classified under Loans and Advances and the same has been measured at amortised Cost. (ii) Investments in Associates and Joint Venture - The Company has elected to account for its investments in Associates and Joint Venture at cost less impairment loss (if any). Note No 44: Financial Risk Management The Company has exposure to the following risks arising from financial instruments:- - Credit risk; - Market risk; and - Liquidity risk Risk management framework The Company's Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Company's management is responsible for developing and monitoring the risk management policies. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, ainis to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Company's Board of Directors oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. i) Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers, loans and investments in debt securities. The carrying amounts of financial assets represent the maximum credit risk exposure. Trade receivables Trade receivables oI' the Company are typically unsecured and leried frLI sales made to a large number of independent custoners- Customer credit risk is manaed by each business unit subject to established policies, procedures and control relating to customer credit risk management. Before accepting any new customer, the Company has appropriate level of control procedures to assess the potential customer's credit quality. The credit-worthiness of its customers is reviewed based on their financial position, past experience and other relevant factors. Outstanding customer receivables are reviewed periodically. The credit risk related to the Trade receivables is mitigated by taking security deposits/ bank guarantee / letter of credit / post-dated negotiable instruments - as and where considered necessary, setting appropriate credit terms and by setting and monitoring internal limits on exposure to individual customers. There is no substantial concentration of credit risk as the Revenue / Trade receivables pertaining to any of the single external customer do not exceed 10% of Company revenue. The aging of trade receivables as of balance sheet date is given below: (Rs in Lakhs) As at 31 March 2024 As at 31 March 2023 Trade Receivables Weighted Loss Carrying Weighted Loss Carrying Average Loss Allowane Loss Allowance Amount te Amount RatRate e Period NotDue 0 0% 0 0 0% 0 Less than 6 months 0 0% 0 291 10 0% 0 6 months - 1 year 174.70 0% 0 1.89 0% 0 1 - 2 years 131.72 0% 0 3.30 0% 0 2 - 3 years 44.28 0% 0 0% 0 More than 3 years 90.51 0% 0 4592 0% 0 Total 441.21 0.00% -0 342.21 0.00% 0 ii) Market risk -interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. As the Company does not have exposure to any floating-interest bearing assets or liabilities, or any significant long-term fixed-interest bearing assets, its interest income / expenses and related cash inflows / outflows are not affected by changes in market interest rates. iii) Liquidity risk Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that finds are available for use as per requirements. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments, if any: Contractual Maturities of financial liabilities. As at 31 March 2024 Upto 1 I to 5 Above 5 Total year years years Other financial liabilities- Govt Grant - 3,78844 - 3,788.44 Total - 3,788.44 - 3,788.44 Ageing of Trade Payables For FY 2023-24 Outstanding for following periods from due date of Particulars payment Total Unbilled Less than 1 1 - 2 2 - 3 More than 3 Dues year years years years (i) MSME - - - - - (ii) Other - 2554.44 188.07 61.32 840.10 3,643.93 (iii) Disputed dues - - - - MSME (iv) Disputed dues - - Others For FY 2022-23 Outstanding for following periods from due date of Particulars payment Total Unbilled Less than 1 1 - 2 2 - 3 More than 3 Dues year years years years (i) MSME - - - - - (ii) Other - 218.15 901.31 - - 1,119.45 (iii) Disputed dues - - - - MSME (iv) Disputed dues - - - - Others Note No 45: State Cheque: During the FY 23-24, Sum of Rs. 15.15 lakhs has been classified as Stale Cheque under ' Other Current Liabilities' for transaction from 2017 to 2024 since review will be made for the earlier years ledger accounts in next year. Note No 46: Kev Financial Ratios S.No Particulars As at As at Variance (V) 31-03-2024 31-03-2023 1 Current ratio (Current Assets/Current 0.37 0.21 76% Liabilities) 2 Debt-Equity ratio 3-62 4.25 (15%) 3 Return on Equity (PAT/ Average 007 0.04 74% Shareholders fund) 4 Debtors turnover ratio (Annual 32.64 14.73 122% turnover/Average Debtors) 5 Trade payables turnover ratio 0.69 1.41 (51%) (Purchases/Average trade payables). 