Annual Report for FY 2019-20 · 2020. 8. 29. · Raghuvanshi Mill Compound, Mumbai – 400083....

A Global IT Transformation Architect.™ Az allied | digital —SS= JT managed. Responsibly.

Date: August 28, 2020

To, To,

The Listing Department Corporate Relationship Department

National Stock Exchange of India Limited BSE Limited

Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers,

Bandra (E), Mumbai- 400051, Dalal Street, Mumbai 400 001

Script Code - ADSL Script Code: 532875

Dear Sir/Madam,

Sub: Addendum / Corrigendum to Notice convening 26 Annual General Meeting and the

Annual Report for FY 2019-20

Attached herewith the addendum / corrigendum to Notice of 26" Annual General Meeting of

the Company in continuation to dispatch of 26th Annual Report of the Company for the year

ended March 31, 2020 along with the Notice of 26th Annual General Meeting. Request to

consider the said addendum / corrigendum as a part of the Notice of 26" Annual General

Meeting dated August 04, 2020.

Warm regards,

For Allied Digital Services Limited

ep Prakash Shah

Whole-time Director

DIN: 00189842

Registered Office: Allied Digital Services Limited, Premises No. 13A, 13th Floor, Earnest House, Back Bay Reclamation,

NCPA Road, Block IT, Nariman Point, Mumbai - 400 021.

B: +91 22 6681 6400 | F : +91 22 2282 2030 | www.allieddigital.net

CIN : L72200MH1995PLC085488

India | USA| UK| A tlia | South- East Asia | EMEA

=

A Global IT Transformation Architect. » allied |digital SS= JT managed.Responsibly.

ADDENDUM / CORRIGENCUM TO THE ORIGINAL NOTICE OF 26" ANNUAL

GENERAL MEETING SCHEDULED TO BE HELD ON SEPTEMBER 03, 2020.

Addendum to the notice of 26 Annual General Meeting scheduled to be held on Thursday,

September 03, 2020 at 2.00 p.m.

In the Explanatory Statement for the Item No. 11 — Issue and allotment of Convertible Equity Warrants, forming part of the Notice of 26'" Annual General Meeting, additional disclosures

pursuant to the provisions of SEBI (Issue of Capital and Disclosure Requirements)

Regulations, 2018 be read as under:

a. On Page No. 34 of Annual Report Point b, “Total number of Equity Shares to be offered”

be read as:

It is proposed to issue and allot in aggregate and up to 40,00,000 (Forty Lakhs) Equity

Warrants, each convertible into or exchangeable for One (1) Equity Share of face value of

Rs. 5 each, in such manner and on such price, terms and conditions as may be determined

by the Board in due compliance with the provisions of Chapter V of SEBI (ICDR)

Regulations, 2018 and other provisions of applicable law provided that such price shall not be less than the minimum price calculated in accordance with the said Regulations.

b. On Page No. 35 of Annual Report Point h, “Shareholding pattern before the proposed

issue and after the proposed conversion of warrants into equity shares” be read as:

Pre-issue shareholding as on | Post issue Shareholding

No. of

Sr.No | Category Now of Equity % of | Equity % of

Sharecheld shareholding a shareholding

Promoters Shareholding

2 Indian Promoters

a)Individual/ HUF 24417074 48.634 28417074 | 52.425

b) Bodies Corporate & Others 408212 0.813 408212 0.753

2 Foreign Promoters oO 0.000 0 0.000

Sub Total (A) 24825286 49.447 28825286 | 53.178

Public Shareholding

it Institutional Investors

a) Mutual Funds 0 0.000 0 0.000

b) Venture Capital Funds 0 0.000 0 0.000

c) Alternate Investment Funds 0 0.000 0 0.000

' Registered Office: Allied Digital Services Limited, Premises No. 13A, 13th Floor, Earnest House, Back Bay Reclamation,

NCPA Road, Block III, Nariman Point, Mumbai - 400 021.

B: +91 22 6681 6400 | F : +91 22 2282 2030 | www.allieddigital-net

CIN : L72208MH1995PLC085488

A Global IT

d)Foreign venture Capital Investors 0 0.000 Oni] ie h.090 sit

[IransiqrayéreignPektefotio investors 20000 0.040 20000 f'0.6372

#) Financial Institutions/Banks 1081 0.002 ogi | 0.002,

g) Insurance Companies 0 0.000 0 0.000

h) Provident Funds / Pension Funds 0 0,000 0 0.000

Any Other Sub Total (B)(1) 21081 0.042 21081 0.039

Se err . $ aoe Sub Total (B)(2) 0 0 0 0.000

3 Non —institutions

[Pantano ear sacema [ae [stn | 200 ii) Individual Shareholders holding

nominal share capital in excess of 2.00 | 6769932 13.484 6769932 | 12.489

lakhs

b) NBFCs Registered with RBI 169000 0.337 169000 0.312

c) Employee Trusts 0 0.000 0 0.000

& |Stteanceter) |° cools oom e) Any Other: 0.000

i)Trusts 0 0.000 0 0.000

ii)Alternate Investment Fund 0 0.000 0 0.000

| Resident Indians repat and Non- 2369909 4.720 2369909 | 4.372

iv) Clearing Members * 89775 0.179 89775. 0.166

v) Hindu Undivided Family 910668 1.814 910668 1.680

vi ) Bodies Corporates 2903275 5.783 2903275 | 5.356

Sub Total (B) (3) 25359161 50.511 25359161 | 46.783

com ao Shareholding | >53s0242 | 50.553 25380242 | 46.822

c Non Promoter - Non _ Public

Shareholders

1 Custodian/DR Holder 0 0 0 0

Employee Benefit Trustee Under SEBI

2 (Share based Employee Benefits) | 0 0 0 0

Regulations,2014

Total Non Promoter- Non Public 0 0 0 0

Shareholder (C=C1+C2)

Grand Total (A+B+C) 50205528 100 54205528 | 100.000

Notes:

- The pre-issue shareholding pattern is as on August 4, 2020; - The shareholding as shown in post conversion of equity warrants is calculated assuming full conversion of Warrants into the Equity Shares of the Company.

4 ‘ | ‘o

A Global IT Transformation Architect. ss allied digital IT managed.Responsibly.

c. On Page No. 36 of the Annual Report Point 0, Auditors’ Certificate be read as:

A copy of the Certificate being issued by M/s. Shah & Taparia, Chartered Accountants, Statutory Auditors of the Company certifying that the Preferential Allotment is being made in accordance with the requirements contained in Chapter V of the SEBI (ICDR) Regulations, 2018, will be placed before the Members at the AGM and shall be available for inspection at the registered office of the Company on all working days, except Saturday and holiday, between 11:00 a.m. (IST) to 1:00 p.m. (IST) till the conclusion of the AGM to be held on September 03, 2020 and will also be available on the website of the Company i.e. www.allieddigital.net.

d. On Page No. 36 of the Annual Report after point q (iii), following additional points (iv) and (v) be read as:

(iv) The Company undertakes that it would re-compute the price of the securities specified above in terms of the provisions of the SEBI (ICDR) Regulations, 2018, where it is required to do so.

(v) The Company undertakes that if the amount payable on account of re- computation of price is not paid within the time stipulated in the SEBI (ICDR) Regulations, 2018 the above specified securities shall continue to be locked in till the time such amount is paid by the allottee.

Except changes and addendums as mentioned in the foregoing paragraphs, all other contents of the 26" Annual Report for the financial year ended 31% March 2020 as emailed, dispatched on August 11 ,2020 and published remains same.


Prakash Dhanji Shah

Whole-time Director

DIN: 00189842

‘A Global IT Transformation Architect.™ allied’, lgital IT managed Responsibly

Date: August 11, 2020

To, To, Listing Department The Corporate Relationship Department,

National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G, P.J. Towers, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001

Mumbai- 400 051 Scrip Code 532875 Scrip Code ~ ADSL

Dear Sir / Madam,

Subject: Submission of 26" Annual Report of Allied Digital Services Limited for the financial

year 2019-20 pursuant to Regulation 34 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements) Regulations, 2015

With reference to the captioned subject, enclosed herewith please find duly approved and adopted 26" Annual Report for the Financial Year 2019-20, comprising the Notice of the

AGM and the Standalone and consolidated financial statements for the Financial Year 2019- 20, along with Board's Report, Auditor's Report and other Documents required to b attached thereto for your records pursuant to Regulation 34 of the Securities and Exche Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 said Annual Report is sent to all the members of the Company whose email registered with the Company / Depository Participant(s)

Kindly take the same on your record and oblige.

Yours faithfully,


ost

Prakash Shah Whole-time Director DIN: 00189842

Encl.: a/a

Page 1 of 1 Registered Office: Allied Digital Services Limited, Premises No. 13A, 13th Floor,

NCPA Road, Block III, Nariman Point, Mumbai - TT

USA | UK | Australia | South- East Asia | EMEA

eamScanner

ANNUAL REPORT 2019 - 2020

ALLIED DIGITAL SERVICES LIMITED

Corporate InformatIon:Board of Directors:Mr. Nitin D. Shah Chairman & Managing DirectorMr. Prakash D. Shah Whole-time DirectorMr. Nehal N. Shah Executive DirectorLate Prof. Venugopal 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: Internal auditors:m/s. Shah & taparia m/s. S.p. nataniB-502, Business Square, 505, Goyal Trade Center Sona Cinema, Solitaire Corporate Park, Borivali East, Chakala Junction, Andheri Kurla Road, Mumbai - 400066.Andheri East, Mumbai - 400 093.

