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Corporate Overview Statutory Reports Financial Statements

Corporate Information: Board of Directors:Mr. Nitin D. Shah Chairman & Managing DirectorMr. Prakash D. Shah Whole-time DirectorMr. Nehal N. Shah Executive DirectorProf. Venugopal R. Iyengar Independent DirectorDr. Shrikant N. Parikh Independent DirectorMs. Shubhada K. Jahagirdar Independent Director – CSR

Key Managerial Personnel:Mr. Paresh Shah Chief Executive OfficerMr. Gopal Tiwari Chief Financial OfficerMs. Neha Sunil Bagla Company Secretary & Compliance Officer

Statutory Auditors: Key Bankers:M/s. Shah & Taparia Kotak Mahindra Bank LimitedB-502, Business Square, Barclays BankSolitaire Corporate Park, Chakala Junction, Andheri Kurla Road, Registrar & Share Transfer Agent:Andheri East, Mumbai - 400 093. M/s. Link Intime India Private Limited

C 101, 247 Park, LBS Marg,Secretarial Auditors: Vikhroli West,M/s. Rathi & Associates Mumbai – 400 083.A/303 3rd Floor Prathamesh, 11/12 Senapati Bapat Marg, Raghuvanshi Mill Compound,Lower Parel, Mumbai – 400 013.

Registered office:Premises No 13A, 13th Floor,Earnest House, Backbay Reclamation,NCPA Road, Block No III, Nariman Point, Mumbai – 400 021CIN: L72200MH1995PLC085488

Tel : 022 6681 6400 Fax: 022 2282 2030Email: [email protected]: www.allieddigital.net

Internal Auditors:M/s. S.P. Natani505, Goyal Trade Center Sona Cinema, Borivali East, Mumbai - 400 066

CONTENTS:Particulars: Page No.

Chairman’s Message 01

Management Speak 03

Awards & Accolades 06

Notice of AGM 09

Boards’ Report 16

Management Discussion & Analysis Report 51

Corporate Governance Report 57

Auditors Report on Standalone Financial Statements 82

Standalone Financial Statements 90

Auditors Report on Consolidated Financial Statements 123

Consolidated Financial Statements 130

Proxy form, Attendance Slip & Route Map 159


1Annual Report 2018-19 Allied Digital

Ladies and Gentlemen,

It gives me great pleasure to welcome you to the 25th Annual General Meeting of your Company.

Industry outlook

India’s IT industry contributed around 7.7 per cent to the country’s GDP and is expected to contribute 10 per cent of India’s GDP by 2025. This is indicative of the fact that IT is on a continuous growth path.

• Growing Demand : Expanding economy to propel growth in local demand. Strong growth in demand for exports from new verticals.

• Global Footprint : Indian IT firms have delivery centersacross theworld and are well diversified across verticalssuch as BFSI, telecom and retail.

• Competitive Advantage : IT and ITeS sector in India has a low cost advantage by being 5-6 times less expensive than the US.

• Policy Support : Tax exemption of 3 years in a block of 7 years to startups under “Startup India”.

Road Ahead

India is the topmost offshoring destination for IT companiesacross the world. Having proven its capabilities in delivering

bothon-shoreandoff-shoreservicestoglobalclients,emergingtechnologiesnowofferanentirenewgamutofopportunitiesfortopITfirmsinIndia.Exportrevenueoftheindustryisexpectedto grow 7-9 per cent year-on-year to US$ 135-137 billion in FY19. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.

IT industry has reached an inflection point globally. ArtificialIntelligence (AI) and Machine Learning will transform the entire world. India has a great opportunity to ride on this new wave and reap huge demographic dividend.

Government has to come out with conducive policies to train and skill up the millennials by incorporating basics of AI and Machine Learning at school level. This will help India achieve spectacular economic growth and regain our past glory.

Smart Cities: The Future of Urban Development

As the world becomes increasingly interconnected and technology-dependent, a new wave of smart applications is changing how we approach everyday activities. Utility appliances such as intelligent fridges, personal assistants like Amazon’s Alexa or smart home security applications create opportunities formore efficient living.While the ideas of “Smart Cities” hasbeen proposed as the future of urbanism, the question remains: how do we connect this new technology for the ultimately “efficient”society?

Smart cities bring together infrastructure and technology to improve the quality of life of citizens and enhance their interactions with the urban environment. But how can data from areas such as public transport, air quality meters and energy productionbeintegratedandeffectivelyused?

The Internet of Things (IoT) has the answers. Created as part of the smart technology movement, the IoT enables various objects and entities to communicate with each other through the internet. By creating a network of objects capable of smart interactions, the door is opened to a wide range of technological innovations that could help improve public transport, give accuratetrafficreportsorprovidereal-timeenergyconsumptiondata.

Your Company

Adopting change is the key enabler for business growth. Being in IT industry, this is utmost critical. Allied Digital (ADSL) has always been not only about cutting edge technology projects, but also an early adopter of new technologies. Every customer of Allied Digital wants to embrace transformation. Allied Digital is proud to be actively guiding the change. IT infrastructure and Managed Services being the DNA of ADSL, it has rapidly adopted IoT, Cloud, Security and Integrated Command center technologies in its projects as a master systems integrator and also has been rapidly

Mr. Nitin Shah

CMD


2 Allied Digital Annual Report 2018-19

bringing Automation and Artificial Intelligence (AI)/MachineLearning (ML) in fore-front of its managed services business to delight customers with enhanced customer experience.

Being a leading Master Systems Integrator for smart city projects across the country, our digital strategy has been to focus on developing strategic partnerships in LoRa, NB-IoT based solutions.WehavedevelopedSmartLighting,SmartParkingandSmart Greenhouse solutions. Also, we have rapidly expanded our ADiTaaS platform to an Integrated command and control centerframeworktodevelopsmartcampussolutions.Wehavedeveloped top industry skills for middle-ware technologies as major initiative to large scale system integration projects.

Today’s end-user or consumer is highly tech-savvy and the customer experience requires a new dimension all-together. AlliedDigitalisactiveintoprocessautomationaswellinAI/ML.From the end user perspective, while we automate self-service, enable GIS and deploy Chatbots/Voicebots, our enterpriseoperations strategy is to migrate our customers to our SmartNOC and SmartSOC operations, which are focused on leveraging IT Analytics, Robotic process Automation. We have successfullymigrated several customers to our new generation NOC. Wehave revampedour securityoffering to “anomaly”basedSIEMplatforms leveraging AI. Our new AI team is actively gaining expertise to deep-dive into data science and AI based projects.

Thus ADSL has been busy implementing cutting edge technologies, both as master systems integrator as well as new generation managed service provider, helping enterprise as well as government to achieve transformation goals with success.

Our strategy of “small pain” and “long gain” has worked well and we will reap the fruits of success.

Our progress has been appreciated and has resulted in several awards being given to your company (see details on page no 8)

We see a great future in Business data and analytics. Homeautomation is another area which is poised for growth with smart devices taking over repetitive tasks.

On HR perspective, your company continues its tradition of empowering people to enable them to take quick decisions. Empowerment, Responsibility and Accountability – ERA– go handinhandatAlliedDigitalServices.Wecanproudlystatethatwe have zero attrition in our core management team.

As part of our ongoing process we have this year skilled our people and imparted training in emerging technologies and software development to ensure seamless integration withvarious systems and acted as a true Indian origin Master Systems Integrator (MSI) amongst the very few in the industry.

Future outlook

The year under consideration has been a unique and path breaking year and we are looking at a better future with our new initiatives. The experience has been more heartening with so many awards and accolades coming our way which adds to our belief that the future is very bright.

Wearecommittedtobeapartnerinbuildinganew,vibrantandDigital India with our energy and sharp focus on the future.

Withwarmregards,

Nitin ShahChairman and Managing Director.



Due to global economic volatility, the IT growth rate was declined a bit in 2019 but will recover and grow back with the higher spending in 2020 and the key enabler will be the digital transformation initiative, both for enterprises and governments.

As India witnessed the Lok Sabha Election recently the Indian economysawasluggishgrowth in the lastquarteroffinancialyear 2018-19, however the ruling party getting re-elected in power, a great boost in Indian Economy is expected.

Financial Year 2018-19 has shown a steady progress in terms of service revenue. Our focus on bidding for Smart Cities has given us good success this year.We havewon 2 Smart City projectsand have been declared frontrunner for the third project. The revenue for the said projects will be recognized in the current and coming years.

We have adopted a unique business model of partneringwith big infrastructure players whose role will be mainly to participate in the CAPEX of the project and our role will focused on the implementation and OPEX for those projects. These collaborations of your company will be less capital intensive with healthy margin.

Your Company achieved a total consolidated income of ` 243.85 Crs. as against ̀ 228.94Crs.inthepreviousfinancialyearmarkingan increase of 6.5% y-o-y basis, whereas the total income of standalone was ` 79.34 Crs. with marginal increase against the previousyearfigureof` 76.87 Crs.

Further, pleased to inform that our Global operations has shown remarkable growth on y-o-y basis and already booked the orders foralmost40%aboveprevious year level,whichwill reflect inrevenueandprofitabilityofcomingyears. OnaccountofProfitabilityonstandalonebasis,yourcompanyachieved a PAT of ` 9.28 Crs. as against ` 5.33 Crs. in previous year with a staggering jump of above 74% on y-o-y basis whereas onconsolidatedbasis,yourcompanyachievedatotalprofitaftertax of ` 12.02 Crs. with an increase of 10% on y-o-y basis against thepreviousyearfigureof` 10.94 Crs.

As informed in my earlier report, t he management is poised to reduce the overall debts of the company and taking all reasonable steps to become a debt free organization in the near futuretoenhancetheprofitabilityof thecompanytoagreaterheight. Further, pleased to inform that during the previous year, your company won a long pending litigation with Income Tax Appellate Authorities and received a considerable amount as refund from the Income tax department. Further your company have been able to clear almost entire overdue statutory liabilities during the previous year and expect to clear the remaining liabilities soon

In the coming year as a continuous effort, our focus will beto build and improve further our project management and service delivery capabilities in order to achieve higher customer satisfactionleadingtogrowthofbusinessandprofitability.

Withwarmregards,

Prakash ShahWhole-Time Director

Mr. Prakash Shah

Whole-Time Director



Hello Investors,

A year has quickly gone by. Once again, this year too, we have added several customers in the US and a few in India too. Another big news is, that we have bagged orders for three smart cities. We feelmoreexcitedabout this year, aswe see lotof tractionacrosstheglobefornewbusiness.Wearegettingverybusyforexecution of these projects and imperative to mention that, we have almost completed a setup for a newbusiness offering inmosttalkedabouttechnologyecosystemofArtificialIntelligence(AI).Ialsowanttosharetwootherimportantnews.Wearenowwell established in 8 more countries across Europe. We havebeen able to control our finance costs and have been still inprocess of lowering debts further. All of this promises a robust future for the company.

India’s economy, though staggered at the start of this year, with the re-elected government, with emphasis on transformation, the coming quarters this financial year should improve. Weare witnessing a roller coaster ride of economy globally, as trade sanctions, political crisis in middle east, global warming challenges, brexit issues in UK and social-media sensitive political news in the US bring up and downs. I think, we need to get used to higher levels of volatility in today’s world. Fortunately, Indian economy is pointing towards stability. The IT sector is seeing a

revolution, due to major focus of enterprises as well as certain global governments on transformation, including India. Also, on the other hand, technologies such as IoT and AI are key catalysts for transformation.

Your company is even stronger now, to take up large transformation projects which are ably supported by newer skillsets, geographical presence and full-scale experience. A unique strength of this company is to drive tactical transformation projects, be it enterprise or government sector, the continuously touching operations support benchmarks and unique comprehensive systems integration experience. Talking about our delivery improvement capabilities, today we serve our core managed services leveraging state of the art cloud based technologies.We have successful deployments of our ADiTaaSplatform4.0andhavegoodcloudskills.WehaveenhancedAIenabled cyber security serviceofferings todeliver long servicecontractsefficiently.Thisyear,thenewwins,includingdeliveringsmart city projects will keep the delivery team extremely busy. On the sales side, we have added new partnerships, enhanced existing relationships and plan to revamp our marketing to fuel new business. Scaling to a larger size organization, delivering seamlessly globally without falling off our track of qualityservices, customer focus and corporate governance, is our key operational challenge being addressed today.

Going forward, as infrastructure and applications converge as the key enablers to execute and sustain transformation initiatives, our company becomes even well positioned to take up large opportunities globally. Our three pronged strategy of

1. “Growth Accelerators” consisting of enhanced core managed services,

2. “Big Drivers”, such as Smart city and large transformation projects and

3. “The innovators “ (exciting world of AI, IoT and Robotic process automation) will keep us focused and attractive.

Thanks to the overwhelming support from you all and the visionary strategy of the management ably supported by our smartfinanceteam.Istronglybelievethatourmottoof“Passion,Teamwork and Innovation” stands tall amidst the company growth backed by your belief and trust in us.

Withwarmregards,

Paresh ShahChiefExecutiveOfficer

Mr. Paresh Shah

Chief Executive Officer



Integrated Solutions Group - expanding market reach TheyearendedsuccessfullyforyourcompanyafterwinningtheRajkot Smart City project in consortium bidding.

While the Rajkot project is under implementation two otherSmartCityprojectsareunderfinalization.Theseprojectsareforaduration of 5 years from the date of Go Live ensuring predictable cashflowduringthisperiod.

Smart City projects mandates comprehensive integration of various agencies in the city for better coordination and improving the operational efficiency of the system in areassuchasCitySurveillance,IntelligentTrafficManagement,wastemanagement, water supply and energy management. These are diverse areas of technology that may not be addressed by a single systems integrator. To overcome this challenge, Bidders usually participate in the tendering process in consortium with partners whose Line of Business are mutually complementing and supportive of the project to be delivered. Therefore, Smart City projects demands collaborative bidding.

All Smart City RFPs are for appointment of Master Systems Integrator (MSI) who will execute, operate and manage the project

forthespecifiedduration.MasterSystemsIntegratorsspecialisein integrating subsystems belonging to various Agencies in a Smart City into a whole system that work together and can be managed from an Integrated Command and Control Centre. They also have experience in multiple areas of technologies such as Cloud computing, networking, Video Surveillance and IoTSensors.

Withthesuccessful implementationandoperationof thePuneCity Surveillance Project that extends over 645 sq. km covering two Municipalities – Pune and Pimpri Chinchwad your company has been recognized as a leading MSI in the industry.

WiththisbackgroundyourcompanyisperceivedtobeacredibleMSI partner for collaborative bidding that meets the Pre- qualificationandTechnicalQualificationRequirementoftheRFPin most of the Smart City and other Enterprise class ICT Projects. Though several RFPs are being floated for such projects withregular frequency your organization is judicious and prudent in addressing them through appropriate partnering and evaluation of the opportunity to ensure successful delivery and support for the duration of the contract.

Your company has entered into a Cooperation Partnering Agreement with an organization in Saudi Arabia for jointly addressing the market for Smart City, Metro Rail and similar enterprise class projects in that region. The new regime in Saudi Arabia has committed to make significant investmentin modernising its infrastructure leveraging on emerging technology such as IoT and Cloud based ICT Infrastructure where your company’s MSI strength is advantageous in customer acquisition. This partnership has already implemented three critical infrastructure protection projects that includes Campus VideoSurveillanceinRiyadhandparticipatinginsomelargeICTIntegration Government Projects in Saudi Arabia.

The Integrated Solutions Group of Allied Digital is in the process of increasing its customer base in the local market and expanding its reach in the international market where there is an increasing demand for such projects. The year ahead is very reassuring for healthy growth of your company.

Withwarmregards

Jawahar AliCEO ISG

Mr. Jawahar Ali

CEO (ISG)



NOTICE IS HEREBY GIVEN THAT THE TWENTY FIFTH ANNUAL GENERAL MEETING OF THE MEMBERS OF ALLIED DIGITAL SERVICES LIMITED WILL BE HELD ON TUESDAY, SEPTEMBER 10, 2019 AT 04:00 P.M. AT WALCHAND HIRACHAND HALL, 4TH FLOOR, IMC BUILDING, INDIAN MERCHANT CHAMBER MARG, CHURCHGATE, MUMBAI – 400 020 TO TRANSACT THE FOLLOWING BUSINESS:

ORDINARY BUSINESS:

1. To consider and adopt:

a) theauditedstandalonefinancialstatementsoftheCompanyforthefinancialyearendedMarch31,2019alongwiththereportsoftheBoardofDirectors’andtheAuditors’thereon;and

b) theauditedconsolidatedfinancialstatementsoftheCompanyforthefinancialyearendedMarch31,2019alongwiththereportoftheAuditors’thereon.

2. ToappointaDirectorinplaceofMr.NehalNitinShah(DIN:02766841),whoretiresbyrotationatthisAnnualGeneralMeetingandbeingeligible,offershimselfforre-appointment.

3. ToappointStatutoryAuditorsandfixtheirremunerationandtoconsiderandifthoughtfit,passtheresolutionwithorwithoutmodification(s),asanOrdinary Resolutionthefollowing:

“RESOLVED THATpursuanttoSection139,142andotherapplicableprovisions,ifany,oftheCompaniesAct,2013readwiththe Companies (Audit and Auditors) Rules, 2014 (“Rules”) (including any Statutorymodification(s) or re-enactment or anyamendmentthereofforthetimebeinginforce),M/s.Shah&Taparia,CharteredAccountants(ICAIFirmRegistrationNumber109463W),whohaveofferedthemselvesforre-appointmentandhaveconfirmedtheireligibilitytobeappointedasStatutoryAuditors in termsofprovisionsofSection141of theCompaniesAct,2013andrelevantrules framedthereunder,beandareherebyre-appointedasStatutoryAuditorsoftheCompanytoholdtheofficeforaperiodoffiveyearsi.e.fromconclusionofthisAnnualGeneralMeetinguntilconclusionofThirtiethAnnualGeneralMeetingoftheCompanyonsuchremunerationplusservicetax,outofpocketandtravellingexpenses,etc;asmayberecommendedbytheAuditCommitteeandapprovedbytheBoardofDirectorsinconsultationwiththesaidAuditors.

RESOLVED FURTHER THAT anyoftheBoardofDirectorsortheCompanySecretaryoftheCompanybeandareherebyauthorized,jointlyand/orseverallytotakeallstepsasarenecessaryandtodoallsuchacts,deedsandthingsasmaybeconsiderednecessaryandincidentaltogiveeffecttothisresolution.”

SPECIAL BUSINESS:

4. Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasanOrdinary Resolution:

“RESOLVED THATpursuanttotheprovisionsofSection188oftheCompaniesAct,2013readwithRule15(3)oftheCompanies(Meetings of Board and its Powers) Rules, 2014 and Regulation 23 of the Securities and Exchange Board of India (ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBILODR”)asamended,approvaloftheCompanybeandisherebyaccordedtotheBoardofDirectorstoenterintocontracts/arrangementswithAlliedDigitalServices,LLC,a‘RelatedParty’asdefinedunderSection2(76)oftheCompaniesAct,2013andtheSEBILODR,forthefinancialyearendedMarch31,2020,for:

1. Sale,purchaseorsupplyofanygoodsormaterials–uptomaximumof`30crores;and

2. Availingorrenderingofanyservices–uptomaximumof`100crores

onsuchtermsandconditionsasmaybeapprovedbytheAuditCommitteeandtheBoardofDirectorsfromtimetotime.

RESOLVED FURTHER THAT anyoneof theBoardofDirectorsor theCompanySecretaryof theCompanybeandareherebyauthorisedtodoorcausetobedoneallsuchacts,deedsandthings,settleanyqueries,difficulties,doubtsthatmayarisewithregardtoanytransactionwiththerelatedparty,finalisethetermsandconditionsasmaybeconsiderednecessary,expedientordesirableandexecutesuchagreements,documentsandwritingsandtomakesuchfilingsasmaybenecessaryordesirable,inordertogiveeffecttothisResolutioninthebestinterestoftheCompany.”

NOTICE



Notes:

a. A member entitled to attend and vote at this meeting is entitled to appoint one or more proxy to attend and to vote on poll, instead of himself/herself and such proxy need not be a member of the company.Inorderthattheappointmentofaproxyiseffective,theinstrumentappointingaproxymustbereceivedattheRegisteredOfficeoftheCompanynotlaterthanFORTY-EIGHThoursbeforethecommencementofthemeeting.ApersoncanactasaproxyonbehalfofMembersnotexceedingfiftyinnumberandholdingintheaggregatenotmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingrights.AMemberholdingmore than tenpercentof the total sharecapitalof theCompanycarryingvoting rights, thensuchpersonshallnotactasproxyforanyotherMember.

b. TheStatementpursuanttoSection102(1)oftheCompaniesAct,2013inrespectoftheSpecialbusinessundertheNoticeis

annexedhereto.AllthedocumentsreferredtointheNoticewillbeavailableforinspectionbythemembersattheRegisteredOfficeoftheCompanybetween11:00a.m.and01:00p.m.onallworkingdays(MondaytoFriday)uptothedateoftheAGM.

c. Corporate Members/Foreign Portfolio Investors/Foreign Institutional Investors/Financial Intuitions intending to send theirauthorizedrepresentativestoattendtheMeetingpursuanttoSection113oftheCompaniesAct,2013arerequestedtosendtotheCompany,acertifiedcopyoftheBoardResolutiontogetherwiththespecimensignature(s)oftheirrepresentative(s)whoareauthorizedtoattendandvoteontheirbehalfattheMeeting.

d. The Register ofMembers and Share Transfer Books of the Companywill be closed fromTuesday, September 03, 2019 to Tuesday, September 10, 2019 (bothdaysinclusive).

e. Members,ProxiesandAuthorizedRepresentativesarerequestedtobringtheAnnualReportfortheirreferenceattheMeeting.Attendanceslipsdulycompletedandsigned,mentioningthereindetailsoftheirDPIDandClientID/FolioNo.shallbehandedoverattheentrancetothemeetinghall.

f. Membersareinformedthat,incaseofjointholdersattendingtheMeeting,thejointholderwhoishighestintheorderofnameswillbeentitledtovoteattheMeeting.

g. TheRegisterofDirectorsandKeyManagerialPersonnelandtheirshareholding,maintainedunderSection170oftheCompaniesAct,2013,andtheRegisterofContractsorArrangementsinwhichdirectorareinterested,maintainedunderSection189oftheAct,willbeavailableforinspectionbytheMembersatthemeeting.

h. RelevantdocumentsreferredtointheaccompanyingNoticeandintheExplanatoryStatementsareopenforinspectionbytheMembersattheCompany’sRegisteredOfficeonallworkingdaysoftheCompanyduringbusinesshoursuptothedateoftheAnnualGeneralMeeting.

i. TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthesubmissionofPermanentAccountNumber(PAN)byeveryparticipantinthesecuritiesmarket.Membersholdingsharesinelectronicformareaccordingly,requestedtosubmittheirPANtotheDepositoryParticipantswithwhomtheymaintaintheirdemataccounts.MembersholdingsharesinphysicalformshouldsubmittheirPANtotheCompany.

j. Membersholdingsharesinelectronic(dematerialised)formareadvisedtosendtherequest/(s)forchangepertainingtotheirbankdetails,NationalElectronicService(NECS),ElectronicClearingService(ECS),Mandates,Nomination,PowerofAttorney,Changeof Address, ChangeofName, E-mail Address, ContactNumbers etc. to their respectiveDepository Participant (DP).ChangesintimatedtotheDPwillthenbeautomaticallyreflectedintheCompany’srecordswhichwillhelptheCompanyanditsTransferAgentstoprovideefficientandbetterservices.TheCompanyoritsRegistrarscannotactonanysuchrequestsreceiveddirectlyfromthemembersholdingsharesinelectronicform.

k. Topreventfraudulenttransactions,membersareadvisedtoexerciseduediligenceandnotifytheCompanyofanychangeinaddressordemiseofanymemberassoonaspossible.Membersarealsoadvisednottoleavetheirdemataccount/(s)dormantforlong.PeriodicstatementofholdingsshouldbeobtainedfromtheconcernedDepositoryParticipantsandholdingsshouldbeverified.

l. Pursuant to the provisions of Investor Education and Protection Fund (Uploading of Information regarding unpaid andunclaimedamountslyingwithCompanies)Rules,2012,theCompanyhasplacedonitswebsitei.e.www.allieddigital.net,the



informationondividendswhichremainwiththeCompanyunclaimedasonSeptember03,2018i.e.thedateofthelastAnnualGeneral Meeting. The information is also available on thewebsite of theMinistry of Corporate Affairs i.e. www.mca.gov.in.

m. MembersdesirousofgettinganyinformationabouttheaccountsandoperationsoftheCompanyarerequestedtowritetotheCompanyatleast7daysbeforetheAGMtoenabletheCompanytokeeptheinformationreadyattheAGM.

TheNoticeoftheAGMalongwiththeAnnualReportforF.Y.2018-19isbeingsentbyelectronicmodetothoseMemberswhoseemailaddressesareregisteredwiththeCompany/DepositoryParticipantsunlessanyMemberhasrequestedforaphysicalcopyofthesame.ForMemberswhohavenotregisteredtheiremailaddresses,physicalcopiesarebeingsentbythepermittedmode.Tosupportthe‘GreenInitiative’,theMemberswhohavenotregisteredtheire-mailaddressesarerequestedtoregisterthesamewiththeirCompany/DepositoryParticipants/Registrar&TransferAgent.

E-voting:

PursuanttotheprovisionsofSection108andotherapplicableprovisions,ifany,oftheCompaniesAct,2013readwithRule20oftheCompanies (ManagementandAdministration)Rules, 2014asamendedby theCompanies (ManagementandAdministration)AmendmentRules,2015andRegulation44ofSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,theCompanyispleasedtoprovidethefacilitytoitsmemberstoexercisetheirrighttovoteonresolutionsproposedtobeconsideredattheAnnualGeneralMeeting(AGM)byelectronicmeans.ThefacilityofcastingthevotesbythemembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM,(“remotee-voting”)willbeprovidedbyCentralDepositoryServicesLimited(“CDSL”).

ThefacilityforvotingthroughballotpaperswillbemadeavailableattheAGMandthemembersattendingthemeetingwhohavenotcasttheirvotebyremotee-votingshallbeentitledtoexercisetheirrightatthemeetingthroughballotpaper.AmembercanparticipateinAGMevenafterexercisinghisrightstovotethroughremotee-votingbutshallnotbeallowedtocasttheirvoteagainatthisAnnualGeneralMeeting. Theremotee-VotingperiodcommencesonSaturday, September 07, 2019 (09:00 a.m. IST) and ends on Monday, September 09, 2019 (05:00 p.m. IST).During thisperiod,members’of theCompanyholdingshareseither inphysical formor indematerializedform,asonthecut-offdateTuesday, September 03, 2019maycasttheirvotebyremotee-Voting.Theremotee-VotingmodulewillbedisabledbyCDSLforvotingthereafter.Oncethevoteonaresolutioniscastbythemember,themembershallnotbeallowedtochangeitsubsequently.

ThevotingrightsofMembersshallbeinproportiontotheirsharesinthepaid-upequitysharecapitaloftheCompanyasonTuesday, September 03, 2019 andaspertheRegisterofMembersoftheCompany.

Mr.HimashuS.Kamdar,(ICSIMembershipNo.5171)ofM/s.Rathi&Associates,CompanySecretariesinWhole-timePracticehasbeenappointedastheScrutinizertoscrutinizethee-votingprocessandphysicalballotprocessinafairandtransparentmanner.

AMembercanoptforonlyonemodeofvotingi.e.eitherthroughe-votingorbyBallot.IfaMembercastsvotebybothmodes,thenvotingdonethroughe-votingshallprevailandBallotshallbetreatedasinvalid.

The process and manner for remote e-Voting are as under:

For Members whose e-mail addresses are registered with the Company/Depositories:

i. Theshareholdersshouldlogontothee-votingwebsitei.e.www.evotingindia.com.

ii. ClickonShareholders.

iii. NowEnteryourUserID

a) ForCDSL:16digitsbeneficiaryID, b) ForNSDL:8CharacterDPIDfollowedby8DigitsClientID, c) MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.

iv. NextentertheImageVerificationasdisplayedandClickonLogin.



v. If youareholdingshares indemat formandhad loggedon towww.evotingindia.comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.

vi. Ifyouareafirsttimeuserfollowthestepsgivenbelow:

For Members holding shares in Demat Form and Physical FormPAN Enteryour10digitalpha-numericPANissuedbyIncomeTaxDepartment(inCapital)(Applicableforboth

dematshareholdersaswellasphysicalshareholders)

• MemberswhohavenotupdatedtheirPANwiththeCompany/DepositoryParticipantarerequestedtousethefirsttwolettersoftheirnameandthe8digitsofthesequencenumberinthePANfield.

• Incasethefolionumberislessthan8digitsentertheapplicablenumberof0’sbeforethenumberafterthefirsttwocharactersoftheNameinCAPITALletter.Eg.IfyournameisRameshKumarwithfolionumber100thenenterRA00000100inthePANfield.

DividendBankDetailsORDateofBirth(DOB)

• EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdemataccountorinthecompanyrecordsinordertologin.

• Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthememberid/folionumberintheDividendBankdetailsfieldasmentionedininstruction(iii).

vii. Afterenteringthesedetailsappropriately,clickon“SUBMIT” tab.

viii. MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.However,membersholdingsharesindematformwillnowreach‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

ix. ForMembersholdingsharesinphysicalform,thedetailscanbeusedonlyfore-votingontheresolutionscontainedinthisNotice.

x. ClickontheEVSNforthe‘Allied Digital Services Limited’.

xi. Onthevotingpage,youwillsee“RESOLUTION DESCRIPTION”andagainstthesametheoption“YES/NO”forvoting.Selecttheoption YES or NO as desired. The option YESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.

xii. Clickonthe“RESOLUTIONS FILE LINK”ifyouwishtoviewtheentireResolutiondetails.

xiii. Afterselectingtheresolutionyouhavedecidedtovoteon,clickon “SUBMIT”.Aconfirmationboxwillbedisplayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

xiv. Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

xv. Youcanalsotakeaprintofthevotescastbyclickingon“Click here to print”optionontheVotingpage.

xvi. IfademataccountholderhasforgottentheloginpasswordthenEntertheUserIDandtheimageverificationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

xvii. Shareholders can also cast their vote using CDSL’s mobile app m-Voting available for android based mobiles. The m-Voting app can be downloaded from Google Play Store, Apple and Windows phone. Please follow the instructions as prompted by the mobile app while voting on your mobile.

xviii.NoteforNon–IndividualShareholdersandCustodians

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on towww.evotingindia.comandregisterthemselvesasCorporates.



• AscannedcopyoftheRegistrationFormbearingthestampandsignoftheentityshouldbeemailedtohelpdesk.evoting@cdslindia.com.

• AfterreceivingthelogindetailsaComplianceUsershouldbecreatedusingtheadminloginandpassword.TheComplianceUserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.

• The list of accounts linked in the login should bemailed to [email protected] and on approval of theaccountstheywouldbeabletocasttheirvote.

• AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavouroftheCustodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.

• In caseyouhaveanyqueriesor issues regardinge-voting, youmay refer theFrequentlyAskedQuestions (“FAQs”)ande-votingmanualavailableonwww.evotingindia.com,[email protected].

Aperson,whosenameisrecordedintheregisterofmembersorintheregisterofbeneficialownersmaintainedbythedepositoriesasonthecut-offdateonlyshallbeentitledtoavailthefacilityofremotee-votingaswellasvotingattheAGMthroughballotpaper.

xix. TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseof“BallotPaper”forallthosememberswhoarepresentattheAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

xx. TheScrutinizershallaftertheconclusionofvotingattheAGM,willfirstcountthevotescastatthemeetingandthereafterunblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentoftheCompanyandshallmake,notlaterthanthreedaysoftheconclusionoftheAGM,aconsolidatedscrutinizer’sreportofthetotalvotescastinfavouroragainst,ifany,totheChairmanorapersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.

xxi. TheresultsdeclaredalongwiththeScrutinizer’sReportshallbeplacedontheCompany’swebsitewww.allieddigital.net and on thewebsiteofCDSLi.e.www.cdslindia.comwithinfortyeighthoursformtheconclusionofthisAnnualGeneralMeetingoftheCompanyandwillalsobecommunicatedtoBSE Limited and National Stock Exchange of India Limited,wherethesharesoftheCompanyarelisted.

By Order of the Board of Directors,For Allied Digital Services Limited

Nitin Shah Chairman & Managing Director DIN: 00189903

Place : Mumbai Date : May 29, 2019

Registered Office:PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockNo.III,BackBayReclamation,NarimanPoint,Mumbai400021CIN:L72200MH1995PLC085488Website : www.allieddigital.netEmail : [email protected] : +912266816400Fax : +912222822030



ITEM NO. 4:

AlliedDigitalServices,LLCisa‘RelatedParty’withinthemeaningofSection2(76)oftheCompaniesAct,2013andRegulation2(1)(zb)oftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBILODR”)asamended.ThesaidRelatedPartyisengagedinthebusinessofprovidingITandITrelatedservices.

TheBoardofDirectorsoftheCompanyonrecommendationoftheAuditCommitteeatitsmeetingheldonMay29,2019approvedavailingoftheservicesrelatedto:

1) Sale,purchaseorsupplyofanygoodsormaterials–uptomaximumof`30crores;and

2) Availingorrenderingofanyservices–uptomaximumof`100crores.

Thedetailsofthetransactions,proposedtobeenteredinto,areasunder:

Particulars InformationNameoftheRelatedParty AlliedDigitalServices,LLCNameofDirector(s)orKeyManagerialPersonnelwhoisrelated,ifany

Nitin Dhanji Shah, Chairman and Managing Director; PrakashDhanjiShah,Whole-timeDirector

NatureofRelationship Promoter–DirectorMaterialtermsofthetransaction Availingorrenderingofanyservicesandsale,purchaseorsupply

ofanygoodsormaterialsMonetaryValue Sale, purchase and supply of goods ` 30 crores Availing or

renderingofservices`100croresWhether the transactions have been approved by the AuditCommitteeandtheBoardofDirectors

Yes

AstheaggregateofthetransactionstobeenteredintowiththesaidRelatedPartymayexceed10%oftheCompany’sturnoverforthefinancialyearendedMarch31,2019,thesaidtransactionwouldbedeemedtobea‘material’relatedpartytransaction.UnderRegulation23(4)oftheSEBILODR,allmaterialrelatedpartytransactionsarerequiredtobeapprovedbyshareholdersandalltherelatedpartiesshallabstainfromvotingonsuchresolutionwhethertheentityisarelatedpartytothetransactionornot.

Thecontractsand/orarrangementswithrelatedpartiesforavailingorrenderingofservicesthatarerepetitiveinnatureandinordinarycourseofbusinessandalsoatarms’lengthbasis.

ExceptMr.NitinShah,ChairmanandManagingDirectorandMr.PrakashShah,Whole-timeDirector,Mr.NehalShah,DirectornoneoftheDirectorsorKeyManagerialPersonneloftheCompanyortheirrelativesisconcernedorinterested,financiallyorotherwiseinthisResolutionexcepttotheextentoftheirshareholding. By Order of the Board of Directors, For Allied Digital Services Limited

Nitin Shah Chairman & Managing Director DIN: 00189903

Place : Mumbai Date : May 29, 2019

Registered Office:PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockNo.III,BackBayReclamation,NarimanPoint,Mumbai400021CIN:L72200MH1995PLC085488Website : www.allieddigital.netEmail : [email protected] : +912266816400Fax : +912222822030



BRIEF RESUME OF THE PERSON PROPOSED TO BE RE-APPOINTED AS THE DIRECTOR OF THE COMPANY AT THE ANNUAL GENERAL MEETING IN ACCORDANCE WITH REGULATION 36(3) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECRETARIAL STANDARDS [‘SS - 2’] ARE AS UNDER:

Name Mr. Nehal Nitin ShahAge 34yearsNature of his expertise in specific functional areas

HRandOperations

Qualifications Bachelor’sDegreeinEngineeringDiplomainComputerTechnologyExperience 10+yearsTerms and Conditions of Appointment/re-appointment

- Heshallnottakeupanyfullorparttimeemploymentorassignment,remunerativeorhonoraryorbe interesteddirectlyor indirectly inanyother tradeorbusinessduringhisemploymentwiththecompany.

- Duringhisemploymentwiththecompanyhemaycomeacrossofcompanies’plans,policies, undisclosed records design and/or strategies which are confidential innatureandherequirestomaintainitsconfidentiality.

- Duringhisemploymentwiththecompanyheshallnotdisclosedirectlyorindirectlyanydocumentaboutthecompanyoritsassociateorsubsidiaryinpublicorusethelogoortrademarkofthecompany.

Details of Remuneration sought to be paid

`12Lakhsp.a.

Remuneration last drawn `4.82LakhsDate of Appointment on the Board July30,2018Shareholding in the Company 20,489Eq.SharesRelationship with other Director, Manager and other Key Managerial Personnel of the Company

SonofMr.NitinShah,ChairmanandManagingDirector andRelativeofMr.PrakashShah,Whole-timeDirector

Number of Meetings attended during the year

2(Appointedw.e.f.July30,2018)

Name of the other Companies in which also holds Directorship

-AbhiratiPropertiesPrivateLimited-Allied-eCopSurveillancePrivateLimited



DearMembers,

YourDirectorsarepleasedtopresenttheTwenty Fifth Annual ReportonthebusinessandoperationsofyourCompanyalongwithAuditedStandaloneandConsolidatedFinancialStatementsfortheyearendedMarch31,2019. 1. FINANCIAL RESULTS:

Financial summary and results of our Company’s operations:

TheCompany’sperformancefortheyearendedMarch31,2019ascomparedtothepreviousfinancialyearissummarizedbelow:

(`InLakhs)Particulars STANDALONE CONSOLIDATED

2018-19 2017-18 2018-19 2017-18TotalOperatingIncome 7,523 7,423 23,973 22,490OtherIncome 412 264 412 404Total Income 7,934 7,687 24,385 22,894Less:OperatingExpenditure 4,866 4,274 20,119 17,804Profit before Interest, Depreciation, Amortization, Tax & Exceptional Item

3,068 3,413 4,266 5,090

Less:Depreciation 1,385 1,596 2162 2,316Less:Financecost 921 487 1003 547Profit before Tax and Exceptional Item 762 1,330 1,101 2,227ExceptionalItem 351 (323) 351 (323)Profit before Tax 1,113 1,007 1,452 1,903Less:ProvisionforTaxation - - 65 394Less:DeferredTaxLiability 150 509 150 509Net Profit after tax 963 498 1,237 1,000OtherComprehensiveIncome (35) 36 (35) 36SharesofProfit/(Loss)ofAssociates&JointVentures

- - - (3)

Total Comprehensive Income (after tax) 928 534 1,202 1,903Attributable to Owners of the Parent Company - - 1,195 1,089Attributable to Non-Controlling Interest - - (7) (5)Paid-upequitysharecapital(FaceValueof`5/-) 2510 2,510 2,510 2,510ReservesexcludingRevaluationReservesasperBalanceSheetofpreviousAccountingYear

43,797 42,869 41,171 39,865

Earning per Share Basic 1.92 0.99 2.47 1.99Diluted 1.92 0.99 2.47 1.99

2. RESULT OF OPERATING PERFORMANCE, ONGOING PROJECTS & STATE OF AFFAIRS:

With thepositivemomentum in the IndianEconomy,yourCompany is focusingongrowthandachievingprofitabilityalongwitharenewedcommitmenttocustomerservices.Positivemodificationsareexpectedinthenearfutureboostingcompany’srevenue.TheCompanyisalsofocusingextensivelyonexpandingthebusinessandimprovementsinoperationsthroughvariousstrategicprojectsforoperationalexcellence.

BOARDS’ REPORT



TherewasnochangeinthenatureofbusinessoftheCompany,duringtheyearunderreview.

a) Standalone Financial Statements:

Duringtheyearunderreview,therewasmarginalincreaseinthetotalincomeoftheCompany,howeverprofitbeforetaxamountof`11.13Crs.was10%higherasagainstpreviousyearamountof`10.07Crs.profitaftertaxamountof`9.28Crs.was74%higherthanthepreviousyearamountof`5.33Crs.duetolowerdeferredtaxliability.

b) Consolidated Financial Statements:

Duringtheyearunderreview,theoverallconsolidatedincomegrewmorethan6.5%howevertheprofitaftertaxlevelof`12.02Crs.washigherbyalmost10%asagainstthepreviousyearamountof`10.94Crs.,againduetoreducedeferredtaxliability.

c) Ongoing Projects & State of Affairs:

TheOngoingProjects&StateofAffairsoftheCompanyispresentedaspartofManagementDiscussionandAnalysisReportwhichformspartoftheAnnualReport.

d) Revision of Financial Statement:

Therewasnorevisionofthefinancialstatementspertainingtopreviousfinancialyearsduringtheyearunderreview.

e) Disclosure of Internal Financial Controls:

Themain thrustof InternalFinancialControls is to testand reviewcontrols,appraisalof risksandbusinessprocesses,besides benchmarking controlswith best practices in the industry. During the year, such controlswere tested and noreportablematerial weakness in the design or operationwas observed and altogetherwe believe that these systemsprovidereasonableassurancethatInternalFinancialControlsaredesignedeffectivelyandareoperatingasintended.

f) Investor Education and Protection Fund:

IntermsoftheprovisionsofInvestorEducationandProtectionFund(Accounting,Audit,TransferandRefund)Rules,2016/Investor Education and Protection Fund (Awareness and Protection of Investors) Rules, 2001, ` 1,34,325.5 of unpaid/unclaimeddividendswasunpaid/unclaimedwhichwassubsequentlytransferredtotheInvestorEducationandProtectionFund.

3. REPORT ON HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES AND THEIR CONTRIBUTION TO THE OVERALL PERFORMANCE OF THE COMPANY:

a. TheCompanyhassix(6)ForeignSubsidiaries,two(2)IndianSubsidiariesandthree(3)AssociateCompanies.TheCompanydoesnothaveanyJointVenturecompany.

FollowingarethedetailsofSubsidiaryandAssociateCompanies:

Sr. No. Name of Company

Subsidiary / Joint Ventures/ Associate

Company

Date of becoming of Subsidiary/Joint Ventures/

Associate Company.1. AlliedDigitalServices,LLC(USA) Subsidiary July02,20082. AlliedDigitalINC(USA) Subsidiary July18,20083. AlliedDigitalSingaporePteLimited Subsidiary October12,20104. AlliedDigitalAsiaPacificPtyLimited(Australia) Subsidiary September16,20105. AlliedDigitalServices(UK)Ltd. Subsidiary October11,20116. AlliedDigitalServicesOY. Subsidiary June08,2018



Sr. No. Name of Company

Subsidiary / Joint Ventures/ Associate

Company

Date of becoming of Subsidiary/Joint Ventures/

Associate Company.7. EnPointeTechnologiesIndiaPrivateLimited Subsidiary December29,20068. Allied-eCopSurveillancePrivateLimited Subsidiary August06,20079. AssetliteEquipmentIndiaPrivateLimited Associate September26,200910. SoftShellSystem(I)PrivateLimited Associate August07,201511. AlliedCNTSolutionsPrivateLimited Associate July06,2004

Pursuant to the provisions of Section 129(3) of the Act, the statement containing the salient features of the financialstatementofSubsidiariesandAssociatesCompanies intheprescribedFormAOC-1 isappendedas“Annexure I” to the Board’sReport.

b. Material Subsidiaries:

AlliedDigitalServicesLLC,USAisaMaterialSubsidiarywhoseincomeintheimmediatelyprecedingaccountingyearexceedstwentypercentoftheconsolidatedincomeoftheCompanyanditsSubsidiaries.

ThePolicyfordeterminingMaterialSubsidiariesasapprovedmaybeaccessedontheCompany’swebsiteatthelink: https://www.allieddigital.net/in/downloads/Inv_Policies/Policy_on_Determination_of_MaterialSubsidiaries.pdf

Duringtheyearunderreview,theBoardofDirectorsreviewedtheaffairsofthesubsidiariesfromtimetotimeandtherehasbeennomaterialchangeinthenatureofthebusinessofsubsidiaries.