6 Net capital turnover ratio (Sales/(Current (0.30) (0.17) 79% Asset-Current Liabilities)) 7 Net profit ratio (PAT/ 0.18 0.12 54% Sales) 8 Return on capital employed 0.09 0.07 31% (EBIT/(Total Assets-Current Liabilities) 9 Return on investment (EBIT/Total 0.05 0.03 44% Assets) 10 Debt Service Coverage Ratio NA NA 11 Inventory Turnover Ratio NA NA Note No. 47 - AgeinE Schedule Aging schedules of EMD, Security deposit and outstanding expenses though outstanding over 1 year since the same payable on demand have classified under other current liability Ageing Schedule of EMD Payable Particulars Amount (Rs. in lakhs) Less than 1 year 498.64 1 - 2 Years 58.76 2 - 3 Years 8.69 More than 3 Years 481.56 Total 1,047.64 Ageing Schedule of Security Deposits Payable Particulars Amount (Rs. in lakhs) Less than 1 year 42.29 1 - 2 Years 0 2 - 3 Years 186.27 More than 3 Years 693.88 Total 922.44 Ageing Schedule of Outstanding Expenses Particulars Amount (Rs. in Lakhs) Less than 1 year 603-65 1-2 years 365.81 2-3 years 2.37 More than 3 years 56.63 Total 1,028.46 Note No. : 48- Accountin2 Policies, Changes in Accountinj Estimates and Errors As per Ind AS 19 Employee benefits, Defined benefit Obligation and the fair value of the plan assets should be recognised in the financial statements in case of Defined contribution plan i.e. Gratuity Plan. Accordingly we failed to comply with the aforesaid recognition in the previous years. Consequently, it is a prior period error which is defined in the Ind AS 8. We correct the prior period error on a retrospective basis as suggested in Ind AS 8. Further, we also made the following adjustment which depicts the possible effects of Omission in Balance sheet and Profit and Loss account. Effect on the Balance sheet as on 01-04-2022 S.No Particulars Previously Adjustments As restated Reported a Assets 1 Plan Assets - 13,34,02,628 13,34,02,628 2 Deferred Tax Asset 8,92,11,266 (23,86,042) 8,68,25,224 Total Assets 8,92,11,265.55 13,10,16,586 22,02,27,852 a Equity 1 Share Capital 25,93,05,000 - 25,93,05,000 2 Other Equity (i) OCI (2,06,31,876) (2,06,31,876) (ii) Retained Earnings 2,28,00,56,275 58,07,782 2,28,58,64,057 (iii) Revaluation Surplus 58,97,55,063 - 58,97,55,063 b Liabilities 1 Defined Benefit Obligation - 12,52,08,804 12,52,08,804 Total Liabilities 3,10,84,84,462 13,10,16,586 3,23,95,01,048 Effect on the Balance sheet as on 31-03-2023 S.No Particulars PreviouslyAdjustments As restated Reported Effect a Assets 1 Plan Assets - 13,34,02,628 (1,77,06,038) 11,56,96,590 2 Deferred Tax Asset 3,82,77,441 (23,86,042) (87,28,230) 2,71,63,169 Total Assets 3,82,77,441 13,10,16,586 (2,64,34,268) 14,28,59,759 a Equity 1 Share Capital 2 Other Equ ity (i) OCI (1,08,65,290) 35,39,574 (73,25,716) (ii) Retained Earnings 2,33,44,79,222 58,07,782 (78,54,822) 2,33,24,32,182 (ii) Revaluation Surplus 58,97,55,063 58,97,55,063 b Liabilities Defined Benefit Obligation - 12,52,08,804 (2,21,19,020) 10,30,89,784 Total Liabilities 2,91,47,46,497 13,10,16,586 (2,64,34,268) 3,01,79,51,313 Effect on the Statement of profit/loss as on 31-03-2023 S.No Particulars Previously Reported Adjustments As restated a Employee Benefit Expenses 17,66,51,374 12,44,867 17,78,96,867 b Profit Before Tax 21,02,19,435 (12,44,867) 20,89,69,787 c Current Tax 5,20,50,153 - 5,20,50,153 d Other Comprehensive Income 1,37,79,043 49,93,756 1,87,72,799 e Deferred Tax (P&L) and OCI 2,96,46,003 87,28,230 3,83,74,233 Note No. : 49- Investment Property (Rs in Lakhs) Particulars Land Building Total Gross Block Balance at 1 April 2023 37,187.97 11,041.18 48,229.15 Additions - 265.76 265.76 Deletions - - Balance at 31 March 2024 37,187.97 11,306.94 48,494.91 Accumulated depreciation Balance at 1 April 2023 - 1,140.05 1,140.05 Addition - 188.18 188.18 Impairment - - Deletion - - - Balance at 31 March 2024 - 1,328.24 1,328.24 Net block At 31 March 2024 37,187.97 9,978.70 47,166.67 At 1 April 2023 37,187.97 9,901.13 47,089.10 The Fair valuation of investment property has been done basis on Guideline value. The fair value of the investment property as on 31 March 2024 is Rs. 16,08,592.93 lakhs. Note No. : 50- Se2ment Reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses and for which discrete financial information is available. Operating results of all operating segments are reviewed regularly by the management to make decisions about resources to be allocated to the segments and assess their performance. The Company has three reportable segments as described below, which are the Company's strategic business units. The following summary describes the operations in each of the Company's reportable/ reported segments: Reportable/Reported segments Operations Development of IT Parks The Company's operations predominantly relate to Renting of Buildings and leasing out the Land to IT Companies in SEZ/Non SEZ area. Aadhar Permanent Enrolment Centre Providing Services in relation to Aadhar fresh (PEC) enrolment and Corrections. Procurement Services Providing services in relation to Sourcing, Tendering and Procuring Information technology related products-Hardware and Software for Government departments, Govermnent Institutions and Government Entities. Information about reportable / reported segments Information regarding the results of each reportable / reported segment is included below. Performance is measured based on segment profit (before tax), as included in the internal management reports that are reviewed by management. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Aadhar Permane Development nt Particular op me Procuremen Others Total of IT Parks Enrolme tSrie ut Cntre t Services nt Centre (PEC) Segment Revenue External Turnover 3,312.14 1,387.02 1,295.20 6,790.49 12,784.86 Internal Turnover - - - - Revenue from operation (Net of GST) 3,312.14 1,387.02 1,295.20 6,790.49 12,784.86 Expenses 1,055.49 548.67 28.87 7,879.64 9,512.67 Profit Before Tax 2,256.65 838.35 1,266.33 (1,089.14) 3,272.19 Current Tax 883.95 Deferred tax 117.87 Profit After Tax 2,270.36 Segment Assets 47,166.67 43.07 630.34 1,06,016.43 1,53,856.51 Segment Liabilities 48,405.78 - - 72,129.69 1,20,535.47 Other Information Capital Expenses During the year 265.76 (28.87) 4,046.95 4,283.85 Depreciation and amortisation 188.18 - 72.60 260.79 *Interest on TNPFC & Deposits, Dividend Income Geouraphical Information The geographical information analyses the Company's revenues and assets held by the company's country of domicile (i.e. India) and other countries. In presenting geographical information, segment revenue has been based on geographic location of the customers and segment assets which have been based on geographic location of assets. Particulars Within Outside Total India India Segment Revenue 12,784.86 - 12,784.86 Segment Assets 1,53,856.51 - 1,53,856.51 Note No.; 51- Other Disclosures (a) Confirmation letter for the balances of the Sundry Debtors, Sundry Creditors, various Loans and Advances, Deposits etc. as on 31.03.2024 have not been obtained and the balances lying in these accounts are subject to reconciliation. (b) ELCOT created lien on its property via charges in M/s. Indian Bank and M/s. Indian Overseas Bank, from 1983 to 1993 being the lien was paid off, it was removed from the books of accounts. however the satisfaction of charge was not filed with the Ministry of Corporate Affairs due to administrative reasons. During the current financial year (2023-24) ELCOT obtained "No Objection Certificate" from the bankers and necessary forms regarding the same was filed by Company Secretary as a Key Managerial Personnel (KMP) (c) Vide Tamil Nadu Government's G.O. [D] No. 40, dated 20-11-2006 issued with the concurrence of the Finance Department vide its U 0. No. 71632/Ind./06, dated 