Secretarial auditors: registrar & Share transfer agent: m/s. rathi & associates m/s Link Intime India private LimitedA/303 3rd Floor Prathamesh, C 101, 247 Park, LBS Marg,11/12 Senapati Bapat Marg, Vikhroli West,Raghuvanshi Mill Compound, Mumbai – 400083.Lower Parel, Mumbai – 400013.

Registered office: Key Bankers:Premises No 13A, 13th Floor,Earnest House, Backbay Reclamation,NCPA Road, Block No III, Nariman Point, Mumbai – 400 021CIN: L72200MH1995PLC085488Tel : 022 – 6681 6400 Fax: 022 – 2282 2030Email: [email protected]: www.allieddigital.net

Barclays BankKotak Mahindra Bank Limited

InDeX: page no.

Corporate overview:

Chairman’s Message 01

Management Speak 03

Awards & Accolades 06

Statutory reports:

Notice of AGM 10

Boards’ Report 36

Management Discussion & Analysis Report 68

Corporate Governance Report 73

financial Statements:

Auditors Report on Standalone Financial Statements 98

Standalone Financial Statements 106

Auditors Report on Consolidated Financial Statements 143

Consolidated Financial Statements 150

1Annual Report 2019-20 Allied Digital

Corporate Overview Statutory Reports Financial Statements

Ladies and Gentlemen,

It gives me great pleasure to welcome you to the 26thAnnual General Meeting of your Company.

Industry outlook

The IT sector in India stood at US$177 billion in 2019 witnessing a growth of 6.1 per cent year-on-year and is estimated that the size of the industry will grow to US$ 350 billion by 2025.This is indicative of the fact that IT is continuously growing.

Road Ahead

The global sourcing market in India continues to grow at a higher pace compared to the IT industry. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 200-250 billion global services sourcing business in 2019-20. Indian IT companies have set up over 1,000 global delivery centers in about 80 countries across the world.

India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country.

Key Emerging Technologies

Nearly 46% of new revenue growth in technology sector is attributed to emerging technologies.

• IoT hardware and software • AI Platforms/Applications• SaaS + PaaS • Big Data/Analytics• IoT connectivity • Enterprise Social Software• Robotics/Drones • Next Gen Security• AR/VR

Smart Cities: The Future of Urban Development

The challenge of building a smart city far surpasses the “simple” engineering obstacles to creating a fully connected urban environment. To employ a biological analogy, it’s more like genetic engineering than mechanical engineering, and part of the solution will require rewriting a city’s DNA — that is, its people.

The engineering obstacles certainly are formidable. Any smart city worth its salt will possess a fully integrated infrastructure, with smart transportation services (including autonomous vehicles), internet and communication systems, water services, and electrical and power grids all connected and unified. Such a massive, city-wide system will undoubtedly require significant upgrades in infrastructural computing power just to process the massive amounts of raw data. New algorithms and AI programs will each have their roles to play, and the largest cities will have an Intelligent Command & Control Center (iCCC) to monitor and manage centrally.

The future smart city will employ a number of purpose-built AI programs and machine-learning algorithms to process the vast amounts of incoming “sensory” data. These programs will leverage rapid improvements in computing and neural networks in the coming decades. In fact, smart cities may witness the birth of the first truly “human-scale” AIs capable of reactive and independent cognition.

Your Company

Having bagged 4 prestigious Smart city projects, we are poised to remain a leading player in the Master System Integrator (MSI) space.

Industry 4.0 or the Fourth Industrial Revolution is the ongoing automation of traditional manufacturing and industrial practices, using modern smart technology. Much before it became the buzzword your company with its Disruption driven strategy was at the forefront adopting smart technology and offering digital solutions across the spectrum of various industries. This was a result of the thought leadership existing in the management team.

Mr. Nitin Shah

CMD


2 Allied Digital Annual Report 2019-20

Allied Digital clientele include Fortune1000, large, mid-size companies and Government bodies across the globe in multiple industry domains. As an MSI it provides IP based solutions and implements various SLA driven fixed priced ICT projects. These are multi-year IT Infrastructure Management services (IMS) and Managed Security services (MSS) contracts which results into healthy annuity revenue.

Your company with an eye for the future generations has setup a 1200+ seater co-incubation and co-workspace center in Navi Mumbai. The center will support selected incubatees in their business models and mentor them from Idea stage to IPO. It has a Center of Excellence (COE) for emerging technologies like AI/ML, Deep Learning, IoT, Blockchain, AR/VR, Cyber security etc. The facility will offer High Performance Computing (HPC) learning in multiple technologies and international standard classrooms for conducting training.

We have streamlined our internal processes with a new COE for Service delivery to scale new bars and our HR function remains strong as ever with excellent leader at the helm and are ready to fly higher.

We have also expanded our direct global presence with offices in Europe too and as such cover nearly all the continents.

Our focus has always been on the bottom-line rather than topline to ensure our shareholders reap benefits from their reposed faith in the company. We are looking out for projects with better margins.

We thank our investors for their patience during our transformation journey since we believed in the dictum of “Small pain and long gain” and are pleased to say that we are entering the high growth phase version 6.0(disruption driven).

We are also very pleased to declare 10% dividend this year.

We are proud to announce that we are virtually debt free in Rupee terms and that too without selling any assets or diluting our stake, in fact the promoters have increased their shareholdings using preferential route.

Today, in tough Covid-19 times, the company is managing full operations seamlessly under “Work from Home” strictly adhering to high level security standards(Zero trust strategy)based Business Continuity plan, with the company’s “Always-On” 24x7x365 infrastructure in the cloud, with secure access for the employees working from home.

The company firmly believes in its Corporate Social Responsibility and is helping the community with suitable donations and assistance towards needy causes like food, education, healthcare and religious nature etc.

Our progress has been appreciated and has resulted in several awards and accolades being given to your company. (see details on page 7)

Outlook

Digital Disruption is the future. We plan to train personnel on newer technologies to result into disruption in business models by leveraging IoT, Big data, Analytics, AI and ML.

We will Support Business Transformation using above skillsets by enabling cost-effective, efficient solutions leveraging new technologies.

Allied Digital is positioning itself to be a major player as Global Digital Transformation Architect focusing on B2B/B2G, Smart Cities and other IP based solutions.

Our vision for the future includes remaining a front-runner in the digital economy space and enabling the on-going lifestyle changes onto a unified digital platform

With warm regards,

Nitin ShahChairman and Managing Director.



Your company is on an upwards growth trajectory. Government’s Digital Initiatives in the space of smart city, safe city, e-governance and ICT driven infrastructure projects will boost India’s IT sector. We are very strongly positioned in this vertical. Enterprise space is also seeing a disruption in more unique service delivery model’s like remote infrastructure management services with increasing focus on automation and support through network and security operations center.

Your company has adapted a unique partner driven business model leveraging upon large IT and EPC companies increasing our market reach globally. Success of the partner model is credited to the strong focus on improved service delivery capabilities.

Financial Year 2019-2020 has seen lots of major account wins in India and the US with an increasing presence in the European Markets. We have added two more smart city wins taking up our total tally to five cities, four of which are currently under execution. These wins will allow sustained revenue growth for multiple forthcoming years.

Pleased to inform that your Company has achieved an encouraging total consolidated income of INR 335.72 Crs. as against INR 243.84 Crs. in the previous financial year with a robust growth of 38% y-o-y basis, whereas the total standalone income stands at INR 99.78 Crs. as against INR 79.35 Crs. in the previous year with a growth of 26% on y-o-y basis. Company has substantially improved its profitability during the year and reported consolidated PAT of INR 19.22 Crs as against INR 12.37 Crs in the previous financial year with a staggering growth of 55% on y-o-y basis. Whereas standalone PAT stood at INR 7.88 Crs as against INR 9.63 Crs of previous year, in spite of not having exceptional income unlike previous financial year.

In continuation to on-going focus towards debt reduction, it gives me great pleasure to inform that we have substantially reduced our debt which has also resulted in an increase in our profitability.

In continuation to on-going focus towards debt reduction, it gives me great pleasure to inform that we have substantially reduced our debt which has also resulted in an increase in our profitability.

In the current COVID scenario our ability to provide scalable remote support along with end user computing services across a vast geography will led to a strong growth in the pipeline and further increase in profitability of the company. Our constant effort to upgradation of our facilities and skill set is allowing us to be the partner of choice for IT support and services.

With warm regards,

Prakash ShahWhole-time Director

Mr. Prakash Shah

Whole-time Director



Ladies and Gentlemen,

It gives me great pleasure to welcome you to the 26th Annual General Meeting of your Company.

Expansion

I am pleased to inform you that your company has extended its Global footprint in Europe with our new office in Dublin,Ireland which we see as an important market for us. We are already well established across the Americas,Asia, Middle East and Australia.

Financials

The revenue growth of the company has been stellar during the year in question and our revenue has grown from Rs.244 crores in 18-19 to Rs.336 crores in 19-20.(38% growth). Our NPAT has grown by 55% in the same period. We have won large multi-year deals with annual price escalation across the globe to ensure healthy sales growth for the coming years. This stupendous performance has been also a result of keeping our operational expenses under strict control in these testing times and reducing our finance

costs. We hope to achieve better results in the coming years and continue on the growth path.