4. RECENT DEVELOPMENTS:

TheCompanyisadoptingnewtechnologiesasitforeseesmassivegrowthinITsolutionsandservicesinthedomainofIoT(InternetofThings),SmartCitiesandnextgenerationAutomationsolutionsleveragingmachinelearningandArtificialIntelligence(“AI”).

TheCompanyisnowconsideringIoTasitsmainstreambusiness,cateringtoboththegovernmentandothercorporateverticals.Itintendstodevelopandsellsolutionsforprocessautomationandsmartcity-basedsolutions.Withmachinelearningadoptionincloudplatforms,theCompanyisalsoimprovingitsAIcapabilityinprimaryareasofITserviceautomation.

5. DIVIDEND:

Considering the working capital requirement for the future businesses and to conserve resources, your Board considers itprudentnottodeclareanydividendforthecurrentfinancialyear.

6. TRANSFER TO RESERVES:

TheBoardhasnotrecommendedtransferofanyamountofprofittoreservesduringtheyearunderreview.Hence,theentireamountofprofitfortheyearunderreviewhasbeencarriedforwardtotheProfitandLossSurplusAccount.

7. DEPOSITS:

TheCompanyhasnotacceptedorrenewedanyamountfallingwithinthepurviewofprovisionsofSection73oftheCompaniesAct,2013(“theAct”)readwiththeCompanies(AcceptanceofDeposits)Rules,2014frompublicduringtheyearunderreview.However,asontheBalanceSheetdatei.e.May29,2019,therewereunclaimedfixeddepositsamountingto`15.57LakhslyingwiththeCompany.



Thedetailsrelatingtodeposits,coveredaspertheChapterVoftheCompaniesAct,2013,areasunder: (`inlakhs)

Particulars March 31, 2019 March 31, 2018Depositsacceptedduringtheyear --- ---Depositsunclaimedattheendoftheyear 15.57 33.84Defaultinrepaymentofdepositsorpaymentofinterestthereon --- ---

TheCompanyhasnotdefaultedinrepaymentofdepositsorpaymentofinterest.

8. DISCLOSURES UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013:

Exceptasdisclosedelsewhere in the report, therewerenomaterial changesandcommitments,occurredduring theperiodbetweentheendofthefinancialyeartowhichthefinancialstatementsrelateanddateofsaidreport,whichcouldaffectthefinancialpositionoftheCompany.

9. PARTICULARS OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES:

During thefinancialyearunder review, transactionsentered intowith relatedpartieswereonarm’s lengthbasisand in theordinarycourseofbusinessandinlinewiththeCompany’spolicyonRelatedPartyTransactions.ThesaidPolicycanbeaccessedthroughweblink:

https://www.allieddigital.net/in/downloads/Inv_Policies/Related_Party_Transaction_Policy.pdf.

Noneofthetransactionsenteredintowiththerelatedparties,whethersinglyortakentogetherwiththetransactionenteredintowiththerelatedpartyduringtheyear,wasmateriallysignificantrelatedpartytransactionexceptthosedisclosedinthefinancialstatements.TheAuditCommitteehadfromtimetotimeapprovedandregularlyreviewedthetransactionsenteredintowithRelatedParties.TheCompanyhasalsoobtainednecessaryomnibusapprovalof theAuditCommittee incaseof transactionwhichrepetitiveinnatureorincaseofforeseentransactions.

Therewerenotransactions/contracts/arrangementswithrelatedparty(ies),whicharerequiredtobereportedinFormAOC-2.

10. PARTICULARS OF LOANS, ADVANCES, GUARANTEES OR INVESTMENTS:

Pursuant to theprovisions of Section 186of the Act andSchedule V of the Securities andExchangeBoardof India (ListingObligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations’), the disclosure on particulars of Loans,Advances,andGuaranteesgivenandInvestmentsmadeareprovidedintheNotestotheFinancialStatementsformingpartofAnnualReport.

11. MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL:

a) Change in Board of Directors & Key Managerial Personnel:

The Board of your Company is duly constituted in accordancewith the requirements of the Act readwith the ListingRegulations.

Duringtheyearunderreview,Mr.NehalShah(DIN:02766841)wasappointedasanExecutiveDirectoroftheCompanywitheffectfromJuly30,2018.

Pursuant to theprovisionsofSection152of theCompaniesAct, 2013,Mr.NehalShah, (DIN: 02766841)Director,beinglongestintheoffice,shallretirebyrotationattheensuingAnnualGeneralMeetingoftheCompanyandbeingeligible,hasofferedhimselfforre-appointment.

InaccordancewiththeprovisionsoftheAct,noneoftheIndependentDirectorsoftheCompanyisliabletoretirebyrotation.



b) Declaration given by the Independent Directors:

TheCompanyhasreceivedandtakenonrecordthenecessarydeclarationfromtheIndependentDirectorsinaccordancewithSection149(7)oftheAct,confirmingtheirindependencevis-à-vistheCompanyaslaidoutinSection149(6)oftheActalongwiththerulesframedthereunderandasperRegulation16oftheListingRegulations,therehasbeennochangeinthecircumstancesoccurredduringtheyear,whichmayaffecttheirIndependency.

12. DISCLOSURES RELATED TO BOARD, COMMITTEES AND POLICIES

a. Board Meetings:

YourDirectorsmetFive (5)timesduringtheyeartodeliberateonvariousmatters.ThemeetingswereheldonApril19,2018,May28,2018,July30,2018,November05,2018andFebruary05,2019.BriefdetailsofthesaidmeetingsalongwiththecompositionandtheattendanceareprovidedinCorporateGovernanceReportwhichformspartofthisAnnualReport.

Themaximumintervalbetweenanytwomeetingswasnotinexcessof120days.

b. Directors’ Responsibility Statement:

PursuanttoSection134(5)oftheAct,theBoardofDirectors,tothebestofitsknowledgeandability,confirmthat:

a. inthepreparationoftheannualaccounts,theapplicableaccountingstandardshadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

b. thedirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasatMarch31,2019andoftheprofitoftheCompanyforthatyear;

c. thedirectorshadtakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

d. thedirectorshadpreparedtheannualaccountsonagoingconcernbasis;

e. thedirectorshadlaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively;

f. thedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.

c. Committees of Board:

TheBoardhasconstitutedCommittee(s)asmandatedundertheprovisionsoftheActandListingRegulations.Therearecurrentlyfive(5)CommitteesoftheBoardnamely:

- AuditCommittee; - NominationandRemunerationCommittee; - StakeholdersRelationshipCommittee; - CorporateSocialResponsibilityCommitteeand - ManagementCommittee.

DetailsofCommitteesalongwiththeircharter,compositionandattendanceattheCommitteeMeetingsareprovidedinCorporateGovernanceReportwhichformspartofthisReport.



I. AUDIT COMMITTEE:

TheAuditCommitteehasbeenconstitutedby theBoardof theCompany, inaccordancewith theprovisionsofSection177oftheActreadwithRegulation18ofListingRegulation.Duringtheyearunderreview,theBoardhadacceptedalltherecommendationsoftheAuditCommittee.

TheCompositionoftheAuditCommitteeisasfollows:

Sr. No Name Category Designation

1. Dr.ShrikantParikh IndependentDirector Chairman2. Prof.VenugopalIyengar IndependentDirector Member3. Mr.PrakashShah Whole-timeDirector Member

II. NOMINATION AND REMUNERATION COMMITTEE:

PursuanttotheprovisionsofSection178oftheActreadwithRegulation19ofListingRegulationstheBoardhasconstitutedtheNominationandRemunerationCommittee,whichinter-aliarecommendstotheBoardthecriteriaforappointmentofDirector(s)alongwiththecompensation,termsofExecutiveDirectorsandSeniorManagerialPersonnel’s.

TheBoardhasapprovedtheNominationandRemunerationPolicyforDirectors,KeyManagerialPersonnelandallotheremployeesoftheCompany.ThesaidpolicyishostedonthewebsiteoftheCompany.TheWeblinkofthesameisasfollows:

https://www.allieddigital.net/in/downloads/Inv_Policies/Nomination_Remuneration_policy.pdf.

TheCompositionoftheNominationandRemunerationCommitteeisasfollows:

Sr. No Name Category Designation

1. Dr.ShrikantParikh IndependentDirector Chairman2. Prof.VenugopalIyengar IndependentDirector Member3. Ms.ShubhadaJahagirdar IndependentDirector Member

III. STAKEHOLDERS RELATIONSHIP COMMITTEE:

TheStakeholdersRelationshipCommitteeisdulyconstitutedinaccordancewiththeprovisionsSection178oftheAct,readwithRegulation20ofListingRegulations.TheprimaryobjectiveStakeholdersRelationshipCommitteeoftheCompanyistoconsiderandresolvethegrievancesofsecurityholders/membersoftheCompany.

TheCompositionoftheStakeholderRelationshipCommitteeisasfollows:

Sr. No. Name Category Designation

1. Prof.VenugopalIyengar IndependentDirector Chairman2. Dr.ShrikantParikh IndependentDirector Member3. Mr.PrakashShah Whole-timeDirector Member

IV. CORPORATE SOCIAL RESPONSIBILITY (“CSR’’) COMMITTEE :

TheCorporateSocialResponsibilityCommitteeisdulyconstitutedasperprovisionsofSection135oftheAct,consistingofthree(3)Directorsofwhichtwo(2)DirectorsareNon–ExecutiveIndependentDirectorsandone(1)ExecutiveDirectorandtheChairpersonisanIndependentDirector.ThesaidCommitteehasbeenentrustedwiththeresponsibilityofformulatingand recommending to theBoard the Corporate Social Responsibility Policy (CSRPolicy) indicating the activities to be



undertakenbytheCompany,monitoringtheimplementationoftheframeworkoftheCSRPolicyandrecommendingtheamounttobespentonCSRactivities.ThedetailedreportonCSRactivitiesisattachedas“Annexure II” to this report.

ThekeyphilosophyoftheCompany’sCSRinitiativeistopromotedevelopmentthroughsocialandeconomictransformation.TheCSRPolicyoftheCompanycanbeaccessedontheCompany’swebsiteinthelinkprovidedhereinbelow:

https://www.allieddigital.net/in/downloads/Inv_Policies/CSR%20Policy.pdf

V. MANAGEMENT COMMITTEE:

The Management Committee was constituted by the Board on April 28, 2009. The Committee is entrusted with theoperationalandadministrativepower.TheCommitteecomprisesofthree(3)membersi.e.Mr.NitinShah,ChairmanandManagingDirector,Mr.PrakashShah,Whole-timeDirectorandMr.PareshShah,ChiefExecutiveDirectoroftheCompany.

13. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

TheparticularsasprescribedunderSection134(3)(m)oftheActreadwithRule8oftheCompanies(Accounts)Rules,2014,areasfollows:

A. CONSERVATION OF ENERGY

(i) Steps taken or impact on conservation of energy:

TheCompanyhasalwaysconsideredenergyandnaturalresourceconservationasafocusarea.ThoughtheoperationsoftheCompanyarenotenergyintensive,itstronglybelievesthatitistheneedofthehourtodobesteffortstoconserveenergyandnaturalresourceslikewater.

TheCompanycontinuestotakesustainablestepsvoluntarilytocontributetowardsbetterenvironment.Selectedfewsteps/impactarelistedbelow:

- UseofnaturalLightningandnaturalventilation; - UseofenergyefficientelectricequipmentsuchasuseofLEDbulbs; - Conservationofwater,ensuringnoleakagesintaps; - Encourageuseofenvironment-friendlyreusablewaterbottles; - Car-poolingduringmeetingsandencourageuseofpublictransport; - Discouraginguseofnon-disposableplasticbags,platesetc.; - Switchingoffworkstationsandlaptops; - Controllingtheair-conditioningequipmentoptimallyinthepremises; - Educatingemployeesandworkersforenergyconservation.

(ii) Steps taken by the Company for utilizing alternate sources of energy:

TheCompanyisusingelectricityasthemainsourceofitsenergyrequirementanddoesnothaveanyalternatesourceofenergy.

(iii) Capital investment on energy conservation equipment’s:

Duringtheyearunderreview,therewashardlyany investment inenergysavingequipmentapart frompromotingreplacementofCFLtoLEDbulbswhereapplicable.

B. TECHNOLOGY ABSORPTION

i. The efforts made towards technology absorption:

TheCompanyhasinnovationaspartofitsmotto.Itisalwaysthrivetobeapioneerforadoptionofnewtechnologies,whicheitherbeusefulforgeneratingnewbusinessforitscustomersorforitsself-use.Itevaluatesthebestavailabletechnologyforimprovingitsperformanceandqualityofitsserviceoperations.



ii. The benefits derived like product improvement, cost reduction, product development or import substitution:

TheCompanyhasadoptednewtechnology tostrengthen its infrastructure in theUS,which is leveragedbymanycustomersthathashelpedgivingtopqualityuninterruptedservices.Ithasadoptednewtechnologiestoapplytosolvechallengesfacedbycustomers.

iii. In case of imported technology (imported during the last three years reckoned from the beginning of the financial year):

TheCompanyhasnotimportedtechnologyduringthethreeprecedingyearsunderreview.

iv. Expenditure incurred on Research and Development:

TheCompanyhasbeencontinuouslyworkingoninnovativeprojects,whichareeitherpartof:

-NewfeaturesoftheirADiTaaSproduct; -Doingproof-of-conceptsonnewtechnologies; -Investinginnewtechnologytraining/learning.

14. FOREIGN EXCHANGE EARNINGS AND OUTGO:

ThedetailsoftheForeignExchangeearnedintermsofactualinflowsandtheForeignExchangeOutgoduringtheyearintermsofactualoutflowsareasfollows:

(`InLakhs)

Particulars 2018-19 2017-18Earnings 4,342 2,294Outflow(includingCapitalimports) 114 128NetForeignExchangeEarnings(NFE) 4,228 2,166NFE/Earnings(%) 97 94

15. MANAGEMENT DISCUSSION AND ANALYSIS:

IntermsofRegulation34ofListingRegulationstheManagementDiscussionandAnalysisReportonCompany’sperformance,industrytrendsandothermaterialchangeswithrespecttotheCompanyanditssubsidiaries,whereverapplicable,arepresentedinaseparatesectionformingapartofthisAnnualReport.

16. CORPORATE GOVERNANCE:

TheCompanyiscommittedtotheprinciplesof‘Accountability’,‘Transparency’and‘Trusteeship’indealingwiththestakeholders.TheCompanyadherestogoodcorporategovernancepractices,accordinglyasperScheduleVofListingRegulations,theAuditors’certificateonCorporateGovernanceisannexedtotheBoards’Report.TherequisitecertificatefromthePracticingCompanySecretary,confirmingcomplianceoftheconditionsofCorporateGovernanceisattachedtotheReportonCorporateGovernance.

17. EXTRACT OF ANNUAL RETURN:

Pursuanttosection92(3)andsection134(3)(a)oftheActreadwithRule12oftheCompanies(ManagementandAdministration)Rules,2014,theextractoftheAnnualReturnasonMarch31,2019isinFormMGT-9whichisenclosedas“Annexure III’’ to this report.

Further,AnnualReturnforthefinancialyearendedMarch31,20192018,filedwiththeMinistryofCorporateAffairs,isavailableonthewebsiteoftheCompanyi.e.www.alieddigital.net



18. ANNUAL EVALUATION:

TheevaluationframeworkforassessingtheperformanceofDirectorsoftheCompanycomprisesofcontributionsatthemeetings,strategicperspectiveorinputsregardingthegrowthandperformanceoftheCompany,amongothers.

Pursuant to the provisions of the Act and the Listing Regulations, the Directors have carried out the Annual PerformanceEvaluationoftheBoard,IndependentDirectors,Non-ExecutiveDirectors,ExecutiveDirectors,CommitteesandtheChairmanoftheBoard.

TheNominationandRemunerationCommitteeconsideredanddiscussedtheinputsreceivedfromtheDirectorsandtheoutcomeofsuchevaluationprocesswassatisfactory,whichreflectedtheoverallengagementoftheBoardanditsCommitteeswiththeCompany.

Further, the Independent Directors at their meeting held on November 05, 2018, reviewed the performance of the Board,ChairmanoftheBoard,ExecutiveandNon-ExecutiveDirectors.

19. FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS:

In compliance with the requirements of Listing Regulations, the Company has placed a Familiarization Programme forIndependentDirectors to familiarize themwith theworkingof theCompany, their roles, rightsand responsibilities vis-à-vistheCompany,theindustryinwhichtheCompanyoperates,businessmodeletc.onthewebsiteoftheCompany.Thelinkforaccessingthesaidprogramis:

https://www.allieddigital.net/in/downloads/Inv_Policies/Familiarisation_Programme_Independent_Directors.pdf

20. THE VIGIL MECHANISM:

The Company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for employees includingDirectorsoftheCompanytoreportgenuineconcernsandtoensurestrictcompliancewithethicalandlegalstandardsacrosstheCompany.TheprovisionsofthisPolicyareinlinewiththeprovisionsoftheSection177(9)oftheActreadwithRule7oftheCompanies(MeetingsofBoardanditsPowers)Rules,2014.

TheemployeesoftheCompanyhavetherighttoreporttheirconcernorgrievancetotheChairmanoftheAuditCommittee.TheCompanyiscommittedtoadheretothehigheststandardsofethical,moralandlegalconductofbusinessoperations.TheWhistleBlowerPolicyishostedonthewebsiteoftheCompanyat:

https://www.allieddigital.net/in/downloads/Inv_Policies/Whistle_blower_and_vigil_mechanism.pdf.

21. AUDITORS AND REPORTS:

ThemattersrelatedtoAuditorsandtheirReportsareasunder:

a. Statutory Auditor:

The Board proposes to appoint M/s. Shah & Taparia, Chartered Accountant, Chartered Accountant, Mumbai (FirmRegistrationNo.109463W)asStatutoryAuditorsoftheCompanyforsecondtermoffiveyearsi.e.conclusionofTwentyFifthAnnualGeneralMeetinguntilconclusionofThirtiethAnnualGeneralMeetingoftheCompany.

The Company has received a certificate fromM/s. Shah& Taparia, confirming their eligibility to continue as StatutoryAuditorsoftheCompany.

TheAuditor’sReporttotheShareholdersforthefinancialyearendedonMarch31,2019doesnotcontainanyqualificationorobservation.ThenotestoaccountsreferredtoinAuditors’Reportareself-explanatory,andtherefore,donotcallforanyfurtherexplanationorcommentsfromtheBoard.

b. Secretarial Auditor:

TheBoardhadappointedM/s.Rathi&Associates,CompanySecretariesasSecretarialAuditorsforthefinancialyear2018-19.SecretarialAuditReportissuedbytheminFormMR-3forthefinancialyear2018-19formspartofthisreportandmarkedas “Annexure IV”.



ThecommentsonthespecificobservationsmadeintheaboveSecretarialAuditReport(whichissubjecttoverificationoffinancialstatementsfortheyearendedMarch31,2019anddocumentsfiledundertheprovisionsofFEMAinrespectoftheOverseasDirectInvestment)areasunder:-

- TheCompanyhadallotted2186667Eq.SharestoMr.NitinShahand1832134Eq.SharestoMr.PrakashShah,PromotersoftheCompanyinDematerializedForm.HoweverweareinprocessofgettingnecessaryapprovalsfromtheStockExchanges.

- TheCompanywillensuretimelypaymentofAnnualListingFeetoStockExchanges- Theentirepre-preferentialshareholdingofMr.NitinShahandMr.PrakashShaharepresentlylocked-inrequiredunder

thelaw.

c. Internal Auditor:

Pursuant to the provisions of Section 138 and Section 179 (3) of the Act, M/s. Satya Prakash Natani & Co., CharteredAccountant,Mumbai(FirmRegistrationNo.115438W),isappointedastheInternalAuditorsoftheCompanyfortheFinancialYear2019-20.

TheAuditCommitteehasacceptedalltherecommendationoftheInternalAuditors.

d. Compliance with Secretarial Standards:

TheCompanycomplieswithallapplicablemandatorySecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia.

22. INTERNAL CONTROL SYSTEMS:

TheCompanyhasrobustinternalcontrolsystemsandprocedurescommensuratewiththenatureoftheCompany’sbusinessand size and complexity of its operations. TheCompanyhas adoptedpolicies andprocedures for ensuring theorderly andefficientconductofthebusiness,includingadherencetotheCompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionof fraudsanderrors, theaccuracyandcompletenessof theaccountingrecords,andthetimelypreparationofreliable¬financialdisclosures.

23. DISCLOSURE OF REMUNERATION PAID TO DIRECTOR AND KEY MANAGERIAL PERSONNEL AND EMPLOYEES:

InformationrequiredpursuanttoSection197(12)oftheActreadwithRule5(1)ofTheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isprovidedas“Annexure V” to this report.

FurtherdetailswithregardtopaymentofremunerationtoDirectorsandKeyManagerialPersonnelareprovidedinFormNo.MGT-9ExtractofAnnualReturnappendedas“Annexure III”.

24. PARTICIPATION IN THE GREEN INITIATIVE:

IncommitmenttokeepinlinewiththeGreenInitiativeundertakenbytheMinistryofCorporateAffairs(MCA)andSecuritiesandExchangeBoardofIndia(SEBI),electroniccopiesoftheAnnualReport2018-19alongwiththeNoticeofAnnualGeneralMeetingweresenttoallthememberswhoseemailaddressesareregisteredwiththeCompany/DepositoryParticipant(s)/RegistrarandShareTransferAgent.

Also,alltheMembersarerequestedtojointhesaidprogrambysendingtheirpreferrede-mailaddressestotheRegistrarandShareTransferAgent.

25. OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

TheCompanyhasalwaysbelievedinprovidingasafeandharassmentfreeworkplaceforeveryindividualworkinginitspremisesthroughvariouspoliciesandpractices.YourCompanyalwaysendeavourstocreateandprovideanenvironmentthatisfreefrom



discriminationandharassment includingsexualharassment.Accordingly,theCompanyhasadoptedapolicyonprevention,prohibitionandredressalofsexualharassmentatworkplaceinlinewiththeprovisionsoftheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andtheRulesthereunder.

DuringtheyearendedMarch31,2019,nocomplaintshavebeenreceivedpertainingtosexualharassmentofwomenatworkplace. 26. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE

GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE:

Duringtheyearunderreview,nosignificantandmaterialorderswerepassedbytheregulatorsorcourtsortribunalsimpactingthegoingconcernstatusandCompany’soperationsinfuture.

27. RISK MANAGEMENT:

TheCompany’srobustriskmanagement framework identifiesandevaluatesall therisksthattheorganizationfacessuchasstrategic,financial, credit,market, liquidity, security,property, legal, regulatory, reputational andother risks. TheCompanyrecognizesthattheserisksneedtobemanagedandmitigatedtoprotectitsshareholdersandotherstakeholders,toachieveitsbusinessobjectivesandenablesustainablegrowth.TheriskframeworkisaimedateffectivelymitigatingtheCompany’svariousbusinessandoperationalrisks,throughstrategicactions.Riskmanagementis integralpartofourcriticalbusinessactivities,functionsandprocesses.Therisksarereviewedforthechangeinthenatureandextentofthemajorrisksidentifiedsincethelastassessment.Italsoprovidescontrolmeasuresforrisksandfutureactionplans.

TheCompanybelievesthattheoverallriskexposureofpresentandfuturerisksremainswithinriskcapacity.

28. FRAUD REPORTING:

Duringtheyearunderreview,therewerenomaterialorseriousinstancesoffraudfallingwithinthepurviewofSection143(12)oftheActandrulesmadethereunder,byofficersoremployeesreportedbytheStatutoryAuditorsoftheCompanyduringthecourseoftheauditconducted.

29. GENERAL:

TheDirectorsstatesthat,nodisclosureorreportingisrequiredinrespectofthefollowingitemsastherearenotransactionsontheseitemsduringtheyearunderreview:

1. Issueofequityshareswithdifferentialrightsastodividend,votingorotherwise;

2. Issueofshares(includingsweatequityshares)toemployeesoftheCompanyunderanyscheme;

3. NeithertheManagingDirectornortheWhole-timeDirectoroftheCompanyreceivedanyremunerationorcommissionfromanyofitssubsidiaries.

30. ACKNOWLEDGEMENT:

TheBoardwishestoplaceonrecorditssincereappreciationofthecontributionsmadebytheemployeesoftheCompanyitssubsidiariesandassociatesduringtheyearunderreview.YourDirectorsoftheCompanythankthecustomers,clients,vendorsandotherbusinessassociatesfortheircontinuedsupportinthedaytodayaffairsoftheCompanyanditsgrowth.

YourDirectorsexpresstheirdeepsenseofgratitudetotheGovernmentAuthorities,FinancialInstitutions,Stakeholders,BusinessAssociatesfortheirsupportandlookforwardtotheirassistanceinfuturetoo.

For and on behalf of the Board of Directors of Allied Digital Services Limited

Place: Mumbai Nitin Shah Prakash ShahDate : May 29, 2019 Chairman & Managing Director Whole-Time Director DIN: 00189903 DIN: 00189842


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Part “B”: Associates and Joint VenturesStatement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

(InformationinrespectofeachassociateispresentedwithamountsinLakhs)

Sr. No. Name of the Associates / Joint Ventures Assetlite Equipment

India Private LimitedSoftshell Systems India

Private LimitedAllied CNT Solutions

Private Limited1 LatestauditedBalanceSheetDate March31,2019 March31,2019 March31,20192 SharesofAssociates / JointVenturesheldby

thecompanyontheyearendNoofshares Nil 1,17,924 1,42,000AmountofInvestmentinofAssociates - 600.00 14.00ExtentofHolding(%) - 40.68 47.33

3 Descriptionofhowthereissignificantinfluence CommonDirectorshipintheCompany

Equity shareholding ofmore than 20% of thetotal capital

Equity shareholding ofmore than 20% of thetotal capital

4 Reasonswhy the Associate / Joint Venture isnot consolidated

Financial Statement ofare Assetlite EquipmentIndia Private Limitedconsolidated by theCompany



5 NetworthattributabletoShareholdingasperlatestauditedBalanceSheet

48.23 732.51 (53.77)

6 Profit/Lossfortheyear i. ConsideredinConsolidation - - - ii. NotConsideredinConsolidation - - -

For and on behalf of the Board of Directors of Allied Digital Services Limited

Nitin Shah Prakash ShahPlace : Mumbai Chairman & Managing Director Whole-time DirectorDate : May 29, 2019 DIN: 00189903 DIN: 00189842



Annexure II

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES [Pursuant to Section 135 of the Companies Act, 2013 and as per Rule 8(1) of Companies

(Corporate Social Responsibility Policy) Rules, 2014]

1. A brief outline of the company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs:

TheCompanyhasframedtheCorporateSocialResponsibility(‘CSR’)PolicyincompliancewiththeprovisionsoftheCompaniesAct,2013andthesameisavailableonthewebsiteoftheCompany

http://www.allieddigital.net/in/downloads/Inv_Policies/CSR%20Policy.pdf

TheCompany’s,CSRinitiativefocusontheholisticdevelopmentofourhostcommunitieswhilecreatingsocial,environmentalandeconomicvaluetothesociety.

2. The composition of the CSR Committee:

TheCorporateSocialResponsibilityCommittee(theCSRCommittee)oftheBoardisresponsibleforoverseeingtheexecutionoftheCompany’sCSRPolicy,andensuringthattheCSRObjectivesoftheCompanyaremet.TheCSRCommitteescomprisesof3Directorsasfollows:

Sr. No. Name Designation Category

1. Ms.ShubhadaJahagirdar Chairperson IndependentDirector2. Mr.PrakashShah Member Whole-timeDirector3. Dr.ShrikantParikh Member IndependentDirector

3. Average Net Profit of the Company for last three financial years: `420.33Lakhs

4. Prescribed CSR Expenditure (two percent of the amount as per item 3 above): `8.41Lakhs

5. Details of CSR spent during the financial year :

a) Totalamountspentforthefinancialyear:`6.60Lakhs b) Amountunspent,ifany:`1.81Lakhs c) MannerinwhichtheamountspentduringF.Y.19isdetailedbelow:

(1) (2) (3) (4) (5) (6) (7) (8)

Sr. No.

CSR Project or activity identified

Sector in which the project is

covered

Project or programs (1) Local area or

other (2) Specify the state and district where

projects or programs was

undertaken

Amount outlay

(budget) project or programs

wise

Amount spent/ allocated on

the projects or programs sub

heads: (1) Direct Expenditure on

projects and programs (2) Overheads:

Cumulative expenditure

up to the reporting

period

Amount spent Direct or through

implementing agency*

1. DonationforCivilandJudicialTrainingofStudents

PromotingEducationsamong

children

MumbaiMaharashtra

`6.60Lakhs `6.60Lakhs `6.60Lakhs Direct



6. Reasons for not spending two percent of the average net profits of the last three financial years:

TheCompanyhasalreadyspentRs.6.60LakhsonCSRactivitiesasagainsttherequiredamountofRs.8.41Lakhsandthebalanceamountshallbespentinduecourse.

7. Responsibility Statement:

PursuanttotheCompanies(CorporateSocialResponsibilityPolicy)Rules,2014,asamendedfromtimetotime,itisconfirmedthattheCSRCommitteehasimplementedandmonitoredtheCSRinitiativesinlinewithCSRobjectiveandPolicyoftheCompany.

For and on behalf of Board of Directors of Allied Digital Services Limited

Place : Mumbai Nitin Shah Shubhada jahagirdarDate : May 29, 2019 Chairman and Managing Director Chairperson of CSR Committee DIN: 00189903 DIN: 00895950



ANNEXURE III

FORM MGT-9EXTRACT OF ANNUAL RETURN

AsonfinancialyearendedonMarch31,2019[Pursuanttosection92(3)oftheCompaniesAct,2013andRule12(1)ofthe

Companies(ManagementandAdministration)Rules,2014]

I. REGISTRATION AND OTHER DETAILS:

CIN L72200MH1995PLC085488Registration Date February10,1995Name of the Company AlliedDigitalServicesLimitedCategory/Sub-category of the Company CompanyLimitedbyShares

PublicNon-GovernmentCompanyAddress of the Registered office and contact details

PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,NarimanPoint,Mumbai–400021Tel:+912266816400Fax:+912222822030Email:[email protected];Website:www.allieddigital.net

Whether listed company YesName, Address & Contact details of the Registrar & Transfer Agent

LinkIntimeIndiaPrivateLimitedCIN:U67190H1999PTC118368C-101,247Park,LalBahadurShastriMarg,Vikhroli(West),Mumbai–400083.Tel.No. :+912249186270;FaxNo.:+91-2249186060E-mail :[email protected];Website :www.linkintime.co.in

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

All the business activities contributing 10% or more of the total turnover of the company shall be stated:-

Sr. No.

Name and Description of main products/services

NIC Code of the Product/Service

% to total turnover of the company

1 InformationTechnologyInfrastructureandNetworkManagementServices

998316 100



III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

Sr. No.

Name and address of the Company CIN / GLN/LLPIN Holding / subsidiary /

associate

% of shares held

Applicable section

1 ALLIED DIGITAL SERVICES, LLC (USA) Address:680KnoxStSte200Torrance,CA,90502UnitedStates

26-2912587 Subsidiary 51 2(87)

2 ALLIED DIGITAL INC (USA) Address:3411,SilversideRoad,RodneyBuilding,Suite104,WilmingtionDE19801

26-1391965 Wholly-ownedSubsidiary

100 2(87)

3 ALLIED DIGITAL SINGAPORE PTE LTD Address:28BukitPasohRoadYeeLanCourtSingapore089842

201021848K Wholly-ownedSubsidiary

100 2(87)

4 ALLIED DIGITAL ASIA PACIFIC PTY LTD (AUSTRALIA) Address:NewSouthWalesNSW2000,Sydney,Australia

146376918 Wholly-ownedSubsidiary

100 2(87)

5 ALLIED DIGITAL SERVICES (UK) LTD. Address:SinckotHouse,211StationRoad,Harrow,England,HA12TP

07806050 Subsidiary 95 2(87)

6 ALLIED-ECOP SURVEILLANCE PVT. LTD. Address:MillenniumBusinessPark,BuildingNo.3,UnitNo.4,SectorNo.3,MahapeVillage,M.I.D.C.NaviMumbai–400701

U74999MH2007PTC172890 Subsidiary 80.01 2(87)

7 EN POINTE TECHNOLOGIES INDIA PVT. LTD. Address:PrestigeMeridianII,801&802,8thFloor,M.G.Road,BangaloreKarnataka–560001

U72200KA2006FTC041333 Wholly-ownedSubsidiary

100 2(87)

8 ALLIED DIGITAL SERVICES OY. Address:KalliolawAsianajotoimistoEtelaranta1200130Helsinki

2917877-7 Wholly-ownedSubsidiary

100 2(87)

9 ASSETLITE EQUIPMENT INDIA PRIVATE LIMITED* Address:PremisesNo.13A,13thfloor,EarnestHouse,NCPARoad,Block111,NarimanPoint,Mumbai–400021

U52392MH2007PTC174580 AssociateCompany

NIL 2(6)

10 SOFTSHELL SYSTEMS INDIA PRIVATE LIMITED Address:50,RavindraNagarNearTelecomNagarNagpur-440022


20.34 2(6)

11 ALLIED CNT SOLUTIONS PRIVATE LIMITED Address:3rdFloor,KimatraiBuilding,77/79,MaharashriKarveMarg,MarineLines,Mumbai–400002


47.33 2(6)

* Due to common Directorship the Company i.e. Assetlite Equipment India Private Limited is an Associate Company



IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity):

i. Category-wise Share Holding:

Category of Shareholders No. of Shares held at the beginning of the year (April 1, 2018)

No. of Shares held at the end of the year (March 31, 2019)

% Change during the

yearDemat Physical Total % of Total

Shares

Demat Physical Total % of Total

Shares

A. Promoters

(1) Indian

a) Individual/HUF 24177368 - 24177368 48.16 24216368 - 24216368 48.23 0.08

b) CentralGovt - - - - - - - - -

c) StateGovt(s) - - - - - - - - -

d) BodiesCorp. - - - - - - - - -

e) Banks/FI - - - - - - - - -

f) Anyother(PersonActinginConcert) 408212 - 408212 0.81 408212 - 408212 0.81 -

Sub-total(A)(1): 24585580 - 24585580 48.97 24624580 - 24624580 49.04 0.08

(2) Foreign

a) NRIs-Individuals - - - - - - - - -

b) Other–Individuals - - - - - - - - -

c) BodiesCorp. - - - - - - - - -

d) Banks/FI - - - - - - - - -

e) Anyother - - - - - - - - -

Sub-total (A)(2): - - - - - - - - -

Total shareholding of Promoter (A) =(A)(1)+(A)(2)

24585580 - 24585580 48.97 24624580 - 24624580 49.04 0.08

B. Public Shareholding

(1) Institutions

a) MutualFunds - - - - - - - - -

b) Banks/FinancialInstitutions - - - - - - - - -

c) CentralGovt. - - - - - - - - -

d) StateGovt.(s) - - - - - - - - -

e) VentureCapitalFunds - - - - - - - - -

f) InsuranceCompanies - - - - - - - - -

g) ForeignPortfolioInvestors 20000 - 20000 0.04 20000 - 20000 0.04 -

h) ForeignVentureCapitalFunds - - - - - - - - -

i) Others(specify) - - - - - - - - -

Sub-total (B)(1): 20000 - 20000 0.04 20000 - 20000 0.04 -

(2) Non-Institutions

a) Bodiescorporates - - - - - - - - -

i) Indian 1799798 - 1799798 3.58 1413952 - 1413952 2.81 (0.77)

ii) Overseas - 1490000 1490000 2.97 - 1490000 1490000 2.97 -

b) Individuals

i) Individualshareholdersholdingnominalsharecapitalupto`1lakh

11423119 20156 11443275 22.79 11108208 20106 11128314 22.17 (0.63)

ii) IndividualshareholdersholdingnominalsharecapitalinexcessofRs1lakh

7013680 30000 7043680 14.03 7661663 30000 7691663 15.32 1.29



Category of Shareholders No. of Shares held at the beginning of the year (April 1, 2018)

No. of Shares held at the end of the year (March 31, 2019)

% Change during the

yearDemat Physical Total % of Total

Shares

Demat Physical Total % of Total

Shares

c) Others

c-i)ClearingMember 416362 - 416362 0.83 205720 - 205720 0.41 (0.42)

c-ii)ForeignNationals - - - - - - - - -

c-iii)NRI(Repat) 616925 - 616925 1.23 623767 - 623767 1.24 0.01

c-iv)NRI(Non-Repat) 1870921 - 1870921 3.73 1884402 - 1884402 3.75 0.02

c-v)ForeignCompanies - - - - - - - - -

c-vi)HinduUndividedFamily 918987 - 918987 1.83 1123130 - 1123130 2.24 0.41

Sub-total(B)(2): 24059792 1540156 25599948 50.99 24020842 1540106 25560948 50.91 (0.08)

Total Public Shareholding (B)=(B)(1)+(B)(2)

24079792 1540156 25619948 51.03 24040842 1540106 25580948 50.95 (0.08)

C. Shares held by Custodian for GDRs & ADRs

- - - - - - - - -

Grand Total (A+B+C) 48665372 1540156 50205528 100 48665422 1540106 50205528 100 -

ii. Shareholding of Promoters:

Sl. No.

Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % changein share holding

during the year

No. of shares % of total shares of the

Company

% of shares Pledged/

encumbered to total shares

No. of shares % of total shares of the

Company

% of shares Pledged/

encumbered to total shares

1. NitinDhanjiShah 14783031 29.45 - 14783031 29.45 - -

2. PrakashDhanjiShah 8178348 16.29 3.03 8178348 16.29 0.70 -

3. TejalPrakashShah 1176000 2.34 1.99 1198000 2.39 1.99 0.05

4. RohanShah 35500 0.07 - 35500 0.07 - -

5. NehalShah 3489 0.01 - 20489 0.04 - 0.04

6. DharaShah 500 - - 500 0.00 - -

7. RameshManilalShah 500 - - 500 0.00 - -

8. VivilInvestmentsPvt.Ltd. 187150 0.37 - 187150 0.37 - -

9. KotakMahindraTrusteeshipServicesLimited

127440 0.25 - 127440 0.25 - -

10. PrakashShahactingasBeneficiary&familytrusteeofPadmaPragnaPrivateTrust

93622 0.19 - 93622 0.19 - -

Total 24326518 48.45 5.02 24624580 49.05 2.69 0.6



iii. Change in Promoters’ Shareholding:

Sr. No.

Particulars Shareholding at the beginning of the year Cumulative Shareholding during the year

Name of the Promoters No. of shares % of total shares of the Company No. of shares % of total shares of

the Company 1. Nitin Dhanji Shah* 14783031 29.45 14783031 29.45

Thereisnochangeintheabsoluteshareholdingduringtheyear.

- -

Attheendoftheyear N.A. N.A. 14783031 29.452. Prakash Dhanji Shah* 8178348 16.29 8178348 16.29

Thereisnochangeintheabsoluteshareholdingduringtheyear.