17-11-2006, Rs. 2,700.83 Lakhs has been provided towards interest on unutilized procurement advances received from various Government Departments and Corporates, in the financials for the reporting year. (d) For computing rate of interest on unutilized grants and unutilized procurement advanccs, art averaue rate of 7% is worked out based on the interest received on such deposits held with banks and financial institutions during the year. (e) Micro, Small and Medium Enterprises: The amount due to Micro and Small Enterprises as defined in The Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act") has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no such balances due during the reporting year. (f) Previous Year figures have been regrouped wherever necessary including those as required in keeping with revised Ind AS Schedule III Amendments. (g) Figures in Balance sheet, Statement of Profit & Loss, Cash Flow Statements and the Schedules attached thereto have been rounded off to the nearest lakhs of rupees with decimals. (h) Advances received from Government departments / organizations towards procurement of IT / ITES Products are adjusted at the time of supply or while refunding the advances as required by departments concerned. Some of the advances appears more than a year are payable on demand by the departments concerned or adjusted against supplies made as the supplies are spread over more than a year and disclosed under other current liabilities. (i) (i) The company has not granted any loans or advances in the nature of loans to promoters. (ii) Directors, KMPs and the related parties (As per Companies Act 2013), which are repayable on demand or without specifying any terms or period of repayments. (iii) No proceedings have been initiated or pending against the company for holding any Benami property under Benami Transactions (Prohibition) Act,1988(45 of 1988) and the rules made thereunder. (iv) The company does not have any sanctioned facilities from banks on the basis of security of current assets. (v) The company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures required as per Additional Regulatory information of Schedule III(revised) to the Companies Act,2013 is not applicable. (vi) There are no transactions with the companies whose names are struck off under section248 of the Companies Act 2013 or section 560 of the Companies Act,2956 during the year ended March 31,2023. (xii) The Company has investment in only associates and joint ventures and hence reporting on compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act,2013 read with Companies(Restriction of number of Layers) Rules 2017 is not applicable. (viii) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act 2013. (ix) The company has not advanced or loaned or invested funds to any other person(s) of entity(ies), including foreign entities(intermediaries)with the understanding that the intermediaries shall:(a) Directly or indirectly lend or invest in other persons or entities 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 beneficiary. 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 tle company shall: D ireclly 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 Provided any guarantee, security, or the like on behalf of the Ultimate beneficiaries. (x) The company has not operated in any crypto currency or virtual currency transactions. (xi) During the year the company has not disclosed or surrendered, any income other than the income recognized in the books of accounts in the tax assessments under Income Tax Act, 1961. Notes 2 to 51 forming part of accounts and form an integral part of the financial statements. For and on behalf of the Board CS N. Srivathsa Desikan V. Kumaresan .Kannan Kumar Jayant Company Secretary General Manager [F&A] Managing Director Chairman F1 1879 PAN:ADGPV5416L DIN: 08562787 DIN: 01820616 Vide our Report of even date For M Srinivasan & Associates Chartered Accountants Firm Registration No.: 004050S . .NN &,q,, M. Srinivasan F FRN C Partner 004050S Membership No.: 022959 Chennat * Chailered * Date: h Accountants Chennai. uDIlNK9 'L4oCOU9 Sc03C(~ %&