Future Outlook

Your company is a well-established player in the IT Managed Services space and is a leading Master System Integrator in the country and globally. Digital Disruption is the way forward and your company is at the forefront with market leading offerings in EMTECH (emerging technologies) like IoT, AI,ML, Deep Learning. Robotics etc.

This ensures our service offerings are future-proof.

COVID-19

As you are all aware the world is grappling with the Global Pandemic and the race is on to find a cure and preventive vaccine for the Corona Virus.

In this scenario where travel is restricted we are keeping the lights on with “Work from Home” solutions and ensuring seamless operations for our customers with innovative and secure technology to ensure there is no disruption either at our employee end or for our customers.

Technology is at the forefront with virtual office and other solutions and we believe your company is in the right domain to reap the benefits with our unique IT offerings.

In fact it is safe to say that we are now a essential industry to ensure work happens.

We believe that your company is well poised to successfully tide over the challenges and emerge as a leading player in the IT Industry.

With warm regards,

Nehal ShahExecutive Director

Mr. Nehal Shah

Executive Director



Management Bytes

Hello Investors,

What a solid year it has been for all of us. The year 2019-20 has seen huge growth in sales and is depicting in our revenue increase. The numbers clearly predict the growth picture. We have continued to add new, and also large customers in the US as well as in India. The sales and deliver teams have been on their toes, executing on smart cities and doing transition of newly acquired global enterprise service customers.

More importantly, it has been a perfect blend of business strategy, flawless execution and committed customer relationship management. We continued to apply breaks on our finance costs, and have further improved our operational strengths in Europe. We bagged another smart city project in the early quarters and have witnessed consistent upsurge in sales every quarter. This speaks about growth consistency and good management governance. The year further ended on a brighter side of releasing our new software platform ADiTaaS 5.0 and creating a new global “center of excellence” in service delivery. Besides, we have created a huge capacity of office space at our Mahape premises in anticipation of growing opportunities for the company.

The current year has started with a big challenge of the Covid-19 pandemic. Globally, it has triggered a huge economic pressure. Along with several industries, IT industry too is impacted. But fortunately, I would like to say that we see ourselves as ‘mildly impacted’. The savior has been our annuity contracts, which are keeping the “lights on” of so many customers. The other factor is our ability to stretch and go the extra mile during the crisis. Further, we have been absolutely on the dot in our service delivery, due to our “Always-On” infrastructure and business continuity planning. Our resources are able to work remotely, and as well, we are able to take some strategic decisions to provide services as “Essential” to critical customers such as healthcare and government. This meticulous business continuity planning has given us some great customer appreciation. During this tough time, the management team has huddled to invest time in sharpening our technology skills, initiating new business lines like IoT and AI and propelling new marketing plans to bounce higher when macro-economic factors improve.

As the year further unfolds, global business growth would start their upward journey by the end of third quarter. Our strengthened business development engines will generate new wins. Our sharpened resource skills and continued customer satisfaction and value offerings should help farm more revenues from existing customers. The new partnerships will open new sales pipelines and our next generation technology adoptions in AI and IoT will scale our long-term growth. For us, the drivers will continue to be in large enterprise contracts and smart city related opportunities. We see acceleration on cloud and managed security business, and our readiness in AI (Artificial Intelligence) Robotic Process Automation, and IoT is soon going to take a growth path in the last quarter. We see the current situation as an opportunity for introspection and preparation for next big growth, thus our outlook remains positive.

Thanks to the management vision and continued support from you all, I strongly believe that our motto of “Passion, Teamwork and Innovation” will withstand the challenging economic weather and we will remain tall, backed by robust company growth and your trust in us.

With warm regards,

Paresh ShahChief Executive Officer

Mr. Paresh Shah

Chief Executive Officer



Integrated Solutions Group

It is my pleasure to inform you that your company was successful in winning three more Smart City Projects during the year: Aurangabad Smart City, Bidkin (Maharashtra) and Kalyan Dombivli Smart City Projects in Consortium Biddings. The contract period for these projects are for five years with assured revenue and growth potential due to possible expansions and scaling up of the scope during this period.

Presently, these projects are under execution in addition to Rajkot Smart City that is nearing completion. Each of these projects addresses issues related to their specific location with solution portfolio that deals with these challenges to provide better quality of life for its citizens leveraging on emerging technology for efficient Governance. Delivering such projects enhances your company’s established core competency as a leading Master Systems Integrator (MSI) in the country.

Furthermore, your company has taken measures to create inhouse development capability for some solution component that integrates several autonomous systems and their technologies. One such result of this initiative is the in house developed IP based Public Address System (PAS) and its Software that unlike competitive proprietary Public Address System, runs on the existing IT infrastructure such as Server and the digital backbone network. The in house developed IP PAS

integrates with the Video Surveillance System with analytics software to detect violation of social distancing norms and on detection automatically make public announcement by playing pre-recorded messages at those sites. Similarly, it can be programmed to integrate with other systems such as CCTV or Access Control to detect any defined event and make appropriate announcement automatically. Of course, manual announcement can also be made if required.

Through In-house development such as mentioned above your company is able to achieve significant reduction in total cost of ownership of the entire solution giving it competitive advantage in bidding and post winning in Operation and Maintenance for the solution life cycle. Your company strives to reduce dependencies on certain costly third-party proprietary systems through in-house innovative development and solutions.

Many Enterprise class Physical Security Projects such as Critical Infrastructure protection, Smart Campus, Smart City, Retail and Malls are now adopting emerging technology that uses Artificial Intelligence (AI) that enhances the capability of systems such as Video Surveillance with Video Analytics for detecting presence and movement of people, Crowd gathering and direction of movement, Face Recognition, Access Control System and Perimeter protection system. Your company has aligned with leading international organizations that offers such solution and also scaling up its own capability in creating AI and Machine Learning (ML) based solution.

Some states, especially those in the coastal regions, as part of National Cyclone Risk Mitigation Project (NCRMP) have floated RFPs for Early Warning Dissemination System (EWDS) to Alert people in the area of impending cyclone or event that could cause disaster on a large scale. Most of these systems are deployed on the ICT infrastructure requiring Integration of multiple systems and your company is participating in these opportunities as an MSI. More states will opt for EWDS systems and these projects are generally funded by the World Bank.

The Covid 19 Pandemic and the Lock down has impacted the industry with some delay in execution of the projects and finalization of many contracts. The industry has made effort to overcome these challenges by adopting practises such as Work from Home. As these measures have been implemented globally by almost all organization there has been a change in the work culture. With the availability of various platforms and their increased usage there has also been an improvement in efficiency in remote working conditions. Your company has successfully adapted its operations to align with the demands of remote working.

In addition to the existing Pune Safe City project, the acquisition of five smart city projects with their contract period spanning over five years and with its participation in opportunities in EWDS, Critical infrastructure protection, Banks, Retail Space and other Smart City projects your company is positioned to increase its market share in the Integrated solutions business.

With warm regards

Jawahar AliCEO-ISG

Mr. Jawahar Ali

CEO (ISG)


Allied Digital CMD - Mr. Nitin Shah was featured in the prestigious "The Economic Times - Promising Entrepreneurs of India" Coffee Table book.

Allied Digital successfully delivered the Pune Safe City

Surveillance project in 2015. In the ongoing enhancements towards a Safer city we developed the "Satark Punekar" Android and IOS app which allows citizens to capture and report traffic violations and send the report to Traffic Control Room of Pune Traffic Police for further action. This has been commended by the Pune City traffic Police as very useful for traffic monitoring and e-challans.

Allied Digital CMD - Mr. Nitin Shah was featured in the prestigious "The Economic Times - Promising Entrepreneurs of India" Coffee Table book. His professional journey spanning more than 3 decades is covered and for the future he feels that Allied Digital is uniquely positioned to create exponential value for it's clients with new technologies.

Allied Digital gets Commendatory Certificate from Pune Traffic Police

ALLIED DIGITALAchievements



Allied Digital (USA) CFO – Kapil Mehta nominated amongst a large number of finance professionals for the Los Angeles Business Journal CFO Awards 2019 held at The Westin Bonaventure Hotel & Suites, Los Angeles on 26th September, 2019. Our CTO – Mr. Sunil Bhatt was with him sharing the proud moment. The 13th Annual CFO Awards recognize L.A. County Finance professionals for their ongoing efforts and contributions to their organizations.