- -

Attheendoftheyear N.A. N.A. 8178348 16.293. Tejal Prakash Shah 1176000 2.34 1176000 2.34

Add: 15.03.2019 18541 0.04 1194541 2.38Add: 29.03.2019 3459 0.01 1198000 2.39

Attheendoftheyear N.A. N.A. 1198000 2.394. Rohan Shah 35500 0.07 35500 0.07

Thereisnochangeintheabsoluteshareholdingduringtheyear

Attheendoftheyear N.A. N.A. 35500 0.075. Nehal Shah 3489 0.01 3489 0.01

Add: 13.04.2018 1000 0.00 4489 0.01Add: 20.07.2018 16000 0.03 20489 0.04

Attheendoftheyear N.A. N.A. 20489 0.046. Dhara Shah 500 0.00 500 0.00


-

Attheendoftheyear N.A. N.A. 500 0.007. Ramesh Manilal Shah 500 0.00 500 0.00


-

Attheendoftheyear N.A. N.A. 500 0.008. Vivil Investments Pvt. Ltd. 187150 0.37 187150 0.37


-

Attheendoftheyear N.A. N.A. 187150 0.379. Kotak Mahindra Trusteeship

Services Limited127440 0.25 127440 0.25


-

Attheendoftheyear N.A. N.A. 127440 0.2510. Prakash Shah acting as

Beneficiary and family trustee of Padma Pragna Private Trust

93622 0.19 93622 0.19


Attheendoftheyear N.A. N.A. 93622 0.19* The Company has allotted 4,018,801 Equity shares to the promoters of the Company pursuant to the conversion of convertible warrants



iv. SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRS AND ADRS):

Sr. No

For Each of the Top 10 Shareholders Shareholding at the beginning of the year (April 1, 2018)

Cumulative Shareholding during the year (April 1, 2018 to March 31, 2019)

No. of shares % of total shares of the company

No of shares % of total shares of the company

1 COLLAB9 INC (FORMLY KNOWN AS “EN POINTE TECHNOLOGICS SALES INC”)

Atthebeginningoftheyear-01.04.2018 1490000 2.97 1490000 2.97 At the End of the year (or on the date of

separation, if separated during the year)31.03.2019

N.A. N.A. 1490000 2.97

2 K S GOPALASWAMY Atthebeginningoftheyear-01.04.2018 1212528 2.42 1212528 2.42 AttheEndoftheyear(oronthedateof

separation,ifseparatedduringtheyear)31.03.2019

N.A. N.A. 1212528 2.42

3 JIMMY JEHANGIR PARAKH Atthebeginningoftheyear-01.04.2018 567635 1.13 567635 1.13 AttheEndoftheyear(oronthedateof

separation,ifseparatedduringtheyear)31.03.2019

N.A. N.A. 567635 1.13

4 SURESH AYODYA MAHADEVAN Atthebeginningoftheyear-01.04.2018 520000 1.04 520000 1.04 At the End of the year (or on the date of


N.A. N.A. 520000 1.04

5 NITIN GORDHANBHAI THAKKER Atthebeginningoftheyear-01.04.2018 342377 0.68 342377 0.68 At the End of the year (or on the date of


N.A. N.A. 342377 0.68

6. ROHINI KUMAR GUPTA Atthebeginningoftheyear-01.04.2018 235739 0.47 235739 0.47

Add: 13.04.2018 MarketPurchase 7079 0.01 242818 0.48Add: 20.04.2018 MarketPurchase 10736 0.02 253554 0.51Add: 27.04.2018 MarketPurchase 5557 0.01 259111 0.52Add: 04.05.2018 MarketPurchase 27409 0.05 286520 0.57Add: 11.05.2018 MarketPurchase 4645 0.01 291165 0.58Add: 18.05.2018 MarketPurchase 5939 0.01 297104 0.59Add: 25.05.2018 MarketPurchase 2650 0.01 299754 0.60Less: 01.06.2018 MarketSales (21437) (0.04) 278317 0.55Add: 08.06.2018 MarketPurchase 10065 0.02 288382 0.57Less: 15.06.2018 MarketSale (16208) (0.03) 272174 0.54Add: 06.07.2018 MarketPurchase 27 0.00 272201 0.54Add: 27.07.2018 MarketPurchase 25786 0.05 297987 0.59



Sr. No





Add: 03.08.2018 MarketPurchase 14415 0.03 312402 0.62Add: 17.08.2018 MarketPurchase 27200 0.05 339602 0.68Less: 07.09.2018 MarketSale (63133) (0.13) 276469 0.55Less: 14.09.2018 MarketSale (5874) (0.01) 270595 0.54Less: 21.09.2018 MarketSale (4986) (0.01) 265609 0.53Add: 05.10.2018 MarketPurchase 3000 0.01 268609 0.54Add: 12.10.2018 MarketPurchase 14286 0.03 282895 0.56Add: 19.10.2018 MarketPurchase 3600 0.01 286495 0.57Add: 26.10.2018 MarketPurchase 6000 0.01 292495 0.58Add: 02.11.2018 MarketPurchase 5800 0.01 298295 0.59Less: 23.11.2018 MarketSale (8520) (0.02) 289775 0.58Less: 07.12.2018 MarketSale (18757) (0.04) 271018 0.54Add: 14.12.2018 MarketPurchase 6790 0.01 277808 0.55Add: 22.02.2019 MarketPurchase 27451 0.05 305259 0.61Add: 08.03.2019 MarketPurchase 15444 0.03 320703 0.64Less: 15.03.2019 MarketSale (38285) (0.08) 282418 0.56Add: 22.03.2019 MarketPurchase 20000 0.04 302418 0.60

At the End of the year (or on the date ofseparation, if separated during the year)31.03.2019

N.A. N.A. 302418 0.60

8 JHAVERI SATISHKUMAR UMEDLAL Atthebeginningoftheyear-01.04.2018 250940 0.50 250940 0.50At the End of the year (or on the date ofseparation, if separated during the year)31.03.2019

N.A. N.A. 250940 0.50

9. SHARAD RAMANLAL DESAI.Atthebeginningoftheyear-01.04.2018 224315 0.45 224315 0.45Less: 22.06.2018 MarketSale (8605) (0.02) 215710 0.43Less: 30.06.2018 MarketSale (9000) (0.02) 206710 0.41Add: 06.07.2018 MarketPurchase 18224 0.04 224934 0.45Add: 13.07.2018 MarketPurchase 66 0.00 225000 0.45Add: 27.07.2018 MarketPurchase 10000 0.02 235000 0.47Add: 21.09.2018 MarketPurchase 10000 0.02 245000 0.49Add: 15.02.2019 MarketPurchase 5000 0.01 250000 0.50At the End of the year (or on the date ofseparation, if separated during the year)31.03.2019

N.A. N.A. 250000 0.50

10 PREETI TUSHAR PAREKHAtthebeginningoftheyear-01.04.2018 171000 0.34 171000 0.34Add: 06.04.2018 MarketPurchase 10000 0.02 181000 0.36Add: 06.07.2018 MarketPurchase 3500 0.01 184500 0.37



Sr. No





Add: 07.09.2018 MarketPurchase 5500 0.01 190000 0.38Add: 29.09.2018 MarketPurchase 3101 0.01 193101 0.39Add: 05.10.2018 MarketPurchase 400 0.00 193501 0.39Add: 19.10.2018 MarketPurchase 500 0.00 194001 0.39Add: 14.12.2018 MarketPurchase 1000 0.00 195001 0.39Add: 21.12.2018 MarketPurchase 13499 0.03 208500 0.42At the End of the year (or on the date ofseparation, if separated during the year)31.03.2019

N.A. N.A. 208500 0.42

11. ARCO ELECTRO TECHNOLOGIES PRIVATE LIMITED* Atthebeginningoftheyear-01.04.2018 205000 0.41 205000 0.41Less: 22.03.2019 MarketSale (28000) (0.06) 177000 0.35At the End of the year (or on the date ofseparation, if separated during the year)31.03.2019

N.A. N.A. 177000 0.35

12. RAJENDRA RAJARAM DHOLE*Atthebeginningoftheyear-01.04.2018 204500 0.41 204500 0.41At the End of the year (or on the date ofseparation, if separated during the year)31.03.2019

N.A. N.A. 204500 0.41

* Not in the list of Top 10 shareholders as on 31-03-2019. The same has been reflected above since the shareholder were Top 10 shareholders during 01-04-2018.

v. SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Sl. No. For each of the Directors and KMP

Shareholding at the beginning of the year (April 1, 2018)

Cumulative Shareholding during the year

No. of shares % of total shares of the Company No. of shares % of total shares

of the Company1. Nitin Dhanji Shah 14783031 29.45 14783031 29.45

AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2019)

N.A. N.A. 14783031 29.45

2. Prakash Dhanji Shah 8178348 16.29 8178348 16.29AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2019)

N.A. N.A. 8178348 16.29

3. Nehal Nitin Shah 3489 0.01 3459 0.01Add: 13.04.2018 1000 0.00 4489 0.01Add: 20.07.2018 16000 0.03 20489 0.04


N.A. N.A. 20489 0.04



Sl. No. For each of the Directors and KMP

Shareholding at the beginning of the year (April 1, 2018)

Cumulative Shareholding during the year

No. of shares % of total shares of the Company No. of shares % of total shares

of the Company4. Venugopal Ramaswami Iyengar NIL 0 NIL 0


N.A. N.A. NIL 0

5. Shrikant Navnitlal Parikh NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2018)

N.A. N.A. NIL 0

6. Shubhada Keshav Jahagirdar NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2019)

N.A. N.A. NIL 0

7. Paresh Bipinchandra Shah NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2019)

N.A. N.A. NIL 0

8. Gopal Tiwari NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2019)

N.A. N.A. NIL 0

9. Neha Sunil Bagla NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.08.2019)

N.A. N.A. NIL 0

V. INDEBTEDNESS:

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment:(`inlakhs)

Particulars Secured Loans excluding deposits Unsecured Loans Deposits

Indebtedness at the beginning of the financialyear(01.04.2018)

5802 2149 39

ChangeinIndebtednessduringthefinancialyear (2556) 1099 (23)Indebtedness at the end of the financial year(31.03.2019)

3246 3248 16



VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:(`inlakhs)

Sl. No Particulars of Remuneration

Name of the MD/ WTD/ ManagerTotal Amount

Nitin Shah Chairman & Managing Director

Prakash Shah Whole-time Director

1 Grosssalary

(a) Salary as per provisions contained insection 17(1) of the Income Tax Act,1961

75.11 38.52 113.63

(b) Value of perquisites u/s 17(2) of theIncometaxAct,1961

- - -

(c) Profits in lieu of salary under section17(3)oftheIncomeTaxAct,1961

- -

2 Stockoption - - -3 SweatEquity - - -4 Commission - - - as%ofprofit - - - others(specify) - - -5 Others,pleasespecify - - - Total (A) 75.11 38.52 113.63 Overall Ceiling as per the Companies Act,

2013244

B. REMUNERATION TO OTHER DIRECTORS: (` in lakhs)

Sl. No Particulars of Remuneration Name of the Directors Total Amount

1 Independent Directors (a) Feeforattendingboard/committeemeetings* Mr.ShrikantNavnitlalParikh 1.45 Mr.VenugopalRamaswamiIyengar 1.20 Ms.ShubhadaKeshavJahagirdar 0.95 (b) Commission - (c) Others,pleasespecify - Total (1) 3.602 Other Executive Directors: (a) Feeforattendingboard/committeemeetings - (b) Commission - (c) Otherspleasespecify Mr.NehalShah$ 4.82

Mr.PareshShah# 1.86 Total (2) 6.683 Other Non Executive Directors (a) Feeforattendingboard/committeemeetings - (b) Commission - (c) Others,pleasespecify -



Sl. No Particulars of Remuneration Name of the Directors Total Amount

Total (3) - Total (B)=(1+2+3) 10.28 TotalManagerialRemuneration Overall Ceiling as per the Companies Act, 2013 N.A.

* The amount includes sitting fees paid for attending Board Meeting, Audit Committee Meeting and Nomination and Remuneration

Committee Meeting and Stakeholders Relationship Committee and Corporate Social Responsibility Committee.$ Mr. Nehal Shah was appointed on the Board of the Company at the Board Meeting held on July 30, 2018.# Mr. Paresh Shah resigned from the Directorship of the Company w.e.f. May 28, 2018, however he continued being the Chief Executive

Officer of the Company.

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD:(`inlakhs)

Sl. No.

Particulars of Remuneration Key Managerial Personnel Total AmountGopal Tiwari (CFO) Neha Bagla (CS) Paresh Shah(CEO)

1 GrossSalary (a) Salaryasperprovisionscontained

insection17(1)of the IncomeTaxAct,1961

29.29 7.35 9.34 45.98

(b) Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961

- - - -

(c) Profits in lieu of salary undersection17(3)oftheIncomeTaxAct,1961

- - - -

2 StockOption - - - -3 SweatEquity - - - -4 Commission

- as%ofprofit - - - -- others,specify - - - -

5 Others - - - - Total 29.29 7.35 9.34 45.98

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of The Companies Act

Brief Description Details of Penalty /Punishment/

Compounding fees imposed

Authority [RD /NCLT/ COURT]

Appeal made, if any (give Details)

A. COMPANYPenalty

NILPunishmentCompoundingB. DIRECTORS



Type Section of The Companies Act

Brief Description Details of Penalty /Punishment/

Compounding fees imposed

Authority [RD /NCLT/ COURT]

Appeal made, if any (give Details)

PenaltyNILPunishment

CompoundingC. OTHER OFFICERS IN DEFAULTPenalty

NILPunishmentCompounding

For and on behalf of Board of Directors ofAllied Digital Services Limited

Nitin Shah Prakash ShahPlace : Mumbai Chairman and Managing Director Whole-time DirectorDate : May 29, 2019 DIN: 00189903 DIN: 00189842



ANNEXURE – IV

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED MARCH 31, 2019

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,TheMembers,Allied Digital Services LimitedMumbai

DearSirs,

WehaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticebyAlliedDigitalServicesLimited(hereinaftercalled“the Company”).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

BasedonourverificationoftheCompany’sBooks,Papers,MinutesBooks,FormsandReturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationandexplanationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhas,duringtheauditperiodcoveringtheFinancialYearendedMarch31,2019compliedwiththestatutoryprovisionslistedhereunder,andalsothattheCompanyhasproperBoardprocessesandcompliancemechanisminplacetotheextent, inthemannerandsubjecttothereportingmadehereinafter,howeversubjecttoverificationof:

Wehaveexaminedthebooks,papers,minutesbooks,formsandreturnsfiledandotherrecordsmaintainedbyAllied Digital Services Limited(“theCompany”)asgiveninAnnexure I,fortheFinancialYearendedonMarch31,2019,accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(‘theAct’)andtherulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulations(asamendedfromtimetotime)andBye-lawsframedthereunder;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign DirectInvestmentandOverseasDirectInvestment;

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

i. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

ii. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;and

iii. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations,2015”);

ProvisionsofthefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’)werenotapplicabletotheCompanyduringthefinancialyearunderreport:-

i. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;

ii. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;

iii. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993;



iv. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009and;

v. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998.

Wehavealsoexaminedcompliancewith theapplicableclausesof theSecretarialStandards issuedbyThe InstituteofCompanySecretariesofIndia.

We further report that, having regard to the compliance system prevailing in the Company and on examination of the relevantdocumentsandrecordsinpursuancethereof,ontest-checkbasis,theCompanyhascompliedwithotherActs,LawsandRegulationsapplicablespecificallytotheCompanyasstatedinAnnexure II;

During thefinancialyearunder report, theCompanyhascompliedwith theprovisionsof theAct,Rules,Regulations,Guidelines,Standards,etc.mentionedabovesubjecttotheobservations/remarksstatedbelow:

Sr. No.

Compliance Requirement (Regulations/ circulars / guidelines including specific clause)

Observations/ Remarks

1. Regulation31(2)ofListingRegulations,2015states that, “The listed entity shall ensurethat hundred percent of shareholdingof promoter(s) and promoter group isin dematerialized form and the same ismaintained on a continuous basis in themannerasspecifiedbytheBoard.”

As regards 21,86,667 equity shares allotted toMr. Nitin Shah and 18,32,134equitysharesallottedtoMr.PrakashShah,PromotersoftheCompanyon14thAugust,2014,towardsconversionofwarrants,theCompanyisyettocompletethecorporateactionprocedureandhence,thesaidequitysharesareshownasbeingheldinphysicalformintherecordsoftheRTA.However,inquarterlyshareholdingpatternfiledbytheCompany,thesaidshareshavebeenshownasbeingheldbythesaidPromotersindematerialisedform.

2. Regulation 14 of Listing Regulations, 2015states that “The listed entity shall pay allsuch fees or charges, as applicable, to therecognisedstockexchange(s),inthemannerspecified by the Board or the recognisedstockexchange(s).”

TheCompanyhaspaidAnnuallistingfeestoBSEandNSEfortheFinancialyear2018-19onMay25,2018i.e.delayof25days.

3. Regulation 78(6) of SEBI (ICDR)Regulations,2009states that,”theentirepre-preferentialallotment shareholding of the allottees, ifany,shallbelocked-infromtherelevantdateuptoaperiodofsixmonthsfromthedateofpreferentialallotment.”

The pre-preferential shareholding of Mr. Nitin Shah and Mr. Prakash Shahaggregatingto1,74,23,578EquityShares,wereunder lock-inforperiodfrom27thMarch2018to26thMarch2019.Further,asregards15,19,000equityshares(formingpartofpre-preferentialshareholdingofPromoters)whichwereunderpledge,thesaidshareswerenotlocked-inforanyperiod.Thesaidsharesarerequired tobe locked-in for aperiodof sixmonths from thedateof receiptoftradingapprovals fromBSELimitedandNationalStockExchangeof IndiaLimitedwhichareyettobereceived.

We further report that:

TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThecompositionoftheBoardofDirectorsduringthefinancialyearunderreportwasincompliancewiththeprovisionsoftheAct.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentat leastsevendays inadvance,andasystemexists forseekingandobtaining further informationandclarificationson theagenda itemsbeforethemeetingandformeaningfulparticipationatthemeeting.

Noneofthedirectorshavecommunicateddissentingviews,inthematters/agendaproposedfromtimetotimeforconsiderationoftheBoardanditsCommitteesthereof,duringtheyearunderthereport,hencedissentingviewswerenotrequiredtobecapturedandrecordedaspartoftheminutes.



WefurtherreportthatthereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Wefurtherreportthatduringtheauditperiodtherewerenospecificevents/actionshavingamajorbearingontheCompany’saffairs.

For RATHI & ASSOCIATES COMPANY SECRETARIES

HIMANSHU S. KAMDAR PARTNERDate : May 29, 2019 FCS No. 5171Place : Mumbai C.P. No. 3030

Note:ThisreportshouldbereadwithourletterwhichisannexedasAnnexure-IIIandformsanintegralpartofthisreport.

ANNEXURE - I

List of documents verified:

1. MemorandumofAssociation&ArticlesofAssociationoftheCompany;

2. AnnualReportfortheFinancialYearendedMarch31,2018;

3. MinutesofthemeetingsoftheBoardofDirectors,AuditCommittee,NominationandRemunerationCommittee,Stakeholders’RelationshipCommittee,CorporateSocialResponsibilityCommitteeandAnnualGeneralMeetingheldduringtheFinancialYearunderreportalongwithAttendanceRegister;

4. StatutoryRegistersviz.

- RegisterofDirectors&KeyManagerialPersonnelandtheirShareholding;

- RegisterofContractswithRelatedPartyandContractsandBodiesetc.inwhichDirectors’areinterested(FormMBP-4);

- Registerofloans,guaranteesandsecurityandacquisitionmadebytheCompany(FormMBP-2);and

- RegisterofCharges(FormCHG-7);and

- RegisterofInvestments(FormMBP-3).

5. AgendapaperscirculatedtoalltheDirectors/membersfortheBoardMeetingsandtheCommitteeMeetings;

6. Declarationsand/orDisclosures received from theDirectorsandKeyManagerialPersonnelof theCompanypursuant to theprovisionsof184,164and149(7)oftheCompaniesAct,2013;

7. IntimationsreceivedfromDirectorsandDesignatedEmployeesundertheInternalCodeforPreventionofInsiderTrading;

8. e-formsfiledbytheCompanyfromtimetotimeunderapplicableprovisionsoftheCompaniesAct,2013andattachmentsthereofduringthefinancialyearunderreport;

9. Intimations,documents, reportsandreturnsfiledwiththeStockExchangespursuanttotheprovisionsoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015duringthefinancialyearunderreport;



10. DetailsofsittingfeespaidtoallNon-Executive&IndependentDirectorsforattendingtheMeetingsoftheBoardandCommittees;

11. IntimationsgiventoemployeesoftheCompanyforclosureofthetradingwindowfromtimetotime;

12. FormCreceivedfromthedesignatedemployeespursuanttoSEBI(ProhibitionofInsiderTrading)Regulations,2015;

13. VariousPoliciesmadeundertheCompaniesAct,2013andtheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

ANNEXURE- II

1. Employees’ProvidentFundAct,1952andRules;

2. ProfessionalTaxAct,1975andRules;

3. PaymentofGratuityAct,1972;

4. ApprenticesAct,1961;

5. ContractLabour(R&A)Act,1970;

6. EmployeesStateInsuranceAct,1947;

7. Employees’ProvidentFundandMiscProvisionsAct,1952;

8. EqualRemunerationAct,1976;

9. MinimumWagesAct,1948;

10. PaymentofBonusAct,1965;

11. ShopandEstablishmentAct,1948;

12. IncomeTaxAct,1961;

13. FinanceAct,1994;

14 InformationTechnologyAct,2000asamendedfromtimetotime

ANNEXURE – III

ToTheMembers,Allied Digital Services LimitedMumbai

DearSirs,

Ourreportofevendateistobereadalongwiththisletter.

1. MaintenanceofSecretarialrecordistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpressanopinion on these secretarial records based on our audit.



2. WehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestcheckbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpracticesthatwefollowedprovideareasonablebasisforouropinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4. Whereverrequired,wehaveobtainedtheManagementRepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

5. ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For RATHI & ASSOCIATES COMPANY SECRETARIES

HIMANSHU S. KAMDAR PARTNERDate : May 29, 2019 FCS No. 5171Place : Mumbai C.P. No. 3030



Annexure-V

DETAILS OF REMUNERATION

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

i. The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2018-19 and the percentage increase in remuneration of each Director during the Financial Year 2018-19 are as under:

Sr. No.

Name and Designation of Director Remuneration (` In Lakhs)

% Increase in Remuneration in

the Financial Year 2018-19

Ratio

1. Mr.NitinShah 75.11 54.09 27.90Chairman&ManagingDirector

2. Mr.PrakashShah 38.52 31.16 14.31Whole-timeDirector

3. Mr.NehalShah$ 4.82 N.A. 2.67Director

4. Mr.VenugopalIyengar# N.A. - -IndependentDirector

5. Dr.ShrikantParikh# N.A. - -IndependentDirector

6. Ms.ShubhadaJahagirdar# N.A. - -IndependentDirector

7. Mr.PareshShah* 11.21 - -Director&ChiefExecutiveOfficer

8. Mr.GopalTiwari 29.30 - -ChiefFinancialOfficer

9. Ms.NehaBagla 7.35 - -CompanySecretary

# Non-Executive Directors have received only sitting fees and no other remuneration have been paid to them.$ Mr. Nehal Shah was appointed as an Executive Director w.e.f. July 30, 2018.*Mr. Paresh Shah resigned from the Directorship of the Company w.e.f. May 28, 2018, however he continued being the Chief Executive Officer of the Company

ii. The percentage increase in the median remuneration of employees in the Financial Year:

TheMedianremunerationoftheemployeeswasRs.2,69,293inthefinancialyear2018-19ascomparedtoRs.2,43,672inthefinancialyear2017-18.Hencethereisanincreaseof10.54%inmedianremunerationinthefinancialyear2018-19.

iii. There were 585 permanent employees on roll of the Company as on March 31, 2019:

iv. Average percentile decrease already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof;

Thesaiddecreaseinsalariesofemployeeswasinlinewiththeindividualperformanceoftheemployees,ProjectsRequirements,Market Projections in the financial year 2018-19. The increase in the total managerial remuneration was linked with theimprovementintheoverallperformanceoftheCompany.



v. Affirmation that the remuneration is as per the Nomination and Remuneration Policy of the Company:

It is hereby affirmed that the remuneration paid is as per the Policy for Nomination & Remuneration of the Directors, KeyManagerialPersonnelandotherEmployees.

For and on behalf of Board of Directors ofAllied Digital Services Limited

Nitin Shah Prakash ShahPlace : Mumbai Chairman and Managing Director Whole-time DirectorDate : May 29, 2019 DIN: 00189903 DIN: 00189842


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Industry Overview

Global Overview:

For thefinancialyear2018-19, theeconomygrewby3.6%and theglobal ITspendinggrewclose to4%.Due toglobaleconomicvolatility,theITgrowthratecoulddeclinein2019,butwillgrowbackcloseto4%in2020withthespendingalmosttouching4Trillion.NasscomprojectsIT-BPMindustryinIndiatomarginallygrow8%and9%indomesticandexportrespectively.Thekeyenablerforgrowth isdigital transformation initiative,both forenterprisesandgovernments.The Indian IT industryhasverywelladaptedtochange requiredby thecustomerswhich ishelping tomanage thegrowth rate.Overall, though theglobaleconomymay remainturbulent,ITindustryisdefinitelyonagrowthpath.

Someof the technologies thatare inhigh focusare,Artificial Intelligence (AI)andAdvancedAnalytics,CyberSecurity, InternetofThings(IoT)andMachineLearning(ML).DigitalTransformationinitiativeisfullyleveragingallthesetechnologies,andcloudcontinuestobethepreferredcoreinfrastructureforeverydevelopmentproject.ThemarketforAI/MLisprojectedtogrowattherateof42%,where-asIoTmarketwillgrowattherateof37%.

Theworld is bringingArtificial Intelligenceat the center stage.With the easyavailabilityof standardalgorithms, every companyis putting efforts to build smarter solutions for the customers. Leaders such as Microsoft, IBM, Google, Amazon, Facebook areemphasizingondevelopmentofMachinelearningandAutomationonthecloud.ThereishugedemandfordatascienceresourcesandmanyprojectsareseeinglightinthefieldofMachineLearningandAI.

Cybersecurityhasgainedmajorattention.RBIrecentlycirculatednewguidelinesforbanksandrelatedfinancialinstitutionswhichwillgeneratenewdemandforcybersecuritysolutions.Cybersecuritysolutions,withthesupportofAIarebringingnewproductsandsolutions todetect critical incidentsandunderstandpatterns. InternetofThings (IoT) technology isgainingprominence,both inenterprisesaswellassmartcities.Smartcitysolutionsaregettingintomainstreamimplementation.Thereishugeadoptionwithinsmartcitiesalready.

India Overview:

Thisyear,Indiawitnessedthecentralgovernmentelections.Withtherulingpartygettingre-electedwithverycomfortablemargin,thispromisesaboost in India’seconomy.However, thegrowth rate isprojected tobebetween6.9%to7.2%since therearestillexternaleconomychallengesaroundworldtrade.Thenewgovernmenthasamajortaskofimprovingtheeconomyasitsawsluggishgrowthinthelastquarteroffinancialyear2018-19.

However,theITindustryespeciallywillcontinuetoseegrowthduetorapidadoptionofdigitizationacrosstheglobe.Thisincludesmajor transformation projects leveraging Cloud, IoT, Cybersecurity, Robotic Process Automation and AI. Niti Aayog, a centralgovernment’sinitiativeoftransformingIndia,hasputmajoremphasisonthegrowthofAIbasedtechnologies.Ahugeskilltraininginitiativeisunderwayforstartupsaswellascorporates.

Indianenterprisestooaretransforminginabigway.ThedemandforindustrialIoT,AIisgainingstronginterests.Largeorganizationsare already on the trial of these technologies. Cyber security is of immediate focus. Smart campus solutions are also getting anewperspective.Anotherautomationphenomenagainingrapidacceptance isRPA(RoboticProcessautomation), thatdealswithautomatingcertainstandardizedprocessessuchasInvoiceprocessing,Claimsprocessingetc.

Our Business:

NewtechnologyadoptionhasbeenaconstantendeavorofAlliedDigitaltosupportlargetransformationprojectsofcustomers.ADSLhascreatedanimmensecapacityandreadinesstobringcuttingedgesolutionstosolvecriticalbusinesscases.Thenewagecustomerexperience,automationandhugedatacollectionfromsensor-basedtechnologiesarebecomingtherightfoodtobringAIintoaction.EvensmartcitiesarenowseeingAIaskeytobring“smartness”.

ADSLhasembarkedonmajorinitiativetobuildtheskillcapacityinAI,aswellasproposingbusinesscasestocustomersthatjustifyuseofAI.ADSLseesthatasmajordimensionforgrowthfrom2020.ADSLhasalsodonestrategicpartnershipsinIoT,tobuildsmartcityaswellasindustrysolutions.NewsolutionsincybersecurityseemtobemajorgrowthenablersespeciallyintheBFSIsector.

MANAGEMENT DISCUSSION AND ANALYSIS



Core Offering: Infrastructure Management Services:

WehaveaddedsomecustomerslargeandmediuminourcoreserviceswhichincludesFacilityManagement,NOCandSOCservices.IthasbeenourconstantendeavortobringglobalbestpracticesandimplementthemforIndiacustomers.Wehavealsodevelopeda“PartnerledSales”Modeltogrowourbusiness.

FortheUS,wehavegotsignificantwins,whichisgoingtohavemajorupwardmovementinearningsforthisfinancialyear.Thankstoourglobalpresence,wearehavingareasonablygoodpipelinethisyear,propellinggrowth.Thewinsalsoincludesomedigitaltransformationprojects,whichpromisesmorefuturebusiness.WehavealsoinitiatedpartnershipsinEurope,aswehaveopenedmultipleoffices,andnowhavesignificantpresenceacrossEurope.Europetooshouldaugmentsignificantlytotheglobalrevenuesin2020.

WeaddedcustomersalsoonADiTaaSourflagshipsoftwareplatformfordigitalservicemanagement.Wegotmajorlicenserenewalforanotherthreeyearsforoneofthelargeautomobilemanufacturers.OurnewroadmapofADITaaSismajorlyAIbased.Theversion5.0isindesignstage,andwillhavereleasedatebyendofthisfinancialyear.AlliedDigitaldidcoupleofsignificantlycomplexcloudmigrationprojects.Industryisrapidlyadoptingcloudnow.Weareincreasingourcloudskillsandgloballyworkingonmanycloudmigrationandsupportprojects.

OurNOCservicesareentirelyincloud,whichmakestheservicesveryscalable,availableandmanageable.WearealsotakingnextlevelofupgradationforourNOCforroboticprocessautomation.Thisisoneofthekeservicesalsobeingofferedtoourcustomers.AsusualweareregularlyrenewingourcertificationsforISOcomplianceandarealsoaCMMIlevel3softwaredevelopmentcompany.OurSOCservices (cybersecuritymanagedservices)haveadoptednewAIbasedapproach,which isattractingattentionofmanyorganizations,asitisgainingwide-scaleacceptanceovertraditionalsolutions.

Smart Cities Solutions:

Asyoumayknowourcompanyhasbeenveryactiveintosmartcityprojects,withaleadershiproleforsystemsIntegration.ThegreatsuccessforPunecityprojectcontinues, initsenteredthefourthyearofoperations,aswell,deliveringtopavailabilitythathoversexceeding99%,whichitselfsettingupabenchmarkintheindustry.Wehavebeenprovisioningmanyadd-ontoolstotheproject,suchasthecitizenmobileappwhichisgaininggoodpopularity.TheoperationalreportsfromthePoliceandconsultantsprovehugebenefitstothePunepoliceintermsofproactivelymanaginglawandordersituationsandtrafficcontrol.

Asa resultof thissuccess,andourpast learningandcontinuously improvingsolutiondesign,wearegladtoannounce, that thisyearwehavebaggedthreemoresmartcityprojects. It isaresultofgreatefforts insmartcitystrategy, technologysolutionsandrelationshipswithourupstreamanddownstreampartners.Thesewinsaregoingtobringnewrevenueswhichcouldberealizedinthelaterquartersofcurrentyear.Also,wehavenewrelationshipswithtechnologyproviders,tobuildthenextgenerationofsmartcities,leveragingnewIoTtechnologies,suchasLoRaandArtificialIntelligence.

IoT, Robotic Process Automation and Artificial Intelligence:

ADSL,aseveryyear,iskeentopromoteupcomingtechnologiesintheareasofIoT,RoboticprocessautomationandArtificialintelligence.RoboticprocessautomationisanewapproachtoautomatingprocessesusingSoftwareBots,whoindependentlymanageastraightthroughprocessingoftaskswithouthumanintervention.Alliedhasformedstrongalliancewithindustryleadingpartnersand,aswellisalsoinprocessofadoptingthistechnologyinitsownNOCdivisionaswell.

AsArtificialIntelligencegetstremendousglobalattention,andisshapingourlivesdirectlyorindirectly,thisisturningouttobeamajorrevolutioninITindustry.TechnologyleaderslikeMicrosoft,Google,IBMhavenowbuiltexcellentframeworkstosupporttheindustry’sgrowingrequirementsonAI,ithascreatedahugedemandinimmediateyears.ADSLisembarkingonmajorsetupforAIdriventechnologiesintermsofcreatingacomprehensiveecosystem,thatcomprisesofskills,training,facilities,highperformancecomputing labsandreadybusinessusecases for implementation,ADSLhasscaledup its resourcebase toundertakeprojects, itis promoting startupsandproviding training to corporates so they can takeadvantageof a 360degreeecosystem forAI, also inconjunctionwithstateandcentralgovernmentinitiatives.ThisinitiativeofAIlooksextremelypromisingforyourcompanyincomingyears.



Financial Highlights

ThekeyfinancialhighlightsoftheCompanyonaconsolidatedbasisforthefinancialyearendedMarch31,2019aregivenbelow.

Particulars (In Lakhs) FY 2019 FY 2018 Y-o-Y Change Revenue 24,385 22,894 6.5%EBITDA 4,582 4,860 (6%)EBITDAMargin 19% 21% 2%PBT 1,418 1,996 (29%)PAT 1,203 1,094 (10%)PATMargin 5% 5% -

• TheCompanyhasrecordedaConsolidatedIncomeofINR24,385LakhsfortheyearendedMarch31,2019ascomparedtoINR22,894LakhsfortheyearendedMarch31,2018.TheCompanyachievedagrowthof6.5%inTotalIncome.

• ConsolidatedEBIDTAoftheCompanyfortheyearendedMarch31,2019standsatINR4,582LakhsasagainstINR4,860Lakhsfortheearlieryear,mainlyduetohighercostofsalesDespitethesalesgrowth,theCompanyhasmaintainedEBITDAMarginsat21%.

• TheConsolidatedPAT for theyearendedMarch31,2019 is INR1,202as compared to INR1,094 for theearlier yearwithanincreaseof10%onay-o-ybasis.

• TheBookValueoftheEquitySharesoftheCompanyaggregatestoINR92/-shareonstandalonebasis.

• During the year, the company achieved the overseas and domestic revenue of INR 4346.93 Lakhs and INR 3175.77 Lakhsrespectively.

Key Financial Ratios (Standalone):

Particulars 2018--19 2017-18DebtorsTurnover 0.53 0.51InventoryTurnover 2.22 2.24InterestCoverageRatio 3.33 7.02CurrentRatio 6.06 5.46DebtEquityRatio 0.30 0.35

OperatingProfitMargin(%) 39% 44%NetProfitMargin(%) 12% 7%

Interest Coverage Ratio:

InterestCoverageRatiowasconsiderablyhighintheearlieryeari.e.2017-18duetoreducedfinancecostonaccountofreversalofInterestprovisionduringtheyear. Net Profit Margin (%):

DuetolowerdeferredtaxliabilityintheyearendingMarch31,2019,theNetProfitMarginwasonhighersideincomparisontotheearlieryear.

Details of any change in Return on Net worth as compared to the immediately previous financial year:

DuetoconsiderableincreaseinPATMarginduringtheyearunderconsideration,thecompanyachieved2%returnonNetworthincomparisonto1.2%achievedinpreviousfinancialyear.



Key Drivers of Growth

Innovation and Adaptability:

Inaworlddrivenbytechnology,beinganITservicesandsolutionscompany,itisimperativetoadapttothechanges.Innovationhasbeenpartofthecompany’smotto.Thatisthekeyreasontobringsuccessstoriesintransformationprojects,smartcitiesandIoTetc.Withthebreadthofthetechnologies,playingdualroleof“Runningthelightsefficiently”(managedserviceoperations)aswellasdoing“cuttingedgetransformation”projects,thecompanyhasuniquelypositioneditselftoofferinnovativeaswellassustainabletechnologies in IT.ADSL is fullycommitted todrive IoTandadoptAI related technologiesandskills tooffernewsolutions to thecustomers.

Opportunistic Market:

To re-iterate, technology is the enabler for change in almost all businesses all over the globe and hence there is a tremendousopportunityforcreatingadisruptionforeverybusiness,includingIndia.Transformationprojectsgloballyareinhugedemand.Cloud,IoT,RPA(RoboticProcessAutomation)andAIarekeytechnologiesthataremostleveragedintoday’stransformationprojects.Notjustenterprises,butgovernmentsalsohavemandatedfortransformation.Massivedigitizationisalsogivingbiggeropportunityforcybersecurityservicesandsolutionsacrosstheglobe.

ADSLhassetupitsroadmapfornextfiveyears,togrownewbusinessopportunitiesinthesetechnologies.JusttheopportunitiesinIoT,AIaregrowingatarateof25-30%.Inall,thisfinancialyearisseenasfantasticopportunityforITgrowthgloballyandalsoforAlliedDigital.

Human Resource:

Asagrowthenabledyear,especiallyinUS,therearechallengesforattrition,asunemploymentinITsectorisnearzero.AlliedDigitalhasembarkedonaholisticplantosustainresources.BeinganITservicecentricorganization,HumanCapitalisthemostimportantassetoftheCompany.Specialtrainingprogramsandskillenhancementactivitiesarecontinuouslyinplacetomakesurethattheskill-setsofthetalentareupdatedincloud,security,Analytics,AIandIoT.ThetotalpermanentemployeesstrengthasMarch31,2019is585.

Government Initiatives:

Asmentionedlastyear,NITIAayog,asapartfrommultipletransformationinitiatives,hasputupAIhaskeyenablerfornationalgrowth.Ithasembarkedonanambitiousplantobuildincubationcenterswithaprivatepartnership.Itisofgreatpride,thatourcompanyAlliedDigitalisoneofsuchshortlistedpartners,toworkwithNitinAayog,andthiscanbecomeamassiveinitiativeforthecompany.ThoughtherearenumbersshowingthatunemploymentrateinIndiaisrising,adeep-divealsoshows,skill-gaptotheopportunitiesorrestrictivenesstoadoptchange.TheSmartCityinitiatives,ITinfrastructureande-governanceprojectsacrossthecountrycontinuetoprovideamplejobopportunities.

ThenewlyformedgovernmentismakingseriousnoteoftheglobalandIndianeconomyandtheupcomingpredictions.Indiawillaccelerateitsgrowthincomingquarters,whichwillalsoimprovetheindustrialgrowth,andofcoursetechnologywillplayasignificantroleinimplementingthetransformation.

Risks and Concerns

Volatile Global Outlook:

Likeanyothercorporatehavingbusinessacrosstheborders,thecompanyisexposedtointerestraterisk,currencyfluctuations,creditriskandregulatoryrisks.Thecompanyconductsaperiodicinternalauditthatensuresriskmanagementprocessisinplace.

Technology:

Thetechnologyisdirectlyrelatedtoinnovationandthechangeiseminent.Thecompanyhasbeenonconstantendeavortoadoptchangeandinnovateinthisrespectanditisensuringthatthereispotentialfornewbusinessopportunities.Companyengagesinvarioustrainingandskilldevelopmentprogramstoupdatetheknowledgebase.Thecompanyhasnowclearroadmapfornextthreeyearsofitsoperationandwillfocusonnewopportunities.ThecompanywillcontinuetoinvestintoR&Dtodevelopnewofferingsacrossthegeographies.



Compliance Risk:

Company’soperationsarespreadacrosstheglobeandhenceitbecomesimperativefortheOrganizationtocomplywithlegalandregulatorylawsofvariouscountries.Failingtocomplywiththespecificcountry’s lawsandregulationmayexposeustolegalandfinancialpenaltiesandalsomaydentthebrandimage.Thecompanyhasidentifiedkeystakeholdersacrosssales&businessunitsandcorporatefunctionstoensurecomplianceofallapplicablelawsonacontinuousbasis.Anychangesintheapplicableregulationsarealsoupdatedandmonitoredbyrespectivedepartments.Thecompanyhasalsoappointedathirdpartyagencytosupportstandardcomplianceincertaincountriestoreducelocalstatutoryrisks.

Delivery Risk:

Asthereisimmensecompetitioninstandardcoreservices,thereisaconstantriskoflosingthecustomerorincurringpenalties.ifnotdelivereduptotopstandards.Forexample,thePuneprojectisrunonhighestavailabilitystandards,byADSLandsoaremanysuchglobaloperations.EnsuringhighqualityservicebydeliveringtopSLAshavebeenchallengingbutthecompanyhasbeenperformingconsistentlywellandhasbeenabletogettimelypaymentsfromgovernmentandcorporates,thuscontrollingthereceivablesrisk.Globaldeliveryposesmultiplechallengesbutcurrentsuccessstoriesassuresconfidenceindeliveringcomplexlarge-scaleprojects.

Contract Management:

Sometimesambiguitiesarecreatedinthescopeofworkwhichleadtounalignedexpectationsfromthepartiesinvolvedintheproject.Wehavestandardizedcertaincontractsandareconstantlyputtingeffortsonstrongercontractmanagementandmoreinsightintocustomer’senvironmenttoavoidrisksofservicefailureatdesiredlevels.

Employee Related Risk:

Asreportedintheearlieryearalsowebeingatalent-drivenorganization,oneofourkeygoalsistohavethebesttalent,withhighlyspecializedskillsineachpartofourbusiness,attherightlevelsintherightlocationstoenhanceourdifferentiationandcompetitiveness.

OurattritionratehasbeenbetterthanlastyearinIndia,thoughsomechallengeshavepoppedupintheUSasthelocalinflationishigherthanpastfewyears.AlliedDigitalismitigatingrisksbycross-trainingandworkingdiligentlywithin-houseaswellasthirdpartyrecruiters.AlsoinEurope,duetoimmigrationlawchanges,thereareattritionissues,butAlliedhasdevelopedaconstantvigilanceinitsdeliveryoperationssothatthecustomerdeliverablesareneveraffected.

Adequate business insurancepolicies are also in place on errors, omissions and general liability of Directors andofficials of theorganizations.

Internal Control systems:

Adequateinternalcontrolensurestransactionsareauthorized,recordedandreportedcorrectlyandassetsaresafeguardedagainstloss fromunauthorizeduseordisposition. Inaddition, thereareoperational controlsand fraud riskcontrols, covering theentirespectrumofinternalfinancialcontrols.YourcompanyhasputalotofemphasisonimprovingtheinternalcontrolsystemsinmultipleareassuchasFinance,Sales,LegalandHR.

• Intheareaoffinance,theinternalchecksandbalancesaremanagedbyaformalsystemofinternalaudit.Alertmechanismisinplaceforregulatorychanges.Asreportedearlier,TransitiontoGSTcompliantprocesseswassmooth.

• Asacontinuousprocessonthesalesfront,moreemphasisisgiventocustomercreditchecks,profitabilityandsalesclosures.Furtheronthedeliveryandoperationsend,weimprovedonalertscommunication,automationandcustomersystemshealthchecks.Thishasimprovedouroverallqualityofdelivery,reducingcustomerconcerns.

• IntheUS,newsoftwareisimplementedformanagingcontracts.WeplantoimplementthesameinIndiaaswell.

• Asreportedearlier,wehadembarkedonmajorinitiativeofCMMILevel3complianceforoursoftwarelastyearandwealreadyachievedthesaidCMMIlevel3Certificate.

• ThequalitymanagementsystemofthecompanyisISOcertifiedeveryyear.



Way Forward

• Thecompanythisyearisonagoodgrowthpath,withmanynewcustomersaddedgloballyandnewsmartcityprojectsinIndiaaswell.

• Thisyearwewillexecutethesenewprojects,whichwillenhancetheoverallrevenuesoftheorganization.

• ThePuneCityProjectiscontinuinginfullswing.Weplantolastlagofoneandhalfyearswithcontinuingexcellentperformance.

• Thecompanyhasengagedinnewpartnershipsacrosstheglobe,whichwillfurtherenhancesalesinUS,EuropeandIndia.

• TheManagementhasplanstoreducethedebtburdenconsiderablyinthecomingyearstoreducethefinancecostandimprovetheprofitabilityoftheorganization.

• Themanagement iscurrently lookingatvariousalternativestomonetizetheHardAssets (RealEstate)of thecompany.Thisincludes creating a value-added shared offices infrastructure management. AI based incubation center development incollaborationwithNitiAayogisonesuchmajoroptionunderway.

Inthisroller-coasterglobaleconomy,withstrongfootholdontothenewtechnologiesandprovenstrongoperationalexpertiseinIT,thecompanycontinuestosharethemottoof“Passion”,“Teamwork”and“Innovation”asitscorepillarsforgrowthandstickstoitscommitmentof“ITManaged,Responsibly”toitscustomers.



“The best thing you can do to help others take responsibility is to authentically practice the behaviours that you want others to practice. Ethics in business is extremely important; your reputation is all you have in life”

TheDirectorspresenttheCompany’sReportonCorporateGovernancefortheyearendedMarch31,2019,intermsofRegulation34(3)readwithScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(the“ListingRegulations”).

Good Corporate Governance underpins the success and integrity of the organizations, institutions andmarkets. It is one of theessentialpillarsforbuildinganefficientandsustainableenvironment.TheCompanyhasadoptedaCodeofConductforitsDirectors,Employees,andhasalsoadoptedaCodeofConducttoregulate,monitorandreporttradingbyinsidersandalsoafairdisclosurecode.SomeoftheimportantbestpracticesofCorporateGovernanceframeworkaretimelyandaccuratedisclosureofinformationregardingthefinancialposition,performance,ownershipandgovernanceoftheCompany.

- PHILOSOPHY ON CODE OF GOVERNANCE:

CorporateGovernanceisanintegralpartofthephilosophyoftheCompanyinitspursuitofexcellence,growthandvaluecreation.In addition to complying with the statutory requirements, effective governance systems and practices towards improvingtransparency,disclosures,internalcontrolandpromotionofethicsatworkplacehavebeeninstitutionalized.

Responsiblecorporateconductisintegraltothewaywedoourbusiness.Ouractionsaregovernedbyourvaluesandprinciples,whicharereinforcedatalllevelswithintheCompany.

TheCompanycontinuestofocusonitsresources,strengthsandstrategiestoachievethegoalswhileupholdingthecorevaluesofQuality,Trust,LeadershipandExcellence,toenhancethevalueofitsstakeholders.

- GOVERNANCE STRUCTURE:

Board of Directors

The Board of Directors determines the purpose and values of the Company. The primary role of the Board is that oftrusteeshipsoas toprotectandenhancestakeholders’valuethroughthestrategicsupervisionof theCompanyand itssubsidiaries.

TheBoardofDirectorshaveultimateresponsibilityofthemanagement,generalaffairs,direction,performanceandlong-termsuccessofbusinessasawhole.TheBoardensuresthattheCompanycomplieswithallrelevantlaws,regulations,governancepractices,accountingandauditingstandards.ItidentifiesthekeyriskareasandkeyperformanceindicatorsoftheCompany’sbusinessandconstantlymonitorsthesefactorstoensuresuccess.

Committees of the Board:

TheBoardhasconstituteditsCommitteesviz.,

- AuditCommittee; - NominationandRemunerationCommittee; - CorporateSocialResponsibility(CSR)Committee; - StakeholdersRelationshipCommitteeand - ManagementCommittee.

EachofthesaidCommitteeshasbeenmandatedtooperatewithinagivenframeworkandapprovedbytheBoardfromtimetotime.

CORPORATE GOVERNANCE



THE BOARD OF DIRECTORS

a) Board of Directors:

TheBoardoftheCompanyhasanoptimumcombinationofExecutive,Non-ExecutiveandIndependentDirectorswhohaveanin-depthknowledgeofbusiness,inadditiontotheexpertiseintheirareasofspecialization.TheIndependentDirectorsplayacriticalroleinimpartingbalancetotheBoardprocessesbybringingindependentjudgmentsonissuesofstrategy,performance,resources,standardsoftheCompanyconductetc.

AsonMarch31,2019,theBoardconsistsofsix (6)Directors,outofwhichthree (3)DirectorsareIndependentDirectorsincludingaWomanDirectorandthree (3)areExecutiveDirectors.TheChairmanoftheCompanyisanExecutiveDirector.TheCompositionof theBoard is inconformitywith theprovisionsof theCompaniesAct,2013 (“theAct”)andRegulation17 (1)of theListingRegulations.NoneoftheIndependentDirectorshaveattainedtheageof75years.