Allied Digital (USA) CFO - Kapil Mehta is nominated for the Los Angeles Business Journal CFO Awards 2019

ALLIED DIGITALAchievements




• Boarddeclareddividend@10%forFY19-20• ConsolidatedincomeofINR33,572LakhsfortheFY19-20VsINR24,384LakhsforFY18-19.• ConsolidatedEBIDTAofINR5,234LakhsforFY19-20VsINR4,266LakhsfortheFY18-19.• ConsolidatedPBTINR2,404LakhsforFY19-20VsINR1,452LakhsforFY18-19• ConsolidatedPATINR1,922LakhsforFY19-20VsINR1,237LakhsforFY18-19• ConsiderabledebtreductionresultingbetterprofitabilityforFY19-20• EPSofINR3.83FY19-20VsINR2.46forFY18-19• BookValueofeachequitysharestandsatINR93plus

FINANCIAL HIGHLIGHTS FOR THE FY 2019-20



NOTICE IS HEREBY GIVEN THAT THE TWENTY SIXTH ANNUAL GENERAL MEETING OF THE MEMBERS OF ALLIED DIGITAL SERVICES LIMITED WILL BE HELD ON THURSDAY, SEPTEMBER 03, 2020 AT 02:00 P.M. TO TRANSACT THE FOLLOWING BUSINESS:

ORDINARY BUSINESS:

1. Toconsiderandadopt:

a) theAuditedStandaloneFinancialStatementsoftheCompanyfortheFinancialYearendedMarch31,2020comprisingoftheAuditedBalanceSheetasatMarch31,2020,theStatementofProfit&LossandCashFlowStatementfortheFinancialYearApril1,2019toMarch31,2020includingitsSchedulesandtheNotesattachedtheretoandformingpartthereofalongwiththereportsoftheBoardofDirectorsandtheStatutoryAuditorsthereon;and

b) theAuditedConsolidatedFinancialStatementsoftheCompanyfortheFinancialYearendedMarch31,2020,comprisingoftheAuditedConsolidatedBalanceSheetasatMarch31,2020,theStatementofConsolidatedProfit&LossandCashFlowStatementfortheFinancialYearApril1,2019toMarch31,2020includingitsSchedulesandtheNotesattachedtheretoandformingpartthereofalongwiththereportoftheStatutoryAuditorsthereon.

2. TodeclaredividendonequitysharesoftheCompanyfortheFinancialYear2019-20.

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

SPECIAL BUSINESS:

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

“RESOLVED THATinpartialmodificationofresolutionpassedinthisregardbythemembersoftheCompanyatthe22ndAnnualGeneralMeetingoftheCompanyheldonSeptember26,2016whichresolutionwassubsequentlymodifiedbywayofresolutionpassedatthe24thAnnualGeneralMeetingheldonSeptember03,2018andpursuanttotheprovisionsofSections197,198,203andanyotherapplicableprovisionsoftheCompaniesAct,2013andtheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014madethereunder(includinganyamendment,statutorymodification(s)orre-enactment(s)thereofforthetimebeinginforce)readwithScheduleVoftheCompaniesAct,2013,asamendedvideNotificationdatedSeptember12,2016,applicableprovisionsofRegulation17oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015asamendedandapplicableclausesofArticlesofAssociationoftheCompanyandbasedontherecommendationofNominationandRemunerationCommitteeandapprovaloftheBoardofDirectorsoftheCompanyattheirrespectivemeetingheldonAugust04,2020,consentoftheMembersoftheCompanybeandisherebyaccordedtorevisetheremunerationofMr.NitinDhanjiShah(DIN:00189903),ChairmanandManagingDirectoroftheCompany,tooverallaggregateamountnotexceeding`2,00,00,000(RupeesTwoCrores)perannumforthefinancialyear2020-21i.e.from1stApril,2020to31stMarch2021.

RESOLVED FURTHER THAT all other existing termsand conditionsof appointmentofMr.NitinDhanji Shah,ChairmanandManagingDirectoroftheCompanyshallremainunchangedunlessotherwisemodifiedbytheBoardofDirectorsoftheCompany.

RESOLVED FURTHER THAT in the event that during the financial year 2020-21, the Company has no profits or its profits areinadequateascomputedundertheapplicableprovisionsoftheAct,Mr.NitinDhanjiShah,ChairmanandManagingDirectorshallbeentitledtoreceivetheaforementionedremunerationastheminimumremunerationsubjecttoreceiptofrequisiteapprovals,ifany.

RESOLVED FURTHER THAT for thepurposeofgivingeffect to theaforesaid resolution,anyof theBoardofDirectorsor theCompanySecretaryoftheCompanybeandisherebyauthorizedtodoallsuchacts,deedsandthings,asitmayinitsabsolutediscretiondeemnecessary,properordesirableandtosettleanyquestion,difficultyordoubtthatmayariseinthesaidregard.”

5. Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasaSpecial Resolution:

“RESOLVED THATinpartialmodificationofresolutionpassedinthisregardbythemembersoftheCompanyatthe22ndAnnualGeneralMeetingoftheCompanyheldonSeptember26,2016whichresolutionwassubsequentlymodifiedbywayofresolution

NOTICE



passedatthe24thAnnualGeneralMeetingheldonSeptember03,2018andpursuanttotheprovisionsofSections197,198,203andanyotherapplicableprovisionsoftheCompaniesAct,2013andtheCompanies(AppointmentandRemunerationofManagerialPersonnel) Rules, 2014 made thereunder (including any amendment, statutory modification(s) or re-enactment(s) thereofforthetimebeinginforce)readwithScheduleVoftheCompaniesAct,2013asamendedvideNotificationdatedSeptember12, 2016, applicable provisions of Regulation 17 of the SEBI (ListingObligations andDisclosureRequirements) Regulations,2015 as amended and applicable clauses of Articles of Association of the Company and based on the recommendation ofNominationandRemunerationCommitteeandapprovaloftheBoardofDirectorsoftheCompanyattheirrespectivemeetingheldonAugust04,2020,consentoftheMembersoftheCompanybeandisherebyaccordedtorevisetheremunerationofMr.PrakashShah(DIN:00189842),WholeTimeDirectoroftheCompany,tooverallaggregateamountnotexceeding`1,00,00,000(RupeesOnecrore)perannumforthefinancialyear2020-21i.e.from1stApril,2020to31stMarch2021.

RESOLVED FURTHER THAT allotherexisting termsandconditionsofappointmentofMr.PrakashDhanjiShah,Whole-timeDirectoroftheCompanyshallremainunchangedunlessotherwisemodifiedbytheBoardofDirectorsoftheCompany.

RESOLVED FURTHER THAT in the event that during the financial year 2020-21, the Company has no profits or its profits areinadequateascomputedundertheapplicableprovisionsoftheAct,Mr.PrakashDhanjiShah,Whole-timeDirectorshallbeentitledtoreceivetheaforementionedremunerationastheminimumremunerationsubjecttoreceiptofrequisiteapprovals,ifany.

RESOLVED FURTHER THAT for thepurposeofgivingeffect to theaforesaid resolution,anyof theBoardofDirectorsor theCompanySecretaryoftheCompanybeandisherebyauthorizedtodoallsuchacts,deedsandthings,asitmayinitsabsolutediscretiondeemnecessary,properordesirableandtosettleanyquestion,difficultyordoubtthatmayariseinthesaidregard.”

6. Toconsiderand,ifthoughtfit,topassthefollowingresolutionasaOrdinary Resolution:

“RESOLVED THATpursuanttotheprovisionsofsections149and152readwithSchedule IVandotherapplicableprovisionsoftheCompaniesAct,2013(‘theAct’),Companies(AppointmentandQualificationofDirectors)Rules,2014andRegulation25readwithScheduleIIoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(includinganystatutorymodification(s)or re-enactment(s) thereof, for the timebeing in force),Mr.MilindMadhavKamat (DIN: 01772084),whowasappointedbytheBoardofDirectorsoftheCompanyasanAdditionalDirectordesignatedasanIndependentDirectoroftheCompanywitheffectfromJune11,2020andinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheActproposinghercandidaturefortheofficeofDirector,beandisherebyappointedasanIndependentDirectoroftheCompany,notliabletoretirebyrotation,foraperiodof5(Five)yearscommencingfromJune11,2020uptoJune10,2025.

RESOLVED FURTHER THATtheBoardofDirectorsorKeyManagerialPersonneloftheCompany,beandareherebyseverallyauthorizedtodoallsuchacts,deeds,mattersandthingsasmaybeconsiderednecessary,incidentaland/orancillarytheretotogiveeffecttotheaforesaidresolution.”

7. Toconsiderand,ifthoughtfit,topassthefollowingresolutionasaSpecial Resolution:

“RESOLVED THATpursuanttotheprovisionsofSection42,62(1)(b)oftheCompaniesAct,2013(“theAct”)andtheCompanies(Share Capital and Debentures) Rules, 2014 and other applicable provisions, if any, of the Act, including any statutory

modification(s)orre-enactmentoftheActforthetimebeinginforceandinaccordancewiththeprovisionsoftheMemorandumandArticles of Associationof theCompanyand theprovisionsof the Securities andExchangeBoardof India (ShareBasedEmployeeBenefits)Regulations,2014includinganymodificationsthereoforsupplementsthereto(“theSEBISBEBRegulations”),SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“theSEBILODRRegulations”),theListingAgreemententeredintowiththeStockExchangeswherethesecuritiesoftheCompanyarelistedandanyotherapplicablelawsforthetimebeinginforceandsubjecttosuchotherconsents,permissions,sanctionsandapprovalswhichmaybeagreedbytheBoardofDirectorsoftheCompany(hereinafterreferredtoas“theBoard”whichtermshallbedeemedtoincludetheNominationandRemunerationCommittee), consentof theShareholdersbeand isherebyaccorded to introduceand implement the ‘ADSL -EmployeesStockOptionPlan2020’(“ESOP-2020”)thesalientfeaturesofwhicharedetailedintheExplanatoryStatementtothisNoticeandtocreate,grant,offer,issueandallotatanytimeinoneormoretranchestoorforthebenefitofsuchperson(s)whoare inthepermanentemploymentoftheCompany,whetherworkingin IndiaoroutsideIndia, includingDirectorofthe



Company,whetherWhole-timeDirectorornot,butexcludingPromoter,PromoterGroupandIndependentDirectorsandsuchotherpersonsasmayfromtimetotimebeallowedtobeeligibleforthebenefitundertheprovisionsofapplicablelawsandRegulationsprevailingfromtimetotime(hereinaftercollectivelyreferredtoas“Employees”)selectedonthebasisofcriteriadecided by the Board under the ESOP-2020, such number of stock options convertible into Equity Shares of the Company(“Options”),inoneormoretranches,notexceeding40,00,000(FortyLakhs)EquitySharesoffacevalueof`5/-each(RupeesFive),atsuchpriceandonsuchtermsandconditionsasmaybefixedordeterminedbytheBoardinaccordancewiththeESOP-2020,andallprovisionsofapplicablelaws.

RESOLVED FURTHER THATtheSchememayalsoenvisageprovisionsforprovidingfinancialassistancetotheEligibleEmployeestoenablethemtoacquire,purchaseorsubscribetothesaidSecuritiesoftheCompanyinaccordancewiththeprovisionsoftheAct/Regulations.

RESOLVED FURTHER THAT the Board be and is hereby authorized to issue and allot Equity Shares directly to the eligibleEmployeesuponexerciseofOptionsfromtimetotimeinaccordancewiththeESOP-2020andsuchequitysharesshallrankpari-passuinallrespectswiththethenexistingequitysharesoftheCompany.

RESOLVED FURTHER THATincaseofanycorporateaction(s)suchasrightsissues,bonusissues,mergerandsaleofdivisionorotherre-organisationofcapitalstructureoftheCompany,asapplicablefromtimetotime,ifanyadditionalequitysharesareissuedbytheCompanyforthepurposeofmakingafairandreasonableadjustmenttotheStockOptionsgrantedearlier,theaboveceilingshallbedeemedtobeincreasedtotheextentofsuchadditionalequitysharesissued.

RESOLVED FURTHER THATincasetheequitysharesoftheCompanyareeithersub-dividedorconsolidated,thenthenumberofequitysharestobeissuedandallottedonexerciseofOptionsgrantedundertheESOP-2020andtheexercisepriceofOptionsgrantedundertheESOP-2020shallautomaticallystandaugmentedorreduced,asthecasemaybe,inthesameproportionasthepresentfacevalueof`5/-perequitysharebearstotheirrevisedfacevalueoftheequitysharesoftheCompanyaftersuchsub-divisionorconsolidation,withoutaffectinganyotherrightsorobligationsoftheemployeeswhohavebeengrantedStockOptionsundertheESOP-2020.

RESOLVED FURTHER THATwithoutprejudice to thegeneralityof theabove theBoard,which includes theNominationandRemuneration Committee is authorised to formulate, evolve, decide upon and implement the ESOP-2020, determine thedetailedtermsandconditionsoftheaforementionedESOP-2020includingbutnotlimitedtothequantumoftheOptionstobegrantedperemployee,thenumberofOptionstobegrantedineachtranche,thetermsorcombinationoftermssubjecttowhichthesaidOptionsaretobegranted,theexerciseperiod,thevestingperiod,thevestingconditions,instanceswheresuchStockOptionsshalllapseandtograntsuchnumberofOptions,tosuchemployeesoftheCompany,atprice,atsuchtimeandonsuchtermsandconditionsassetoutintheESOP-2020andastheBoardortheNominationandRemunerationCommitteemayinitsabsolutediscretionthinkfit.

RESOLVED FURTHER THATtheNominationandRemunerationCommitteebedesignatedastheCompensationCommitteeinaccordancewithRegulation5(1)oftheSEBISBEBRegulationsforthepurposesofadministrationofESOP-2020.

RESOLVED FURTHER THAT the Board is hereby authorised tomake anymodifications, changes, variations, alterations orrevisionsintheESOP-2020asitmaydeemfit,fromtimetotimeortosuspend,withdraworrevivetheESOP-2020fromtimetotime,inconformitywithapplicablelaws,providedsuchvariations,modifications,alterationsorrevisionsarenotdetrimentaltotheinterestsoftheEmployees.

RESOLVED FURTHER THATtheBoardshalltakenecessarystepsforlistingoftheEquitySharesallottedundertheESOP-2020ontheStockExchanges,wheretheSharesoftheCompanyarelistedinaccordancewiththeprovisionsoftheSEBISBEBRegulations,theSEBILODRRegulationsandotherapplicablelawsandregulations.

RESOLVED FURTHER THAT forthepurposeofgivingeffecttothisResolution,theBoardbeandisherebyauthorizedtodoallsuchacts,deeds,mattersandthingsasitmay,initsabsolutediscretion,deemnecessary,expedientorproperandtosettleallquestions,difficultiesordoubtsthatmayariseinrelationtoformulationandimplementationoftheESOP-2020atanystageincludingatthetimeoflistingoftheequitysharesissuedhereinwithoutrequiringtheBoardtosecureanyfurtherconsentorapprovaloftheMembersoftheCompanytotheendandintentthattheyshallbedeemedtohavegiventheirapprovaltheretoexpresslybytheauthorityofthisResolution.



RESOLVED FURTHER THATtheBoardbeandisherebyauthorizedtodelegatealloranypowersconferredhereintoNominationandRemunerationCommitteeorsuchotherCommittees,withpowertosub-delegatetoanyExecutives/OfficersoftheCompanytodoallsuchacts,deeds,mattersandthingsasalsotoexecutesuchdocuments,writingsetc.,asmaybenecessaryinthisregard.”

8. Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasSpecial Resolution:

“RESOLVED THATpursuanttotheprovisionsofSection42,62(1)(b)oftheCompaniesAct,2013(“theAct”)andtheCompanies(ShareCapitalandDebentures)Rules,2014andotherapplicableprovisions,ifany,oftheAct,theSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014includinganymodificationsthereoforsupplementsthereto(“theSEBISBEBRegulations”),SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“theSEBILODRRegulations”),theListingAgreemententeredintowiththeStockExchangeswherethesecuritiesoftheCompanyarelistedandanyotherapplicablelawsforthetimebeinginforceandsubjecttosuchotherconsents,permissions,sanctionsandapprovalsasmaybenecessaryandsubjecttosuchconsents,permissions,sanctionsandapprovalswhichmaybeagreedtobytheBoardofDirectorsoftheCompany(hereinafter referred to as “theBoard”,which term shall bedeemed to includeanyCommittee including theNomination andRemunerationCommitteetoexercisethepowersconferredbythisResolution),consentandapprovaloftheShareholdersbeandisherebyaccordedtoextendthebenefitsof‘ADSL-EmployeesStockOptionPlan2020’(“ESOP-2020”)proposedintheresolutionnumber7abovetosuchpersonswhoareinthepermanentemploymentoftheHoldingCompanyanditssubsidiarycompany(ies)(whethernoworhereafterexisting,whetherincorporatedinIndiaoroverseasasmaybefromtimetotimebeallowedundertheprevailinglaws,rulesandregulationsand/oranyamendmentstheretofromtimetotime),whetherworkinginIndiaoroutofIndiaandtothedirectorsoftheHoldingCompanyoritsSubsidiaryCompanies,andtosuchotherpersonsasmayfromtimetotimebeallowed,underprevailinglaws,rulesandregulations,and/oramendmentstheretofromtimetotime,onsuchtermsandconditionsasmaybedecidedbytheBoard,andselectedonthebasisofcriteriaprescribedbytheBoard,atsuchpriceorpricesinoneormoretranchesandonsuchtermsandconditions,asmaybefixedordeterminedbytheBoardinaccordancewiththeESOP–2020.

RESOLVED FURTHER THAT for thepurposeofcreating,offering, issuing,allottingand listingof theSecurities, theBoardbeauthorizedonbehalfoftheCompanytomakeanymodifications,changes,variations,alterationsorrevisionsintheESOP–2020fromtimetotimeortosuspend,withdraw,orreviveESOP–2020fromtimetotime,providedsuchvariations,modifications,alterationsorrevisionsarenotdetrimentaltotheinterestsoftheEmployees.

RESOLVED FURTHER THATforthepurposeofgivingeffecttothisResolution,theBoardbeauthorizedtodeterminetermsandconditionsofissueoftheSecuritiesanddoallsuchacts,deeds,mattersandthingsasitmay,initsabsolutediscretion,deemnecessaryforsuchpurposeandwithpoweronbehalfoftheCompanytosettleanyquestions,difficultiesordoubtsthatmayariseinthisregardwithoutrequiringtosecureanyfurtherconsentorapprovaloftheShareholdersoftheCompany.”


“RESOLVED THATpursuanttotheprovisionsofSection62(1)(b)andallotherapplicableprovisions,ifany,oftheCompaniesAct,2013(whichdeemstoincludetheprovisionstheCompaniesAct,1956applicable,ifany,forthetimebeinginforce),theMemorandum and Articles of Association of the Company, Securities and Exchange Board of India (Share Based EmployeeBenefits)Regulations,2014andsubjecttosuchotherapprovals,permissionsandsanctionsasmaybenecessaryandsubjecttosuchconditionsandmodificationsasmaybeprescribedorimposedwhilegrantingsuchapprovals,permissionsandsanctionsandnotwithstandingceilinglimitforGrantofOptionduringanyoneFinancialYeartoanyemployeeordirectoroftheCompanyanditsHoldingCompanyoritsSubsidiaryCompanynotexceedingonepercentoftheissuedCapitaloftheCompany,consentoftheShareholdersbeandisherebyaccordedforGrantofoptionstoidentifiedemployeesunder‘ADSL-EmployeesStockOptionPlan2020(ESOP–2020)duringanyoneyear,equaltoorexceedingonepercentbutnotexceedingtwopercentoftheissuedcapital(excludingoutstandingwarrantsandconversions)oftheCompanyatthetimeofGrantofOptioninoneormoretranches,onsuchtermsandinsuchmannerasstatedin‘ADSL - Employees Stock Option Plan 2020’.