AcertificatehasbeenreceivedfromM/s.Rathi&Associates,PracticingCompanySecretaries,thatnoneoftheDirectorsontheBoardoftheCompanyasonMarch31,2019havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofCompaniesbytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairsoranysuchstatutoryauthority.

The Board has identified the following skills set with reference to its Business and Industry which are available with the Board:

Global Business Understanding of global business dynamics across various geographical markets, industryverticalsandregulatoryjurisdictions,knowledgeofForeignexchangemarketstrends.

Strategy and Planning Corporate Planning and Strategy, driving changes and long term growth, strategic choicesand experience in guiding and leading management teams to make decisions in uncertainenvironments,RiskManagement.

Governance Experience in developing governance practices, serving the best interests of all stakeholders,maintaining board andmanagement accountability, building long-term effective stakeholderengagementsanddrivingcorporateethicsandvalues.

Technology Understanding of technology, ability to create innovation and design solution or create newbusinessmodelsusingthetechnology.

Financial Proper allocation of financial assets, management and monitoring, supervision of financialreportingandaccounting,taxationandotherCompliancesrelatedthereto.

Composition of the Board and the Directorship(s)/ Committee Membership(s)/ Chairmanship(s) held as on March 31, 2019 is as follows:

Name of Director Category/Designation No. of Directorship(s) in other Public Limited

Companies 1

No. of Membership(s) /Chairmanship(s) in other Public

Limited Companies*Public Member Chairman

Mr.NitinShah Promoter,Chairman&ManagingDirector

- - -

Mr.PrakashShah Promoter&Whole-timeDirector

- - -

Mr.NehalShah# Promoter&Director - - -Mr.PareshShah% ExecutiveDirectorandChief

ExecutiveOfficer- - -

Ms.ShubhadaJahagirdar Non-ExecutiveIndependentDirector

- - -



Name of Director Category/Designation No. of Directorship(s) in other Public Limited

Companies 1

No. of Membership(s) /Chairmanship(s) in other Public

Limited Companies*Public Member Chairman

Dr.ShrikantParikh Non-ExecutiveIndependentDirector

- - -

Prof.VenugopalIyengar Non-ExecutiveIndependentDirector

- - -

1 The Directorships of only other Indian Public Limited Companies have been considered. Directorships of Foreign Companies, Section 8 Companies and Private Limited Companies have not been considered.*Chairmanship(s) / Membership(s) of Audit Committee and Stakeholders’ Relationship Committee only of the Indian Public Limited Companies have been considered.# Mr. Nehal Shah was appointed as an Executive Director on July, 30 2018.%Mr Paresh Shah resigned from the office of Directorship w.e.f. May 28, 2018

Declaration by Independent Directors:

AllIndependentDirectorshavegivendeclarationsthattheymeetthecriteriaofIndependenceasprovidedunderSection149(6)oftheActandRegulation16(1)(b)readwithRegulation25oftheListingRegulations.IntheopinionoftheBoard,theIndependentDirectorsfulfiltheconditionsspecifiedintermsoftheabove-mentionedprovisionsandareindependentofthemanagement.

Number of Independent Directorships:

AsperRegulation17AoftheListingRegulations,IndependentDirectorsoftheCompanydonotserveasIndependentDirectorinmorethansevenlistedcompanies.Further,theManagingDirectorandWhole-timeDirectoroftheCompanydonotserveasanIndependentDirectorinanyotherlistedentity.

Independent Directors’ Meeting:

IntermsoftheprovisionsoftheActandListingRegulations,separatemeetingoftheIndependentDirectorswasheldonNovember05,2018without thepresenceof theNon-IndependentDirectorsandMembersof theManagement.At thesaidmeeting theIndependentDirectors:

- reviewedtheperformanceoftheNon-IndependentDirectorsandtheBoardasawhole;

- reviewedtheperformanceoftheChairmanoftheBoard,takingintoaccounttheviewsoftheExecutiveandNon-ExecutiveDirectors;

- assessedthequality,quantityandtimelinesofflowofinformationbetweentheCompany’smanagementandtheBoardtoeffectivelyandreasonablyperformtheirduties.

All the independentDirectorsof theCompanyattendedthesaid IndependentDirectors’Meeting.The IndependentDirectorsexpressedtheirsatisfactiontothedesiredlevelonthegovernanceoftheBoard.

b) Board Procedure and Meetings:

TheBoardmeetsatregularintervalstodiscussanddecideonbusinessstrategies/policiesandreviewthefinancialperformanceoftheCompanyanditssubsidiaries.

TheagendafortheBoardMeetingsbroadlycoverstheinformationrequiredasenumeratedinRegulation17(7)readwithPartAofScheduleIIoftheListingRegulations.TheCompanySecretaryunderthedirectionoftheChairmanandinconsultationwiththeWhole-timeDirectorandtheChiefFinancialOfficerpreparesthedetailedagendaforthemeetings.ThenoticeanddetailedagendaalongwiththerelevantnotesandothermaterialinformationaresentinadvancetoeachDirectorandinexceptionalcasestabledattheMeetingfortheapprovaloftheBoard.ThisensurestimelyandinformeddecisionsbytheBoard.Minimumfourpre-scheduledBoardMeetingsareheldeveryyear(onemeetingineverycalendarquarter).Additionalmeetingsareheldtoaddressspecificneeds,oftheCompany,ifany.



The Company Secretary attends the BoardMeetings and advises the Board on the Compliances, with applicable laws andgovernance. Further, the important decisions taken at the Board/CommitteeMeetings are communicated to the concerneddepartments.

TheBoardofDirectorshavebeenentrustedwiththedutiesasenumeratedinListingRegulations,Section166oftheActandScheduleIVofthesaidActThereisacleardemarcationofresponsibilityandauthorityamongsttheBoardofDirectors.

During thefinancialyear2018-19, theBoardofDirectorsmetFive (5) times. i.e.April19,2018,May28,2018,July30,2018,November05,2018andFebruary05,2019.Themaximumgapbetweenanytwoconsecutivemeetingswaslessthanonehundredandtwentydays,asstipulatedunderSection173(1)oftheAct,andRegulation17(2)oftheListingRegulationsandtheSecretarialStandardsissuedbyInstituteofCompanySecretariesofIndia.ThePreviousAnnualGeneralMeetingoftheCompanywasheldonSeptember03,2018.

The following table gives the details of attendance of the Directors of the Company in the Board Meetings and General Meeting held during the reporting period:

Name of Directors No. of Board Meetings Attended

Attended Previous Annual General Meeting

Mr.NitinShah 5 YesMr.PrakashShah 5 YesMr.PareshShah* 2 YesMs.ShubhadaJahagirdar$ 5 YesDr.ShrikantParikh$ 5 YesProf.VenugopalIyengar$ 4 YesMr.NehalShah** 2 Yes

*Mr. Paresh Shah resigned from the Directorship of the Company w.e.f. May 28, 2018 **Mr Nehal Shah was appointed as the Director of the Company w.e.f. July 30, 2018. $The first term of the Independent Director’s ended on March 31, 2019. The Independent Directors have been re-appointed for another

term of five years w.e.f. April 01, 2019 to March 31, 2024 with the approval of the Shareholders of the Company through Postal Ballot.

c) Relationship between the Directors inter-se:

Mr.NitinShah,Chairman&ManagingDirector,Mr.PrakashShah,Whole-timeDirectoroftheCompanyarerelatedtoeachotherastheyarebrothersandMr.NehalShah,Director issonofMr.NitinShah,Chairman&ManagingDirectorandrelativeofMr.PrakashShah,Whole-timeDirector.NoneoftheDirectorsotherthantheabove-mentionedDirectorsarerelatedtoeachother.

d) Number of shares and convertible instruments held by Non-Executive Directors:

NoneoftheNon-ExecutiveDirectorsoftheCompanyholdanysharesandconvertibleinstrumentsintheCompany.

e) Familiarization programme imparted to Independent Directors:

TheDirectorsareapprisedregardingtheirrolesandresponsibilitiespursuanttotheprovisionsoftheActandListingRegulationsandotherstatutes,asapplicabletotheCompany.

All Independent Directors are made aware about the new projects to be undertaken by the Company and about various

departments of the Company and their functioning. Further, IndependentDirectors are briefed regarding the operations ofvariousdepartmentsunderrespectivefunctionalheads.InadditiontheChairmanandManagingDirectorregularlyhaveoneononediscussionwiththeIndependentDirectorstofamiliarizethemwiththebusinessoperations.

ThedetailsofsuchfamiliarizationprogrammeforIndependentDirectorsarepostedonthewebsiteoftheCompanyandtheweblinkforthesameisasbelow:

https://www.allieddigital.net/in/downloads/Inv_Policies/Familiarisation_Programme_Independent_Directors.pdf



f) Risk Management:

TheriskframeworkisaimedateffectivelymitigatingtheCompany’svariousbusinessandoperationalrisks,throughstrategicactions. Riskmanagement is an integral part of critical business activities, functions andprocesses. The risks are reviewedperiodicallyforthechangeinnatureandextentofthemajorrisksidentifiedsincethelastassessment.Systematicandproactiveidentificationof risksandmitigation thereofenableseffectiveorquickdecisionmakingandboosts theperformanceof theorganisation.

COMMITTEES OF THE BOARD:

TheCommitteesappointedby theBoard focusonspecificareasand take informeddecisionswithin the frameworkofdelegatedauthority,andmakespecificrecommendationstotheBoardonmattersintheirareasorpurview.AlldecisionsandrecommendationsoftheCommitteesareplacedbeforetheBoardforinformationorforapproval.ToenablebetterandmorefocusedattentionontheaffairsoftheCompany,theboarddelegatesspecificmatterstotheCommitteesoftheBoardsetupforthatpurpose.EachCommitteeexceptManagementCommitteeisguidedbytheprovisionsoftheActandListingRegulations,whichdefinesthescope,powersandcompositionoftheCommittee.TheminutesoftheCommitteeMeetingsareplacedbeforetheBoardfornoting.

The Company has the following Committees, namely:

i. AuditCommittee;ii. NominationandRemunerationCommittee;iii. StakeholdersRelationshipCommittee;iv. CorporateSocialResponsibilityCommitteeandv. ManagementCommittee.

AUDIT COMMITTEE:

a) Brief Description:

TheprimarytaskoftheAuditCommitteeistooverseetherelationshipwithexternalauditorstoensurethequalityoftheCompany’sfinancialstatements.TheAuditCommittee’sroleincludesmakingrecommendationsontheappointmentandreappointmentoftheexternalauditors,theirremuneration,andtheirtermsofengagement.TheCommitteealsonotestheprocessesandsafeguardsemployedbyeachofthem.TheAuditCommitteeisoftenanintegralpartoftheCompany’sriskmanagementandinternalcontrolsystems.TheCommitteeoverseastheworkcarriedoutinthefinancialreportingprocessbytheManagement,theAuditorsandtheBoard.

TheChiefFinancialOfficeristhepermanentinviteetotheAuditCommittee.TheCompanySecretaryactsastheSecretarytotheCommittee.TheStatutoryAuditors,theInternalAuditorsandExecutivesoftheCompanyarealsoinvitedtotheAuditCommitteeMeetings,wheneverrequired.

b) Terms of reference:

ThetermofreferenceoftheAuditCommitteehasbeenreviewedbytheBoardofDirectorsatitsmeetingheldonFebruary05,2019duetoImplementationofamendmentstotheListingRegulations.ThetermsofreferenceoftheAuditCommittee,inter-alia,areasfollows:

i. OversightoftheCompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible;

ii. Recommending to the Board, the appointment, re-appointment, terms of appointment and if required, thereplacementorremovaloftheauditorsandfixationofauditfees;

iii. Approvalofpaymenttostatutoryauditorsforanyothernon-auditservicesrenderedbythestatutoryauditors;

iv. Reviewingwiththemanagement,thequarterly/annualStandaloneandConsolidatedfinancialresult/statementsandauditor’sreportthereonbeforesubmissiontotheBoardforapproval,withparticularreferenceto:



a. MatterstobespecifiedintheDirectors’ResponsibilityStatementtobeincludedintheBoard’sreportintermsofclause(c)ofsub-section3ofSection134oftheCompaniesAct,2013;

b. Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame;

c. Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement;

d. Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings;

e. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements;

f. Disclosureofanyrelatedpartytransactions;

g. Modifiedopinion(s)inthedraftauditreport;

v. Reviewing,withthemanagement,thequarterlyfinancialstatementsbeforesubmissiontotheboardforapproval;

vi. Reviewing,withthemanagement,thestatementofuses/applicationoffundsraisedthroughanissue(publicissue,rightsissue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument / prospectus / notice and the report submittedby themonitoringagencymonitoring theutilizationofproceedsofapublicorrightsissue,andmakingappropriaterecommendationstotheBoardtotakeupstepsinthismatter;

vii. Reviewandmonitortheauditor’sindependenceandperformance,andeffectivenessofauditprocess;

viii. Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties;

ix. Scrutinyofinter-corporateloansandinvestments;

x. ValuationofundertakingsorassetsoftheCompany,whereveritisnecessary;

xi. Evaluationofinternalfinancialcontrolsandriskmanagementsystems;

xii. Reviewing,withthemanagement,performanceofstatutoryandinternalauditors,adequacyoftheinternalcontrolsystems;

xiii. Reviewingtheadequacyofinternalauditfunction,ifany,includingthestructureoftheinternalauditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit;

xiv. Discussionwithinternalauditorsofanysignificantfindingsandfollowupthereon;

xv. Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard;

xvi. Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;

xvii. Tolookintothereasonsforsubstantialdefaultsinthepaymenttothedepositors,debentureholders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;

xviii.ToreviewthefunctioningoftheWhistleBlowermechanism;

xix. ApprovalofappointmentofCFO(i.e.,thewhole-timeFinanceDirectororanyotherpersonheadingthefinancefunctionordischargingthatfunction)afterassessingthequalifications,experienceandbackground,etc.ofthecandidate;



xx. Carryingoutanyotherfunctionasismentionedinthetermsofreferenceoftheauditcommittee

xxi. Reviewing the utilization of loans and/or advances from/ investment by the holding company in the subsidiaryexceedingrupees100croresor10%oftheassetsizeofthesubsidiary,whicheverislowerincludingexistingloans/advances/investments

The Audit Committee shall mandatorily review the following information:

i. ManagementDiscussionandAnalysisoffinancialconditionandresultsofoperations;

ii. Statementofsignificantrelatedpartytransactions(asdefinedbytheAuditCommittee),submittedbymanagement;

iii. Managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors;

iv. Internalauditreportsrelatingtointernalcontrolweaknesses;and

v. Theappointment,removalandtermsofremunerationoftheChiefinternalauditorshallbesubjecttoreviewbytheAuditCommittee.

vi. Statementofdeviations:

a. quarterly statement of deviation(s) including report ofmonitoring agency, if applicable, submitted to stockexchange(s)intermsofRegulation32(1).

b. annualstatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeintermsofRegulation32(7).

c) Composition of the Committee:

ThecompositionoftheAuditCommitteeoftheCompanyisinaccordancewiththeprovisionsofSection177oftheActandintermswithRegulation18ofListingRegulations.AllmembersoftheAuditCommitteearefinanciallyliterateandbringinexpertiseinthefieldsofFinance,Taxation,RiskandInternationalFinance.TheAuditCommitteecomprisesofthree(3)membersoutofwhichtwo(2)areIndependentDirectorsandone(1)ExecutiveDirectoroftheCompany.

Four (4) meetingsoftheAuditCommitteewereheldduringthefinancialyear.ThesewereheldonMay28,2018,July30,2018,November05,2018andFebruary05,2019.Theattendanceateachcommitteememberwasunder:

Sr. No. Name of Members Designation Category of Director

No. of meetings held during the

year

No. of meetings attended

1. Dr.ShrikantParikh Chairman Non-Executive,IndependentDirector

4 4

2. Prof.VenugopalIyengar Member Non-ExecutiveIndependentDirector

4 4

3. Mr.PrakashShah Member Whole-timeDirector(Executive) 4 4

AlltherecommendationsoftheAuditCommitteehavebeenacceptedbytheBoardofDirectors.TheChairmanoftheAuditCommitteewaspresentattheAnnualGeneralMeetingoftheCompanyheldonSeptember03,2018.

NOMINATION & REMUNERATION COMMITTEE (‘NR COMMITTEE’):


TheprimaryroleoftheNRCommitteeistoassisttheBoardbyidentifyingprospectivedirectors/keymanagerialpersonnelandmakerecommendationsonappointmentstotheBoardandtheSeniormost levelofExecutiveManagementbelow



theBoardalongwithdevisingapolicyforremunerationpayabletothem.TheNRCommittee isresponsibleformakingrecommendationsonBoardappointmentsandonmaintainingabalanceof skillsandexperienceon theBoardand itsCommittees.


ThetermofreferenceoftheNRCommitteehasbeenreviewedbytheBoardofDirectorsatitsmeetingheldonFebruary05,2019duetoImplementationofamendmentstotheListingRegulations.ThepurposeandresponsibilitiesoftheCommitteeshallincludemattersasprescribedunderapplicablelaworbytheBoardincompliancewithapplicablelawfromtimetotime,whichinter-aliaincludesthefollowing:

i. Formulationof the criteria for determiningqualifications, positive attributes and independenceof a director andrecommendtotheBoardofDirectorsaPolicy,relatingtotheremunerationofthedirectors,keymanagerialpersonnelandotheremployees;

ii. FormationofcriteriaforevaluationofperformanceofIndependentdirectorsandtheBoardofDirectors;

iii. DevisingaPolicyondiversityofBoardofDirectors;

iv. Identifyingpersonswhoarequalifiedtobecomedirectorsandwhomaybeappointed inseniormanagementandrecommendtotheBoardtheirappointmentandremovalandshallcarryoutevaluationofeverydirector’sperformance;

v. Whethertoextendorcontinuethetermsofappointmentoftheindependentdirector,onthebasisofthereportofperformanceevaluationofindependentdirectors.

vi. RecommendtotheBoard,allremuneration,inwhateverform,payabletoseniormanagement.


ThecompositionoftheNRCommitteeoftheCompanyisinaccordancewiththeprovisionsofSection178oftheActandintermswithRegulation19ofListingRegulations.TheNRCommitteecomprisesofthree(3)IndependentDirectorsoftheCompany.

One (1) meetingof theNRCommitteewereheldduringthefinancialyear2018-2019. ItwasheldonJuly30,2018.The

CompanySecretaryactsastheSecretarytotheCommittee.TheChairmanoftheNRCommitteewaspresentattheAnnualGeneralMeetingoftheCompany.Theattendanceofeachcommitteememberatthemeetingswasunder:



year


1. Dr.ShrikantParikh Chairman Non-Executive,IndependentDirector

1 1

2. Prof.VenugopalIyengar Member Non-Executive,IndependentDirector

1 1

3. Ms.ShubhadaJahagirdar Member Non-Executive,IndependentDirector

1 1

d) Performance Evaluation Criteria for Independent Directors:

OneofthekeyfunctionsoftheBoardistomonitorandreviewtheBoardEvaluationframework.TheBoardworkswiththeNRCommitteetolaydowntheevaluationcriteriafortheperformanceoftheChairman,theBoard,CommitteesandExecutive/Non-Executive/IndependentDirectorsthroughapeerevaluationexcludingDirectorbeingevaluated.

IndependentDirectorshave threekey roles i.e.governance,controlandguidance.Someof theperformance indicatorsbasedonwhichtheindependentindicatorsareevaluatedinclude:



- Possessionofsufficientskills,experienceandlevelofpreparednesswhichallowsthepersontoclearlyaddvaluetodiscussionsanddecisions;

- AttendanceandactivecontributiontoallBoarddebatesanddiscussions;

- CollaborationandencouragementofhealthydiscussionamongBoardmembers;and

- RaisingofvalidconcernstotheBoardandconstructivecontributiontoresolutionofissuesatmeetings

ToimprovetheeffectivenessoftheBoardanditsCommitteesaswellasindividualDirectors,aformalandrigorousBoardreview/evaluationisinternallyundertakenonanannualbasis.Forthefinancialyear2018-19,theprocesstooktheformofquestionnaires followedbystructured reviewwith IndependentandExecutiveDirectors,Boardof theCompanyandCommitteesoftheBoard.FurtheralltheDirectorsexpressedtheirsatisfactionwiththeevaluationprocess.

e) Disclosure of Remuneration paid to Director:

• There are no pecuniary relationship or transactions of the Non-Executive Director’s vis-a-vis the Company.

• The criteria for making payments to Executive Directors of the Company are as under:

TheremunerationoftheExecutiveDirectorsisdeterminedandrecommendedbytheNRCommitteetotheBoard.TheBoardconsidersandifitisdeemedfit,approvestherecommendationofNRCommitteesubjecttotheapprovalofthemembersoftheCompany.

Mr.NitinShah,ChairmanandManagingDirectorandMr.PrakashShah,Whole-timeDirector,wereappointedw.e.f.April 01, 2016, Mr. Nehal Shah, Executive Directorwas appointedw.e.f. July 30, 2018 andMr. Paresh Shah, ChiefExecutiveOfficer(CEO)wasappointedw.e.f.November05,2016.

• Details of remuneration paid to Executive Directors for the year ended March 31, 2019 are as under:

Name of the Executive Directors

Designation

Remuneration during 2018-19All Elements of remuneration

package i.e. salary, allowances and

other benefits, etc.

Fixed Component and performance linked incentives

along with the performance criteria

Service Contract,

Notice Period, severance fees

Stock Options details, if any

Mr.NitinShah Chairman&ManagingDirector

`75.11lakhsReferNotea)

Nil ReferNoteb) Nil

Mr.PrakashShah Whole-timeDirector `38.52lakhsReferNotea)

Nil ReferNoteb) Nil

Mr.PareshShah* Director/ChiefExecutiveOfficer

`11.96lakhsReferNotea)

Nil ReferNoteb)and c)

Nil

Mr.NehalShah$ Director `4.82lakhsReferNotea)

Nil ReferNoteb)and c)

Nil

* Mr. Paresh Shah resigned from the Directorship from the Board of the Company w.e.f. May 28, 2018, however he continues to be Chief Executive Officer of the Company. $ Mr. Nehal Shah was appointed as an Executive Director of the Company w.e.f. July 30, 2018.

a) The amount includes perquisite includes allowances in respect of rent-free furnished accommodation owned, leased or rented by the Company or House Rent Allowances in lieu thereof, repairs and maintenance of accommodation including furniture, fixtures and furnishings and provision of gas, electricity and water, medical reimbursement, health insurance premium, group personal accident insurance, telephone facility at residence, mobile phone, leave travel concession, for himself and his family, education of self and family, fees for two clubs, fees for two credit cards, Company’s car with a driver and maintenance, and any other reimbursements, allowances or perquisites in terms of the Company’s Rules.



b) The tenure of Managing Director and Whole-time Director is for 5 years from their respective date of appointment and can be terminated by six months’ notice on either side. No severance fees is payable to the Managing Director or Whole-time Director.

c) Mr. Nehal Shah, Executive Director and Mr. Paresh Shah, Chief Executive Officer can be terminated by six months’ notice on either side.

• The details and criteria for making payments to Non-Executive Directors of the Company are as under:

Non-ExecutiveDirectorsarepaidremunerationbywayofsittingfeesforattendingtheBoardandCommitteemeetings.ThedetailsofthesittingfeespaidtotheNon-ExecutiveDirectorsforthefinancialyearendedMarch31,2019areasunder:

Name of the Non-Executive Director Sitting Fees paid for the F.Y. 2018-19Prof.VenugopalIyengar `120,000Dr.ShrikantParikh `145,000Ms.ShubhadaJahagirdar `95,000

STAKEHOLDERS RELATIONSHIP COMMITTEE:


TheprimaryobjectiveStakeholdersRelationshipCommitteeoftheCompanyisreviewandredressstakeholdersgrievancelike transfer of shares, non-receipt of Annual report, non-receipt of declared dividends etc and to oversee the variousaspectsoftheinterestofthestakeholders.


ThetermofreferenceoftheStakeholdersRelationshipCommitteehasbeenreviewedbytheBoardofDirectorsatitsmeetingheldonFebruary05,2019,duetoImplementationofamendmentstotheListingRegulations.ThetermsofreferenceoftheStakeholdersRelationshipCommitteeaspertheapplicablelawsareasfollows:

i. ResolvingthegrievancesofthesecurityholdersoftheCompanyincludingcomplaintsrelatedtotransfer/transmissionofshares,non-receiptofannualreport,non-receiptofdeclareddividends,issueofnew/duplicatecertificates,generalmeetingsetc.;

ii. Reviewofmeasurestakenforeffectiveexerciseofvotingrightsbyshareholders;

iii. ReviewofadherencetotheservicestandardsadoptedbytheCompanyinrespectofvariousservicesbeingrenderedbytheRegistrar&ShareTransferAgent;

iv. Reviewof the variousmeasures and initiatives takenby the listed entity for reducing the quantumof unclaimeddividendsandensuringtimelyreceiptofdividendwarrants/annualreports/statutorynoticesbytheshareholdersoftheCompany.


AsonMarch31,2019,theStakeholders’RelationshipCommitteecomprisesoftwo(2)IndependentDirectorsandone(1)ExecutiveDirector.

One (1) meetingoftheStakeholders’RelationshipCommitteewasheldduringthefinancialyear2018-2019i.e.February12,2018.Prof.VenugopalIyengar,Non-ExecutiveIndependentDirectorisheadingtheCommitteeandMs.NehaSunilBagla,CompanySecretaryactsastheSecretarytotheCommittee.TheChairmanoftheStakeholdersRelationshipCommitteewaspresentattheAnnualGeneralMeetingoftheCompany.Theattendanceofeachcommitteememberwasunder:





year


1. Prof.VenugopalIyengar Chairman Non-Executive,IndependentDirector

1 1

2. Dr.ShrikantParikh Member Non-Executive,IndependentDirector

1 1

3. Mr.PrakashShah Member Whole-timeDirector(Executive) 1 1

d) Compliance Officer:

TheComplianceOfficerbriefstheCommitteeonthegrievances/queriesoftheinvestorsreceivedandthestepstakenbytheCompanyforredressingthesaidgrievances.

DetailsofComplianceOfficerasperListingRegulationsareasfollows:

Cs. Neha Sunil Bagla Company Secretary & Compliance Officer PremisesNo.13A,13thFloor,EarnestHouse, NCPARoad,BlockIII,NarimanPoint Mumbai–400021 Tel :+912266816400 Fax :+912222064170 Email:[email protected]

e) Investor’s/ Shareholders’ Grievance Redressal:

TheCompanyhasalwaysvalueditsStakeholdersrelationships.Accordingly,continuouseffortsaremadetoensurethatgrievancesaremoreexpeditiouslyredressedtothecompletesatisfactionoftheinvestors.Duringthefinancialyearunderreview,thecomplaintsandqueriesreceivedfromtheshareholdersweregeneralinnatureandweremainlypertainingtothenon-receiptofannualreport.Allthecomplaintswereresolvedtothesatisfactionoftheinvestors.

TheStatusoftheInvestorsComplaintsasonMarch31,2019isasfollows:

Source of Complaint No. of Complaints received

No. of Complaints resolved

Not resolved to the satisfaction of

shareholders

No. of Complaints Pending

Directly from Investors (AnnualReportrelated/others)

12 12 0 0

ThroughSEBI,StockExchanges. 0 0 0 0Total 12 12 0 0

To redress theshareholdersgrievances, thecompanyhasadedicatedEmail Id i.e. [email protected] towhichinvestorsmaysendcomplaints.

• MANAGEMENT COMMITTEE:


The Management Committee was constituted by the Board on April 28, 2009. The Committee is entrusted with theoperationalandadministrativepower.TheCommitteecomprisesofthree(3)Membersi.e.Mr.NitinShah,ChairmanandManagingDirector,Mr.PrakashShah,Whole-timeDirectorandMr.PareshShah,ChiefExecutiveOfficeroftheCompany.



b) Meeting of the Management Committee:

Duringthefinancialyear2018-19,one (1)ManagementCommitteeMeetingwasheldonMay16,2018.

c) Terms of reference of the Committee, inter alia, includes the following:

i. ToborrowmoniesnotexceedingspecifiedsumorsuchotheramountasmaybeauthorizedbytheShareholdersattheGeneralMeeting,togetherwiththemoniesalreadyborrowedbytheCompany,(apartfromtemporaryloansobtainedfromtheCompany’sBankersintheordinarycourseofbusiness)fromFinancialInstitutions/Banksandothersfromtimetotime;

ii. ToauthorizeEmployeesoftheCompanyforpurchasewhetheronhirepurchaseorotherwiseorsaleofvehicle;

iii. ToopenBankAccountsandtoauthorizeDirectors/AuthorizedSignatoriestooperatethesaidBankAccounts;

iv. Towithdraw/changetheauthoritytooperateanyoftheCompany’sBankAccount;

v. ToappointattorneyforandonbehalfoftheCompanyforspecific/generalpurposes;

vi. ToauthorizeCompanyExecutives to represent theCompanyand signandexecuteall thedocumentsandpapersrelated to the Central Government, State Government, Local Authority or any other authority in relation to thebusinessoftheCompany;

vii. Totakepremisesonleaveandlicense/leasetobeusedasoffice/store/godownofthecompanyorforthepurposeofresidenceofemployeesorforanyotherpurpose;

viii. To grant authority for opening Branches/Godowns at different places in the country or abroad subject to suchpermissionasmayberequiredfromdifferentauthorities;

ix. ToauthorizeCompanyExecutivesforobtainingTelephone/ElectricityconnectionsorotherpermissionsinthenameoftheCompany;

x. Todecideonfilingrecoveryonsuitsagainstdistributors/dealers/customersandtoauthorizecompany’sexecutivestoprosecutethesame;

xi. Tofilecriminalproceedingsagainstthosemisusingthecompany’srightsundertheDesign,Patents,TrademarksandCopyrightLaws,ifany;

xii. Toauthorizecompany’sexecutivestodefendcivilsuitsfiledbythirdpartiesagainstthecompany;

xiii. Othergeneralday-to-dayaffairsoftheCompany.

• CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE:


TheCSRCommittee’sprimeresponsibilityistoassisttheBoardindischargingitssocialresponsibilitiesbyformulatingandmonitoringimplementationoftheframeworkof‘CorporateSocialResponsibilityPolicy’.


ThetermsofreferenceoftheCSRCommitteeareasunder:

i. Formulateand recommend to theBoard,aCSRPolicywhich shall indicate theactivities tobeundertakenby theCompanyasspecifiedinscheduleVIIoftheCompaniesAct,2013;



ii. RecommendtheamountofexpendituretobeincurredonactivitiesreferredundertheCSRPolicy;

iii. InstituteatransparentmonitoringmechanismforimplementationofCSRprojectsorprogramsoractivitiesundertakenbytheCompany;

iv. MonitortheCSRpolicyfromtimetotime;

v. SuchotheractivitiesastheBoardofDirectorsdetermineastheymaydeemfitinlinewiththeCSRPolicy.


In compliance with the requirement of Section 135 of the Companies Act, 2013, the Company has constituted a CSRCommitteeconsistingofthree (3)Directorsoutofwhichtwo (2)DirectorsareIndependentDirectorsandone (1)ExecutiveDirector.TheCompanySecretaryactsastheSecretarytothesaidCommittee.

Duringtheyearunderreview,One (1)meetingofCSRCommitteewasheldonFebruary05,2019.ThedetailedcompositionandattendanceoftheCSRCommitteeisgivenbelow:



year


1. Ms.ShubhadaJahagirdar Chairperson Non-Executive&IndependentDirector

1 1

2. Dr.ShrikantParikh Member Non-Executive&IndependentDirector

1 1

3. Mr.PrakashShah Member Whole-timeDirector,(Executive) 1 1

TheCompanyhasalreadyspentRs.6.60LakhsonCSRactivitiesasagainsttherequiredamountofRs.8.41Lakhsandthebalanceamountshallbespentinduecourse.

2. GENERAL BODY MEETINGS:

DetailsofAnnualGeneralMeetingsheldinlastthree(3)yearsalongwithSpecialResolutionspassedthereatareasfollows:

Financial Year Day, Date, Time and Venue of AGM Particulars of Special Resolution(s)2017-18 Day and Date

Monday,September03,2018Time04:00P.M.Venue:WalchandHirachandHall,4thFloor,IMCBuilding, Indian Merchant ChamberMarg,Churchgate,Mumbai–400020

1. Approval for revision in Remuneration of Mr. Nitin Shah,ChairmanandManagingDirectoroftheCompany;

2. Approval for revision in Remuneration of Mr. Prakash Shah,Whole-timeDirectoroftheCompany;

3. ToappointMr.NehalShah(DIN:02766841)astheDirectoroftheCompany;

4. Tomortgage,pledge,hypothecateorcharge,inadditiontotheexistingmortgages,hypothecationsandchargescreated/tobecreated by the Company pursuant to Section 180(1)(a) of theCompaniesAct,2013;

5. Toborrowmoney togetherwith themoneyalreadyborrowedup to ` 10,000,000,000 pursuant to Section 180(1)(c) of theCompaniesAct,2013;and

6. TomakeinvestmentspursuanttoSection186oftheCompaniesAct,2013



Financial Year Day, Date, Time and Venue of AGM Particulars of Special Resolution(s)2016-17 Day and Date

Wednesday,September20,2017Time04:00P.M.Venue:WalchandHirachandHall,4thFloor,IMCBuilding, Indian Merchant ChamberMarg,Churchgate,Mumbai–400020

To appoint Mr. Paresh Shah (DIN: 05117129) as an ExecutiveDirectorandChiefExecutiveOfficerof theCompany foraperiodofthreeyears.

2015-16 Day and DateMonday,September26,2016Time04:00P.M.Venue:WalchandHirachandHall,4thFloor,IMCBuilding, Indian Merchant ChamberMarg,Churchgate,Mumbai–400020

1. To re-appoint Mr. Nitin Shah (DIN: 00189903) as ManagingDirectoroftheCompanyforaperiodoffiveyears;

2. Tore-appointMr.PrakashShah(DIN:00189842)asWhole-timeDirectoroftheCompanyforaperiodoffiveyears;

3. To make application to the Central Government for waiverof excess Managerial remuneration paid to Mr. Nitin Shah,ManagingDirectorandMr.PrakashShah,Whole-timeDirectorandtoMr.PareshShah,Whole-timeDirectoroftheCompanyfortheF.Y.2012-13,F.Y.2014-15andF.Y.2015-16.

Duringtheyearunderreview,NoExtra-OrdinaryGeneralMeeting(“EGM”)oftheShareholderswasheld.

Postal Ballot

Duringtheyearunderreview,theCompanycommencedprocessofseekingapprovalofshareholdersthroughPostalBallotasperprovisionsofSection110oftheCompaniesAct,2013andthesaidprocesswascompletedonMay02,2019.Mr.HimanshuS.Kamdar,PartnerofM/s.Rathi&Associates,PracticingCompanySecretarywasappointedastheScrutinizerforconductingPostalBallotinafairandtransparentmanner.Thevotingwasconductedthroughphysicalmodeaswellaselectronicmode.TheCompanyhadengaged the servicesofCDSL toprovidee-Voting facility to itsMembers.ThenoticeofPostalBallotwasaccompaniedwithdetailedinstructionstoenablethememberstounderstandtheprocedureandmannerinwhichPostalBallotvoting(includingremotee-voting)tobecarriedout.Thevotingresult,alongwiththeScrutinizersReport,wasdisplayedonthewebsiteoftheCompanyi.e.www.allieddigital.net.ThesaidResolutionswereapprovedwithrequisitemajority.ThedetailsofresultsofthePostalBallotare:

Date of Postal Ballot Notice:March22,2019;Date of Declaration of Results:May02,2019. Voting Period:April01,2019toApril30,2019;

Particulars No. of Votes Casted

No. of Votes Invalid

Votes in favour No. of Votes againstNo. of Votes Percentage

(%)No. of Votes Percentage

(%)Special Resolution: Re-appointment of Dr. ShrikantNavnitlal Parikh (DIN: 01735830)as an Independent Director of theCompany, for continuous periodof five years to hold office upto 31st March,2024.

20,428,725 1,006 20,426,294 99.99 1,425 0.01

Special Resolution: Re-appointment of Prof. VenugopalRamaswami lyengar (DIN: 02591297)as an Independent Director of theCompany, for continuous periodof five years to hold office upto 31st March,2024.

20,428,725 1,006 20,426,224 99.99 1,495 0.01



Particulars No. of Votes Casted

No. of Votes Invalid

Votes in favour No. of Votes againstNo. of Votes Percentage

(%)No. of Votes Percentage

(%)Special Resolution: Re-appointment of Ms. ShubhadaKeshav Jahagirdar (DIN: 00895950)as an Independent Director of theCompany, for continuous periodof five years to hold office upto 31st March,2024.

20,428,725 1,006 20,425,787 99.99 1,932 0.01

3. DISCLOSURES:

i. Related Party Transactions:

Detailsofrelatedpartytransactionsi.e.transactionsoftheCompanyofmaterialnaturewithitspromoters,theDirectorsorthekeymanagerialpersonnel,theirsubsidiariesorrelatives,etc.arepresentedintheNoteno.30(4)formingpartoffinancialstatements.Alldetailsonthefinancialandcommercialtransactions,whereDirectorsmayhaveapotential interest,areprovidedtotheBoard.TheinterestedDirectorsneitherparticipateinthediscussion,norvoteonsuchmatters.Duringtheyearunderreview,theCompanyhasnotenteredintoanytransactionofamaterialnaturewithitssubsidiaries,promoters,Directors,themanagement,seniormanagementpersonnel,theirrelatives,etc.,thatmayhaveanypotentialconflictwiththeinterestoftheCompany.

AllRelatedPartyTransactionsthatwereenteredintoduringthefinancialyearunderreviewwereonarm’slengthbasisandintheordinarycourseofbusinessandisincompliancewiththeapplicableprovisionsoftheCompaniesActandtheListingRegulations.Noneofthetransactions/contracts/arrangementswithrelatedparty(ies),werematerialinnature.

TheCompany’sPolicyonmaterialityofrelatedpartytransactionsandondealingwithrelatedpartytransactionsishostedonitswebsiteandcanbeaccessedthroughthelink:

https://www.allieddigital.net/in/downloads/Inv_Policies/Related_Party_Transaction_Policy.pdf

ii. Compliances by the Company:

TheCompanyhascompliedwiththerequirementsoftheStockExchangeswherethesecuritiesoftheCompanyarelistedi.e.BSELimited&NationalStockExchangeof IndiaLimitedandtheSecuritiesandExchangeBoardof India (SEBI)andRegulatoryAuthoritiesonallmattersrelatedtothecapitalmarketandnopenalties/strictureshavebeenimposedontheCompanyduringthelastthreeyears.

iii. Whistle Blower Policy and Access of personnel to the Audit Committee:

TheCompanyhasformulatedWhistleBlowerPolicyforvigilmechanismofDirectorsandemployeesandotherstakeholderstoreportconcernsaboutunethicalbehaviour,actualorsuspectedfraudorviolationoftheCompany’sCodeofConduct.ThemechanismprovidesforadequatesafeguardsagainstvictimizationtotheDirectors/employees/stakeholderswhousesuchmechanism.

Duringtheyearunderreview,nopersonneloftheCompanywasdeniedaccesstotheAuditCommittee.Thepolicyhasbeen

postedonthewebsiteoftheCompanyat:

https://www.allieddigital.net/in/downloads/Inv_Policies/Whistle_blower_and_vigil_mechanism.pdf

iv. Mandatory & Non-mandatory requirement:

TheCompanyhascompliedwithallthemandatoryrequirementsundertheListingRegulations.WithregardtoCorporateGovernancerequirementsspecifiedinRegulation17to27andclauses(b)to(i)ofsubRegulation(2)ofRegulation46ofListingRegulations.



- Adoptionofnon-mandatoryrequirementsasprescribedunderListingRegulations,arereviewedbytheBoardfromtimetotime.

v. Web link for policy for determining ‘material’ subsidiaries:

TheCompanyhasformulatedandadoptedaPolicyfordeterminingMaterialSubsidiaryinlinewiththerequirementsoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.ThePolicyaimstosetouttheprinciplesfordeterminingamaterialsubsidiary.ThePolicyontheMaterialSubsidiaryisavailableonthewebsiteoftheCompanyat:

https://www.allieddigital.net/in/downloads/Inv_Policies/PolicyonDeterminationofMaterialSubsidiaries.pdf.

vi. Disclosure of commodity price risks and commodity hedging activities:

TheCompanyisnotdealinginanycommoditiesandhencedisclosurerelatingtoCommoditypricerisksandcommodityhedgingactivitiesarenotrequired.

vii. Means of Communication:

Financial Results:TheCompany’squarterly/halfyearly/annuallyapprovedfinancialresultsareforthwithsenttotheStockExchanges i.e.BSELimitedandNationalStockExchangeof IndiaLimited,where thesharesof theare listedandthesamearepublishedin‘BusinessStandard’(Englishlanguage)and‘NavaKaal’(Marathilanguage)newspaperandaresimultaneouslydisplayedonitswebsitei.e.www.allieddigital.net.

Website: The Company’s corporate website i.e. www.allieddigital.net provides comprehensive information on theCompany’sportfolioofbusinesses.ThewebsitehasanentiresectiondedicatedtoCompany’sprofile,itscorevalues,visionandmission,corporategovernance,businesslinesandindustrysections.Anexclusivesectionon‘Investors’enablesthemtoaccessinformationattheirconvenience.TheAnnualReportoftheCompanyisavailableontheCompany’swebsiteinauser-friendlyanddownloadableform.

ThePressReleasesgivingananalysisoftheperformanceoftheCompanyareplacedontheCompany’swebsiteforthebenefitoftheinstitutionalinvestors,analystsandothershareholdersimmediatelyafterthefinancialresultsarecommunicatedtotheStockExchanges.TheCompanydidnotmakeanypresentationtothe institutional investorsor to theanalystsandtherefore,nodetailsofthepresentationshavebeencommunicatedtotheStockExchanges.

Intimation to the Stock Exchanges: TheCompanyintimatestheStockExchanges(i.e.BSEandNationalStockExchangeofIndiaLimitedwherethesharesoftheCompanyarelisted)allpricesensitiveinformationorsuchothermatterswhichinitsopinionarematerialandofrelevancetotheShareholdersandarerequiredtobedisclosedunderRegulation30readwithPartAofScheduleIIIoftheListingRegulations.

NSE Electronic Application Processing System: As per themandate received fromNational Stock Exchange of IndiaLimited(‘NSE’), theCompanyhasbeenuploading itsFinancial Information,ShareholdingPattern,ReportonCorporateGovernance,othermaterialevents/informationandothermandatorycompliancesonthededicatedwebsiteofNSEi.e.https://www.connect2nse.com/LISTING/.

Online Portal-BSE Corporate Compliance & Listing Centre: AsperthemandatereceivedfromBSELimited(‘BSE’),theCompanyhasbeenuploading its Financial Information, ShareholdingPattern,ReportonCorporateGovernance, othermaterialevents/informationandothermandatorycompliancesonthededicatedwebsiteofBSEi.e.http://listing.bseindia.com/login.aspx.

Designated Exclusive e-mail ID: The Company has the following designated e-mail ID: investors@allieddigital.netexclusivelyforinvestorsgrievancesandredressal.

viii. Code of Conduct:

TheCodeofBusinessConductforDirectorsandSeniorManagementPersonnel(“theCode”),asadoptedbytheBoard,isacomprehensiveCodeapplicabletoallDirectorsandSeniorManagementPersonnel.TheCodelaysdownthestandard



ofconductwhichisexpectedtobefollowedbytheDirectorsandbytheSeniorManagementPersonnelintheirbusinessdealings and in particular onmatters relating to integrity in thework place, in business practices and in dealingwithstakeholders.All theBoardofDirectorsandSeniorManagementPersonnelhaveaffirmedcompliance to theCode.TheCodehasalsobeenhostedontheCompany’swebsitei.e.www.allieddigital.net.

ix. Disclosures in relation to the Sexual harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Duringtheyearunderreview,nocomplaintshavebeenreceived/pendingpertainingtoSexualharassmentofwomenatworkplace.

x. Total fees for all services paid by the listed entity and its subsidiaries, on a consolidated basis, to the statutory auditor and all entities in the network firm/network entity of which the statutory auditor is a part.