10. 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,forthefinancialyearended31stMarch2020,for:



1. Sale,purchaseorsupplyofanygoodsormaterials–uptomaximumof`50crores;and2. Availingorrenderingofanyservices–uptomaximumof`150crores

onsuchtermsandconditionsasmaybeapprovedbytheAuditCommitteeandtheBoardofDirectorsfromtimetotime.

RESOLVED FURTHER THAT anyoneof theBoardofDirectors or theCompanySecretary of theCompanybe and is herebyauthorisedtodoorcausetobedoneallsuchacts,deedsandthings,settleanyqueries,difficulties,doubtsthatmayarisewithregardtoanytransactionwiththerelatedparty,finalisethetermsandconditionsasmaybeconsiderednecessary,expedientordesirableandexecutesuchagreements,documentsandwritingsandtomakesuchfilingsasmaybenecessaryordesirable,inordertogiveeffecttothisResolutioninthebestinterestoftheCompany.”


“RESOLVED THATpursuant to theprovisionsofSection23,42,62andotherapplicableprovisions, ifany,of theCompaniesAct, 2013 readwithCompanies (ProspectusandAllotmentofSecurities)Rules,2014and theCompanies (ShareCapitalandDebentures) Rules, 2014 and such others rules and regulations made thereunder (including any amendments, statutorymodification(s)and/or re-enactment thereof for the timebeing in force) (the“Act”), theprovisionsof theMemorandumandArticlesofAssociationof theCompanyandanyother rules, regulations,guidelines,notifications,circularsandclarificationsissuedbytheGovernmentofIndia,MinistryofCorporateAffairs,ReserveBankofIndia,SecuritiesandExchangeBoardofIndia(“SEBI”),includingtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015asamendedfromtimetotime(“SEBIListingRegulations”),SEBI(IssueofCapitalandDisclosureRequirements)Regulations,2018asamendedorre-enactedfromtimetotime(“SEBI(ICDR)Regulations,2018”)SecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011 (“SEBITakeoverRegulations”)andsubject tonecessaryapprovals,permissions, sanctionsand consents, if any and asmay be required from any relevant governmental authorities including from BSE Limited andNationalStockExchangeofIndiaLimited(collectivelythe“StockExchanges”)andsubjecttosuchotherapprovals,permissions,sanctionsandconsentsasmaybenecessaryunderallotherstatutes,rules,regulations,guidelines,notifications,circularsandclarificationsasmaybeapplicableandonsuch termsandconditions (includinganyalterations,modifications, corrections,changesandvariations,ifany,thatmaybestipulatedwhilegrantingsuchapprovals,permissions,sanctionsandconsentsasthecasemayberequired)byanyotherregulatoryauthoritieswhichmaybeagreedtoand/oracceptedbytheBoardofDirectorsoftheCompany(hereinafterreferredtoas“Board”whichtermshallbedeemedtoincludeanydulyconstituted/tobeconstitutedCommitteeofDirectorsthereoftoexerciseitspowersincludingpowersconferredunderthisresolution)andsubjecttoanyotheralterations,modifications,conditions,corrections,changesandvariations thatmaybedecidedby theBoard in itsabsolutediscretion,theconsentoftheMembersoftheCompanybeandisherebyaccordedtotheBoardtocreate,offer,issueandallotatanappropriatetime,inoneormoretranchesinaggregateandupto40,00,000(FortyLakhs)EquityWarrants(“EquityWarrants”),eachconvertibleintoorexchangeableforOne(1)equityshareoffacevalueof`5/-each(“theEquityShares”),insuchmannerandatsuchpriceandonsuchtermsandconditionsasmaybedeterminedbytheBoardinduecompliancewiththeSEBI(ICDR)Regulations,2018,providedthattheminimumpriceatwhichtheequitysharesmaybesoissuedshallnotbelessthanthepricearrivedatinaccordancewithprovisionsofChapterVofSEBI(ICDR)Regulations,2018,aggregatingtoanamountnotexceeding` 10,00,00,000(RupeesTenCrores)toMr.NitinDhanjiShah,PromoteroftheCompany(asdefinedinSEBI(ICDR)Regulations,2018) (“ProposedAllottee”)underPromoterCategoryonapreferentialbasis, for cashand in such formandmannerand inaccordancewiththeprovisionsofSEBI(ICDR)Regulations,2018andSEBITakeoverRegulationsorotherapplicablelawsandonsuchtermsandconditionsastheBoardmay,initsabsolutediscretionthinkfitandwithoutrequiringanyfurtherapprovalorconsentfromtheMembers.

RESOLVED FURTHER THATtherelevantdatefordeterminingtheFloorPriceforthepurposeofthePreferentialAllotmentinaccordancewiththeSEBIRegulationsshallbethedatethatis30dayspriortothedateonwhichtheresolutionisdeemedtobepassedi.e.04thAugust,2020.

RESOLVED FURTHER THATwithoutprejudicetothegeneralityoftheabove,theissueofEquityWarrantsshallbesubjecttofollowingterms:

a) TheproposedEquityWarrantsshallbeissuedandallottedbytheCompanytoProposedAllotteewithinaperiodoffifteen(15)daysfromthedateofpassingofthisresolutionprovidedthatwheretheissueandallotmentoftheproposedEquityWarrantsispendingonaccountofpendencyofanyapprovalforsuchissueandallotmentbyanyregulatoryauthorityortheCentralGovernment,theissueandallotmentshallbecompletedwithinaperiodoffifteen(15)daysfromthedatereceiptoflastofsuchapprovals;



b) EachEquityWarrantisconvertibleintoOne(1)EquityShareandtheconversioncanbeexercisedbywarrantholder(s)atanytimeduringtheperiodofeighteen(18)monthsfromthedateofallotmentofEquityWarrants,inoneormoretranches,asthecasemaybeandonsuchothertermsandconditionsasapplicable;

c) TheEquityWarrantsproposedtobeissuedshallbesubjecttoappropriateadjustment,ifduringtheinterimperiod,theCompanymakesanyissueofequitysharesbywayofcapitalisationofprofitsorreserves,upondemerger/realignment,rightsissueorundertakesconsolidation/sub-division/re-classificationofequitysharesorsuchothersimilareventsorcircumstancesrequiringadjustmentsaspermittedunderSEBI(ICDR)Regulationsandallotherapplicableregulationsfromtimetotime;

d) EquityWarrantsubscriptionpriceequivalentto25%oftheissuepricewillbepayableatthetimeofsubscriptionofEquityWarrants,asprescribedbytheSEBI(ICDR)Regulations,whichwouldbeadjustedbytheCompanyandappropriatedagainsttheissuepriceoftheEquityShares.EquityWarrantexercisepriceequivalenttothe75%oftheissuepriceoftheequitysharesshallbepayablebythewarrantholder(s)atthetimeofexercisingconversionofEquityWarrants;

e) Thewarrantholder(s)shallbeentitledtoexercisetheoptionofexercisinganyoralloftheEquityWarrantsinoneormoretranchesbywayofawrittennoticewhichshallbegiventotheCompany,specifyingthenumberofEquityWarrantsproposedtoexercisealongwiththeaggregateamountpayablethereon,priortooratthetimeofconversion.TheCompanyshallaccordingly,withoutanyfurtherapprovalfromtheMembersoftheCompany,issueandallotthecorrespondingnumberofEquitySharesandperformsuchactionsasrequiredtocredittheEquitySharestothedepositoryaccountandenteringthenameofallotteeintherecordsoftheCompanyastheregisteredownerofsuchEquityShares;

f) TheEquitySharestobesoallottedonexerciseofEquityWarrantsshallbeindematerialisedformandshallbesubjecttotheprovisionsoftheMemorandumandArticlesofAssociationoftheCompanyandshallrankpari-passu inallrespectsincludingdividend,withtheexistingequitysharesoftheCompany;

g) In theevent thewarrantholder(s)doesnotexercise theEquityWarrantswithinEighteen (18)months fromthedateofallotmentoftheEquityWarrants,thensuchEquityWarrantsshalllapseandtheamountpaidshallstandforfeitedbytheCompany;

h) TheEquityWarrantsissuedandallottedwillbetransferablewithinthePromoterGroupsubjecttocomplianceofapplicableprovisionsandsubjecttosuchotherapprovalsasmaybenecessaryfromtimetotime;

i) TheEquitySharesarisingfromtheexerciseoftheEquityWarrantswillbelistedonStockExchangeswheretheequitysharesoftheCompanyarelisted,subjecttothereceiptofnecessaryregulatorypermissionsandapprovalsasthecasemaybeandshallinteraliabegovernedbytheregulationsandguidelinesissuedbySEBIoranyotherstatutoryauthority;

j) TheEquityWarrantsandtheEquitySharesbeingallottedpursuanttoexerciseofsuchEquityWarrantsshallbesubjecttoalock-inforsuchperiodasspecifiedunderapplicableprovisionsofSEBI(ICDR)Regulations,2018.

RESOLVED FURTHER THAT the Board be and is hereby authorised to issue and allot such number of Equity Shares of theCompanyasmayberequiredtobeissuedandallotteduponexerciseoftheoptionbythewarrantholder(s).

RESOLVED FURTHER THATforthepurposeofgivingeffecttothisresolution,theBoardbeandisherebyauthorisedonbehalfof theCompanytodoallsuchacts,deeds,mattersandthingsastheBoardmay, in itsabsolutediscretion,deemnecessaryordesirableforsuchpurpose, includingwithout limitationtovary,modifyoralteranyoftherelevanttermsandconditions,includingsizeof thepreferential issue, thenumberofequity shares tobeallotted, finalising the termsofagreement(s)andotherrelateddocument(s),ifany,tobeexecutedincludingamendmentsthereto,provideanyclarificationsrelatedtooffer,issueandallotmentofEquityWarrantsandEquityShares,listingofEquitySharesonStockExchangesandauthorisetopreparation,executionandenteringintoarrangement/agreements,offerletter,letterofallotment,allwritings,instrumentsandsuchotherdocuments (including documents in connection with appointment of agencies, intermediaries and advisors), utilisation ofproceedsofissueandfurthertoauthoriseallsuchpersonsasmaybenecessary,inconnectiontherewithandincidentaltheretoastheBoardinitsabsolutediscretiondeemfit,withoutbeingrequiredtoseekanyfurtherconsentorapprovaloftheMembersorotherwisetotheendandintentthattheyshallbedeemedtohavegiventheirapprovaltheretoexpresslybytheauthorityofthisresolutionandthedecisionoftheBoardshallbefinalandconclusive.



RESOLVED FURTHER THATtheBoardbeandisherebyauthorisedtodelegatealloranyofthepowershereinconferredtoanyCommitteeoftheBoardoranyDirector(s)orOfficer(s)orauthorisedsignatory/iesoftheCompanyandgenerallytodoallsuchacts,deedsandthingsasmayberequiredinconnectionwiththeaforesaidresolutionincludingexecutionofanydocumentsonbehalfoftheCompanyandtorepresenttheCompanybeforeanygovernmentalorregulatoryauthoritiesandtoappoint/engageanyregistrar,depositories,professionals,advisors,bankers,consultantsandadvocatesandtofinalisetheirfees/chargesandalsotoenterintoandexecuteallsucharrangements,agreements,memoranda,documentsetc.withsuchagenciesandfurtherauthorisedtomakerequisitefilingwithconcernedregulatory/governmentauthorities/depository(ies),StockExchangesand/oranyotherregulatoryauthoritiestogiveeffecttothisresolutionandfurthertotakeallothersstepswhichmaybeincidental,consequential,relevantorancillaryinthisconnection.

By Order of the Board of DirectorsFor Allied Digital Services Limited

Nitin Dhanji ShahChairman and Managing Director

Place: Mumbai DIN: 00189903Date: August 04, 2020

Registered Office:PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockNo.III,BackBayReclamation,NarimanPoint,Mumbai400021.CIN: L72200MH1995PLC085488Website: www.allieddigital.netEmail:[email protected]: +912266816400Fax: +912222822030 NOTES:

1. General instructions for accessing and participating in the 26th AGM through VC/OAVM Facility and voting through electronic means including remote e-Voting:

1. InviewoftheCOVID-19pandemic,theMinistryofCorporateAffairs(‘MCA’)hasvideitsGeneralCircularNo.20/2020datedMay5,2020 in relation to ‘Clarificationonholdingofannualgeneralmeeting (‘AGM’) throughvideoconferencing (‘VC’)orotheraudiovisualmeans(‘OAVM’)readwithGeneralCircularNo.14/2020datedApril8,2020andGeneralCircularNo.17/2020datedApril13,2020inrelationto‘ClarificationonpassingofordinaryandspecialresolutionsbycompaniesundertheCompaniesAct,2013andtherulesmadethereunderonaccountofthethreatposedbyCovid-19’(collectivelyreferredtoas ‘MCACirculars’) and theSecuritiesandExchangeBoardof India (‘SEBI’) vide its circularNo.SEBI/HO/CFD/CMD1/CIR/P/2020/79datedMay12,2020inrelationto‘AdditionalrelaxationinrelationtocompliancewithcertainprovisionsofSEBI(ListingObligationsandDisclosureRequirements)Regulations2015–Covid-19pandemic’(‘SEBICircular’)permittedtheholdingoftheAnnualGeneralMeeting(‘AGM’/‘theMeeting’)throughVC/OAVM,withoutthephysicalpresenceofthemembersatacommonvenue.

In compliancewith the provisions of the Companies Act, 2013 (the ‘Act’), the SEBI (ListingObligations and DisclosureRequirements)Regulations,2015(‘SEBIListingRegulations’)andMCACirculars,the26thAGMoftheCompanyisbeingheldthroughVC/OAVMonThursday,September03,2020at2.00p.m.(IST).

2. Aspertheprovisionsofclause3.A.II.oftheGeneralCircularNo.20/2020datedMay5,2020,issuedbytheMCA,themattersofSpecialBusinessasappearingatitemnos.4to11oftheaccompanyingNotice,areconsideredtobeunavoidablebytheBoardandhence,formpartofthisNotice.

3. AStatementpursuanttoSection102(1)oftheActrelatingtotheSpecialBusinesstobetransactedattheAGMisannexedhereto.



4. TheaforesaidMCAGeneralCirculardatedMay5,2020readwithMCAGeneralCirculardatedApril13,2020andSEBICircularNo. SEBI/HO/CFD/CMD1/CIR/P/2020/79datedMay12, 2020havegranted relaxations to the companies,with respect toprintinganddispatchingphysicalcopiesoftheAnnualReportsandNoticestomembers.Accordingly,theCompanywillonlybesendingsoftcopyoftheAnnualReport2019-20andNoticeconvening26thAGMviae-mail,tothememberswhosee-mailidsareregisteredwiththeCompanyortheRegistrarandShareTransferAgentorDepositoryParticipant/Depositoryonorbefore21daysofthescheduledAnnualGeneralMeetingoftheCompany.

5. InlinewiththeMinistryofCorporateAffairs(MCA)CircularNo.17/2020datedApril13,2020,theNoticecallingtheAGMhasbeenuploadedonthewebsiteoftheCompanyatwww.allieddigital.net.TheNoticecanalsobeaccessedfromthewebsitesof theStockExchanges i.e.BSELimitedandNationalStockExchangeof IndiaLimitedatwww.bseindia.comandwww.nseindia.comrespectivelyandtheAGMNoticeisalsoavailableonthewebsiteofNSDLi.e.www.evoting.nsdl.com.

6. PursuanttotheCircularNo.14/2020datedApril08,2020,issuedbytheMinistryofCorporateAffairs,thefacilitytoappointproxytoattendandcastvoteforthemembersisnotavailableforthisAGM.However,theBodyCorporatesareentitledtoappointauthorisedrepresentativestoattendtheAGMthroughVC/OAVMandparticipatethereatandcasttheirvotesthroughe-voting.Accordingly,ProxyForm,AttendanceSlipandRouteofMapofAGMisnotannexedtotheNotice/AnnualReportoftheCompany.

7. TheMemberscanjointheAGMintheVC/OAVMmode15minutesbeforeandafterthescheduledtimeofthecommencementoftheMeetingbyfollowingtheprocedurementionedintheNotice.

8. Theattendanceof theMembersattending theAGMthroughVC/OAVMwillbecounted for thepurposeof reckoning thequorumunderSection103oftheCompaniesAct,2013.

9. PursuanttotheprovisionsofSection108oftheCompaniesAct,2013readwithRule20oftheCompanies(ManagementandAdministration)Rules,2014(asamended)andRegulation44ofSEBI(ListingObligations&DisclosureRequirements)Regulations2015(asamended),andtheCircularsissuedbytheMinistryofCorporateAffairsdatedApril08,2020,April13,2020andMay05,2020theCompanyisprovidingfacilityofremotee-votingtoitsMembersinrespectofthebusinesstobetransactedattheAGM.Forthispurpose,theCompanyhasenteredintoanagreementwithNationalSecuritiesDepositoryLimited(NSDL)forfacilitatingvotingthroughelectronicmeans,astheauthorizedagency.Thefacilityofcastingvotesbyamemberusingremotee-votingsystemaswellase-votingonthedateoftheAGMwillbeprovidedbyNSDL.

10. AGMhasbeenconvenedthroughVC/OAVMincompliancewithapplicableprovisionsoftheCompaniesAct,2013readwithMCACircularNo.14/2020datedApril08,2020andMCACircularNo.17/2020datedApril13,2020andMCACircularNo.20/2020datedMay05,2020.

11. IntermsofSection152oftheCompaniesAct,2013,Mr.NehalNitinShah(DIN:02766841),ExecutiveDirectoroftheCompany,retiresby rotationat theAGMandbeingeligibleoffershimself for re-appointment.Also, in termsofSection149of theCompaniesAct,2013,itisproposedtoappointMr.MilindMadhavKamat(DIN:01772084)asIndependentDirectoroftheCompanyforaperiodof5yearscommencingfromJune11,2020uptoJune10,2025.Detailsasrequiredinsub-regulation(3)ofRegulation36oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(ListingRegulations)andSecretarialStandardsonGeneralMeetings(SS-2)inrespectoftheDirectorsseekingappointment/re-appointmentattheAGM,formsintegralpartofthenotice.