DetailsrelatingtofeespaidtotheStatutoryAuditorsaregiveninNoteno26AtotheStandaloneFinancialStatementsandNoteno27AtotheConsolidatedFinancialStatements.

xi. As per Regulation 34(3) read with Schedule V of the Listing Regulations, the details of the shares in the Suspense Account are as follows:

Aggregate No. of Shareholders and the Outstanding Shares

in the suspense account lying at the

beginning of the year

No. of shareholders who approached the Company for transfer

of shares from suspense account

during the year

No. of shareholders to whom shares were

transferred from suspense account

during the year

Aggregate no. of shareholders and the

outstanding shares in the suspense

account lying at the end of the year

That the voting rights on these

shares shall remain frozen till the rightful owner of such shares

claims the shares1shareholderand280

EquityShares- - 1shareholderand280

EquityShares280EquityShares

4. GENERAL SHAREHOLDER INFORMATION:

A. Annual General Meeting details:

Date & Time: September 10, 2019 at 04:00 P.M.Venue: Walchand Hirachand Hall, 4th Floor, IMC Building, Indian Merchant

ChamberMarg,Churchgate,Mumbai–400020Financial Year: April1,2018toMarch31,2019Financial Calendar (Tentative): Financial Reporting for:

For the Quarter ended Tentative DateJune30,2019 ByAugust14,2019September30,2019 ByNovember14,2019December31,2019 ByFebruary14,2020March31,2020 ByMay30,2020

Book Closure date: September03,2019toSeptember10,2019(bothdaysinclusive)Registered Office of the Company: Premises No.13 A, 13th Floor, Earnest House, NCPA Road, Block III,

NarimanPointMumbai–400021.Email:[email protected];Website:www.allieddigital.net



List of Stock Exchanges where the Shares of the Company are listed:

National Stock Exchange of India Limited (NSE)(Stock Code/ Symbol: ADSL)Address:ExchangePlaza,PlotNo.C-1,BlockG,Bandra-KurlaComplex,Bandra(East),Mumbai–400051;Tel.:+91–22–26598100/8114;Fax:+91–22–26598120BSE Limited (BSE)(Stock Code/ Script Code: 532875)Address:PhirozeJeejeebhoyTowers,DalalStreet,Mumbai–400001Tel.:+91–22–22721233/4;Fax:+91–22–22721919

Listing Fees and Custodian Fees to Depositories

TheCompanyhaspaidAnnualListingfeesfortheyear2018-2019toboththeStockExchangesandtheCompanyhaspaidAnnualCustodianFeestoeachofthedepositoriesbasedonthenumberoffoliosasonMarch31,2019.

ISIN of Company’ Equity Shares: INE102I01027Corporate Identification Number(CIN): L72200MH1995PLC085488

B. Registrar and Share Transfer Agent: ForbothPhysicalandDemat(CommonRegistrar)

Link Intime India Private Limited, C-101,247Park,LBSMarg,VikhroliWest,Mumbai-400083. Tel.No.:+91-022-49186270;FaxNo.:+91-22-49186060 Email:[email protected]; Website:www.linkintime.co.in

C. Dividend:

Consideringtheworkingcapitalrequirementforthefuturebusinessesandtoconserveresources,yourboardconsidersitnottodeclaredividend,intheCompanyforthecurrentfinancialyear.

D. Share Transfer System:

TheCompanyhasaStakeholder’sRelationshipCommitteetoexamineandredresscomplaintsreceivedbyshareholdersand investors.TheStakeholder’sRelationshipCommitteemeetsasoftenas required toapprove transferof sharesandthestatusofsharetransferredtotheBoard,TransfersofdematerializedsharesaredonethroughthedepositorieswithnoinvolvementoftheCompany.

Thesharessentforphysicaltransferaregenerallyregisteredandreturnedwithinaperiodof15daysfromthedateofreceiptofrequest,subjecttodocumentsbeingvalidandcompleteinallrespects.AspertherequirementofRegulation40(9)oftheListingRegulations,theCompanyhasobtainedhalf-yearlycertificatesfromthePractisingCompanySecretaryforduecomplianceofsharetransferformalitiesandhasalsofiledthesamewiththeStockExchanges.

E. Distribution of Share Holding as on March 31, 2019:

Equity Shares slabsShareholders Shares

Number Percentage (%) Number Percentage (%)1-500 17246 79.1718 2410446 4.8012501-1000 1991 9.1402 1679615 3.32641001-2000 1078 4.9488 1670036 3.32642001-3000 444 2.0383 1139285 2.26923001-4000 212 0.9732 762767 1.5193



Equity Shares slabsShareholders Shares

Number Percentage (%) Number Percentage (%)4001-5000 199 0.9136 94226 1.88875001-10000 305 1.4002 2293357 4.5679>10001 308 1.4139 39301796 78.2818TOTAL 21783 100 50205528 100

F. Category wise Shareholding as at March 31, 2019:

Category No. of Shares Held

Percentage to total Number of Shares (%)

Promoters,Directors&PromoterGroup 24216368 48.23PersonActinginConcert 408212 0.81ForeignPortfolioInvestors 20000 0.04ForeignInstitutionalInvestor 0 0.00Individual(Public) 18819977 37.49Overseascorporatebodies 0 0.00ForeignIndividualsorNRI 2508169 5.00Anyother 4232802 8.43Total 50205528 100

G. Dematerialization of Shares:

AsonMarch31,2019,44,646,621equitysharesrepresenting88.93%ofthetotalequitysharecapitaloftheCompanywereheldindematerialisedformwithNationalSecuritiesDepositoryLimited(‘NSDL’)andCentralDepositoryServices(India)Limited(‘CDSL’).Thebreak-upofequitysharesheldinphysicalanddematerializedformasofMarch31,2019isgivenbelow.



Particulars No. of Shares Percentage (%)PhysicalShares 15,40,106 3.07*EquitySharesallottedtopromoters 40,18,801 08.00HeldindematerialisedforminCDSL 96,58,330 19.24HeldindematerialisedforminNSDL 3,49,88,291 69.69Total 5,02,05,528 100

*40,18,801 Equity shares are allotted in dematerialised form to Mr. Nitin Shah & Mr. Prakash Shah, Promoters of the Company pursuant to conversion of warrants for which an application for listing was made to the stock exchanges and the listing approval is received from BSE Limited on June 05,2017 and approval for Mr. Nitin Shah is received from NSE on December 18, 2018. The Company is yet to receive Listing Approval for shares allotted to Mr. Prakash Shah from National Stock Exchange of India Limited.

H. Outstanding Global Depository receipt (GDRs)/American Depository Receipt (ADRs) /Warrants or any Convertible Instruments, conversion date, likely impact on equity:

TherearenoGDRs/ADRs/WarrantsoranyConvertible Instrumentspendingconversionoranyother instrumentlikelyto

impacttheequitysharecapitaloftheCompany.

I. Plant Location:TheCompanyisintoprovidingITserviceonlyhencedoesnothaveanyplant.

J. E-mail Id for Investor’s Grievances:

TheCompanyhasdesignatedseparatee-mailIdfortheInvestorGrievanceandRedressalandtoimprovethequalityoftheservicestotheinvestor.Thee-mailaddressforInvestorGrievance:[email protected].

K. Address for Correspondence:

Foranyotherqueryrelatingtoshares: Forgeneralcorrespondence:

Link Intime India Private Limited Company SecretaryC-101,247Park,LBSMarg, Allied Digital Services Limited, VikhroliWest,Mumbai-400083. PremisesNo.13A,13thFloor,EarnestHouse,Tele:+912249186270 NCPARoad,BlockIII,NarimanPointMumbai–400021Fax:+912249186060 Tel:+912266816400E-mail:[email protected] Fax:+912222064170Website:www.linkintime.co.in Email:[email protected]

L. Market information:

MonthlyhighandlowpricesoftheCompany’sEquitySharesandperformanceincomparisontoBSESensexandNSENiftyfromApril01,2018toMarch31,2019arenotedhereinbelow:

MonthADSL on BSE SENSEX

VolumeADSL on NSE S & P CNX Nifty

VolumeHigh Low High Low High Low High Low

Apr-18 25.50 19.85 35213.3 32972.56 213242 25.40 20.05 10759 10111.3 780277May-18 22.15 16.05 35993.53 34302.89 19373 22.00 16.05 10929.2 10417.8 518235Jun-18 20.15 15.00 35877.41 34784.68 187053 19.80 15.05 10893.25 10550.9 557457Jul-18 18.90 13.65 37644.59 35106.57 104916 19.00 13.55 11366 10604.65 614135Aug-18 16.50 13.65 38989.65 37128.99 87798 16.50 13.95 11760.2 11234.95 345148Sep-18 17.35 12.55 38934.35 35985.63 129992 17.80 12.30 11751.8 10850.3 866758



MonthADSL on BSE SENSEX

VolumeADSL on NSE S & P CNX Nifty

VolumeHigh Low High Low High Low High Low

Oct-18 16.00 11.80 36616.64 33291.58 123142 15.00 11.80 11035.65 10004.55 339484Nov-18 16.13 13.05 36389.22 34303.38 79915 16.10 13.00 10922.45 10341.9 359791Dec-18 15.84 12.15 36554.99 34426.29 101904 15.70 14.55 10985.15 10333.85 1023274Jan-19 14.75 12.46 36701.03 35375.51 66974 15.00 12.65 10987.45 10583.65 271799Feb-19 13.47 9.25 37172.18 35287.16 74960 13.55 10.00 11118.1 10585.65 498594

Mar-19 17.50 12.20 38748.54 35926.94 103041 17.70 12.05 11630.35 10817 894488



5. Discretionary Requirements under Regulation 27 of Listing Regulations:

The status of compliance made by the Company with discretionary recommendations of the Regulation 27 of the ListingRegulationsisprovidedbelow:

The Board: TheChairmanisanExecutiveDirectorandhence,thisprovisionisnotapplicable.

Shareholders’ Rights:Asthequarterly,halfyearlyandyearlyfinancialperformancealongwithsignificanteventsarepublishedinthenewspaperandarealsopostedontheCompany’swebsite,thesamearenotbeingsenttotheshareholders.

Modified Opinion in Auditor’s Report:TheAuditors’ReportonCompany’sStandaloneandConsolidatedFinancialStatements

forthefinancialyearendedMarch31,2019,isunmodified.

Reporting of Internal Auditor:TheInternalAuditorreportsdirectlytotheAuditCommitteeoftheCompany.

6. Non-compliance of any requirement of Corporate Governance Report of sub-paras (2) to (10) of Para C to Schedule V of the Listing Regulations:

TheCompanyhascompliedwithalltherequirementsinthisregard,totheextentapplicable.

7. CEO and CFO Certification:

TheChiefExecutiveOfficer (“CEO”)andtheChiefFinancialOfficer (“CFO”)of theCompanyhasgivenannualcertificationonfinancialreportingandinternalcontrolstotheBoardintermsofRegulation17(8)readwithPartBofScheduleIIoftheListingRegulations.TheCEOandCFOhavealsogivenquarterly certificationonfinancial resultswhileplacing thefinancial resultsbeforetheBoardintermsofRegulation33(2)oftheListingRegulations.TheannualcertificategivenbytheCEOandCFOformspartofthisreportandmarkedas‘‘Annexure I’’.

8. Certificate on Corporate Governance:

CertificatefromtheM/s.Rathi&Associates,PracticingCompanySecretaries,confirmingcompliancewithconditionsofCorporateGovernanceasstipulatedunderRegulation34readwithScheduleVoftheListingRegulations,formspartofthisreportandismarkedas‘‘Annexure II’’.



Annexure I

CERTIFICATE BY CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO)(PursuanttoPartBScheduleIIreadwithRegulation17(8)ofSEBI

(ListingObligationsandDisclosureRequirements)Regulations,2015)

To,TheBoardofDirectors,Allied Digital Services Limited

We,PareshShah,CEOandGopalTiwari,CFO,ofAllied Digital Services Limited, tothebestofourknowledgeandbelief,herebycertifythat:

I. WehavereviewedFinancialstatementsandthecashflowstatementfortheyearendedMarch31,2019andthattothebestofourknowledgeandbelief:

- thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterial factorcontainstatements thatmightbemisleading;

- these statements together present a true and fair view of the Company’s affairs and are in compliance with existingaccountingstandards,applicablelawsandregulations.

II. Thereare, to thebestofourknowledgeandbelief,no transactionsentered intoby theCompanyduring theyearwhicharefraudulent,illegalorviolatetheCompany’scodeofconduct.

III. WeacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsoftheCompanypertainingtofinancialreportingandwehavedisclosedtotheauditorsandtheauditcommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepstheyhavetakenorproposetotaketorectifythesedeficiencies.

IV. WehaveindicatedtotheAuditorsandauditcommittee-

- significantchangesininternalcontroloverfinancialreportingduringtheyear;

- significant changes in accounting policies during the year and that the same have been disclosed in the notes to thefinancialstatements;and

- Noinstancesofsignificantfraudwereobservedduringtheyearunderreview.

For Allied Digital Services Limited

Place : Mumbai Paresh Shah Gopal TiwariDate : May 29, 2019 Chief Executive Officer Chief Financial Officer



Annexure II

CERTIFICATE ON COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

(PursuanttoScheduleVreadwithRegulation34(3)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)

ToTheMembers,Allied Digital Services Limited

WehaveexaminedallthecomplianceofconditionsofCorporateGovernancebyAlliedDigitalServicesLimitedhavingitsregisteredofficeatPremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,NarimanPoint,Mumbai–400021(“theCompany”),fortheyearendedMarch31,2019,asstipulatedinChapterIVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”).

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationshavebeenlimitedtoproceduresand implementationthereof,adoptedby theCompany forensuringthecomplianceof theconditionsofCorporateGovernanceasstipulatedintheListingRegulations.ItisneitheranauditnoranexpressionofopinionontheFinancialStatementsoftheCompany.

Inouropinionandtothebestofour informationandaccordingtotheexplanationgiventousandtherepresentationsmadebytheDirectorsandManagementoftheCompany,wecertifythattheCompanyhascompliedwithallthemandatoryrequirementsofCorporateGovernanceasstipulatedintheChapterIVoftheListingRegulations except for Regulation 31(2) of Listing Regulations i.e. 100% shareholding of promoter and promoter group is not in dematerialized form.

We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficacy oreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany. Forandonbehalfof Rathi & Associates Company SecretariesPlace : MumbaiDate : May 29, 2019 Himanshu S. Kamdar Partner Membership No. 5171 COP No: 3030__________________________________________________________________________________________________

Certificate

BasedontheverificationandthedetailsprovidedbytheCompany,Inouropinion,noneoftheDirectorsontheBoardoftheCompanyhavebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorofCompanybytheBoard/MinistryofCorporateAffairsoranysuchStatutoryAuthority.

Forandonbehalfof Rathi & Associates Company SecretariesPlace : MumbaiDate : May 29, 2019 Himanshu S. Kamdar Partner Membership No. 5171 COP No: 3030



DECLARATION BY THE MANAGING DIRECTOR UNDER REGULATION 34(3) READ WITH PART D OF SCHEDULE V OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

To,TheMembersAllied Digital Services Limited.

I hereby declare that all theDirectors and the designated employees in the SeniorManagement of the Company have affirmedcompliancewiththeirrespectiveCodesofconductforthefinancialyearendedMarch31,2019.

For Allied Digital Services Limited

Place : Mumbai Nitin ShahDate : May 29, 2019 Chairman & Managing Director



ToTheMembersofALLIED DIGITAL SERVICES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Allied Digital Services Limited (“the Company”), whichcomprisetheBalanceSheetasatMarch31,2019, theStatementofProfitandLoss (includingOtherComprehensive Income), theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedonthatdate,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“thestandalonefinancialstatements”).

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompanies Act, 2013 (“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywiththeIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies (Indian Accounting Standards) Rules, 2015,asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,theprofitandtotalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.

Basis for opinion

WeconductedourauditofthestandalonefinancialstatementsinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct(SAs).OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheStandaloneFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeindependencerequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.

Key audit matters

Keyauditmattersare thosematters that, inourprofessional judgment,wereofmostsignificance inourauditof thestandalonefinancial statementsof thecurrentperiod.Thesematterswereaddressed in thecontextofourauditof the standalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinourreport.

SR NO

KEY AUDIT MATTERS AUDITOR’S RESPONSE

1 Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of adoption of new revenue recognition standard Ind AS 115 “Revenue from Contracts with Customers”

Principal Audit Procedures

We assessed the Company’s process to identify the impactof adoption of the new revenue accounting standard on itsreported revenue. Our audit approach consisted testing ofthedesignandoperatingeffectivenessoftheinternalcontrolsandsubstantivetestingasfollows:

The application of the new revenue accounting standardinvolves certain key judgements relating to identificationof distinct performance obligations, determination oftransaction price of the identified performance obligations,the appropriateness of the basis used to measure revenuerecognized over a period. Additionally, new revenueaccounting standard contains disclosures which involvescollation of information in respect of disaggregated

• Evaluated the design of internal controls relating toimplementationofthenewrevenueaccountingstandard.

• Selectedasampleofcontinuingandnewcontracts,andtestedtheoperatingeffectivenessoftheinternalcontrol,relating to identification of the distinct performanceobligationsanddeterminationoftransactionprice.

Independent Auditor’s Report



SR NO


revenueandperiodsoverwhich the remainingperformanceobligationswillbesatisfiedsubsequenttothebalancesheetdate.RefertoNotestotheStandaloneFinancialStatements

We carried out a combination of procedures involvingenquiry and observation, reperformance and inspectionofevidenceinrespectofoperationofthesecontrols.

Selected a sample of continuing and new contracts andperformedthefollowingprocedures:

– Read, analyzed and identified the distinct performanceobligationsinthesecontracts.

- Compared these performance obligations with thatidentifiedandrecordedbytheCompany.

- Considered the terms of the contracts to determine thetransactionprice includinganyvariableconsideration toverifythetransactionpriceusedtocomputerevenueandtotestthebasisofestimationofthevariableconsideration.

- Samples in respect of revenue recorded for time andmaterialcontractswereassessedwithrelevantdocumentsincluding customer acceptances, subsequent invoicingandhistoricaltrendofcollectionsanddisputes.

- Sample of revenues disaggregated by type and serviceofferingswasassessedwiththeperformanceobligationsspecifiedintheunderlyingcontracts.

- In respect of samples relating to fixed-price contracts,progress towards satisfaction of performance obligationused to compute recorded revenue was verified withactual.

- Sample of revenues disaggregated by type and serviceofferings was tested with the performance obligationsspecifiedintheunderlyingcontracts.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

TheCompany’sBoardofDirectorsisresponsibleforthepreparationoftheotherinformation.TheotherinformationcomprisestheinformationincludedintheManagementDiscussionandAnalysis,Board’sReportincludingAnnexurestoBoard’sReport,BusinessResponsibilityReport,CorporateGovernanceandShareholder’sInformation,butdoesnotincludethestandalonefinancialstatementsandourauditor’sreportthereon.

Ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusion thereon.

Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhether theother information ismaterially inconsistentwith thestandalonefinancial statementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.

Management’s Responsibility for the Standalone Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance,totalcomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewiththeIndASandotheraccountingprinciplesgenerallyacceptedinIndia.Thisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsof theAct for safeguarding theassetsof theCompanyand forpreventinganddetecting fraudsandother irregularities; selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,



implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthestandalonefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.TheBoardofDirectorsareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.

AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror,designandperformauditprocedures responsive to thoserisks,andobtainauditevidencethat issufficientandappropriatetoprovideabasis forouropinion.The riskofnotdetectingamaterialmisstatement resulting from fraud ishigher than foroneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternal controls.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that areappropriate in the circumstances.Under section 143(3)(i) of the Act,we are also responsible for expressing our opinion onwhethertheCompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sHowever,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthestandalonefinancialstatements,includingthedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Materiality is themagnitudeofmisstatements in the standalonefinancial statements that, individuallyor inaggregate,makes itprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificance



intheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesematters inourauditor’s reportunless lawor regulationprecludespublicdisclosureabout thematterorwhen, inextremely rarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Report on Other Legal and Regulatory Requirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentintermsofSection143(11)oftheAct,wegivein“AnnexureA”astatementonthemattersspecifiedinparagraphs3and4oftheorder.

2. AsrequiredbySection143(3)oftheAct,basedonourauditwereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

c) TheBalanceSheet, theStatementofProfitandLoss includingOtherComprehensive Income,StatementofChanges inEquityandtheStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooksofaccount.

d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2019takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2019frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureB”.OurreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessoftheCompany’sinternalfinancialcontrolsoverfinancial

g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewiththerequirementsofsection197(16)oftheAct,asamended:

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theremunerationpaidbytheCompanytoitsdirectorsduringtheyearisinaccordancewiththeprovisionsofsection197oftheAct.

h) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,asamendedinouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsstandalonefinancial[ReferNoteNo30(3)]

ii. TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbythecompany.

For SHAH & TAPARIACharteredAccountants(FirmRegnNo109463W)

RAMESH PIPALAWAPlace :Mumbai PartnerDate :May29,2019 M.No.103840



Annexure ‘A’ to the Independent Auditor’s Report(Referredtoinparagraph2under‘ReportonOtherLegalandRegulatoryRequirements’sectionofourreporttotheMembersofAlliedDigitalServicesLimitedofevendate)

i. InrespectoftheCompany’sfixedassets:

(a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

(b) TheCompanyhasaprogramofverificationtocoveralltheitemsoffixedassetsinaphasedmannerwhich,inouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Pursuanttotheprogram,certainfixedassetswerephysicallyverifiedbythemanagementduringtheyear.Accordingtotheinformationandexplanationsgiventous,nomaterialdiscrepancieswerenoticedonsuchverification.

(c) Accordingtotheinformationandexplanationsgiventous,therecordsexaminedbyusandbasedontheexaminationoftheconveyancedeeds/registeredsaledeedprovidedtous,wereportthat,thetitledeeds,comprisingalltheimmovablepropertiesoflandandbuildingswhicharefreehold,areheldinthenameoftheCompanyasatthebalancesheetdate.Inrespectofimmovablepropertiesoflandandbuildingthathavebeentakenonleaseanddisclosedasfixedassetsinthestandalonefinancialstatements,theleaseagreementsareinthenameoftheCompany.

ii. Accordingtothe informationandexplanationsgiventous,the inventoryhasbeenphysicallyverifiedduringtheyearbythemanagement.Inouropinionthefrequencyofverificationisreasonable.Aspertheinformationandexplanationgiventous,nomaterialdiscrepancieswerenoticedonphysicalverification.

iii. Accordingtheinformationandexplanationsgiventous,theCompanyhasgrantedunsecuredloanstothreebodiescorporate,coveredintheregistermaintainedundersection189oftheCompaniesAct,2013,inrespectofwhich:

(a) The termsandconditionsof thegrantof such loansare, inouropinion,prima facie,notprejudicial to theCompany’sinterest.

(b) Thetermsofarrangementsdonotstipulateanyrepaymentschedulehenceweareunabletomakeanyspecificcommentontheregularityoftherepaymentofprincipalandpaymentofinterest.

(c) Intheabsenceofanyrepaymentscheduleweareunabletocommentontheamountofoverdueamountoutstandingattheyearend.

iv. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhascompliedwiththeprovisionsofSections185and186oftheActinrespectofgrantofloans,makinginvestmentsandprovidingguaranteesandsecurities,asapplicable.

v. ThecompanyhasnotacceptedanydepositsfromthepublicduringtheFY2018-19.However,inrespectofexistingdepositstheoutstandingamounttowardstheprincipalandinterestinrespectofsomeunclaimeddepositsareasunder:

Principal Amount due as on 31.03.2019

Interest Due upto 31.03.2019 Total Dues as at 31.03.2019

Rs15.57Lakhs Rs3.52Lakhs Rs19.09Lakhs

vi. ThemaintenanceofcostrecordshasnotbeenspecifiedbytheCentralGovernmentundersection148(1)oftheCompaniesAct,2013forthebusinessactivitiescarriedoutbytheCompany.Thusreportingunderclause3(vi)oftheorderisnotapplicabletotheCompany.

vii. Accordingtotheinformationandexplanationsgiventous,inrespectofstatutorydues:

(a) TheCompanyhasgenerallynotbeenregularindepositingundisputedstatutorydues,includingProvidentFund,Employees’StateInsurance,IncomeTax,GoodsandServiceTax,CustomsDuty,Cessandothermaterialstatutoryduesapplicabletoitwiththeappropriateauthorities.



(b) Therewereundisputedamountspayable inrespectofProvidentFund,ProfessionTax,ServiceTax,CustomsDuty,CessandothermaterialstatutoryduesinarrearsasatMarch31,2019foraperiodofmorethansixmonthsfromthedatetheybecamepayable.Detailsasunder:

Particulars (Amount in `)ServiceTax(F.Y.2015-16to2017-18) 67,55,840ProvidentFund(F.Y.2014-15to2018-19) 2,46,58,675ProfessionTax(F.Y.2014-15toF.Y.2018-19) 17,22,756

(c) DetailsofduesofIncomeTax,SalesTax,ServiceTax,ExciseDutyandValueAddedTaxwhichhavenotbeendepositedasatMarch31,2019onaccountofdisputearegivenbelow:

Name of the Statute Nature of Dues Amount(` In Lakhs)*

Period to which the amount relates

Forum where dispute is pending

IncomeTaxAct,1961 Penaltyu/s271(1)(c) Rs32.82Lakhs AY2006-07 CommissionerofIncomeTaxAppeals,Mumbai

IncomeTaxAct,1961 Penaltyu/s271(1)(c) Rs18.22Lakhs AY2010-11 CommissionerofIncomeTaxAppeals,Mumbai

viii. TheCompanyhasnotdefaultedinrepaymentofanyloansorborrowingsfromfinancialinstitutions,banksandgovernmentorhasnotissuedanydebentures.

ix. Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompanydidnotraiseanymoneybywayofinitialpublicofferorfurtherpublicofferincludingdebtinstruments.Thetermloansoutstandingatthebeginningofthecurrentyearandthoseraisedduringthecurrentyearhavebeenappliedforthepurposesforwhichthosewereraised.

x. Tothebestofourknowledgeandaccordingtotheinformationandexplanationsgiventous,nofraudbytheCompanyornomaterialfraudontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringtheyear.

xi. Inouropinionandaccordingtothe informationandexplanationsgiventous,theCompanyhaspaid/providedmanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithScheduleVtotheAct.

xii. TheCompanyisnotaNidhiCompanyandhencereportingunderclause3(xii)oftheOrderisnotapplicabletotheCompany.

xiii. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisincompliancewithSection177and188oftheCompaniesAct,2013whereapplicable,foralltransactionswiththerelatedpartiesandthedetailsofrelatedpartytransactionshavebeendisclosedinthestandalonefinancialstatementsasrequiredbytheapplicableaccountingstandards.

xiv. Duringtheyear,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlypaidconvertibledebenturesandhencereportingunderclause3(xiv)oftheOrderisnotapplicabletotheCompany.

xv. Inouropinionandaccordingtotheinformationandexplanationsgiventous,duringtheyeartheCompanyhasnotenteredintoanynon-cashtransactionswithitsDirectorsorpersonsconnectedtoitsdirectorsandhenceprovisionsofsection192oftheCompaniesAct,2013arenotapplicabletotheCompany.

xvi. TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.





Annexure “B” to the Independent Auditor’s Report(Referredtoinparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’sectionofourreporttotheMembersofAlliedDigitalServicesLimitedofevendate)

ReportontheInternalFinancialControlsOverFinancialReportingunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,2013(“theAct”)

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAlliedDigitalServicesLimited(“theCompany”)asofMarch31,2019inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheBoardofDirectorsoftheCompanyisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsof India.These responsibilities include thedesign, implementationandmaintenanceofadequate internalfinancial controls thatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetorespectivecompany’spolicies, thesafeguardingof itsassets, thepreventionanddetectionof fraudsanderrors, theaccuracyandcompletenessof theaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheinternalfinancialcontrolsoverfinancialreportingoftheCompanybasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the “GuidanceNote”) issuedby the InstituteofCharteredAccountantsof Indiaand theStandardsonAuditingprescribedunderSection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequate internalfinancialcontrolsoverfinancial reportingwasestablishedandmaintainedand if suchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtained,issufficientandappropriatetoprovideabasisforourauditopinionontheinternalfinancialcontrolssystemoverfinancialreportingoftheCompany.

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 regardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat

(1) pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in

accordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and



(3) providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Limitations of Internal Financial Controls Over Financial Reporting

Becauseof the inherent limitationsof internalfinancial controlsoverfinancial reporting, including thepossibilityof collusionorimpropermanagement overrideof controls,materialmisstatements due to error or fraudmayoccur andnot bedetected. Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiventous,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2019,basedon the internal controloverfinancial reportingcriteriaestablishedby theCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.





Standalone Balance Sheet as at 31st March, 2019. (`InLakhs)Particulars Note

No. As at

March 31, 2019 (Audited)

As at March 31, 2018

(Audited) ASSETSNon-Current AssetsProperty,PlantandEquipment 2 4,688 5,076InvestmentProperty 3 8,203 8,293IntangibleAssets 4 4,954 5,855Financial Assets

Investments 5 15,506 15,491Loans 6(i) 316 394OtherFinancialAssets 7(i) 454 406

OtherNon-CurrentAssets 8(i) 1,277 1,599Total Non-Current Assets 35,397 37,115

Current assetsInventories 9 3,383 3,311Financial Assets

TradeReceivables 10 14,246 14,446CashandCashEquivalents 11(i) 458 404Otherbankbalances 11(ii) 765 1,356Loans 6(ii) 204 189OtherFinancialAssets 7(ii) 4,464 3,685

OtherCurrentAssets 8(ii) 1,287 952Total Current Assets 24,807 24,343Total Assets 60,204 61,458

EQUITY AND LIABILITIESEquity

EquityShareCapital 12 2,510 2,510OtherEquity 13 43,797 42,869

Total Equity 46,307 45,379

LIABILITIESNon-Current LiabilitiesFinancial Liabilities

Borrowings 14(i) 1,317 451OtherFinancialLiabilities 15(i) 4 3

Provisions 16(i) 2 2DeferredTaxLiabilities(Net) 17 2,653 2,503Total Non-Current Liabilities 3,976 2,960

Current LiabilitiesFinancial Liabilities

Borrowings 14(ii) 5,147 7,543TradePayables 19 2,948 3,999

Totaloutstandingdueofmicroandsmallenterprises - -Totaloutstandingdueofcreditorotherthanmicroandsmallenterprises 2,948 3,999OtherFinancialLiabilities 15(ii) 49 458

OtherCurrentLiabilities 18 8 625Provisions 16(ii) 1,768 495Total Current Liabilities 9,920 13,120 Total Equity and Liabilities 60,204 61,458 Theaccompanyingnotesformanintegralpartofthefinancialstatements.(ReferNoteNo.1)

AsperourreportofevendateFor Shah & Taparia For and on behalf of the BoardChartered Accountants of Allied Digital Services LimitedFRN: 109463W

Ramesh Pipalawa Nitin Shah Prakash Shah M.No.103840 Chairman& WholeTimeDirector

ManagingDirector

Place:Mumbai Gopal Tiwari Neha Bagla Date:May29,2019 ChiefFinancialOfficer CompanySecretary



Standalone Profit & Loss Account for the year ended 31st March 2019. (`InLakhs) Particulars Note

No.Year Ended

March 31, 2019Year Ended

March 31, 2018RevenuefromOperations 20 7,523 7,423OtherIncome 21 412 264Total Revenue 7,934 7,687

ExpensesPurchaseanddirectexpenses 22 1,358 607Changesininventories 23 (72) (15)Employeebenefitsexpense 24 2,500 2,339FinanceCosts 25 921 487Depreciationandamortisationexpense 4 1,385 1,596Otherexpenses 26 1,080 1,343Total Expenses 7,172 6,357 Profit / (Loss) from ordinary activities after finance costs but before exceptional items 762 1,330 ExceptionalItems 27 351 (323)Profit / (Loss) from ordinary activities before tax 1,113 1,007Tax expenseCurrentTax 210 205MATCredit (210) (205)DeferredTax 150 509Net Profit / (Loss) from ordinary activities after tax 963 498 Other Comprehensive Income (after tax)Items that will not be Reclassified to P&LActuarialGain/(Loss)onGratuity 28 (35) 36Items that will be Reclassified Subsequently to P&L -Total Other Comprehensive Income (35) 36 Total Comprehensive Income (after tax) 928 534 Paid-upequitysharecapital 2,510 2,510(FaceValueof`5/-)ReservesExcludingRevaluationReservesasperbalancesheetofpreviousaccountingyear 43,797 42,869Earning per Share (of ` 5/- each) 29Basic 1.92 0.99Diluted 1.92 0.99

Theaccompanyingnotesformanintegralpartofthefinancialstatements.(ReferNoteNo.1)AsperourreportofevendateFor Shah & Taparia For and on behalf of the BoardChartered Accountants of Allied Digital Services LimitedFRN: 109463W


ManagingDirector




Statement of Change in Equity for the year ended March 31, 2019. (`InLakhs)

A. Equity Share Capital BalanceBalanceasat01.04.2018 2510ChangeinEquityShareCapitalDuringtheyear -Balanceasat31.03.2019 2510

B. Other Equity (`InLakhs)

Particulars Other EquityReserve and Surplus

Securities premium account

Retained Earnings

Capital Redemption

Reserve

General Reserve

Other Component

of Equity

Total

Balanceasat01.04.2018 37,019 3,641 30 1,338 840 42,869ProfitfortheYear - 963 - - 963AdjustmentforPriorperiodtaxes - - - - -AdjustmentINDAS - - - 36 (71) (35)Balanceasat31.03.2019 37,019 4,604 30 1,374 769 43,797



ManagingDirector




Statement of Cash Flows for the year ended March 31, 2019. (`InLakhs)

Sr. No.

Particulars For the year ended March 31, 2019

For the year ended March 31, 2018

I CASH INFLOW FROM OPERATING ACTIVITIES(a) Profit/LossasperProfit&LossAccountafterTax 963 498

Adjustments:AdjustmentsforPriorperiodtaxes&INDAseffectfromSurplusinP&L - (121)BadDebtWrittenoffduringtheyear 217 1,496Depreciationandamortization 1,385 1,596IncomefromInvestingActivities (412) (956)DeferredTax 150 509FinanceCost 921 486Changes in Assets and LiabilitiesInventories (72) (14)Tradereceivables 200 (429)Loansandadvances 63 (18)OtherFinancialAssets (827) 231Other assets (13) (1,479)Tradepayables (1,051) 1,231Liabilities&Provisions 1,273 (1,293)OtherLiability (617) (560)Net Cash generated by Operating Activities 2,182 1,178

II CASH INFLOW FROM INVESTING ACTIVITIESPaymenttowardacquistionofthefixedassetsincludingintangible 4 -DisposaloftheInvestment\ChangesduetoIndAsinInvestments (15) (11)Interestreceived 345 199OtherNon-OperatingIncome 66 757NetCashgeneratedbyInvestingActivities 401 945

III CASH INFLOW FROM FINANCING ACTIVITIESFromborrowings 2,515 451Repaymentofloan (4,713) (1,540)FinanceCost (921) (486)Net Cash generated by Financing Activities (3,120) (1,575)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A) (537) 547Add:Cashandcashequivalentsatthebeginningoftheperiod(B) 1,760 1,213Cashandcashequivalentsattheendoftheperiod(A+B) 1,223 1,760SupplementaryInformationRestrictedCashBalance&CashEquivalent(Refernotebelow) 765 1,356

Note:BalanceinFixedDepositwithbankspledgedagainstguaranteesgivenbybankAsperourreportofevendateFor Shah & Taparia For and on behalf of the BoardChartered Accountants of Allied Digital Services LimitedFRN: 109463W


ManagingDirector




NOTE NO.-1SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS1) Corporate information

AlliedDigital Services Limited (referred to as “ADSL” or the “Company”) is renowned as a leadingGlobal IT TransformationArchitect,havingitsoperationsinpanIndia,USA,Australia,EuropeandMiddleeastAsiawithanimpeccabletrackrecordfordesigning,developing,deployingdigitalsolutionsanddeliveringend-to-endITinfrastructureservices.Itprovideswiderangeof informationtechnologyandconsultancyservicesincludingInfrastructureServices,EnduserITSupport, ITassetlifecycle,enterpriseapplicationsandintegratedsolutions.

The Company’s registered office is inMumbai and has presence in pan India, and it has Subsidiary companies inUSA,UK,SingaporeandAustralia.

2) Significant Accounting Policies

Basis of preparation and presentation

a) Statement of compliance

ThesefinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandards(“IndAS”)notifiedunderthe Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) AmendmentRules,2016asapplicable.

b) Basis of measurement

The financial statements have been prepared on a historical cost convention and on an accrual basis, except for thefollowingmaterialitemsthathavebeenmeasuredatfairvalueasrequiredbyrelevantIndAS:

1. Derivativefinancialinstruments;

2. Certainfinancialassetsandliabilitiesmeasuredatfairvalue(referaccountingpolicyonfinancialinstruments);

3. Sharebasedpaymenttransactionsand

4. Definedbenefitandotherlong-termemployeebenefits

Accountingpolicieshavebeenconsistentlyappliedexceptwhereanewly-issuedaccountingstandardisinitiallyadoptedorarevisiontoanexistingaccountingstandardrequiresachangeintheaccountingpolicyhithertoinuse.

c) Use of estimates and judgment

ThepreparationoffinancialstatementsinconformitywithIndASrequiresmanagementtomakejudgments,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpensesandthedisclosuresofcontingentassetsandliabilitiesatthedateofthefinancialstatements.Theapplicationofaccountingpoliciesthatrequirecriticalaccountingestimatesinvolvingcomplexandsubjectivejudgmentsandtheuseofassumptionsinthesefinancialstatementshavebeendisclosedunder“Summary of significant accounting policies”. Accountingestimatescouldchangefromperiodtoperiod.Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsarereviewedonaperiodicbasis.Revisionstoaccountingestimatesarerecognizedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.Inparticular,informationaboutsignificantareasofestimation,uncertaintyandcriticaljudgmentsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognizedinthefinancialstatementsisincludedinthefollowingnotes:



Summary of significant accounting policies

(i) FunctionalandpresentationcurrencyItemsincludedinthefinancialstatementsoftheCompanyaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheseentitiesoperate(i.e.the“functionalcurrency”).ThefinancialstatementsarepresentedinIndianRupee,thenationalcurrencyofIndia,whichisthefunctionalcurrencyoftheCompany.

(ii) Foreigncurrencytransactionsandbalancesaretranslatedintothefunctionalcurrencyofthecompany,usingtheexchangeratesprevailingatthedatesoftherespectivetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationattheexchangeratesprevailingatreportingdateofmonetaryassetsandliabilitiesdenominatedinforeigncurrencies,arerecognizedinthestatementofprofitandlossandreportedwithinforeignexchangegains/(losses).Non-monetaryassetsandliabilitiesdenominatedinaforeigncurrencyandmeasuredathistoricalcostaretranslatedattheexchangerateprevalentatthedateoftransaction.

(iii) Transactiongainsorlossesrealizeduponsettlementofforeigncurrencytransactionsareincludedindeterminingnetprofitfortheperiodinwhichthetransactionissettled.Revenue,expenseandcash-flowitemsdenominatedinforeigncurrenciesaretranslatedintotherelevantfunctionalcurrenciesusingtheexchangerateineffectonthedateofthetransaction.

(iv) EffectiveApril1,2018,theCompanyhasprospectivelyadoptedAppendixBtoIndAS21,ForeignCurrencyTransactionsandAdvanceConsiderationwhichclarifiesthedateoftransactionforthepurposeofdeterminingtheexchangeratetouseoninitialrecognitionoftherelatedasset,expenseorincomewhenanentityhasreceivedorpaidadvanceconsiderationinaforeigncurrency.Theeffectonaccountofadoptionofthisamendmentwasinsignificant.

(v) Investmentinsubsidiaries:Investmentinsubsidiariesismeasuredatcost.

(vi) Financialinstruments:Allfinancialinstrumentsarerecognisedinitiallyatfairvalue.Transactioncoststhatareattributabletotheacquisitionofthefinancialasset(otherthanfinancialassetsrecordedatfairvaluethroughprofitorloss)areincludedinthefairvalueofthefinancialassets.Purchaseorsalesoffinancialassetsthatrequiredeliveryofassetswithinatimeframeestablishedbyregulationorconvention inthemarketplacearerecognisedontradedate.While, loansandborrowingsandpayablesarerecognisednetofdirectlyattributabletransactioncosts.Forthepurposeofsubsequentmeasurement,financialinstrumentsoftheCompanyareclassifiedinthefollowingcategories:non-derivativefinancialassetscomprisingamortisedcost,debtinstrumentsatfairvaluethroughothercomprehensiveincome(FVTOCI),equityinstrumentsatFVTOCIor fairvaluethroughprofitand lossaccount(FVTPL),nonderivativefinancial liabilitiesatamortisedcostorFVTPLandderivativefinancialinstruments(underthecategoryoffinancialassetsorfinancialliabilities)atFVTPL.Theclassificationoffinancialinstrumentsdependsontheobjectiveofthebusinessmodelforwhichitisheld.Managementdeterminestheclassificationofitsfinancialinstrumentsatinitialrecognition.

(vii) Debt instruments at FVTOCI

Adebtinstrumentshallbemeasuredatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:

(a) theobjectiveofthebusinessmodelisachievedbybothcollectingcontractualcashflowsandsellingfinancialassetsand

(b) theasset’scontractualcashflowrepresentSolelyPaymentsofPrincipalandInterest(SPPI)DebtinstrumentsincludedwithinFVTOCIcategoryaremeasuredinitiallyaswellasateachreportingperiodatfairvalueplustransactioncosts.Fair value movements are recognised in other comprehensive income (OCI). However, the Company recognisesinterestincome,impairmentlosses&reversalsandforeignexchangegain/(loss)instatementofprofitandloss.Onderecognitionoftheasset,cumulativegainorlosspreviouslyrecognisedinOCIisreclassifiedfromequitytoprofitandloss.Interestearnedisrecognisedundertheeffectiveinterestrate(EIR)model.

(viii) Equity instruments at FVTOCI

Allequityinstrumentsaremeasuredatfairvalue.EquityinstrumentsheldfortradingisclassifiedasFVTPL.Forallotherequityinstruments,theCompanymaymakeanirrevocableelectiontopresentsubsequentchangesinthefairvalueinOCI.TheCompanymakessuchelectiononan instrument-by-instrumentbasis. If theCompanydecides toclassifyanequity



instrumentasatFVTOCI,thenallfairvaluechangesontheinstrument,excludingdividendarerecognisedinOCIwhichisnotsubsequentlyrecycledtostatementofprofitandloss.

(ix) Financial assets at FVTPL

FVTPLisaresidualcategoryforfinancialassets.AnyfinancialassetwhichdoesnotmeetthecriteriaforcategorizationasatamortisedcostorasFVTOCI,isclassifiedasFVTPL.

In addition theCompanymay elect todesignate thefinancial asset,whichotherwisemeets amortised cost or FVTOCIcriteria,asFVTPLifdoingsoeliminatesorsignificantlyreducesameasurementorrecognitioninconsistency.TheCompanyhasnotdesignatedanyfinancialassetasFVTPL.

FinancialassetsincludedwithintheFVTPLcategoryaremeasuredatfairvalueswithallchangesinthestatementofprofitand loss.

a) Non-derivative financial liabilities

(i) Financial liabilitiesatamortisedcost:Financial liabilitiesatamortisedcost representedbyborrowings, tradeandotherpayablesareinitiallyrecognizedatfairvalue,andsubsequentlycarriedatamortizedcostusingtheeffectiveinterestratemethod.

(ii) FinancialliabilitiesatFVTPL:FinancialliabilitiesatFVTPLrepresentedbycontingentconsiderationaremeasuredatfairvaluewithallchangesrecognisedinthestatementofprofitandloss.

b) Derivative financial instruments:

Derivativesarerecognizedandmeasuredatfairvalue.Attributabletransactioncostsarerecognizedinstatementofprofitandloss.

(x) Property, plant and equipment

a) Recognition and measurement: Property,plantandequipmentaremeasuredatcostlessaccumulateddepreciationandimpairmentlosses,ifany.Costincludesexpendituresdirectlyattributabletotheacquisitionoftheasset.

b) Depreciation:TheCompanydepreciatesproperty,plantandequipmentovertheestimatedusefullifeonastraight-linebasisfromthedatetheassetsarereadyforintendeduse.Assetsacquiredunderfinanceleaseifanyandleaseholdimprovementsareamortizedoverthelowerofestimatedusefullifeandleaseterm.Theestimatedusefullivesforthecurrentandcomparativeperiodofsignificantitemsofproperty,plantandequipmentareasfollows

Type of Asset Method Estimated useful lifeLeaseholdLand Straightline 99YearsFreehold&LeaseholdBuildings Straightline 60YearsFurnitureandFixtures Straightline 10YearsComputersandITEquipment’s Straightline 3YearsServers Straightline 6YearsMotorVehicles Straightline 8YearsOfficeEquipment’s Straightline 5yearsCivilandPlumbingWork Straightline 60Years

Depreciationmethods,usefullivesandresidualvaluesarereviewedateachreportingdate.

Whenpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.Subsequentexpenditurerelatingtoproperty,plantand



equipment iscapitalizedonlywhen it isprobablethat futureeconomicbenefitsassociatedwiththesewillflowtotheCompanyandthecostofthe itemcanbemeasuredreliably.Repairsandmaintenancecostsarerecognizedinthestatementofprofitandlosswhenincurred.Thecostandrelatedaccumulateddepreciationareeliminatedfromthefinancialstatementsuponsaleordispositionoftheassetandtheresultantgainsorlossesarerecognizedinthestatementofprofitandloss.Amountspaidtowardstheacquisitionofproperty,plantandequipmentoutstandingasofeachreportingdateandthecostofproperty,plantandequipmentnotreadyforintendedusebeforesuchdatearedisclosedundercapitalwork-in-progress(ifany).

c) Impairment

Property,plantandequipmentareevaluatedforrecoverabilitywhenevereventsorchangesincircumstancesindicatethattheircarryingamountsmaynotberecoverable.Forthepurposeofimpairmenttesting,therecoverableamount(i.e.thehigherofthefairvaluelesscosttosellandthevalue-in-use)isdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatare largely independentofthosefromotherassets. Insuchcases,therecoverableamountisdeterminedfortheCashGeneratingUnit(CGU)towhichtheassetbelongs.

Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognizedintheStatementofProfitandLossismeasuredbytheamountbywhichthecarryingvalueoftheassetsexceedstheestimatedrecoverableamountoftheasset.AnimpairmentlossisreversedintheStatementofProfitandLossiftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Thecarryingamountoftheassetisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofanyaccumulateddepreciation)hadnoimpairmentlossbeenrecognizedfortheassetinprioryears.

(xi) Intangible assets

Intangibleassetsarestatedatcostlessaccumulatedamortizationandimpairment.Intangibleassetsareamortizedovertheirrespectiveestimatedusefullivesonastraight-linebasis,fromthedatethattheyareavailableforuse.Theestimatedusefullifeofanidentifiableintangibleassetisbasedonanumberoffactorsincludingtheeffectsofobsolescence,demand,competitionandothereconomicfactors(suchasthestabilityoftheindustryandknowntechnologicaladvances)andthelevelofmaintenanceexpendituresrequiredtoobtaintheexpectedfuturecashflowsfromtheasset.Theestimatedusefullivesofintangiblesareasfollows:

Type of Asset Method Estimated useful lifeIntellectualProperty Straightline 10Years

(xii) Leases

LeasesunderwhichtheCompanyassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Whenacquired,suchassetsarecapitalizedat fairvalueorpresentvalueoftheminimumleasepaymentsattheinceptionof the lease,whichever is lower. Leasepayments under operating leases are recognised as an expenseon astraightlinebasisinthestatementofprofitandlossovertheleasetermexceptwheretheleasepaymentsarestructuredtoincreaseinlinewithexpectedgeneralinflation.

Theleaserentalschargedduringtheperiodareasfollows(`InLakhs)

Particulars Year ended March 31,2019 2018

Leaserentalsrecognizedduringtheperiod 41.00 30.00

Therearenoobligationsonlong-term,non-cancellableoperatingleasespayableaspertherentalsstatedabove

(xiii) Impairment Financial assets

InaccordancewithIndAS109,theCompanyappliesexpectedcreditloss(ECL)modelformeasurementandrecognitionof impairment loss. TheCompany follows ‘simplifiedapproach’ for recognitionof impairment loss allowanceon tradereceivable.



TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.Rather,itrecognizesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.

xiv) Employee benefits

TheCompanyparticipatesinvariousemployeebenefitplans.Post-employmentbenefitsareclassifiedaseitherdefinedcontributionplansordefinedbenefitplans.Underadefinedcontributionplan,theCompany’sonlyobligationistopayafixedamountwithnoobligationtopayfurthercontributionsifthefunddoesnotholdsufficientassetstopayallemployeebenefits.Therelatedactuarialandinvestmentrisksfallontheemployee.

Theexpenditurefordefinedcontributionplansisrecognizedasexpenseduringtheperiodwhentheemployeeprovidesservice.Underadefinedbenefitplan, it is theCompany’sobligation toprovideagreedbenefits to theemployees.TherelatedactuarialandinvestmentrisksfallontheCompany.Thepresentvalueofthedefinedbenefitobligationsiscalculatedusingtheprojectedunitcreditmethod.

Gratuity :-

TheCompanyprovidesforgratuity,adefinedbenefitretirementplan(“theGratuityPlan”)coveringeligibleemployees.TheGratuityPlanprovidesalump-sumpaymenttovestedemployeesatretirement,death,incapacitationorterminationofemployment,ofanamountbasedontherespectiveemployee’ssalaryandthetenureofemploymentwiththeCompany.

LiabilitieswithregardtotheGratuityPlanaredeterminedbyactuarialvaluation,performedbyanindependentactuary,ateachBalanceSheetdateusingtheprojectedunitcreditmethod.

TheCompanyrecognizesthenetobligationofadefinedbenefitplaninitsBalanceSheetasanassetorliability.Gainsandlossesthroughre-measurementsofthenetdefinedbenefitliability/(asset)arerecognizedinothercomprehensiveincomeandarenotreclassifiedtoprofitorlossinsubsequentperiods.Theactualreturnoftheportfolioofplanassets,inexcessoftheyieldscomputedbyapplyingthediscountrateusedtomeasurethedefinedbenefitobligationisrecognizedinothercomprehensiveincome.TheeffectofanyplanamendmentsarerecognizedinnetprofitintheStatementofProfitandLoss.

Employee Provident Fund :-

Eligible employees of the company receive benefits from employees provident fund Organization, which is a definedbenefitplan.BoththeeligibleemployeeandtheCompanymakemonthlycontributionstotheprovidentfundplanequalto a specified percentage of the covered employee’s salary. The remaining portion is contributed to the government-administeredpensionfund.

(xv) Share based payments

EmployeesoftheCompanyreceiveremunerationintheformofequitysettledinstruments,forrenderingservicesoveradefinedvestingperiod.Equityinstrumentsgrantedaremeasuredbyreferencetothefairvalueoftheinstrumentatthedateofgrant.Theexpenseisrecognizedinthestatementofprofitandlosswithacorrespondingincreasetothesharebasedpaymentreserve,acomponentofequity.Theequityinstrumentsgenerallyvestinagradedmanneroverthevestingperiod.Thefairvaluedeterminedatthegrantdateisexpensedoverthevestingperiodoftherespectivetranchesofsuchgrants(acceleratedamortization).Thestockcompensationexpense isdeterminedbasedontheCompany’sestimateofequityinstrumentsthatwilleventuallyvest.Thefairvalueoftheamountpayabletotheemployeesinrespectofphantomstocks,whicharesettledincash,isrecognizedasanexpensewithacorrespondingincreaseinliabilities,overtheperiodduringwhichtheemployeesbecomeunconditionallyentitledtopayment.Theliabilityisremeasuredateachreportingdateandatsettlementdatebasedonthefairvalueofthephantomstockoptionsplan.Anychangesintheliabilityarerecognizedinstatementofprofitandloss.

(xvi) Provisions

ProvisionsarerecognizedwhentheCompanyhasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredto



settlethepresentobligationattheendofthereportingperiod,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognizedasanasset,ifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

ProvisionsforonerouscontractsarerecognizedwhentheexpectedbenefitstobederivedbytheCompanyfromacontractarelowerthantheunavoidablecostsofmeetingthefutureobligationsunderthecontract.Provisionsforonerouscontractsaremeasuredat thepresent valueof lowerof theexpectednet costof fulfilling thecontractand theexpectedcostofterminatingthecontract.

(xvii) Revenue

TheCompanyderivesrevenuesprimarilyfrombusinessofITandITeSservices,consultingandimplementingsmartcityprojectsasamastersystemintegrator(MSI).

EffectiveApril1,2018,theCompanyadoptedIndAS115,RevenuefromContractswithCustomers,usingthecumulativecatch-up transitionmethod, applied to contracts thatwere not completed as at April 1, 2018. In accordancewith thecumulative catch-up transitionmethod, thecomparativeshavenotbeen retrospectivelyadjusted.The following is asummaryofnewand/orrevisedsignificantaccountingpoliciesrelatedtorevenuerecognition.

RefertoNote1SignificantAccountingPoliciesintheCompany’s2018AnnualReportforthepoliciesineffectforrevenue

priortoApril1,2018.

Revenueisrecognizedupontransferofcontrolofpromisedproductsorservicestocustomersinanamountthatreflectstheconsiderationweexpecttoreceiveinexchangeforthoseproductsorservices.

Revenueontime-and-materialcontracts is recognizedas therelatedservicesareperformedandrevenue fromtheendof the last invoicing to the reportingdate is recognizedasunbilled revenue.Revenue fromfixed-price,fixed-timeframecontracts,wheretheperformanceobligationsaresatisfiedovertimeandwherethereisnouncertaintyastomeasurementorcollectabilityofconsideration,isrecognizedasperthepercentage-of-completionmethod.Whenthereisuncertaintyastothemeasurementorultimatecollectability,revenuerecognitionispostponeduntilsuchuncertaintyisresolved.Effortsorcostsexpendedhavebeenusedtomeasureprogresstowardscompletionasthereisadirectrelationshipbetweeninputandproductivity.Maintenancerevenueisrecognizedratablyoverthetermoftheunderlyingmaintenancearrangement.

Revenuesinexcessofinvoicingareclassifiedascontractassets(whichwerefertoasunbilledrevenue)

InarrangementsforITandITeSrelatedservicesandmaintenanceservices,theCompanyhasappliedtheguidanceinIndAS115,RevenuefromContractswithCustomers,byapplyingtherevenuerecognitioncriteriaforeachdistinctperformanceobligation.Thearrangementswithcustomersgenerallymeetthecriteria forconsidering ITand ITeSrelatedservicesasdistinctperformanceobligations.Forallocatingthetransactionprice,theCompanyhasmeasuredtherevenueinrespectofeachperformanceobligationofacontractatitsrelativestandalonesellingprice.Thepricethatisregularlychargedforanitemwhensoldseparatelyisthebestevidenceofitsstandalonesellingprice.IncaseswheretheCompanyisunabletodeterminethestandalonesellingprice,theCompanyusestheexpectedcostplusmarginapproachinestimatingthestandalonesellingprice.ForITandITeSandrelatedservices,theperformanceobligationsaresatisfiedasandwhentheservicesarerenderedsincethecustomergenerallyobtainscontroloftheworkasitprogresses.Revenuefromlicenseswherethecustomerobtainsa“righttouse”thelicensesisavailabletothecustomer.Revenuefromlicenseswherethecustomerobtainsa“righttoaccess”isrecognizedovertheaccessperiod.TheCompanyhasappliedtheprinciplesunderIndAS115toaccountforrevenuesfromtheseperformanceobligations.Whenimplementationservicesareprovidedinconjunctionwiththelicensingarrangementandthelicenseandimplementationhavebeenidentifiedastwoseparateperformanceobligations,thetransactionpriceforsuchcontractsareallocatedtoeachperformanceobligationofthecontractbasedontheirrelativestandalonesellingprices.Intheabsenceofstandalonesellingpriceforimplementation,theperformanceobligationisestimatedusingtheexpectedcostplusmarginapproach.Wherethelicense isrequiredtobesubstantiallycustomizedaspartoftheimplementationservice,theentirearrangementfeeforlicenseandimplementationisconsideredtobeasingleperformanceobligationandtherevenueisrecognizedusingthepercentage-of-completionmethodastheimplementationisperformed.



Deferredcontractcostsareincrementalcostsofobtainingacontractwhicharerecognizedasassetsandamortizedoverthetermofthecontract.

Contractmodificationsareaccountedforwhenadditions,deletionsorchangesareapprovedeithertothecontractscopeorcontractprice.Theaccountingformodificationsofcontractsinvolvesassessingwhethertheservicesaddedtoanexistingcontractaredistinctandwhetherthepricing isat thestandalonesellingprice.Servicesaddedthatarenotdistinctareaccountedforonacumulativecatch-upbasis,whilethosethataredistinctareaccountedforprospectively,eitherasaseparatecontract,iftheadditionalservicesarepricedatthestandalonesellingprice,orasaterminationoftheexistingcontractandcreationofanewcontractifnotpricedatthestandalonesellingprice.

TheCompanypresentsrevenuesnetofindirecttaxesinitsStatementofProfitandLoss.

RevenuesfortheyearsendedMarch31,2019andMarch31,2018areasfollows:(` inLakhs)


Revenuefromservices 6296 5216Revenuefromproductsand 1206 2192OtherOperatingIncome 21 15

Total revenue from operations 7523 7423

Disaggregate revenue information

The tablebelowpresentsdisaggregatedrevenues fromcontractswithcustomers for theyearendedMarch31,2019byofferingsandcontract-type.TheCompanybelievesthatthisdisaggregationbestdepictshowthenature,amount,timinganduncertaintyofourrevenuesandcashflowsareaffectedbyindustry,marketandothereconomicfactors.

(` inLakh)Particulars Year ended

March 31, 2019RevenuebyofferingsInfrastructureManagementServices 4411EndUserServices 3112

Total 7523

Infrastructure Management services

InfrastructureManagement services comprise serviceand solutionofferingsof theCompany thatenableour clients totransform their businesses.We have addedmanymediumenterprises government businesses forNetwork operationscentre(NOC)andSecurityoperationscentre(SOC)servicesalongwithtraditionalManagedServicesbusiness.

End user services

CoreservicescomprisetraditionalofferingsoftheCompanythathavescaledandindustrializedoveranumberofyears.These primarily include applicationmanagement services, proprietary applicationdevelopment services, independentvalidation solutions, product engineering and management, facility management services, traditional enterpriseapplicationimplementation,supportandintegrationservicesandAnnualMaintenanceContracts.

Trade receivables and contract balances

TheCompanyclassifiestherighttoconsiderationinexchangefordeliverablesaseitherareceivableorasunbilledrevenue.

Areceivableisarighttoconsiderationthatisunconditionaluponpassageoftime.Revenueforfixed-pricemaintenancecontractsisrecognizedonastraight-linebasisovertheperiodofthecontract.Revenuesinexcessofbillingsisrecordedas



unbilledrevenueandisclassifiedasafinancialassetforthesecasesasrighttoconsiderationisunconditionaluponpassageoftime.

Revenue recognition forfixed-pricedevelopment contracts isbasedonpercentage-of-completionmethod. Invoicing totheclientsisbasedonmilestonesasdefinedinthecontract.Thiswouldresultinthetimingofrevenuerecognitionbeingdifferentfromthetimingofbillingthecustomers.Unbilledrevenueforfixed-pricedevelopmentcontractsisclassifiedasnon-financialassetasthecontractualrighttoconsiderationisdependentoncompletionofcontractualmilestones.

TradereceivableandunbilledrevenuesarepresentednetofimpairmentintheBalanceSheet.

DuringtheyearendedMarch31,2019,theCompanyrecognizedrevenueof`3249LakhsfromopeningunearnedrevenueasofApril1,2018.

DuringtheyearendedMarch31,2019,Unbilledrevenueof`4168Lakhs

Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to berecognizedasattheendofthereportingperiodandanexplanationastowhentheCompanyexpectstorecognizetheseamountsinrevenue.ApplyingthepracticalexpedientasgiveninIndAS115,theCompanyhasnotdisclosedtheremainingperformanceobligationrelateddisclosuresforcontractswheretherevenuerecognizedcorrespondsdirectlywiththevaluetothecustomeroftheentity’sperformancecompletedtodate,typicallythosecontractswhereinvoicingisontime-and-materialbasis.Remainingperformanceobligationestimatesare subject to changeandareaffectedby several factors,including terminations, changes in the scopeof contracts, periodic revalidations, adjustment for revenue that hasnotmaterializedandadjustmentsforcurrency.

TheimpactonaccountofapplyingtheerstwhileIndAS18,RevenueinsteadofIndAS115,RevenuefromContractswithCustomersonthefinancialsresultsoftheCompanyfortheyearendedandasatMarch31,2019isinsignificant.OnaccountofadoptionofIndAS115,unbilledrevenuesofRs.4186LakhMarch31,2019hasbeenconsideredasanon-financialasset.

(xviii) Income taxes

Incometaxcomprisescurrentanddeferredtax.Incometaxexpenseisrecognizedinthestatementofprofitandlossexcepttotheextentitrelatestoitemsdirectlyrecognizedinequityorinothercomprehensiveincome.

a) Current income tax

Currentincometaxforthecurrentandpriorperiodsaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthoritiesbasedonthetaxableincomefortheperiod.Thetaxratesandtaxlawsusedtocomputethecurrenttaxamountarethosethatareenactedorsubstantivelyenactedbythereportingdateandapplicablefortheperiod.TheCompanyoffsetscurrenttaxassetsandcurrenttaxliabilities,whereithasalegallyenforceablerighttosetofftherecognizedamountsandwhereitintendseithertosettleonanetbasisortorealizetheassetandliabilitysimultaneously

b) Deferred income tax

Deferredincometaxisrecognizedusingthebalancesheetapproach.Deferredincometaxassetsandliabilitiesarerecognizedfordeductibleandtaxabletemporarydifferencearisingbetweenthetaxbaseofassetsandliabilitiesandtheircarryingamountinfinancialstatements,exceptwhenthedeferredincometaxarisesfromtheinitialrecognitionofgoodwilloranassetorliabilityinatransactionthatisnotabusinesscombinationandaffectsneitheraccountingnortaxableprofitsorlossatthetimeofthetransaction.Deferredincometaxassetisrecognizedtotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifference,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilized.Deferredincometaxliabilitiesarerecognizedforalltaxabletemporarydifference.Thecarryingamountofdeferredincometaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassettobeutilized.Deferredincometaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealizedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthereportingdate.



c) Minimum Alternate Tax

MinimumAlternate Tax is in the nature of unused tax creditwhich canbe carried forward andutilizedwhen thecompanywillpaynormalincometaxduringthespecifiedperiod.Deferredtaxassetsonsuchtaxcreditisrecognizedtotheextentthatisprobablethattheunusedtaxcreditcanbeutilizedinthespecifiedfutureperiod.

(xix) Earnings per share

Basicearningspershareiscomputedusingtheweightedaveragenumberofequitysharesoutstandingduringtheperiod.DilutedEPSiscomputedbydividingthenetprofitaftertaxbytheweightedaveragenumberofequitysharesconsideredforderivingbasicEPSandalsoweightedaveragenumberofequitysharesthatcouldhavebeenissueduponconversionofalldilutivepotentialequityshares.Dilutivepotentialequitysharesaredeemedconvertedasofthebeginningoftheperiod,unlessissuedatalaterdate.Dilutivepotentialequitysharesaredeterminedindependentlyforeachperiodpresented.Thenumberofequitysharesandpotentiallydilutiveequitysharesareadjustedforbonusshares,asappropriate.

Standards issued but not yet effective Ministry of Corporate Affairs (“MCA”), through Companies (Indian AccountingStandards)AmendmentRules,2019andCompanies(IndianAccountingStandards)SecondAmendmentRules,hasnotifiedthefollowingnewandamendmentstoIndASwhichtheCompanyhasnotappliedastheyaree”effectivefromApril1,2019;

Ind AS 116 – Leases

OnMarch30,2019,theMinistryofCorporateAffairshasnotifiedIndAS116,Leases. IndAS116willreplacetheexistingleasesstandard, IndAS17,Leases,andrelatedinterpretations.Thestandardsetsouttheprinciplesfortherecognition,measurement,presentationanddisclosureofleasesforbothpartiestoacontracti.e.,thelesseeandthelessor.IndAS116introducesasinglelesseeaccountingmodelandrequiresthelesseetorecognizeassetsandliabilitiesforallleaseswithatermofmorethantwelvemonths,unlesstheunderlyingassetisoflowvalue.Currently,operatingleaseexpensesarechargedtotheStatementofProfitandLoss.Thestandardalsocontainsenhanceddisclosurerequirementsforlessees.IndAS116substantiallycarriesforwardthelessoraccountingrequirementsinIndAS17.

TheeffectivedatefortheadoptionofIndAS116isannualperiodsbeginningonorafterApril1,2019.Thestandardpermitstwopossiblemethodsoftransition;

• Fullretrospective-RetrospectivelytoeachpriorperiodpresentedapplyingIndAS8,AccountingPolicies,ChangesinAccountingEstimatesandErrors

• Modifiedretrospective-Retrospectively,withthecumulativeeffectofinitiallyapplyingthestandardrecognizedatthedateofinitialapplication

Undermodifiedretrospectiveapproach,thelesseerecordstheleaseliabilityasthepresentvalueoftheremainingleasepayments,discountedattheincrementalborrowingrateandtherightofuseasseteitheras;

• Itscarryingamountasifthestandardhadbeenappliedsincethecommencementdate,butdiscountedatthelessee´sincrementalborrowingrateatthedateofinitialapplication,or

• Anamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatedtothatleaserecognizedunderIndAS17immediatelybeforethedateofinitialapplication.

Certainpracticalexpedientsareavailableunderboththemethods.TheeffectofthisamendmentonthefinancialstatementsoftheCompanyisbeingevaluated.

IndAS12–Incometaxes(amendmentsrelatingtoincometaxconsequencesofdividendanduncertaintyoverincometaxtreatments)OnMarch30,2019,theMinistryofCorporateAffairshasnotifiedIndAS12,AppendixC,UncertaintyoverIncomeTaxTreatmentswhichistobeappliedwhileperformingthedeterminationoftaxableprofit(orloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates,whenthereisuncertaintyoverincometaxtreatmentsunderIndAS12.Accordingtotheappendix,companiesneedtodeterminetheprobabilityoftherelevanttaxauthorityacceptingeachtaxtreatment,orgroupoftaxtreatments,thatthecompanieshaveusedorplantouseintheirincometaxfilingwhichhastobeconsideredtocomputethemostlikelyamountortheexpectedvalueofthetaxtreatmentwhendeterminingtaxableprofit(taxloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates.



Thestandardpermitstwopossible

methods of transition;

• Fullretrospectiveapproach-Underthisapproach,AppendixCwillbeappliedretrospectivelytoeachpriorreportingperiod presented in accordancewith Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors,withoutusinghindsight,and

• Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initialapplication, without adjusting comparatives Further, the amendment clarifies that an entity shall recognize theincometaxconsequencesofdividendsinprofitor loss,othercomprehensiveincomeorequityaccordingtowheretheentityoriginallyrecognizedthosepasttransactionsorevents.EffectivedateforapplicationofthisamendmentisannualperiodbeginningonorafterApril1,2019.TheCompanyiscurrentlyevaluatingtheeffectofthisamendmentonthestandalonefinancialstatements.

Amendment to Ind AS 19, plan amendment, curtailment or settlement:

OnMarch30,2019,theMinistryofCorporateAffairsissuedamendmentstoIndAS19,EmployeeBenefits,inconnectionwithaccountingforplanamendments,curtailmentsandsettlements.

The amendments require an entity;

• Touseupdatedassumptionstodeterminecurrentservicecostandnetinterestfortheremainderoftheperiodafteraplanamendment,curtailmentorsettlement;and

• Torecognizeinprofitorlossaspartofpastservicecost,oragainorlossonsettlement,anyreductioninasurplus,evenifthatsurpluswasnotpreviouslyrecognizedbecauseoftheimpactoftheassetceiling.

Effectivedate for applicationof this amendment is annualperiodbeginningonor afterApril 1, 2019. TheCompany iscurrentlyevaluatingtheeffectofthisamendmentonthestandalonefinancialstatements.

Ind AS 109 – Prepayment Features with Negative Compensation

The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to allowmeasurementatamortizedcost(or,dependingonthebusinessmodel,atfairvaluethroughothercomprehensiveincome)eveninthecaseofnegativecompensationpayments.Companydoesnotexpectthisamendmenttohaveanyimpactonitsfinancialstatements.

Ind AS 23 – Borrowing Costs

Theamendmentsclarifythatifanyspecificborrowingremainsoutstandingaftertherelatedassetisreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsthatanentityborrowsgenerallywhencalculatingthecapitalizationrateongeneralborrowings.Companydoesnotexpectanyimpactonitsfinancialstatementsfromthisamendment.

Ind AS 28 – Long-term Interests in Associates and Joint Ventures

TheamendmentsclarifythatanentityappliesIndAS109FinancialInstruments,tolong-terminterestsinanassociateorjointventurethatformpartofthenetinvestmentintheassociateorjointventurebuttowhichtheequitymethodisnotapplied.Companydoesnotexpectanyimpactonitsfinancialstatementsfromthisamendment.

Ind AS 103– Business Combinations and Ind AS 111 – Joint Arrangements

TheamendmentstoIndAS103relatingtore-measurementclarifythatwhenanentityobtainscontrolofabusinessthatisajointoperation,itre-measurespreviouslyheldinterestsinthatbusiness.TheamendmentstoIndAS111clarifythatwhenanentityobtainsjointcontrolofabusinessthatisajointoperation,theentitydoesnotre-measurepreviouslyheldinterestsinthatbusiness.Companywillapplythepronouncementifandwhenitobtainscontrol/jointcontrolofabusinessthat is a joint operation.


Corporate Overview Statutory Reports Financial StatementsN

OTE

- 2

: PR

OPE

RTY

PLAN

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EQ

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31-0

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19As

at

31-0

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19As

at

31-0

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18

Prem

ises

Lea

seHold

2,734

-

-2,734

293

34

-327

2,407

2,441

Civila

ndPlumbing

Work

1,818

-

-1,818

205

34

-239

1,579

1,613

Furnitu

reand

Fixtures

3,214

-

-3,214

2,309

318

-

2,627

588

906

Office

Equ

ipmen

ts920

-

-920

903

4

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14

17

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135

4

-140

132

0

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7

4

Compu

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ts9,617

-

-9,617

9,521

4

-9,525

92

96

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156

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8,59

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599

13,

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394

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Leas

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199

22

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2,057

2,079

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Lea

seHold

6,873

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-6,873

660

67

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6,146

6,214

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4,178

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Corporate Overview Statutory Reports Financial StatementsTh

ech

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2,734

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259

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2,441

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1,818

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175

30

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1,613

1,643

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3,214

-

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1,962

346

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2,309

906

1,252

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130

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9,336

185

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96

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1



Note 05: Investments i) Non Current Investments (`InLakhs)

Sr. No.

Particulars As at March 31, 2019


(1) Non-Quoted, Long Term, Trade: (Carried at Cost)(a) Equity Investment in Subsidiaries(i) Allied Digital Services, LLC (USA) 7,531 7,531

306017(Previousyear:306017)EquitysharesofUSD10each,fullypaidup(ii) Allied Digital INC (USA) 7,075 7,075

10,000(Previousyear:10,000)EquitysharesofUSD0.0001/-eachfullypaidup(iii) Allied Digital Singapore Pte LTD. 6 6

100(Previousyear:100)EquitysharesofSGD1each,fullypaidup(iv) Allied Digital Asia Pacific Pty Limited (Australia) 128 128

100(Previousyear:100)EquitysharesofAUD1each,fullypaidup(v) Allied E-Cop Surveillance India Pvt. Ltd. 1 1

86010(Previousyear:86010)Equitysharesof`10/-eachfullypaidup(vi) Allied Digital Services (UK) Ltd. 1 1

900(Previousyear:900)EquitysharesofGBP1eachfullypaidup(vii) En Pointe Technologies (India) Private Limited 1 1

999(PreviousYear:999)Equitysharesof`100/-Eachfullypaidup(viii) Allied Digital Services OY 2 -

2500(Previousyear:0)EquitysharesofEURO1each,fullypaidupTotal Investment in Subsidiaries 14,745 14,743

(b) Equity investment in Associates ( Carried at cost):(i) Soft Shell System (I) Pvt. Ltd. 600 600

117,924 (Previous year. 117924) Equity shares of 10/- each fully paid up at apremiumof`498.81/-perequityshare

(ii) Allied CNT Solutions Pvt. Ltd. 0 014200(PreviousYear:14200)Equitysharesof`10/-each

Total Investment in Associates 600 600 Investment in Others (Unquoted)

(i) Uthopia Green Trans Pvt. Ltd. 0 0

200(PreviousYear:200)Equitysharesof`10/-eachTotal Investment in Others 0 0

Wherevertheamountis‘0’,itdenotesvaluelessthan`50,000/-asallvalueisroundedofftothenearest`1Lakh.



(ÌnLakhs)Sr. No.



(c) Investment carried at Fair Value through Amortized Cost(i) 4,50,000(PreviousYear4,50,000)PreferenceShares@`100/-of

DevyogBuildersPvt.Ltd.161 148

Total Investment in Preference Shares 161 148 Total Non Current Investments 15,506 15,491

Notes:-Aggregateamountofunquotedinvestmentis` 15,506LakhsThereisnoimpairmentinvalueofinvestment Note 6 : Loans (ÌnLakhs)

Sr. No.



(i) Non-Current (Unsecured, considered good)Loansandadvancestorelatedparties 162 184InterCorporateDeposits 155 210

Total Non-Current Loans 316 394 (ii) Current

Loansandadvancestorelatedparties 77 76Loansandadvances(others) 127 113

Total Current Loans 204 189 Total Loans 520 583

Note 7: Other Financial Assets (ÌnLakhs)

Sr. No.



(i) Non-Current(a) Security Deposits

Unsecured,consideredgood 55 6(b) Others 399 400

Total 454 406 (ii) Current(a) Rental Security Deposits

Unsecured,consideredgood 7 51(b) Un-billedrevenue 4,168 3,249(c) InterestAccrued 118 254(d) Others 170 131

Total 4,464 3,685 Total Other Financial Assets 4,918 4,091



Note 8: Other Assets (ÌnLakhs)

Sr. No.



(i) Non-Current(a) Duties&Taxes 139 -(b) AdvanceIncomeTaxAssets(Netofprovisions) 1,138 1,599

Total 1,277 1,599(ii) Current(a) MATCreditEntitlement 1,145 935(b) Prepaidexpenses 142 17

Total 1,287 952Total Other Assets 2,564 2,551

Note 9: Inventories (ÌnLakhs)



StockinTrade 3,383 3,311Total Inventories 3,383 3,311

Note:Inventoriesarevaluedatlowerofcostandnetrealizablevalue Note 10: Trade Receivables (ÌnLakhs)



TradereceivablesoutstandingforaperiodlessthansixmonthsfromthedatetheyaredueforpaymentUnsecured,consideredgood 2,591 3,016

TradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpaymentUnsecured,consideredgood 11,655 11,430

Total Trade Receivable 14,246 14,446 Trade Receivable stated above include debt due from: (ÌnLakhs)



PrivateCompanyinwhichdirectorisamember 3,428 2,393 3,428 2,393

Wherevertheamountis‘0’,itdenotesvaluelessthan`50,000/-asallvalueisroudedofftothenearest`1Lakh.



Note 11 (i): Cash and Cash Equivalents: (ÌnLakhs)

Sr. No.



(a) BalanceswithBanksInCurrentAccount 454 387

(b) Cashonhand 4 17Total Cash and Cash Equivalents 458 404

Note 11 (ii): Other Balances with Banks: (ÌnLakhs)

Sr. No.



(a) Infixeddepositaccounts(pledgedwithbanksagainstguaranteesissuedbybank)AboveFixeddeposithavematurityof12monthsorabove.

765 1,356

765 1,356 Note 12: Equity Share Capital (a) Authorised, Issued, Subscribed & Paid - up and par value per share

(ÌnLakhs)

Share Capital As at March 31, 2019 As at March 31, 2018 Number Amount Number Amount

AuthorisedEquitysharesof`5eachwithvotingrights 6,00,00,000 3,000 6,00,00,000 3,000IssuedEquitysharesof`5eachwithvotingrights 5,02,05,528 2,510 5,02,05,528 2,510Subscribed & Paid upEquitysharesof`5eachwithvotingrights 5,02,05,528 2,510 5,02,05,528 2,510

(b) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(ÌnLakhs)

Particulars Opening Balance

ESOP Conversion Buy back Closing Balance

Equity shares with voting rights as onYear ended March 31, 2019-Numberofshares 5,02,05,528 - - - 5,02,05,528-AmountinLakhs 2,510 - - - 2,510Year ended March 31, 2018-Numberofshares 5,02,05,528 - - - 5,02,05,528-AmountinLakhs 2,510 - - - 2,510

(c) Rights, Preferences and restrictions related to equity shares Thecompanyhasonlyoneclassofequityshareshavingparvalueof`5pershare.Eachholderofequitysharesisentitledtoone

votepershare.



(d) Details of shares held by each shareholder holding more than 5% shares: (ÌnLakhs)

Name of Shareholder As at March 31, 2019 As at March 31, 2018

No. of Shares held

% of Holding

No. of Shares held

% of Holding

EquityshareswithvotingrightsNitinDhanjiShah 1,47,83,031 29.45 1,47,83,031 29.45PrakashDhanjiShah 81,78,348 16.29 81,78,348 16.29

The Company Stock Options Plans which are summarized as under: (i) Stock Option Scheme (2010) TheCompanybyaSpecialResolutionpassedatAnnualGeneralMeetingheldon29thSeptember2010approvedtheEmployee

StockOptionSchemeundersection79AoftheCompaniesAct1956tobereadalongwithSEBI(EmployeeStockOptionandEmployeeStockPurchaseScheme)Guidelines,1999whereby30,00,000optionsconvertibleintoEquitySharesof`5/-eachtobegrantedtoeligibleemployeesoftheCompany.Thisstockoptionschemeistitledas‘‘ESOP2010”.Outofthesame4,87,500optionshavebeengrantedduringthefinancialyear2012-13.Ofthese202500optionshavelapsedastheemployeesholdingthesaidnumberofgrantshavebeenterminatedduring.

(ÌnLakhs)

Particular 2018-2019 2017-2018OpeningOutstandingoption 25,12,500 25,12,500EmployeeStockOptionSchemeannouncedduringtheYear - -Grantedduringtheyear - -Exercisedduringtheyear(Post-split) - -Forfeited/lapsedduringtheyear(Post-split) - -ClosingOutstandingoption 25,12,500 25,12,500

Note 13: Other Equity (i) Reserves and Surplus

(ÌnLakhs)

Sr. No.



(a) Capital Redemption ReserveOpeningBalance 30 30ClosingBalance 30 30

(b ) Securities Premium AccountOpeningBalance 37,019 37,019ClosingBalance 37,019 37,019

(c) General ReservesOpeningBalance 1,338 1,338Add:Duringtheyear 36ClosingBalance 1,374 1,338

(d ) SurplusOpeningbalance 3,641 3,265



(ÌnLakhs)

Sr. No.



(+) NetProfit/(NetLoss)Forthecurrentyear 963 498(-) AdjustmentaccordingtoIndAs - (81)(-) AdjustmentsforPriorperiodtaxes (41)

ClosingBalance 4,604 3,641Total Reserves and Surplus 43,027 42,028

(ii) Other component of equity ÌnLakhs

Sr. No.

Particulars As at Mar 31, 2019 As at Mar 31, 2018

(a ) Employee Stock Options OutstandingBalanceatbeginningofthereportingperiod 720 720TransfertoGeneralreserves (36) -Balanceattheendofreportingperiod 684 720

(b) Accumulated Other Comprehensive IncomeBalanceatBeginningofthereportingperiod 120 85Add/Less:duringtheyear (35) 36Balanceattheendofreportingperiod 85 120

Total Other Component of Equity 769 840 Reserves and Surplus 43,797 42,869

Note 14: Borrowings

(ÌnLakhs)Sr. No.



(i) Non Current Borrowings (Secured)a. Kotak Mahindra Bank 1,317 451

Securitydetails(a) EquitablemortgageoftheimmovablepropertysituatedatOfficeno.405&406,4th

Floor,Seepz,SEZ,MID.C.,Marol,Andheri-East,Mumbai-400096(b) Plotno.22/1&13/5,RajivGhandhiinfotechPark,Hinjewadiphase-3(SEZ)MIDC,

NearLexwear&Yashtechnologies,VillageHinjewadi,Pune(c) PlotnoA-24&A-25TalawadeSoftwarepark,MIDCOppositeFujitsu ,Talawade

chakhan-MIDCroad,PuneownedbyMs.Gateways(d) Flatno.9,FirstfloorbuildingNoA,SidharthCourt,corporativeHousingsociety

Ltd,FinalplotNo.196,SNo.347/2c ,NearHotelMadhuban,DholepatilRoad,GhorpadiPune

(e) PledgeofMutualFundsbelongingtoPadmaPragnaPrivateTrustandSharesHeldbyRelativeofPromoters(Promoter’sTrust)

(f) CorporateGuaranteeofM/s.TheGateways

Shared Pari- pasu with Kotak Mahindra Bank(a) MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbai(b) MortgateofEarnestHouse,13Floor,NarimanPoint,Mumbai(c) MortgageofGalano3,4,7, 301,302,305,306.307&308BldgNo3, Sector

III,MIDCMahape,NaviMumbai



(`InLakhs)Sr. No.



(d) HypothecationChargeonMovableassetsexceptVehicles(e) HypothecationChargeonCurrentAssets(f) PersonalGuaranteeofPromoters

Total Non-Current Borrowings 1,317 451 (ii) Current Borrowings

Secured - a Loansrepayableondemand 1,886 5,350

Unsecured a Loansandadvancesfromrelatedparties(RepayableonDemand) 3,248 2,059b UnsecuredLoanOthers (2) 94c FixedDepositsfrompublic 16 39

Total Current Borrowings 5,147 7,543 Total Borrowings 6,464 7,994

InrespectofFixedDepositfrompublicunclaimedamountoverdueasat31.03.2019;(Principal-`15.57LakhsandInterest-`3.52Lakhs). Details of secured short - term borrowing along with security and term of repayment: (`InLakhs)



Loansrepayableondemandfrombanks:BarclaysBank(ForeignCurrencyLoan) 1,886 1,908WorkingCapitalFacilityFromStatebankofIndia - 3,442

Total Loan Repayable on demand from Banks 1,886 5,350

(i) Details of Security Offered to Barclays Bank: SharedPari-pasuwithKotakMahindraBank: (a) MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbai (b) MortgateofEarnestHouse,13Floor,NarimanPoint,Mumbai (c) MortgageofGalano3,4,7,301,302,305,306.307&308BldgNo3,SectorIII,MIDCMahape,NaviMumbai

(d) HypothecationChargeonMovableassetsexceptVehicles (e) HypothecationChargeonCurrentAssets (f) PersonalGuaranteeofPromotors



Note 15: Other Financial Liabilities (ÌnLakhs)

Sr. No.



(i) Other Non-Current Financial Liabilities(a) DeferredRentIncome-SecurityDepositsRent 4 3

Total Non-Current Financial Liabilities 4 3 (ii) Other Current Financial Liabilities(a) Securitydepositforrentedproperty 3 9(b) DeferredRentIncome-SecurityDepositsRent 4 2(c) KotakBankO/D 42 447

Total Other Current Financial Liabilities 49 458 Total Other Financial Liabilities 53 462

Note 16: Provisions (ÌnLakhs)

Sr. No.



(i) Non-Current ProvisionsProvision for employee benefits: -Provisionforgratuity 2 2

Total Non-Current Provisions 2 2 (ii) Current Provisions(a) Provision for employee benefits

(i) ContributiontoProvidentFund 453 253(ii) ContributiontoEmployeeStateInsuranceCorporation 4 39(iii) ProfessionTax 24 25(iv) LeaveTravelAllowance - 8(v) ProvisionforExpenses 1,290 170

Total Current Provisions 1,768 495 Total Provisions 1,770 497

Note 17: Deferred tax liabilities ThenetdeferredtaxliabilitiesasatMarch31,2019,comprisesofthefollowingcomponents: (ÌnLakhs)



Deferred Tax Liability (Net)TimingdifferenceofdepreciationbetweenW.D.V.ofAssetsaspertheCompaniesActandIncomeTaxAct

2,653 2,503

Total Deferred Tax Liability (Net) 2,653 2,503



Note 18: Other liabilities (ÌnLakhs)

Sr. No.



Other Current Liabilities(a) AdvancereceivedfromCustomers - 574(b) Duties&Taxes - 43(c) UnpaidDivided 8 8

Total Other Current Liabilities 8 625

Note 19: Trade Payables (ÌnLakhs)

Sr. No.



Trade payablesTradepayablestoMicroandSmallenterprises - -TradepayablestootherthanMicroandSmallenterprises 2,948 3,999Total Trade Payables 2,948 3,999

TheCompanyhasnotreceivedanyinstructionfromsuppliersregardingtheirstatusundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006andhence,disclosuresifany,relatingtoamountsunpaidasattheyearend,togetherwithinterestpayable,asrequiredunderthesaidAct,havenotbeengiven.

Note 20: Operating Income(ÌnLakhs)

Particulars For the year ending March 31, 2019

For the year ending March 31, 2018

SalesofServices 6,269 5,216SalesofProducts 1,206 2,192OtheroperatingIncome 21 15

Total Operating Income 7,523 7,423

Note 21 : Other Income(ÌnLakhs)



InterestIncome 345 199Othernon-operatingincome(ReferNote21.A) 66 65

Total Other Income 412 264



Note 21. (A)(ÌnLakhs)



Other non-operating income comprises:RentalIncome 43 46MiscellaneousIncome 23 19

Total Other non-operating income 66 65

Note 22 Purchase of Traded Goods and Services(ÌnLakhs)



PurchaseofTradedGoodsandServices 1,358 607Total Purchase of Traded Goods and Services 1,358 607

Note 23: Changes in Inventories of Stock-in-Trade(ÌnLakhs)



ClosingStock 3,383 3,311Less:OpeningStock (3,311) (3,296)

Net (increase) / decrease (72) (15)

Note 24 : Employee Benefits Expenses(ÌnLakhs)

Sr. No



(a) Salariesandwages(IncludingManagerialRemuneration)(Refernote(24A) 2,430 2,106(b) ContributionstoProvidentFund 26 91(c) ContributionstoESIC 24 30(d) ContributionstoLaborWelfareFund 0 -(e) ContributionstoGratuity 9 84(f) Staffwelfareexpenses 10 28(g) ESOPExpenses - -

Total Employee Benefit Expenses 2,500 2,339

(24A) Details of Managerial Remuneration:

Sr. No

Particulars For the year ending

March 31, 2019

For the year ending

March 31, 2018 Salaries 120 90

Total 120 90



Note 25 : Finance Cost(ÌnLakhs)



(a) InterestexpenseonBorrowings 712 471(b) Otherborrowingcosts 209 16

Total Finance Cost 921 487


Note 26: Other expenses (ÌnLakhs)



RentincludingLeaseRentals 41 30RepairsandMaintenance 84 25Insurance 34 8Communication 42 46TravellingandConveyance 116 95ElectricityExpenses 158 141FreightandForwarding 18 4AdvertisementExpenses 5 8LegalandProfessionalFees 353 312PaymentstoAuditors(ReferNote(26A)below) 10 10RatesandTaxes 88 453BrokerageCharges 2 3Printing&StationeryExpenses 11 8BusinessPromotionExpenses 30 20OfficeExpenses 55 39EquipmentHireCharges (0) 1 CSRProvision 7 9SecurityCharges - 1 LabourCharges 9 58Donation 1 1 MiscellaneousExpenses 18 73

Total Other Expenses 1,080 1,343

26A Details of Auditors’ Remuneration:(ÌnLakhs)

Sr. No



Payments to the Auditors (a) ForStatutoryAudit 8 8(b) ForTaxationMatters 2 2

Total 10 10



Note 27: Exceptional Items(`InLakhs)

Sr. No



ReversalofBankInterest - (1,172)Baddebtwrittenoff 217 1,496Reversalofexpense (568)

Total (351) 323 Wherevertheamountis‘0’,itdenotesvaluelessthan`50,000/-asallvalueisroundedofftothenearest`1Lakh.

Note 28: Component of Other Comprehensive Income(`InLakhs)

Sr. No

Particulars For the year ending Mar 31, 2019

For the year ending Mar 31, 2018

Items that will not be reclassified to profit or lossActurialGain/LossonGratuity (35) 36

Total (35) 36

Note 29: Earning Per Shares

Sr. No

Particular 2018-19 2017-18

A Weighted average number of equity shares of Rs. 5/- eachI Numberofsharesatthebeginningoftheyear(nos)ofRs.5/-each 50205528 50205528

(PreviousYearofRs.5/-each)II NumberofSharesattheendoftheyear(Nos)ofRs.5/-each 50205528 50205528III ESOPoutstandingtoemployees NIL NILIV WeightedaveragenumberofequitysharesofRs.5/-each

(PreviousYearofRs.5/-each)outstandingduringtheyear(Nos) 50205528 50205528forbasicEPS

V WeightedaveragenumberofequitysharesofRs.5/-each 50205528 50205528DilutiveEPS

B Net Profit after tax available for equity shareholders (In Rs. Lakh) 963 498 C Basicincomeearningpershare(inrupees)[B/A(V)] 1.92 0.99D Dilutedearningpershare(inrupees)[B/A(VI)] 1.92 0.99

Note 30 (1) : Employee Benefits Gratuity Plan

(i) Anamountof`34.94lakhshasbeenrecognizedtowardstheEmployeesGratuityFundagainsttheliabilityof`156.8lakhsaspertheActuarialValuationforGratuityasonMarch31,2019.TheCompanyhasitsEmployeesGratuityFundmanagedbyBirlaSunLifeInsuranceCompany.TheparticularsunderAS15(Revised)furnishedbelowarethosewhicharerelevantandavailabletothecompanyandwhichareaspertheActurialValuationReport:-



Valuation DateMarch 31, 2019


I Assumptions as atMortality IALM(2006-08)Ult IALM(2006-08)UltDiscountRate 8% 8%Rateofincreaseincompensation 5% 5%Rateofreturn(expected)onplanassets 9% 9%Withdrawalrates 1to6% 1to6%

II Changes in present value of obligationsPVOatbeginningofperiod 15928192 15206523Interestcost 1057005 1117134CurrentServiceCost 3664786 3488568BenefitsPaid (4294326) (424216)Actuarial(gain)/lossonobligation 3494264 (3561808)PVOatendofperiod 19849921 15928192

III Changes in fair value of plan assetsFairValueofPlanAssetsatbeginningofperiod 239165 101991AdjustmenttoOpeningFairValueofPlanAssets (649) (68610)ExpectedReturnonPlanAssets 10,842 10,084BenefitPaid (4294326) (424216)Actuarialgain/(loss)onplanAssets 4000778 141586FairValueofPlanAssetsatendofperiod 44190 239165

IV Fair Value of Plan AssetsFairValueofPlanAssetsatbeginningofperiod 239165 101991AdjustmenttoOpeningFairValueofPlanAssets (649) (68610)ActualReturnonPlanAssets 0 0Contributions 4100000 630000BenefitPaid (4294326) (424216)FairValueofPlanAssetsatendofperiod 44190 239165FundStatus (19805731) (15689027)ExcessofactualoverestimatedreturnonPlanAssets 4000778 141586

V Actuarial Gain/(Loss) RecognizedActuarialGain/(Loss)fortheperiod(Obligation) (3494264) 3561808ActuarialGain/(Loss)fortheperiod(PlanAssets) 4000778 141586TotalGain/(Loss)fortheperiod 5,06,514 37,03,394ActuarialGain/(Loss)recognizedfortheperiod 5,06,514 37,03,394UnrecognizedActuarialGain/(Loss)atendofperiod - -

VI Amounts to be recognized in the Balance Sheet andstatementofProfit&LossAccountPVOatendofperiod 1,98,49,921 1,59,28,192FairValueofPlanAssetsatendofperiod 44190 239165





FundStatus (19805731) (15689027)UnrecognizedActuarialGain/(Loss) - -NetAsset/(Liability)recognizedinthebalancesheet (19805731) (15689027)

VII Expense recognized in the statement of P & L AccountCurrentServiceCost 3664786 3488568Interestcost 1057005 1117134ExpectedReturnonPlanAssets 10842 (82511)NetActuarial(Gain)/Lossrecognizedfortheperiod 5,06,514 (37,03,394)ExpenserecognizedinthestatementofP&LAccount 4710949 619678

VIII Movements in the Liability recognized in Balance SheetOpeningNetLiability 15689027 15206523AdjustmenttoOpeningFairValueofPlanAssets 649 68610Expensesasabove - -Contributionpaid - -ClosingNetLiability 19805731 15689027

IX Experience Analysis - Liabilities Acturial(Gain)/LossduetochangeinbasisExperience(Gain)/LossduetochangeinExperienceTotalExperienceAnalysis–PlanAssets 5,06,514 (37,03,394)Experience(Gain)/LossduetochangeinPlanAssets 34,94,264 (35,61,808)

141586X Schedule VI Details

CurrentLiabilityNon-currentLiability 19805731 15689027

Note 30 (2):Additional Information pursuant to the provisions of part II of the Schedule III of the Companies Act 2013:- (RsinLakhs)

Particular Year EndedMarch 31, 2019

Year EndedMarch 31, 2018

i IncomeinForeignCurrency(Exports) SalesofServicesandproducts 3,076.84 2,293.73

ii ExpenditureinForeignCurrency (subjecttodeductionoftaxwhereapplicable)

a Professional&ConsultationFeesb Travelling 6.43 4.8c CloudComputing 107.18 124.24iii ValueofImportscalculatedonC.I.F.basis-TradedGoods - -



Note 30 (3): Contingent Liabilites and commitment Contingent liabilities (to the extent not provided for ) (RsinLakhs)

Particulars As at 31st March, 2019

As at 31st March, 2018

BankGuaranteesissue 2285 2564IncomeTax(Litigation) 51 154

Total 2336 2718

Note 30 (4): Summary of Related Party transaction A) Nature of transaction with the Related Parties (RsInLakhs)

Particulars Subsidiary Associate2018-19 2017-18 2018-19 2017-18

Sale of Goods / Services / FacilityAlliedDigitalServices,LLC(USA) 4,225.91 2,040.39 0 0AlliedDigitalServices(UK)Ltd. 115.87 253.34 0 0Purchase of Goods, Services and FacilitiesAlliedDigitalServices,LLC(USA) 107.28 124 0 0

B) Balances with Related Party


Sundry DebtorsAlliedDigitalAsiaPacificPtyLtd.(Australia) 389.89 386.84AlliedDigitalServices,LLC(USA) 2955.18 1973.59AlliedDigitalServices(UK)Ltd. 59.14 20.97AlliedDigitalINC(USA) 6.08 6.02AssetliteEquipment(I)PrivateLimited 5.23 5.23

Sundry CreditorsAlliedDigitalServicesLLC(USA) 0.00 0.76AssetliteEquipmentIndiaPrivateLimited 12.75 40.23

Loan and advanceAssetliteEquipmentIndiaPrivateLimited 53.55 54.02

Short Term BorrowingEn-PointeTechnologiesIndiaPvt.Ltd. 61.10 61.10AlliedDigitalSingaporePteLtd. 9.68 10.80AlliedDigitalServicesLLC(USA) 2,180.19 1,002.92AlliedDigitalINC(USA) 861.30 861.30

Non-current investmentAlliedDigitalServicesLLC(USA) 7530.79 7530.79AlliedDigitalINC(USA) 7,074.83 7,074.83AlliedDigitalSingaporePteLtd. 6.47 6.47




AlliedDigitalAsiaPacificPtyLtd.(Australia) 127.84 127.84Alliede-CopSurveillanceIndiaPvt.Ltd. 1.01 1.01AlliedDigitalServicesOY 2.00 0.00AlliedDigitalServices(UK)Ltd. 1.01 1.01

Disclosure required under SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 regarding related parties Amount of loan/ advances in the nature of loan outstanding from subsidiaries and associates: (`InLakhs)

Particulars Outstandingas at the end

of the year

Maximum amount outstanding during

the year

Investment in shares of the

companySubsidiariesAllied Digital INC (USA)2018-19 7530.792017-18 - - 7530.79En-Pointe Technologies India Pvt. Ltd.2018-19 61.71 61.71 -2017-18 61.71 61.71 -Allied Digital Singapore Pte Ltd.2018-19 9.68 9.68 6.472017-18 10.80 10.80 6.47AlliedDigitalAsiaPacificPtyLtd.(Australia)2018-19 127.842017-18 127.84Allied e-Cop Surveillance India Pvt. Ltd.2018-19 1.012017-18 1.01Allied Digital Services (UK) Ltd.2018-19 1.012017-18 1.01

AssociatesAssetlite Equipment India Private Ltd.2018-19 53.55 53.552017-18 54.02 54.02

Summarized segment information for the year ended March 2019.

(`InLakhs)Particulars Year Ended


March 31, 2018Segment RevenueEnterpriseComputingbasedSolutions 5,266 5,196InfrastructureManagementbasedSolutions 2,257 2,227



(ÌnLakhs)Particulars Year Ended


March 31, 2018Un-allocable-Expenses/(Income) -701 -692Net Segment Revenue 6,822 6,731 Profit before Interest, Un-allocable expenses & TaxEnterpriseComputingbasedSolutions 3518 3471InfrastructureManagementbasedSolutions 1301 1284

4,819 4,755Less:i)Interest 921 486ii)Un-allocableExpenses(netofun-allocableincome) 2,970 3,736

Total Profit Before Tax 928 533 Un-allocable-CapitalEmployed 50,281 48,338

Total Capital Employed 50,281 48,338 Information regarding geographical revenue is as follow. (ÌnLakhs)

Revenue Year EndedMarch 31, 2019


India 3,176 4,629UK 116 253USA 4,226 2,040

Total 7,518 6,922 Information regarding customer Wise Revenue is as follow (ÌnLakhs)

Revenue Year EndedMarch 31, 2019


GovtofMaharashtra 2,168 3,776AlliedDigitalServicesLLC(USA) 4,226 2,040Others 1,129 1,607

Total 7,523 7,423



ToTheMembersof Allied Digital Services Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

WehaveauditedtheaccompanyingconsolidatedfinancialstatementsofAlliedDigitalServicesLimited(“theHoldingCompany”)anditssubsidiaries(theHoldingCompanyanditssubsidiariestogetherreferredtoas“theGroup”),anditsassociatewhichcomprisetheConsolidatedBalanceSheetasatMarch31,2019,theConsolidatedStatementofProfitandLoss(includingOtherComprehensiveIncome), theConsolidatedStatementofChanges inEquityand theConsolidatedStatementofCashFlows for theyearendedonthatdate,andnotestotheconsolidatedfinancialstatements,includingasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“theconsolidatedfinancialstatements”).

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidconsolidatedfinancialstatementsgivetheinformationrequiredbytheCompanies Act, 2013(the“Act”)inthemannersorequiredandgiveatrueandfairviewinconformitywithIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies (Indian Accounting Standards) Rules, 2015,asamended(“IndAS”)andotheraccountingprinciplesgenerallyaccepted in India,of theconsolidatedstateofaffairsoftheGroupanditsassociateasatMarch31,2019,theconsolidatedprofit,consolidatedtotalcomprehensiveincome,consolidatedchangesinequityanditsconsolidatedcashflowsfortheyearendedonthatdate.

Basis for Opinion

WeconductedourauditoftheconsolidatedfinancialstatementsinaccordancewiththeStandardsonAuditing(SAs)specifiedundersection143(10)of theAct (SAs).Our responsibilitiesunder thoseStandardsare furtherdescribed in theAuditor’sResponsibilitiesfortheAuditoftheConsolidatedFinancialStatementssectionofourreport.WeareindependentoftheGroupanditsassociateinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeindependencerequirementsthatarerelevanttoourauditoftheconsolidatedfinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheconsolidatedfinancialstatements.

Key Audit Matters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditoftheconsolidatedfinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditoftheconsolidatedfinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinourreport.

SR NO


1 Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in view of adoption of new revenue recognition standard Ind AS 115 “Revenue from Contracts with Customers”

Principal Audit Procedures

We assessed the Group’s process to identify the impact ofadoption of the new revenue accounting standard on itsreported revenue. Our audit approach consisted testing ofthedesignandoperatingeffectivenessoftheinternalcontrolsandsubstantivetestingasfollows:

The application of the new revenue accounting standardinvolvescertainkeyjudgementsrelatingtoidentificationof

• Evaluated the design of internal controls relating toimplementationofthenewrevenueaccountingstandard.

Independent Auditors’ Report



SR NO


distinct performance obligations, determination oftransaction price of the identified performance obligations,the appropriateness of the basis used to measure revenuerecognizedoveraperiod.Additionally,newrevenueaccountingstandard contains disclosures which involves collation ofinformationinrespectofdisaggregatedrevenueandperiodsover which the remaining performance obligations will besatisfiedsubsequenttothebalancesheetdate.RefertoNotestotheConsolidatedFinancialStatements

• Selectedasampleofcontinuingandnewcontracts,andtestedtheoperatingeffectivenessoftheinternalcontrol,relating to identification of the distinct performanceobligations and determination of transaction price. Wecarriedoutacombinationofproceduresinvolvingenquiryand observation, re-performance and inspection ofevidenceinrespectofoperationofthesecontrols.

• Selected a sample of continuing andnew contracts andperformedthefollowingprocedures:

– Read, analyzed and identified the distinct performanceobligationsinthesecontracts.

- Compared these performance obligations with thatidentifiedandrecordedbytheGroup.

- Considered the terms of the contracts to determine thetransactionprice includinganyvariableconsideration toverifythetransactionpriceusedtocomputerevenueandtotestthebasisofestimationofthevariableconsideration.

- Samples in respect of revenue recorded for time andmaterialcontractswereassessedwithrelevantdocumentsincluding customer acceptances, subsequent invoicingandhistoricaltrendofcollectionsanddisputes.

- Sample of revenues disaggregated by type and serviceofferingswasassessedwiththeperformanceobligationsspecifiedintheunderlyingcontracts.

- In respect of samples relating to fixed-price contracts,progress towards satisfaction of performance obligationused to compute recorded revenue was verified withactual.

- Sample of revenues disaggregated by type and serviceofferings was tested with the performance obligationsspecifiedintheunderlyingcontracts.

Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon

TheCompany’sBoardofDirectorsisresponsibleforthepreparationoftheotherinformation.TheotherinformationcomprisestheinformationincludedintheManagementDiscussionandAnalysis,Board’sReportincludingAnnexurestoBoard’sReport,BusinessResponsibility Report, Corporate Governance and Shareholder’s Information, but does not include the consolidated financialstatementsandourauditor’sreportthereon

Our opinion on the consolidated financial statements does not cover the other information andwe do not express any formofassurance conclusion thereon.

Inconnectionwithourauditoftheconsolidatedfinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedfinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.



Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

TheHolding Company’s Board of Directors is responsible for thematters stated in section 134(5) of the Actwith respect to thepreparationoftheseconsolidatedfinancialstatementsthatgiveatrueandfairviewoftheconsolidatedfinancialposition,consolidatedfinancialperformance,consolidatedtotalcomprehensive income,consolidatedchanges inequityandconsolidatedcashflowsoftheGroup including itsassociate inaccordancewiththe IndASandotheraccountingprinciplesgenerallyaccepted in India .TherespectiveBoardofDirectorsof thecompanies included intheGroupandof itsassociateareresponsible formaintenanceof theadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheGroupandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationoftheconsolidatedfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror,whichhavebeenusedforthepurposeofpreparationoftheconsolidatedfinancialstatementsbytheDirectorsoftheHoldingCompanyasaforesaid.

Inpreparingtheconsolidatedfinancialstatements,therespectiveBoardofDirectorsofthecompaniesincludedintheGroupandofitsassociateareresponsibleforassessingtheabilityoftheGroupanditsassociatetocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheBoardofDirectorseitherintendstoliquidatetheGrouportoceaseoperations,orhasnorealisticalternativebuttodoso.

TherespectiveBoardofDirectorsofthecompaniesincludedintheGroupandifitsassociatearealsoresponsibleforoverseeingthefinancialreportingprocessoftheGroupandofitsassociate.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Ourobjectivesaretoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsasawholeare free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisoftheseconsolidatedfinancialstatements.

AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudorerror,designandperformauditprocedures responsive to thoserisks,andobtainauditevidencethat issufficientandappropriatetoprovideabasis forouropinion.The riskofnotdetectingamaterialmisstatement resulting from fraud ishigher than foroneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternal controls.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that areappropriate in the circumstances.Under section 143(3)(i) of the Act,we are also responsible for expressing our opinion onwhethertheCompanyanditssubsidiarycompanieswhicharecompaniesincorporatedinIndia,hasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityoftheGroupanditsassociatetocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresintheconsolidatedfinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheGroupanditsassociatetoceasetocontinueasagoingconcern.



• Evaluatetheoverallpresentation,structureandcontentoftheconsolidatedfinancialstatements,includingthedisclosures,andwhethertheconsolidatedfinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGroupanditsassociatetoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceof theauditof thefinancial statementsof suchentities included in theconsolidatedfinancialstatements,whichhavebeenauditedbyotherauditors,suchotherauditorsremainresponsibleforthedirection,supervisionandperformanceoftheauditscarriedoutbythem.Weremainsolelyresponsibleforourauditopinion.

Materialityisthemagnitudeofmisstatementsintheconsolidatedfinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditoftheconsolidatedfinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesematters inourauditor’s reportunless lawor regulationprecludespublicdisclosureabout thematterorwhen, inextremely rarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Other Matters

(a) Wedidnotauditthefinancialstatementsofonesubsidiarywhosefinancialstatementsreflecttotalassetsof`13119.53Lakhsasat31stMarch,2019,totalrevenuesof`20854.97Lakhsandnetcashflowsamountingto`900.01Lakhsfortheyearendedonthatdate,asconsideredintheconsolidatedfinancialstatements.ThesefinancialstatementshavebeenauditedbyotherauditorwhosereporthavebeenfurnishedtousbytheManagementandouropinionontheconsolidatedfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthissubsidiaryandourreportintermsofsub-section(3)ofSection143oftheAct,insofarasitrelatestotheaforesaidsubsidiaryisbasedsolelyonthereportoftheotherauditor.

(b) Wedidnotauditthefinancialstatementsofsevensubsidiaries,whosefinancialstatementsreflecttotalassetsof̀ 9297.88Lakhsasat31stMarch,2019,totalrevenuesof`116.11Lakhsandnetcashflowsamountingto`15.27Lakhsfortheyearendedonthatdate,asconsideredintheconsolidatedfinancialstatements.TheconsolidatedfinancialstatementsalsoincludetheGroup’sshareofnetprofitof`11.11lakhsfortheyearended31stMarch,2019,asconsideredintheconsolidatedfinancialstatements,inrespectofoneassociate,whosefinancialstatementshavenotbeenauditedbyus.ThesefinancialstatementsareunauditedandhavebeenfurnishedtousbytheManagementandouropinionontheconsolidatedfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesesubsidiaries,jointlycontrolledentitiesandassociates,andourreportintermsofsub-section(3)ofSection143oftheActinsofarasitrelatestotheaforesaidsubsidiaries,jointlycontrolledentitiesandassociates, isbasedsolelyonsuchunauditedfinancialstatements.InouropinionandaccordingtotheinformationandexplanationsgiventousbytheManagement,thesefinancialstatementsarenotmaterialtotheGroup.

Ouropinionontheconsolidatedfinancialstatements,andourreportonOtherLegalandRegulatoryRequirementsbelow,isnotmodifiedinrespectoftheabovematterswithrespecttoourrelianceontheworkdoneandthereportsoftheotherauditorsandthefinancialstatementscertifiedbytheManagement.

Report on Other Legal and Regulatory Requirements

1. AsrequiredbySection143(3)oftheAct,basedonourauditwereportthat:



a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditoftheaforesaidconsolidatedfinancialstatements.

b) Inouropinion,properbooksofaccountasrequiredbylawrelatingtopreparationoftheaforesaidconsolidatedfinancialstatementshavebeenkeptsofarasitappearsfromourexaminationofthosebooksandthereportsoftheotherauditors.

c) TheConsolidatedBalanceSheet,theConsolidatedStatementofProfitandLoss(includingOtherComprehensiveIncome),ConsolidatedStatementofChangesinEquityandtheConsolidatedStatementofCashFlowsdealtwithbythisReportareinagreementwiththerelevantbooksofaccountmaintainedforthepurposeofpreparationoftheconsolidatedfinancialstatements.

d) Inouropinion,theaforesaidconsolidatedfinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsoftheHoldingCompanyasonMarch31,2019takenon recordby theBoardofDirectorsof theHoldingCompanyand the reportsof thestatutoryauditorsof its subsidiarycompaniesandassociatesincorporatedinIndia,noneofthedirectorsoftheGroupcompaniesandassociatesincorporatedinIndiaisdisqualifiedasonMarch31,2019frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) Withrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“Annexure A”.

g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,asamendedinouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. TheconsolidatedfinancialstatementsdiscloseimpactofpendinglitigationsontheconsolidatedfinancialpositionoftheGroupanditsassociates–ReferNoteNo30(3)totheconsolidatedfinancialstatements.

ii. TheGroupanditsassociatesdidnothaveanymaterialforeseeablelossesonlongtermcontractsincludingderivativescontracts.

iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbythecompany.





Annexure “A” to the Independent Auditor’s Report(Referredtoinparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’sectionofourreporttotheMembersofAlliedDigitalServicesLimitedofevendate)

ReportontheInternalFinancialControlsOverFinancialReportingunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,2013(“theAct”)

InconjunctionwithourauditoftheconsolidatedfinancialstatementsoftheCompanyasofandfortheyearendedMarch31,2019,wehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAlliedDigitalServicesLimited(hereinafterreferredtoas“Company”)anditssubsidiarycompaniesanditsassociate,whicharecompaniesincorporatedinIndia,asofthatdate.

Management’s Responsibility for Internal Financial Controls

TheBoardofDirectorsoftheCompanyanditssubsidiarycompaniesanditsassociate,whicharecompaniesincorporatedinIndia,areresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedby the respective Companies considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial ReportingissuedbytheInstituteofCharteredAccountantsofIndia(“theICAI”).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetotherespectivecompany’spolicies, thesafeguardingof itsassets, thepreventionanddetectionof fraudsanderrors, theaccuracyandcompletenessof theaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheinternalfinancialcontrolsoverfinancialreportingoftheCompanyanditssubsidiarycompaniesanditsassociate,whicharecompaniesincorporatedinIndia,basedonouraudit.WeconductedourauditinaccordancewiththeGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the“GuidanceNote”) issuedbytheInstituteofCharteredAccountantsofIndiaandtheStandardsonAuditing,prescribedunderSection143(10)oftheCompaniesAct,2013, to theextentapplicable toanauditof internalfinancial controls.ThoseStandardsand theGuidanceNote require thatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheinternalfinancialcontrolssystemoverfinancialreportingoftheCompanyanditssubsidiarycompaniesanditsassociate,whicharecompaniesincorporatedinIndia.

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 regardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.



Inherent Limitations of Internal Financial Controls Over Financial Reporting

Becauseof the inherent limitationsof internalfinancial controlsoverfinancial reporting, including thepossibilityof collusionorimpropermanagement overrideof controls,materialmisstatements due to error or fraudmayoccur andnot bedetected. Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinionandtothebestofour informationandaccordingtotheexplanationsgiventous, theCompanyand itssubsidiarycompaniesanditsassociate,whicharecompaniesincorporatedinIndia,have,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytherespectivecompaniesconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.





Consolidated Balance Sheet as on March 31, 2019. (`InLakhs)Particulars Note No. As at

March 31, 2019As at

March 31, 2018ASSETSNon-Current assetsProperty,PlantandEquipment 2 4,728 5,265InvestmentProperty 3 8,203 8,161IntangibleAssets 4 5,209 6,217Goodwill 9,622 9,622FinancialAssets

Investments 5 840 748Loans 6(i) 316 1,761OtherFinancialAssets 7(i) 454 406OtherNon-CurrentAssets 8(i) 1,794 3,202

Total Non-Current Assets 31,167 35,382

Current assetsInventories 9 3,408 3,311FinancialAssets

TradeReceivables 10 19,648 15,031CashandCashEquivalents 11 1,396 1,567Otherbankbalances 12 765 1,356Loans 6(ii) 272 251OtherFinancialAssets 7(ii) 4,464 3,685

OtherCurrentAssets 8(ii) 2,208 1,368Total Current Assets 32,160 26,569 Total Assets 63,327 61,951

EQUITY AND LIABILITIESEquityEquityShareCapital 13 2,510 2,510OtherEquity 14 41,171 39,865Equity Attributable to Shareholders 43,681 42,375 Non-ControllingInterest 889 772Total Equity 44,570 43,147

LIABILITIESNon-Current LiabilitiesFinancialLiabilities

Borrowings 15(i) 1,317 451OtherFinancialLiabilities 17(i) 4 3

Provisions 18(i) 2 2DeferredTaxLiabilities(Net) 19 2,557 2,422Total Non-Current Liabilities 3,880 2,878 Current LiabilitiesFinancialLiabilities

Borrowings 15(ii) 5,147 5,350TradePayables 16 2,358 5,867OtherFinancialLiabilities 17(ii) 2,747 3,573

OtherCurrentLiabilities 20(ii) 1,875 617Provisions 18(ii) 2,750 519Total Current Liabilities 14,879 15,926 Total Equity and Liabilities 63,327 61,951

Theaccompanyingnotesformanintegralpartofthefinancialstatements.



ManagingDirector




Statement of Consolidated Profit And Loss for the year ended March 31, 2019. (`InLakhs)

Particulars Note No. Year EndedMarch 31, 2019

(Audited)


(Audited)Income from Operations NetSales/IncomefromOperations 21 23,973 22,490OtherIncome 22 412 404Total income from Operations (net) 24,385 22,894

Expenses Purchaseofstock-in-tradeandotherdirectexpenses 23 13,456 11,024Changesininventories 24 (72) (15)Employeebenefitsexpense 25 3,657 3,502FinanceCosts 26 1,003 547Depreciationandamortizationexpense 2 2,162 2,316Otherexpenses 27 3,078 3,293Total Expenses 23,284 20,667 Profit / (Loss) from operations before exceptional items 1,101 2,227 ExceptionalItems 28 351 (323)Profit / (Loss) from ordinary activities before tax 1,452 1,903Tax expense Taxexpenseforcurrentyear 275 599MATcredit (210) (205)DeferredTax 150 509Net Profit / (Loss) from ordinary activities after tax 1,237 1,000 Shares of Profit/(Loss) of Subsidiaries and Associates - (3)Net Profit / (Loss) for the Period 1,237 997 Other Comprehensive Income (after tax) Items that will not be Reclassified to P&L GratuityActurialGain/(Loss) 29 (35) 36 Items that will be Reclassified Subsequently to P&L ExchangeDifferenceonMonetaryItems - 50ForeignCurrencyTranslationDifference - 10Total Comprehensive Income (after tax) 1,202 1,094 Net Profit/(Loss) attributable to: Owners 1,195 1,089 Non-Controlling Interest (7) (5)Paid-upequitysharecapital 2,510 2,510(FaceValueof` 5/-)ReservesExcludingRevaluationReservesasperbalancesheet 41,171 39,865Earning per Share (of ` 5/- each) (not annualised): Basic 2.47 1.99Diluted 2.47 1.99




ManagingDirector




Statement of Change in Equity for the year ended March 31, 2019. (`InLakhs)

A. Equity Share Capital BalanceBalanceasat01.04.2018 2510ChangeinEquityShareCapitalDuringtheyear -Balanceasat31.03.2019 2510

B. Other Equity (`InLakhs)

Particulars Other EquityReserve and Surplus

Securities premium account

Retained Earnings

Capital Redemption

Reserve

General Reserve

Other Component

of Equity

Total

Balanceasat01.04.2018 37,056 646 30 1,338 796 39,866ProfitfortheYear - 1,195 - - 1,195AdjustmentforPriorperiodtaxes - - - -AdjustmentINDAS&Consolidation - - - 36 74 110Balanceasat31.03.2019 37,056 1,841 30 1,374 870 41,171

Theaccompanyingnotesformanintegralpartofthefinancialstatements.AsperourreportofevendateFor Shah & Taparia For and on behalf of the BoardChartered Accountants of Allied Digital Services LimitedFRN: 109463W


ManagingDirector




Consolidated Cash Flow Statement for the year ended March 31, 2019. (`InLakhs)

Sr. No.

Particulars For the year ended March 31, 2019

For the year ended March 31, 2018

I CASH INFLOW FROM OPERATING ACTIVITIES(a) Profit/LossasperProfit&LossAccountafterTax 1,230 1,053

Adjustments:AdjustmentsforPriorperiodtaxes&INDAseffectfromSurplusinP&L - (86)BadDebtWrittenoffduringtheyear 271 1,496InterestWriteback - (1,172)Depreciationandamortization 2,162 2,316IncomefromInvestingActivities (66) (404)DeferredTax 150 509FinanceCost 1,003 547ActuarialgainthroughOCI (35) 36Incometaxpaid 275 (599)

(b) FCTR/Revaluationofasset (5) (40)Changes in Assets and LiabilitiesInventories (97) 40Tradereceivables (4,617) 12,424loansandadvances 1,425 2,264OtherFinancialAssets (827) (1,294)other assets 568 (22)Tradepayables (3,509) (223)OtherFinancialliability (825) (10,393)Liabilities&Provisions 3,489 (3,219)Net Cash generated by Operating Activities 590 3,232

II CASH INFLOW FROM INVESTING ACTIVITIESPaymenttowardacquistionofthefixedassetsincludingintangible 22 17DisposaloftheInvestment\ChangesduetoIndAsinInvestments 92 11 Dividendreceived - -InterestWriteoff/Writeback 345 199OtherNon-OperatingIncome 66 205NetCashgeneratedbyInvestingActivities 525 432

III CASH INFLOW FROM FINANCING ACTIVITIESRepaymentofloan (3,392) (2,284)Fromborrowings 2,515 451FinanceCost (1,003) (547)Net Cash generated by Financing Activities (1,880) (2,380)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A) (764) 1,284 Add:Cashandcashequivalentsatthebeginningoftheperiod(B) 2,923 1,638Cashandcashequivalentsattheendoftheperiod(A+B) 2,159 2,923




ManagingDirector




SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS1) Corporate information

AlliedDigital Services Limited (referred to as “ADSL” or the “Company”) is renowned as a leadingGlobal IT TransformationArchitect,havingitsoperationsinpanIndia,USA,Australia,EuropeandMiddleeastAsiawithanimpeccabletrackrecordfordesigning,developing,deployingdigitalsolutionsanddeliveringend-to-endITinfrastructureservices.Itprovideswiderangeof informationtechnologyandconsultancyservicesincludingInfrastructureServices,EnduserITSupport, ITassetlifecycle,enterpriseapplicationsandintegratedsolutions.

The Company’s registered office is inMumbai and has presence in pan India, and it has Subsidiary companies inUSA,UK,SingaporeandAustralia.

2) Significant Accounting Policies

2.1 Basis of preparation of consolidated financial statements

These consolidated financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under thehistoricalcostconventiononanaccrualbasisexceptforcertainfinancial instrumentswhicharemeasuredatfairvalues,theprovisionsoftheCompaniesAct,2013(‘Act´)(totheextentnotified)andguidelinesissuedbytheSecuritiesandExchangeBoardofIndia(SEBI).TheIndASareprescribedunderSection133oftheActreadwithRule3oftheCompanies(IndianAccountingStandards)Rules,2015andCompanies(IndianAccountingStandards)AmendmentRules,2016.

Thefinancialstatementshavebeenpreparedonahistoricalcostbasis,exceptforthefollowing;

• Certainfinancialassetsandliabilitiesmeasuredatfairvalue(referaccountingpolicyregardingfinancialinstruments),

ThefinancialstatementsarepresentedinIndianRupee(‘INR´)whichisalsotheGroup´sfunctionalcurrencyandallvaluesareroundedtothenearestlakhs,exceptwhenotherwiseindicated.

2.2 Basis of consolidation

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompany,itssubsidiariesandassociateasatMarch31,2019.

Subsidiaries;SubsidiariesareentitiescontrolledbytheGroup.TheGroupcontrolsanentitywhenitisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedateonwhichcontrolcommencesuntilthedateonwhichcontrolceases.

Equityaccountedinvestees;TheGroup´sinterestsinequityaccountedinvesteescompriseinterestsinassociate.AnassociateisanentityinwhichtheGrouphassignificantinfluence,butnotcontrolorjointcontrol,overthefinancialandoperatingpolicies.Interestsinassociateareaccountedforusingtheequitymethod.Theyareinitiallyrecognizedatcostwhichincludestransactioncosts.Subsequenttoinitialrecognition,theconsolidatedfinancialstatementsincludetheGroup´sshareofprofitorlossandOCIofequityaccountedinvesteesuntilthedateonwhichsignificantinfluenceceases.

Assets,liabilities,incomeandexpensesofasubsidiaryacquiredordisposedofduringtheyearareincludedintheconsolidatedfinancial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.Consolidatedfinancial statements are prepared using uniformaccounting policies for like transactions and other events insimilarcircumstances.Ifamemberofthegroupusesaccountingpoliciesotherthanthoseadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances,appropriateadjustmentsaremadetothatgroupmember´sfinancial statements in preparing the consolidated financial statements to ensure conformitywith the group´s accountingpolicies.

ThefinancialstatementsofeachofthesubsidiariesandassociateusedforthepurposeofconsolidationaredrawnuptosamereportingdateasthatoftheCompany,i.e.,yearendedonMarch31.



Consolidation procedure:

(a) Combinelikeitemsofassets,liabilities,equity,income,expensesandcashflowsoftheparentwiththoseofitssubsidiaries.Forthispurpose,incomeandexpensesofthesubsidiaryarebasedontheamountsoftheassetsandliabilitiesrecognizedintheconsolidatedfinancialstatementsattheacquisitiondate.

(b) Offset(eliminate)thecarryingamountoftheparent´sinvestmentineachsubsidiaryandtheparent´sportionofequityofeachsubsidiary.

(c) Eliminateinfullintra-groupassetsandliabilities,equity,income,expensesandcashflowsrelatingtotransactionsbetweenentitiesofthegroup.Profitorlossandeachcomponentofothercomprehensiveincome(OCI)areattributedtotheequityholdersoftheparentoftheGroupandtothenon-controllinginterests,evenifthisresultsinthenon-controllinginterestshavingadeficitbalance.Whennecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheiraccountingpolicies into linewiththeGroup´saccountingpolicies.All intra-groupassetsand liabilities,equity, income,expensesandcashflowsrelatingtotransactionsbetweenmembersoftheGroupareeliminatedinfullonconsolidation.WhentheGrouplosescontroloverasubsidiary,itde-recognisestheassetsandliabilitiesofthesubsidiary,andanyrelatednon-controllinginterestandothercomponentsofequity.Anyinterestretainedintheformofsubsidiaryismeasuredatfairvalueatthedatethecontrolislost.Anyresultinggainorlossisrecognizedinthestatementofprofitandloss.

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompany,anditssubsidiariesandassociateasdisclosedbelow:

Summary of significant accounting policies

(i) FunctionalandpresentationcurrencyItemsincludedinthefinancialstatementsoftheCompanyaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheseentitiesoperate(i.e.the“functionalcurrency”).ThefinancialstatementsarepresentedinIndianRupee,thenationalcurrencyofIndia,whichisthefunctionalcurrencyoftheCompany.

(ii) Foreigncurrencytransactionsandbalancesaretranslatedintothefunctionalcurrencyofthecompany,usingtheexchangeratesprevailingatthedatesoftherespectivetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationattheexchangeratesprevailingatreportingdateofmonetaryassetsandliabilitiesdenominatedinforeigncurrencies,arerecognizedinthestatementofprofitandlossandreportedwithinforeignexchangegains/(losses).Non-monetaryassetsandliabilitiesdenominatedinaforeigncurrencyandmeasuredathistoricalcostaretranslatedattheexchangerateprevalentatthedateoftransaction.

(iii) Transactiongainsorlossesrealizeduponsettlementofforeigncurrencytransactionsareincludedindeterminingnetprofitfortheperiodinwhichthetransactionissettled.Revenue,expenseandcash-flowitemsdenominatedinforeigncurrenciesaretranslatedintotherelevantfunctionalcurrenciesusingtheexchangerateineffectonthedateofthetransaction.

(iv) EffectiveApril1,2018,theCompanyhasprospectivelyadoptedAppendixBtoIndAS21,Foreign Currency Transactions and Advance Considerationwhichclarifiesthedateoftransactionforthepurposeofdeterminingtheexchangeratetouseoninitialrecognitionoftherelatedasset,expenseorincomewhenanentityhasreceivedorpaidadvanceconsiderationinaforeigncurrency.Theeffectonaccountofadoptionofthisamendmentwasinsignificant.

(v) Investmentinsubsidiaries:Investmentinsubsidiariesismeasuredatcost.

(vi) Financialinstruments:Allfinancialinstrumentsarerecognizedinitiallyatfairvalue.Transactioncoststhatareattributabletotheacquisitionofthefinancialasset(otherthanfinancialassetsrecordedatfairvaluethroughprofitorloss)areincludedinthefairvalueofthefinancialassets.Purchaseorsalesoffinancialassetsthatrequiredeliveryofassetswithinatimeframeestablishedbyregulationorconvention inthemarketplacearerecognizedontradedate.While, loansandborrowingsandpayablesarerecognizednetofdirectlyattributabletransactioncosts.Forthepurposeofsubsequentmeasurement,financialinstrumentsoftheCompanyareclassifiedinthefollowingcategories:non-derivativefinancialassetscomprisingamortizedcost,debtinstrumentsatfairvaluethroughothercomprehensiveincome(FVTOCI),equityinstrumentsatFVTOCIor fairvaluethroughprofitand lossaccount(FVTPL),nonderivativefinancial liabilitiesatamortizedcostorFVTPLandderivativefinancialinstruments(underthecategoryoffinancialassetsorfinancialliabilities)atFVTPL.Theclassificationoffinancialinstrumentsdependsontheobjectiveofthebusinessmodelforwhichitisheld.Managementdeterminestheclassificationofitsfinancialinstrumentsatinitialrecognition.



(vii) Debt instruments at FVTOCI

Adebtinstrumentshallbemeasuredatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:

(a) theobjectiveofthebusinessmodelisachievedbybothcollectingcontractualcashflowsandsellingfinancialassetsand

(b) theasset’scontractualcashflowrepresentSolelyPaymentsofPrincipalandInterest(SPPI)

DebtinstrumentsincludedwithinFVTOCIcategoryaremeasuredinitiallyaswellasateachreportingperiodatfairvalueplustransactioncosts.Fairvaluemovementsarerecognizedinothercomprehensiveincome(OCI).However,theCompanyrecognizesinterestincome,impairmentlosses&reversalsandforeignexchangegain/(loss)instatementofprofitandloss.Onderecognitionoftheasset,cumulativegainorlosspreviouslyrecognizedinOCIisreclassifiedfromequitytoprofitandloss.Interestearnedisrecognizedundertheeffectiveinterestrate(EIR)model.

(viii)Equity instruments at FVTOCI

Allequityinstrumentsaremeasuredatfairvalue.EquityinstrumentsheldfortradingisclassifiedasFVTPL.Forallotherequityinstruments,theCompanymaymakeanirrevocableelectiontopresentsubsequentchangesinthefairvalueinOCI.TheCompanymakessuchelectiononan instrument-by-instrumentbasis. If theCompanydecides toclassifyanequityinstrumentasatFVTOCI,thenallfairvaluechangesontheinstrument,excludingdividendarerecognisedinOCIwhichisnotsubsequentlyrecycledtostatementofprofitandloss.

(ix) Financial assets at FVTPL

FVTPLisaresidualcategoryforfinancialassets.AnyfinancialassetwhichdoesnotmeetthecriteriaforcategorizationasatamortizedcostorasFVTOCI,isclassifiedasFVTPL.

In addition theCompanymay elect todesignate thefinancial asset,whichotherwisemeets amortized cost or FVTOCIcriteria,asFVTPLifdoingsoeliminatesorsignificantlyreducesameasurementorrecognitioninconsistency.TheCompanyhasnotdesignatedanyfinancialassetasFVTPL.

FinancialassetsincludedwithintheFVTPLcategoryaremeasuredatfairvalueswithallchangesinthestatementofprofitand loss.

a) Non-derivative financial liabilities

(i) Financial liabilitiesatamortizedcost: Financial liabilitiesatamortizedcost representedbyborrowings, tradeandotherpayablesareinitiallyrecognizedatfairvalue,andsubsequentlycarriedatamortizedcostusingtheeffectiveinterestratemethod.

(ii) FinancialliabilitiesatFVTPL:FinancialliabilitiesatFVTPLrepresentedbycontingentconsiderationaremeasuredatfairvaluewithallchangesrecognizedinthestatementofprofitandloss.

b) Derivativefinancialinstruments:Derivativesarerecognizedandmeasuredatfairvalue.Attributabletransactioncostsarerecognizedinstatementofprofitandloss.

(x) Property, plant and equipment

a) Recognition and measurement:Property,plantandequipmentaremeasuredatcostlessaccumulateddepreciationandimpairmentlosses,ifany.Costincludesexpendituresdirectlyattributabletotheacquisitionoftheasset.

b) Depreciation: TheCompanydepreciatesproperty,plantandequipmentovertheestimatedusefullifeonastraight-linebasisfromthedatetheassetsarereadyforintendeduse.Assetsacquiredunderfinanceleaseifanyandleaseholdimprovementsareamortizedoverthelowerofestimatedusefullifeandleaseterm.Theestimatedusefullivesforthecurrentandcomparativeperiodofsignificantitemsofproperty,plantandequipmentareasfollows



Type of Asset Method Estimated useful lifeLeaseholdLand Straightline 99YearsFreehold&LeaseholdBuildings Straightline 60YearsFurnitureandFixtures Straightline 10YearsComputersandITEquipment’s Straightline 3YearsServers Straightline 6YearsMotorVehicles Straightline 8YearsOfficeEquipment’s Straightline 5yearsCivilandPlumbingWork Straightline 60Years

Depreciationmethods,usefullivesandresidualvaluesarereviewedateachreportingdate.

Whenpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofproperty,plantandequipment.Subsequentexpenditurerelatingtoproperty,plantandequipment iscapitalizedonlywhen it isprobablethat futureeconomicbenefitsassociatedwiththesewillflowtotheCompanyandthecostofthe itemcanbemeasuredreliably.Repairsandmaintenancecostsarerecognizedinthestatementofprofitandlosswhenincurred.Thecostandrelatedaccumulateddepreciationareeliminatedfromthefinancialstatementsuponsaleordispositionoftheassetandtheresultantgainsorlossesarerecognizedinthestatementofprofitandloss.Amountspaidtowardstheacquisitionofproperty,plantandequipmentoutstandingasofeachreportingdateandthecostofproperty,plantandequipmentnotreadyforintendedusebeforesuchdatearedisclosedundercapitalwork-in-progress(ifany).

c) Impairment

Property,plantandequipmentareevaluatedforrecoverabilitywhenevereventsorchangesincircumstancesindicatethattheircarryingamountsmaynotberecoverable.Forthepurposeofimpairmenttesting,therecoverableamount(i.e.thehigherofthefairvaluelesscosttosellandthevalue-in-use)isdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatare largely independentofthosefromotherassets. Insuchcases,therecoverableamountisdeterminedfortheCashGeneratingUnit(CGU)towhichtheassetbelongs.

Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognizedintheStatementofProfitandLossismeasuredbytheamountbywhichthecarryingvalueoftheassetsexceedstheestimatedrecoverableamountoftheasset.AnimpairmentlossisreversedintheStatementofProfitandLossiftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Thecarryingamountoftheassetisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofanyaccumulateddepreciation)hadnoimpairmentlossbeenrecognizedfortheassetinprioryears.

(xi) Intangible assets

Intangibleassetsarestatedatcostlessaccumulatedamortizationandimpairment.Intangibleassetsareamortizedovertheirrespectiveestimatedusefullivesonastraight-linebasis,fromthedatethattheyareavailableforuse.Theestimatedusefullifeofanidentifiableintangibleassetisbasedonanumberoffactorsincludingtheeffectsofobsolescence,demand,competitionandothereconomicfactors(suchasthestabilityoftheindustryandknowntechnologicaladvances)andthelevelofmaintenanceexpendituresrequiredtoobtaintheexpectedfuturecashflowsfromtheasset.Theestimatedusefullivesofintangiblesareasfollows:

Type of Asset Method Estimated useful lifeIntellectualProperty Straightline 10Years

(xii) Leases

LeasesunderwhichtheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Whenacquired,suchassetsarecapitalizedatfairvalueorpresentvalueoftheminimumleasepaymentsattheinceptionof



thelease,whicheverislower.Leasepaymentsunderoperatingleasesarerecognisedasanexpenseonastraightlinebasisinthestatementofprofitandlossovertheleasetermexceptwheretheleasepaymentsarestructuredtoincreaseinlinewithexpectedgeneralinflation.

Theleaserentalschargedduringtheperiodareasfollows `InLakhs


Leaserentalsrecognizedduringtheperiod 41 30

Therearenoobligationsonlong-term,non-cancellableoperatingleasespayableaspertherentalsstatedabove

(xiii) Impairment Financial assets

InaccordancewithIndAS109,theCompanyappliesexpectedcreditloss(ECL)modelformeasurementandrecognitionof impairment loss. TheCompany follows ‘simplifiedapproach’ for recognitionof impairment loss allowanceon tradereceivable.

TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.Rather,itrecognisesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.

xiv) Employee benefits

TheCompanyparticipatesinvariousemployeebenefitplans.Post-employmentbenefitsareclassifiedaseitherdefinedcontributionplansordefinedbenefitplans.Underadefinedcontributionplan,theCompany’sonlyobligationistopayafixedamountwithnoobligationtopayfurthercontributionsifthefunddoesnotholdsufficientassetstopayallemployeebenefits.Therelatedactuarialandinvestmentrisksfallontheemployee.

Theexpenditurefordefinedcontributionplansisrecognizedasexpenseduringtheperiodwhentheemployeeprovides

service.Underadefinedbenefitplan, it is theCompany’sobligation toprovideagreedbenefits to theemployees.TherelatedactuarialandinvestmentrisksfallontheCompany.Thepresentvalueofthedefinedbenefitobligationsiscalculatedusingtheprojectedunitcreditmethod.

Gratuity :-

TheCompanyprovidesforgratuity,adefinedbenefitretirementplan(“theGratuityPlan”)coveringeligibleemployees.TheGratuityPlanprovidesalump-sumpaymenttovestedemployeesatretirement,death,incapacitationorterminationofemployment,ofanamountbasedontherespectiveemployee’ssalaryandthetenureofemploymentwiththeCompany.

LiabilitieswithregardtotheGratuityPlanaredeterminedbyactuarialvaluation,performedbyanindependentactuary,ateachBalanceSheetdateusingtheprojectedunitcreditmethod.

TheCompanyrecognizesthenetobligationofadefinedbenefitplaninitsBalanceSheetasanassetorliability.Gainsandlossesthroughremeasurementsofthenetdefinedbenefitliability/(asset)arerecognizedinothercomprehensiveincomeandarenotreclassifiedtoprofitorlossinsubsequentperiods.Theactualreturnoftheportfolioofplanassets,inexcessoftheyieldscomputedbyapplyingthediscountrateusedtomeasurethedefinedbenefitobligationisrecognizedinothercomprehensiveincome.TheeffectofanyplanamendmentsarerecognizedinnetprofitintheStatementofProfitandLoss.

Employees Provident Fund :-

Eligible employees of the company receive benefits from employees provident fund Organization, which is a definedbenefitplan.BoththeeligibleemployeeandtheCompanymakemonthlycontributionstotheprovidentfundplanequalto a specified percentage of the covered employee’s salary. The remaining portion is contributed to the government-administeredpensionfund.



(xv) Share based payments

EmployeesoftheCompanyreceiveremunerationintheformofequitysettledinstruments,forrenderingservicesoveradefinedvestingperiod.Equityinstrumentsgrantedaremeasuredbyreferencetothefairvalueoftheinstrumentatthedateofgrant.Theexpenseisrecognizedinthestatementofprofitandlosswithacorrespondingincreasetothesharebasedpaymentreserve,acomponentofequity.Theequityinstrumentsgenerallyvestinagradedmanneroverthevestingperiod.Thefairvaluedeterminedatthegrantdateisexpensedoverthevestingperiodoftherespectivetranchesofsuchgrants(acceleratedamortization).Thestockcompensationexpense isdeterminedbasedontheCompany’sestimateofequityinstrumentsthatwilleventuallyvest.Thefairvalueoftheamountpayabletotheemployeesinrespectofphantomstocks,whicharesettledincash,isrecognizedasanexpensewithacorrespondingincreaseinliabilities,overtheperiodduringwhichtheemployeesbecomeunconditionallyentitledtopayment.Theliabilityisremeasuredateachreportingdateandatsettlementdatebasedonthefairvalueofthephantomstockoptionsplan.Anychangesintheliabilityarerecognizedinstatementofprofitandloss.

(xvi) Provisions

ProvisionsarerecognizedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationattheendofthereportingperiod,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognizedasanasset,ifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

ProvisionsforonerouscontractsarerecognizedwhentheexpectedbenefitstobederivedbytheCompanyfromacontractarelowerthantheunavoidablecostsofmeetingthefutureobligationsunderthecontract.Provisionsforonerouscontractsaremeasuredat thepresent valueof lowerof theexpectednet costof fulfilling thecontractand theexpectedcostofterminatingthecontract.

(xvii) Revenue

TheGroupderivesrevenuesprimarilyfrombusinessofITandITeSservices,consultingandimplementingsmartcityprojectsasaMasterSystemIntegrator(MSI).

EffectiveApril1,2018,theGroupadoptedIndAS115,RevenuefromContractswithCustomers,usingthecumulativecatch-uptransitionmethod,appliedtocontractsthatwerenotcompletedasatApril1,2018.Inaccordancewiththecumulativecatch-uptransitionmethod,thecomparativeshavenotbeenretrospectivelyadjusted.Thefollowingisasummaryofnewand/orrevisedsignificantaccountingpoliciesrelatedtorevenuerecognition.

RefertoNoteNo.1i.e.SignificantAccountingPoliciesintheCompany’s2018AnnualReportforthepoliciesineffectfor

revenuepriortoApril1,2018. Revenueisrecognizedupontransferofcontrolofpromisedproductsorservicestocustomersinanamountthatreflectsthe

considerationweexpecttoreceiveinexchangeforthoseproductsorservices.

Revenueontime-and-materialcontracts is recognizedas therelatedservicesareperformedandrevenue fromtheendof the last invoicing to the reportingdate is recognizedasunbilled revenue.Revenue fromfixed-price,fixed-timeframecontracts,wheretheperformanceobligationsaresatisfiedovertimeandwherethereisnouncertaintyastomeasurementorcollectabilityofconsideration,isrecognizedasperthepercentage-of-completionmethod.Whenthereisuncertaintyastothemeasurementorultimatecollectability,revenuerecognitionispostponeduntilsuchuncertaintyisresolved.Effortsorcostsexpendedhavebeenusedtomeasureprogresstowardscompletionasthereisadirectrelationshipbetweeninputandproductivity.Maintenancerevenueisrecognizedratablyoverthetermoftheunderlyingmaintenancearrangement.

Revenuesinexcessofinvoicingareclassifiedascontractassets(whichwerefertoasunbilledrevenue)

InarrangementsforITandITeSrelatedservicesandmaintenanceservices,theGrouphasappliedtheguidanceinIndAS115,RevenuefromContractswithCustomers,byapplyingtherevenuerecognitioncriteriaforeachdistinctperformance



obligation.Thearrangementswithcustomersgenerallymeetthecriteria forconsidering ITand ITeSrelatedservicesasdistinctperformanceobligations.Forallocatingthetransactionprice,theGrouphasmeasuredtherevenueinrespectofeachperformanceobligationofacontractatitsrelativestandalonesellingprice.Thepricethatisregularlychargedforanitemwhensoldseparatelyisthebestevidenceofitsstandalonesellingprice.IncaseswheretheGroupisunabletodeterminethestandalonesellingprice,theGroupusestheexpectedcostplusmarginapproachinestimatingthestandalonesellingprice.ForITandITeSandrelatedservices,theperformanceobligationsaresatisfiedasandwhentheservicesarerenderedsince the customer generally obtains control of thework as it progresses. Revenue from licenseswhere the customerobtainsa“right touse” the licenses isavailable to thecustomer.Revenue from licenseswhere thecustomerobtainsa“righttoaccess”isrecognizedovertheaccessperiod.TheGrouphasappliedtheprinciplesunderIndAS115toaccountfor revenues from theseperformanceobligations.When implementation servicesareprovided in conjunctionwith thelicensingarrangementandthelicenseandimplementationhavebeenidentifiedastwoseparateperformanceobligations,thetransactionpriceforsuchcontractsareallocatedtoeachperformanceobligationofthecontractbasedontheirrelativestandalonesellingprices. In theabsenceof standalonesellingprice for implementation, theperformanceobligation isestimatedusingtheexpectedcostplusmarginapproach.Wherethelicenseisrequiredtobesubstantiallycustomizedaspartoftheimplementationservice,theentirearrangementfeeforlicenseandimplementationisconsideredtobeasingleperformanceobligationandtherevenueisrecognizedusingthepercentage-of-completionmethodastheimplementationisperformed.

Deferredcontractcostsareincrementalcostsofobtainingacontractwhicharerecognizedasassetsandamortizedoverthetermofthecontract.

Contractmodificationsareaccountedforwhenadditions,deletionsorchangesareapprovedeithertothecontractscopeorcontractprice.Theaccountingformodificationsofcontractsinvolvesassessingwhethertheservicesaddedtoanexistingcontractaredistinctandwhetherthepricing isat thestandalonesellingprice.Servicesaddedthatarenotdistinctareaccountedforonacumulativecatch-upbasis,whilethosethataredistinctareaccountedforprospectively,eitherasaseparatecontract,iftheadditionalservicesarepricedatthestandalonesellingprice,orasaterminationoftheexistingcontractandcreationofanewcontractifnotpricedatthestandalonesellingprice.

TheGrouppresentsrevenuesnetofindirecttaxesinitsStatementofProfitandLoss.

RevenuesfortheyearsendedMarch31,2019andMarch31,2018areasfollows:(in`Lakhs)


Revenuefromservices 22746 20283Revenuefromproductsand 1206 2192OtherOperatingIncome 21 15

Total revenue from operations 23,973 22,490

Disaggregaterevenueinformation

Thetablebelowpresentsdisaggregatedrevenues fromcontractswithcustomers for theyearendedMarch31,2019byofferingsandcontract-type.TheGroupbelievesthatthisdisaggregationbestdepictshowthenature,amount,timinganduncertaintyofourrevenuesandcashflowsareaffectedbyindustry,marketandothereconomicfactors.

(in`Rs.Lakh)

Particulars Year ended March 31, 2019

RevenuebyofferingsInfrastructureManagementServices 20861EndUserServices 3112

Total 23,973



Infrastructure Management services

InfrastructureManagementservicescompriseserviceandsolutionofferingsoftheGroupthatenableourclientstotransformtheirbusinesses.WehaveaddedmanymediumenterprisesgovernmentbusinessesforNetworkoperationscentre(NOC)andSecurityoperationscentre(SOC)servicesalongwithtraditionalManagedServicesbusiness.

End user services

CoreservicescomprisetraditionalofferingsoftheGroupthathavescaledandindustrializedoveranumberofyears.Theseprimarilyincludeapplicationmanagementservices,proprietaryapplicationdevelopmentservices,independentvalidationsolutions, product engineering and management, facility management services, traditional enterprise applicationimplementation,supportandintegrationservicesandAnnualMaintenanceContracts.

Trade receivables and contract balances

TheGroupclassifiestherighttoconsiderationinexchangefordeliverablesaseitherareceivableorasunbilledrevenue.

Areceivableisarighttoconsiderationthatisunconditionaluponpassageoftime.Revenueforfixed-pricemaintenancecontractsisrecognizedonastraight-linebasisovertheperiodofthecontract.Revenuesinexcessofbillingsisrecordedasunbilledrevenueandisclassifiedasafinancialassetforthesecasesasrighttoconsiderationisunconditionaluponpassageoftime.

Revenue recognition forfixed-pricedevelopment contracts isbasedonpercentage-of-completionmethod. Invoicing totheclientsisbasedonmilestonesasdefinedinthecontract.Thiswouldresultinthetimingofrevenuerecognitionbeingdifferentfromthetimingofbillingthecustomers.Unbilledrevenueforfixed-pricedevelopmentcontractsisclassifiedasnon-financialassetasthecontractualrighttoconsiderationisdependentoncompletionofcontractualmilestones.

Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.

DuringtheyearendedMarch31,2019,theGrouprecognizedrevenueofRs.3249LakhfromopeningunearnedrevenueasofApril1,2018.

DuringtheyearendedMarch31,2019,UnbilledrevenueofRs.4168Lakh

Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to berecognizedasat theendof the reportingperiodandanexplanationas towhen theGroupexpects to recognize theseamountsinrevenue.ApplyingthepracticalexpedientasgiveninIndAS115,theGrouphasnotdisclosedtheremainingperformanceobligationrelateddisclosuresforcontractswheretherevenuerecognizedcorrespondsdirectlywiththevaluetothecustomeroftheentity’sperformancecompletedtodate,typicallythosecontractswhereinvoicingisontime-and-materialbasis.Remainingperformanceobligationestimatesare subject to changeandareaffectedby several factors,including terminations, changes in the scopeof contracts, periodic revalidations, adjustment for revenue that hasnotmaterializedandadjustmentsforcurrency.

TheimpactonaccountofapplyingtheerstwhileIndAS18,RevenueinsteadofIndAS115,RevenuefromContractswithCustomersonthefinancialsresultsoftheGroupfortheyearendedandasatMarch31,2019isinsignificant.OnaccountofadoptionofIndAS115,unbilledrevenuesofRs.4186LakhMarch31,2019hasbeenconsideredasanon-financialasset.

(xviii) Income taxes

Incometaxcomprisescurrentanddeferredtax.Incometaxexpenseisrecognizedinthestatementofprofitandlossexcepttotheextentitrelatestoitemsdirectlyrecognizedinequityorinothercomprehensiveincome.



a) Current income tax

Currentincometaxforthecurrentandpriorperiodsaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthoritiesbasedonthetaxableincomefortheperiod.Thetaxratesandtaxlawsusedtocomputethecurrenttaxamountarethosethatareenactedorsubstantivelyenactedbythereportingdateandapplicablefortheperiod.TheCompanyoffsetscurrenttaxassetsandcurrenttaxliabilities,whereithasalegallyenforceablerighttosetofftherecognizedamountsandwhereitintendseithertosettleonanetbasisortorealizetheassetandliabilitysimultaneously

b) Deferred income tax

Deferredincometaxisrecognizedusingthebalancesheetapproach.Deferredincometaxassetsandliabilitiesarerecognizedfordeductibleandtaxabletemporarydifferencearisingbetweenthetaxbaseofassetsandliabilitiesandtheircarryingamountinfinancialstatements,exceptwhenthedeferredincometaxarisesfromtheinitialrecognitionofgoodwilloranassetorliabilityinatransactionthatisnotabusinesscombinationandaffectsneitheraccountingnortaxableprofitsorlossatthetimeofthetransaction.Deferredincometaxassetisrecognizedtotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifference,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilized.Deferredincometaxliabilitiesarerecognizedforalltaxabletemporarydifference.Thecarryingamountofdeferredincometaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredincometaxassettobeutilized.Deferredincometaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealizedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthereportingdate.

c) Minimum Alternate Tax

MinimumAlternate Tax is in the nature of unused tax creditwhich canbe carried forward andutilisedwhen thecompanywillpaynormalincometaxduringthespecifiedperiod.Deferredtaxassetsonsuchtaxcreditisrecognizedtotheextentthatisprobablethattheunusedtaxcreditcanbeutilisedinthespecifiedfutureperiod.

(xix) Earnings per share

Basicearningspershareiscomputedusingtheweightedaveragenumberofequitysharesoutstandingduringtheperiod.DilutedEPSiscomputedbydividingthenetprofitaftertaxbytheweightedaveragenumberofequitysharesconsideredforderivingbasicEPSandalsoweightedaveragenumberofequitysharesthatcouldhavebeenissueduponconversionofalldilutivepotentialequityshares.Dilutivepotentialequitysharesaredeemedconvertedasofthebeginningoftheperiod,unlessissuedatalaterdate.Dilutivepotentialequitysharesaredeterminedindependentlyforeachperiodpresented.Thenumberofequitysharesandpotentiallydilutiveequitysharesareadjustedforbonusshares,asappropriate.

Standards issued but not yet effective Ministry of Corporate Affairs (“MCA”), through Companies (Indian AccountingStandards)AmendmentRules,2019andCompanies(IndianAccountingStandards)SecondAmendmentRules,hasnotifiedthefollowingnewandamendmentstoIndASwhichtheCompanyhasnotappliedastheyareeffectivefromApril1,2019;

Ind AS 116 – Leases

OnMarch30,2019,theMinistryofCorporateAffairshasnotifiedIndAS116,Leases. IndAS116willreplacetheexistingleasesstandard, IndAS17,Leases,andrelatedinterpretations.Thestandardsetsouttheprinciplesfortherecognition,measurement,presentationanddisclosureofleasesforbothpartiestoacontracti.e.,thelesseeandthelessor.IndAS116introducesasinglelesseeaccountingmodelandrequiresthelesseetorecognizeassetsandliabilitiesforallleaseswithatermofmorethantwelvemonths,unlesstheunderlyingassetisoflowvalue.Currently,operatingleaseexpensesarechargedtotheStatementofProfitandLoss.Thestandardalsocontainsenhanceddisclosurerequirementsforlessees.IndAS116substantiallycarriesforwardthelessoraccountingrequirementsinIndAS17.

TheeffectivedatefortheadoptionofIndAS116isannualperiodsbeginningonorafterApril1,2019.Thestandardpermitstwopossiblemethodsoftransition;

• Fullretrospective-RetrospectivelytoeachpriorperiodpresentedapplyingIndAS8,AccountingPolicies,ChangesinAccountingEstimatesandErrors



• Modifiedretrospective-Retrospectively,withthecumulativeeffectofinitiallyapplyingthestandardrecognizedatthedateofinitialapplication

Undermodifiedretrospectiveapproach,thelesseerecordstheleaseliabilityasthepresentvalueoftheremainingleasepayments,discountedattheincrementalborrowingrateandtherightofuseasseteitheras;

• Itscarryingamountasifthestandardhadbeenappliedsincethecommencementdate,butdiscountedatthelessee´sincrementalborrowingrateatthedateofinitialapplication,or

• Anamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatedtothatleaserecognizedunderIndAS17immediatelybeforethedateofinitialapplication.

Certainpracticalexpedientsareavailableunderboththemethods.TheeffectofthisamendmentonthefinancialstatementsoftheCompanyisbeingevaluated.

Ind AS 12 – Income taxes (amendments relating to income tax consequences of dividend and uncertainty over income tax treatments)

OnMarch 30, 2019, theMinistry of Corporate Affairs has notified Ind AS 12, Appendix C, Uncertainty over Income TaxTreatmentswhich is tobeappliedwhileperformingthedeterminationof taxableprofit (or loss), taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates,whenthereisuncertaintyoverincometaxtreatmentsunderIndAS12.Accordingtotheappendix,companiesneedtodeterminetheprobabilityoftherelevanttaxauthorityacceptingeachtaxtreatment,orgroupoftaxtreatments,thatthecompanieshaveusedorplantouseintheirincometaxfilingwhichhastobeconsideredtocomputethemostlikelyamountortheexpectedvalueofthetaxtreatmentwhendeterminingtaxableprofit(taxloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates.

The standard permits two possible methods of transition;

• Fullretrospectiveapproach-Underthisapproach,AppendixCwillbeappliedretrospectivelytoeachpriorreportingperiod presented in accordancewith Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors,withoutusinghindsight,and

• Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initialapplication,withoutadjustingcomparatives

Further,theamendmentclarifiesthatanentityshallrecognizetheincometaxconsequencesofdividendsinprofitorloss,other comprehensive income or equity according towhere the entity originally recognized those past transactions orevents.EffectivedateforapplicationofthisamendmentisannualperiodbeginningonorafterApril1,2019.TheCompanyiscurrentlyevaluatingtheeffectofthisamendmentontheconsolidatedfinancialstatements.

Amendment to Ind AS 19, plan amendment, curtailment or settlement:

OnMarch30,2019,theMinistryofCorporateAffairsissuedamendmentstoIndAS19,EmployeeBenefits,inconnectionwithaccountingforplanamendments,curtailmentsandsettlements.

The amendments require an entity;

• Touseupdatedassumptionstodeterminecurrentservicecostandnetinterestfortheremainderoftheperiodafteraplanamendment,curtailmentorsettlement;and

• Torecognizeinprofitorlossaspartofpastservicecost,oragainorlossonsettlement,anyreductioninasurplus,evenifthatsurpluswasnotpreviouslyrecognizedbecauseoftheimpactoftheassetceiling.

Effectivedate for applicationof this amendment is annualperiodbeginningonor afterApril 1, 2019. TheCompany iscurrentlyevaluatingtheeffectofthisamendmentontheconsolidatedfinancialstatements.



Ind AS 109 – Prepayment Features with Negative Compensation

The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to allowmeasurementatamortizedcost(or,dependingonthebusinessmodel,atfairvaluethroughothercomprehensiveincome)eveninthecaseofnegativecompensationpayments.Companydoesnotexpectthisamendmenttohaveanyimpactonitsfinancialstatements.

Ind AS 23 – Borrowing Costs

Theamendmentsclarifythatifanyspecificborrowingremainsoutstandingaftertherelatedassetisreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsthatanentityborrowsgenerallywhencalculatingthecapitalisationrateongeneralborrowings.Companydoesnotexpectanyimpactfromthisamendment.

Ind AS 28 – Long-term Interests in Associates and Joint Ventures

TheamendmentsclarifythatanentityappliesIndAS109FinancialInstruments,tolong-terminterestsinanassociateorjointventurethatformpartofthenetinvestmentintheassociateorjointventurebuttowhichtheequitymethodisnotapplied.Companydoesnotexpectanyimpactfromthisamendment.

Ind AS 103– Business Combinations and Ind AS 111 – Joint Arrangements

TheamendmentstoIndAS103relatingtore-measurementclarifythatwhenanentityobtainscontrolofabusinessthatisajointoperation,itre-measurespreviouslyheldinterestsinthatbusiness.TheamendmentstoIndAS111clarifythatwhenanentityobtainsjointcontrolofabusinessthatisajointoperation,theentitydoesnotre-measurepreviouslyheldinterestsinthatbusiness.Companywillapplythepronouncementifandwhenitobtainscontrol/jointcontrolofabusinessthat is a joint operation.



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2,886

95

2,981

400

79

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400

2,581

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1,818

1,818

175

57

231

1,587

1,643

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3,314

2

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3,352

2,055

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(3

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934

1,259

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19

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176

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282

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643

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384



Note 05: Investmentsi) Non Current Investments

(`InLakhs)Sr. No.



(1) Non- Quoted, Long Term, Trade: (Carried at Cost)(a) Investment in Associates

Soft Shell System (I) Pvt Ltd117,924 (Previousyear:117,924 )equitysharesof` 10/-each fullypaidupatapremiumofRs498.81pershare

600 600

Total Investment in Associates 600 600

(b) Investment in Others (Unquoted)UthopiaGreenTransPvtLtd 0 0200(Previousyear:200)equitysharesof` 10/-eachfullypaidup.

Total Investment in Others 0 0

(c) Investment carried at fair value through amortized cost4,50,000 (PreviousYear : 4,50,000)Preference shares@` 100/-DevyogBuildersPvtLtd

240 148

Total Investment in Preference Shares 240 148 Total Non Current Investments 840 748

Note:-Aggregateamountofunquotedinvestmentis`840lakhsThereisnoimpairmentinvalueofinvestment.

Note 6: Loans(`InLakhs)

Sr. No.



(i) Non-Current (Unsecured, Considered Goods)(a) Loansandadvancestorelatedparties(Unsecured,ConsideredGoods) 162 1,551(b) InterCorporateDeposits(Unsecured,ConsideredGoods) 155 210

Total Long Term Loans and Advances 316 1,761

(ii) Current (Unsecured, Considered Goods)a Loansandadvancestorelatedparties

Subsidiaries&Associates 145 138b Loansandadvances(others)(c) Loansandadvancestoothers 127 113

127 113Total Short-term loans and advances 272 251

Total loans 588 2,012 Wherevertheamountis‘0’,itdenotesvaluelessthan`50,000/-asallvalueisroundedofftothenearest`1Lakh.



Note 7: Other Financial Assets(ÌnLakhs)

Sr. No.



(i) Non-Current (Unsecured, Considered Goods)(a) SecurityDeposits 55 6(b) Others 399 400

Total 454 406 (ii) Current(a) RentalSecurityDeposits(Unsecured,ConsideredGoods) 7 51(b) Unbilledrevenue 4,168 3,249(c) Others 7 51

Total 4,464 3,685 Total Other Financial Assets 4,918 4,091

Note 8: Other Assets(ÌnLakhs)

Sr. No.



(i) Non-Current(a) DeferredtaxAsset - 1,602(b) Others - -

AdvanceIncomeTaxAssets(Netofprovisions) 1,655 1,599OtherDuties&Taxes 139 -

Total 1,794 3,201 (ii) Current(a) MATCreditEntitlement 1,152 942(b) Prepaidexpenses 1,056 427

Total 2,208 1,368 Total Other Assets 4,002 4,569

Note 9: Inventories(ÌnLakhs)



StockinTrade 3,408 3,311Total Inventories 3,408 3,311

Note:Inventoriesarevaluedatlowerofcostandnetrealizablevalue



Note 10: Trade Receivables(ÌnLakhs)



Trade receivables outstanding for a period less than six months from the date they are due for paymentUnsecured,consideredgood 5,955 3,638Trade receivables outstanding for a period exceeding six months from the date they are due for paymentUnsecured,consideredgood 13,694 11,431Less:Provisionfordoubtfuldebts - (38)

13,694 11,393Total Trade Receivable 19,648 15,031

Trade Receivable stated above include debts due from:(ÌnLakhs)



PrivateCompanyinwhichdirectorisamember 2,393 1,898

2,393 1,898

Note 11: Cash and Cash Equivalents:(ÌnLakhs)

Sr. No.



(i) InCurrentAccount 1,391 1,550(ii) Cashinhand 4 17

Total Cash and Cash Equivalents 1,396 1,567

Note 12: Other Balances with Bank:(ÌnLakhs)

Sr. No.



(a) BalanceswithBanks(i) Infixeddepositaccounts(pledgedwithbankagainstguaranteesissuedbybank) 765 1,356

765 1,356



Note 13: Share Capital (a) Authorized, Issued, Subscribed & Paid - up and par value per share (ÌnLakhs)

Share Capital As at 31 March 2019 As at 31 March 2018 Number Amount Number Amount

AuthorizedEquitysharesof`5eachwithvotingrights 6,00,00,000 3,000 6,00,00,000 3,000IssuedEquitysharesof`5eachwithvotingrights 5,02,05,528 2,510 5,02,05,528 2,510Subscribed & Paid upEquitysharesof`5eachwithvotingrights 5,02,05,528 2,510 5,02,05,528 2,510

(b) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(ÌnLakhs)

Particulars Opening Balance ESOP Conversion Buy back Closing BalanceEquity shares with voting rightsAs at year ended 31 March, 2019-Numberofshares 5,02,05,528 - - - 5,02,05,528-Amount 2,510 - - - 2,510As at year ended 31 March, 2018-Numberofshares 5,02,05,528 - - - 5,02,05,528-Amount 2,510 - - - 2,510

(c) Rights, Preferences and restrictions related to equity shares Thecompanyhasonlyoneclassofequityshareshavingparvalueof`5pershare.Eachholderofequitysharesisentitledtoone

votepershare. (d) Details of shares held by each shareholder holding more than 5% shares: (ÌnLakhs)

Name of Shareholder As at March 31, 2019 As at March 31, 2018 No. of

Shares held % of Holding No. of

Shares held % of

Holding Equity shares with voting rightsNitinDhanjiShah 1,47,83,031 29.45 1,47,83,031 29.45PrakashDhanjiShah 81,78,348 16.29 81,78,348 16.29



Note 14: Other Equity (i) Reserves and Surplus (`InLakhs)

Sr. No.



(a) Capital Redemption ReserveOpeningBalance 30 30Closing Balance 30 30

(b ) Securities Premium AccountOpeningBalance 37,056 37,056Closing Balance 37,056 37,056

(c) General Reserves 1,338 1,338 OpeningBalance 36 -Closing Balance 1,374 1,338

(d ) SurplusOpeningbalance 646 2,076MinorityInterest - -

(+) NetProfit/(NetLoss)Forthecurrentyear 1,195 1,089(+) ExcessProvisionmadeforProposedDividend - -(+) ExcessProvisionmadeforDividendDistributionTax - -(-) Dividendsproposedtobedistributedtoequityshareholders - -(-) Adjustmentforconsolidation - (2,519)(-) ShortProvisionofTaxofearlieryears(Net) - -(-) BaddebtsandotherbalancesAdjusted - -(-) AdjustmentofPriorPeriodDebt - -

Closing Balance 1,841 646 (e) Foreign Currency Translation Reserve

Total Reserves and Surplus 40,300 39,069

(ii) Other component of equity (`InLakhs)

Sr. No.



(a ) EmployeeStockOptionsOutstandingOpening 720 720Add:During the Year (36)Total ESOP Outstanding 684 720

(b) AccumulatedOtherComprehensiveIncomeOpening 222 -Add:During the Year (35) 36

Total Other Comprehensive Income 187 36 (c) Foreign Currency Translation Reserve - 40

- -(d) Foreign Exchange Difference (1) (1)



(`InLakhs)Sr. No.



TotalOtherComponentofEquity 870 796 ShareWarrantApplicationMoneyOpeningBalance - -(-)CurrentYearTransfer - -ClosingBalance - -

Total Reserve and Surplus 41,171 39,865

Note 15: Borrowings (`InLakhs)

Sr. No.



(i) Non Current Borrowings (Secured)a. Kotak Mahindra Bank 1,317 451

Securitydetails(a) EquitablemortgageoftheimmovablepropertysituatedatOfficeno.405&406,

4thFloor,Seepz,SEZ,MID.C.,Marol,Andheri-East,Mumbai-400096(b) Plotno.22/1&13/5,RajivGhandhiinfotechPark,Hinjewadiphase-3(SEZ)MIDC,

NearLexwear&Yashtechnologies,VillageHinjewadi,Pune(c) PlotnoA-24&A-25TalawadeSoftwarepark,MIDCOppositeFujitsu ,Talawade

chakhan-MIDCroad,PuneownedbyMs.Gateways(d) Flatno.9,FirstfloorbuildingNoA,SidharthCourt,corporativeHousingsociety

Ltd,FinalplotNo.196,SNo.347/2c,NearHotelMadhuban,DholepatilRoad,GhorpadiPune

(e) PledgeofMutualFundsbelongingtoPadmaPragnaPrivateTrustandSharesheldofRelativeofPromoter

(f) CorporateGuaranteeofM/s.TheGateways

Shared Pari- pasu with Kotak Mahindra Bank(a) MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbai(b) MortgateofEarnestHouse,13Floor,NarimanPoint,Mumbai(c) MortgageofGalano 3,4,7, 301,302,305,306.307& 308BldgNo3, Sector

III,MIDCMahape,NaviMumbai(d) HypothecationChargeonMovableassetsexceptVehicles(e) HypothecationChargeonCurrentAssets(f) PersonalGuaranteeofPromoters

Total Non-Current Borrowings 1,317 451 (ii) Current Borrowings

Secured a Loansrepayableondemand(ReferNote(a)) 1,856 5,350

Unsecured a Loansandadvancesfromrelatedparties(RepayableonDemand) 3,278b UnsecuredLoanOthers (2)c FixedDepositsfrompublic 16

Total Current Borrowings 5,147 5,350 Total Borrowings 6,464 5,801



(a) DetailsofSecuredshort-termborrowingsalongwithSecurityandTermsofrepayment: (ÌnLakhs)



LoansrepayableondemandFrombanks:BarclaysBankForeignCurrencyLoan 1,886 1,908Loans repayableondemand frombanksWorkingCapitalFacility fromStateBankofIndia

- 3,442

1,886 5,350

(i) Details of Security Offered to Banks for Working Capital Facilities FollowingsecuritieshavebeenofferedtobankswiththefirstchargewithStateBankofIndiaandparipasuchargedwithBarclays

Bank (a) MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbai (b) MortgateofEarnestHouse,13Floor,NarimanPoint,Mumbai (c) MortgageofGalano3,4,7,301,302,305,306.307&308BldgNo3,SectorIII,MIDCMahape,NaviMumbai (d) HypothecationChargeonMovableassetsexceptVehicles (e) HypothecationChargeonCurrentAssets (f) PersonalGuaranteeofPromotors Note 16: Trade Payables (ÌnLakhs)

Sr. No.


As at Mar 31, 2018

Trade payables-TradepayablestoMicroandSmallenterprises - --TradepayablestootherthanMicroandSmallenterprises 2,358 5,867

Total Trade Payables 2,358 5,867

Note 17: Other Financial Liabilities (ÌnLakhs)

Sr. No.


As at Mar 31, 2018

(i) Other Non-Current Financial Liabilities(a) Securitydepositforrentedproperty - -(b) DeferredRentIncome-SecurityDeposits 4 3

Total Non-Current Borrowings 4 3 (ii) Other Current Financial Liabilities(a) Securitydepositforrentedproperty 3 9(b) DeferredRentIncome-SecurityDeposits 4 2(c) KotakBankO/D 42 447(d) Loansandadvancesfromrelatedparties 2,699 2,983(e) UnsecuredLoanOthers - 90(f) FixedDepositsfrompublic 16 43

Total Other Current Financial Liabilities 2,747 3,573 Total Borrowings 2,752 3,576



Note 18: Provisions (ÌnLakhs)

Sr. No.


As at Mar 31, 2018

(i) Non-Current ProvisionsProvision for employee benefits: -Provisionforgratuity 2 2

Total Non-Current Provisions 2 2 (ii) Current Provisions

Provision for employee benefits & Others 2,750 519Total Current Provisions 2,750 519

Total Provisions 2,752 521 Note 19: Deferred tax liabilities (ÌnLakhs)

Sr. No.



Deferred Tax LiabilityTimingdifferenceofdepriciationbetweenW.D.V.ofAssetsasperCompaniesActandIncomeTaxAct

2,557 2,422

Total Deffered Tax Liability 2,557 2,422 Net Deffered Liability/ (Asset) 2,557 2,422

Note 20: Other liabilities (ÌnLakhs)

Sr. No.



(i) Other Current Liabilities(a) AdvancereceivedfromCustomer - 574(b) Duties&Taxes 1,867(c) UnpaidDivided 8 43

Total Other Current Liabilities 1,875 617 Total Other Liabilities 1,875 617

Note 21 : Operating Income

(ÌnLakhs)Particulars For the year ending

March 31, 2019 For the year ending

March 31, 2018 SalesofService 22,746 20,283SalesofProducts 1,206 2192OtheroperatingIncome 21 15

Total Operating Income 23,973 22,490



Note 22 : Other Income(ÌnLakhs)



InterestIncome(ReferNote22.A) 345 199Othernon-operatingincome(ReferNote22.B) 66 205

Total Other Income 412 404

Note 22:.A(ÌnLakhs)



Interest Income comprises:Interestondepositsfrombanks 345 199

Total - Interest Income 345 199

Note 22:.B(ÌnLakhs)



Othernon-operatingincomecomprises:IncomefromOfficeRent 43 46MiscellaneousIncome 23 159

Total Other non-operating income 66 205

Note 23: Purchase of Traded Goods and Services (ÌnLakhs)



PurchaseofTradedGoodsandServices 13,456 11,024Total Purchase of Traded Goods Services 13,456 11,024

Note 24: Changes in Inventories of Stock-in-Trade(ÌnLakhs)



ClosingStock 3,383 3,311Less:OpeningStock 3,311 3,296NettotalChangesinInventoriesofStock-in-Trade (72) (15)

Note:Inventoriesarevaluedatlowerofcostandnetrealizablevalue.



Note 25: Employee Benefits Expenses(ÌnLakhs)

Sr. No



(a) Salariesandwages(IncludingDirectors’Remuneration)(Refernote(25A) 3,588 3,269(b) ContributionstoProvidentFund 26 91(c) ContributionstoESIC 24 30(d) ContributionstoGratuity 9 84(e) Staffwelfareexpenses 10 28

Total Employee Benefit Expenses 3,657 3,502

(25A) Details of Managerial Remuneration:



March 31, 2018 Salaries 120 92

Total 120 92

Note 26 : Finance Cost(ÌnLakhs)

Sr. No



(a) InterestexpenseonBorrowings 794 531(b) Otherborrowingcosts 209 15

Total Finance Cost 1,003 547

Note 27: Other Expenses(ÌnLakhs)



RentincludingLeaseRentals 42 57RepairsandMaintenance 273 251Insurance 84 110Communication 138 174TravellingandConveyance 183 174ElectricityExpenses 162 147FreightandForwarding 18 4AdvertisementExpenses 44 8LegalandProfessionalFees 1,336 926PaymentstoAuditors(ReferNote(27A)below) 10 10RatesandTaxes 106 583BrokerageCharges 215 365SecurityCharges - 1 Printing&StationeryExpenses 12 10BusinessPromotionExpenses 30 20





March 31, 2018 OfficeExpenses 65 49EquipmentHireCharges (0) 1 LabourCharges 9 58CSRExpenses 7 9SundryBalanceW/off - (8)BaddebtW/off 39 -MiscellaneousExpense 305 344Donation 1 1

Total Other Expenses 3,078 3,293

Note 27: A Payment to Auditors(ÌnLakhs)

Sr. No



PaymentstotheAuditors(a) ForStatutoryAudit 8 8(b) ForTaxationMatters 2 2

Total 10 10


Note 28: Exceptional Items(ÌnLakhs)



ReversalofBankInterest - (1,172)ReversalofExpenses (622) -Baddebtwrittenoff 271 1,496

Total 351 (323)

Note 29 Component of Other Comprehensive Income(ÌnLakhs)



ItemsthatwillnotbereclassifiedtoprofitorlossActurialGain/LossonGratuity (35) 36

- -

Total (35) 36

THIS PAGE IS IN

TENTIONALLY

LEFT BLANK



AffixRevenueStamp

Form No. MGT-11

PROXY FORM[Pursuanttosection105(6)oftheCompaniesAct,2013andRule19(3)ofthe

Companies(ManagementandAdministration)Rules,2014]

Name(s) of Member(s) : .......……………………………………………………………………………………………………………………

Registered Address : .......…….……………………………………………………………………………………………………………………

Email Id : ......………………………………………………………………………………………………………………………………………

DP ID No./ Client ID No./ Folio No : ........………………………………………………………………………………………………………

I/We,beingthemember(s)of.....……….......................…..............................SharesofAlliedDigitalServicesLimited,herebyappoint:

1. Name :.........……………………………………………………………………………………………………………………………… Address :.........……………………………………………………………………………………………………………………………… EmailId :..…………………………………………………….Signature:………………………………………orfailinghim/her

2. Name :..........……………………………………………………………………………………………………………………………… Address :..........……………………………………………………………………………………………………………………………… EmailId :…………………………………………………….Signature:………………………………………orfailinghim/her

3. Name :..........……………………………………………………………………………………………………………………………… Address :..........……………………………………………………………………………………………………………………………… EmailId :…………………………………………………….Signature:……………………………………….............................

asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe25th Annual General MeetingoftheCompanytobeheldonTuesday,September10,2019at04:00p.m.atWalchandHirachandHall,4thFloor,IMCBuilding,IMCMarg,Churchgate,Mumbai–400020andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

Resolution No. Resolution For Against AbstainOrdinary Business Ordinary Resolution

1. To consider and adopt the Audited Financial Statements (Standalone andConsolidated)oftheCompanyfortheyearendedMarch31,2019alongwiththereportsoftheBoardofDirectors’andtheAuditors’thereon.

2. ToappointaDirectorinplaceofMr.NehalNitinShah(DIN:02766841)whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.

3. Tore-appointM/sShahandTapariaCharteredAccountants (FRN:109463W)asStatutoryAuditorsoftheCompanyforaperiodof5yearstoholdofficeuptotheAnnualGeneralMeetingtobeheldinthefinancialyearendingonMarch31,2024.

Special Business Ordinary Resolution4. Approval to enter into contracts/ arrangements Allied Digital Services LLC,

pursuanttoSection188oftheCompaniesAct,2013andRegulation23oftheSEBI(ListingObligationsandDisclosuresRequirements)Regulations,2015.

Signedthis………dayof……………..……….2019

Signatureofshareholder :....................................................

SignatureofProxyholder(s):.................................................



NOTES: 1. ThisForm inorder tobeeffectiveshouldbedulystamped,completed,signedanddepositedat theRegisteredOfficeof the

CompanyatPremisesNo13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,NarimanPoint,Mumbai-400021,notlessthan48hoursbeforethecommencementoftheMeeting.

2. ProxyneednotbeamemberoftheCompany.Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights.Amemberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonorshareholder.

3. Appointingaproxydoesnotpreventamemberfromattendingthemeetinginpersonifhesowishes.Inthecaseofjointholders,thesignatureofanyoneholderwillbesufficient,butnamesofallthejointholdersshouldbestated.



ATTENDANCE SLIP

25th ANNUAL GENERAL MEETING – September 10, 2019

I/Weherebyrecordmy/ourpresenceatthe25th ANNUAL GENERAL MEETINGoftheCompanyatWalchandHirachandHall,4thFloor,IMCBuilding,IMCMarg,Churchgate,Mumbai–400020,onTuesday,September10,2019at04:00P.M.

Registered Folio / DP ID no./ Client ID no.:

Name of the shareholder:

Address of Shareholder:

No. of Shares held:

IcertifythatIamamember/proxy/authorizedrepresentativeforthememberoftheCompany.

SignatureofShareholder/Proxy

*ApplicabletoallshareholdersholdingsharesoftheCompanyNote:PleasefillupthisattendanceslipandhanditoverattheentranceoftheMeetingHallattheregistereddesk.__________________________________________________________________________________________________

ELECTRONIC VOTING PARTICULARS

Electronic Voting Particulars

EVSN (e-Voting Sequence Number) USER ID Password

Thee-votingfacilitywillbeavailableduringthefollowingvotingperiod:

Commencement of e-Voting End of E-voting

PleaserefertotheAGMNoticefore-Votinginstructions.



DETAILS OF VENUE OF THE ANNUAL GENERAL MEETING:

Address :WalchandHirachandHall,4thFloor,IMCBuilding,IndianMerchantChamberMarg,ChurchgateMumbai–400020Landmark :NearChurchgateStation

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