12. PursuanttoSection91oftheCompaniesAct,2013,theRegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfromSaturday,August29,2020toThursday,September03,2020(bothdaysinclusive)forAnnualGeneralMeetinganddeterminingthenamesofmemberseligiblefordividendonequitysharesfortheFinancialYear2019-20.

13. Dividend,ifapprovedbytheMembersattheensuingAGM,willbepaidonorafterSeptember09,2020,tothose:

a) MemberswhosenameappearsintheRegisterofMembersoftheCompanyaftergivingeffecttovalidsharetransfersinphysicalformlodgedwiththeCompanyoritsRegistrarandShareTransferAgents(RTA)onorbeforeAugust27,2020;and

14. BeneficialOwnerswhosenameappearsinthelistofBeneficialOwnersPositionlistasontheclosinghoursofAugust27,2020furnishedbytheNationalSecuritiesDepositoryLimited(NSDL)andtheCentralDepositoryServices(India)Limited(CDSL)forthispurpose



15. Incaseofjointholders,thememberwhosenameappearsasthefirstholderintheorderofnamesaspertheRegisterofMembersoftheCompanywillbeentitledtovoteattheAGM.

16. ElectroniccopiesofallthedocumentsreferredtointheaccompanyingNoticeoftheAGMandtheExplanatoryStatementshallbemadeavailableforinspection.

17. SEBIhasmandatedsubmissionofPANbyeveryparticipantinthesecuritiesmarket.Membersholdingsharesinelectronicformare, therefore, requested to submit their PANdetails to their depository participants.Members holding shares inphysicalformarerequestedtosubmittheirPANdetailstotheCompany’sRTA.

18. AsperRegulation40oftheSEBIListingRegulations,asamended,transferofsecuritieswouldbecarriedoutindematerialisedformonlywitheffectfromApril1,2019,exceptincaseoftransmissionortranspositionofsecurities.However,memberscancontinuetoholdsharesinphysicalform.Inviewofthesameandtoeliminateallrisksassociatedwithphysicalsharesandforeaseofportfoliomanagement,membersholdingsharesinphysicalformarerequestedtoconsiderconvertingtheirholdingstodematerializedform.MemberscancontacttheCompany’sRTAforassistanceinthisregard.

19. Pursuant to theprovisionsof InvestorEducationandProtectionFund (Uploadingof Information regardingunpaidandunclaimedamountslyingwithCompanies)Rules,2012,theCompanyhasplacedonitswebsitei.e.www.allieddigital.net.Membersarerequestedtonotethat,dividendsifnotencashedforaconsecutiveperiodof7yearsfromthedateoftransfertoUnpaidDividendAccountoftheCompany,areliabletobetransferredtotheInvestorEducationandProtectionFund(‘IEPF’).ThesharesinrespectofsuchunclaimeddividendsarealsoliabletobetransferredtothedemataccountoftheIEPFAuthority.Inviewofthis,membersarerequestedtoclaimtheirdividendsfromtheCompany,withinthestipulatedtimeline.Themembers,whoseunclaimeddividends/shareshavebeentransferredtoIEPF,mayclaimthesamebymakinganapplicationtotheIEPFAuthorityinFormNo.IEPF-5availableonwww.iepf.gov.in.

20. Membersholdingsharesinelectronic(dematerialised)formareadvisedtosendtherequest/(s)forchangepertainingtotheir bankdetails,National Electronic Service (NECS), Electronic Clearing Service (ECS),Mandates,Nomination, Powerof Attorney,Changeof Address,ChangeofName, E-mail Address,ContactNumbers etc. to their respectiveDepositoryParticipant(DP).ChangesintimatedtotheDPwillthenbeautomaticallyreflectedintheCompany’srecordswhichwillhelptheCompanyanditsTransferAgentstoprovideefficientandbetterservices.

21. Topreventfraudulenttransactions,membersareadvisedtoexerciseduediligenceandnotifytheCompanyofanychangeinaddressordemiseofanymemberassoonaspossible.Membersarealsoadvisednottoleavetheirdemataccount(s)dormant for long.Periodic statementof holdings shouldbeobtained from the concernedDepositoryParticipants andholdingsshouldbeverified.

22. Tosupportthe‘GreenInitiative’,memberswhohavenotyetregisteredtheiremailaddressesarerequestedtoregisterthesamewiththeirDPsincasethesharesareheldbytheminelectronicformandwiththeCompany’sRTAincasethesharesareheldbytheminphysicalform.

23. The Company has made special arrangement with the RTA for registration of e-mail addresses in terms of the MCACircularsformemberswhowishtoreceivetheAnnualReportalongwiththeAGMNoticeelectronicallyandtocastthevoteelectronically.Eligiblememberswhosee-mailaddressesarenotregisteredwiththeCompany/DPsarerequiredtoprovidethesametoRTAonorbefore5:00p.m.ISTonMonday,August25,2020pursuanttowhich,anymembermayreceiveonthee-mailaddressprovidedbythemembertheNoticeofthisAGMalongwiththeAnnualReport2019-20andtheprocedureforremotee-votingalongwiththeloginIDandpasswordforremotee-voting.

a) Procedure for registration of Email Address with RTA is as under:-

i. ForTemporaryRegistrationforDematshareholders:

TheMembersoftheCompanyholdingEquitySharesoftheCompanyinDematFormandwhohavenotregisteredtheire-mailaddressesmaytemporarilygettheire-mailaddressesregisteredwithLinkIntimeIndiaPvt.Ltd.byclickingthelink:https://linkintime.co.in/emailreg/email_register.htmlontheirwebsitei.e.www.linkintime.co.inattheInvestorServicestabbychoosingthee-mailregistrationheadingandfollowtheregistrationprocessasguidedtherein.ThemembersarerequestedtoprovidedetailssuchasName,DPID,ClientID/PAN,mobilenumberande-mail id. In caseof anyquery, amembermay sendane-mail toRTA i.e. [email protected]



ii. ForPermanentRegistrationforDematshareholders:

Itisclarifiedthatforpermanentregistrationofe-mailaddress,theMembersarerequestedtoregistertheire-mailaddress,inrespectofdematholdingswiththerespectiveDepositoryParticipant(DP)byfollowingtheprocedureprescribedbytheDepositoryParticipant.

iii. Registrationofemailidforshareholdersholdingphysicalshares:

The Members of the Company holding Equity Shares of the Company in physical Form and who havenot registered their e-mail addresses may get their e-mail addresses registered with Link Intime IndiaPvt. Ltd., by clicking the link: https://linkintime.co.in/emailreg/email_register.html on their website i.e.

www.linkintime.co.in at the Investor Services tab by choosing the E mail / Bank Registration heading andfollowtheregistrationprocessasguidedtherein.ThemembersarerequestedtoprovidedetailssuchasName,Folio Number, Certificate number, PAN, mobile number and e mail id and also upload the image of sharecertificateinPDForJPEGformat.(upto1MB).Incaseofanyquery,amembermaysendane-mailtoRTAi.e.

[email protected]

On submission of the shareholders details an OTP will be received by the shareholder which needs to be entered in the link for verification

b) Procedure for registration of Bank Details with RTA is as under:-

The Members of the Company holding Equity Shares of the Company in physical Form and who have notregistered their bank details can get the same registered with Link Intime India Pvt. Ltd., by clicking the

link:https://linkintime.co.in/emailreg/email_register.html in theirwebsite i.e.www.linkintime.co.inat the InvestorServicestabbychoosingtheEmail/BankRegistrationheadingandfollowtheregistrationprocessasguidedtherein.ThemembersarerequestedtoprovidedetailssuchasName,FolioNumber,Certificatenumber ,PAN,e-mail ID idalongwiththehecopyofthechequeleafwiththefirstnamedshareholdersnameimprintedinthefaceofthechequeleafcontainingbanknameandbranch,typeofaccount,bankaccountnumber,MICRdetailsandIFSCcodeinPDForJPEGformat.Incaseofanyquery,[email protected]

On submission of the shareholders details an OTP will be received by the shareholder which needs to be entered in the link for verification.

c) Communication in respect of deduction of tax at source on Final Dividend payout

TheaforementionedformsfortaxexemptioncanbedownloadedfromLinkIntime’swebsite.Theurlforthesameishttps://www.linkintime.co.in/client-downloads.html-OnthispageselecttheGeneraltab.Alltheformsareavailableinunderthehead:“Form15G/15H/10F”

The aforementioned documents (duly completed and signed) are required to be uploaded on the url - https://linkintime.co.in/formsreg/submission-of-form-15g-15h.html

Thereafter,theusershallbepromptedtoselect/sharethefollowinginformationtoregistertheirrequest.

-Selectthecompany(Dropdown) -Folio/DP-ClientID -PAN -Financialyear(Dropdown) -Formselection -Documentattachment–1(PAN) -Documentattachment–2(Forms) -Documentattachment–3(Anyothersupportingdocument)

Pleasenotethattheuploadofdocuments(dulycompletedandsigned)onthewebsiteofLinkIntimeIndiaPvt.Ltd.shouldbedoneonorbeforeRecorddateforthedividendinordertoenabletheCompanytodetermineanddeduct



appropriateTDS/WithholdingTax. Incompleteand/orunsigned formsanddeclarationswillnotbeconsideredbytheCompany.Nocommunicationonthetaxdetermination/deductionshallbeconsideredafterRecorddateforthedividend,6:00PM.TheCompanywillarrangetoemailasoftcopyofTDScertificatetoyouatyourregisteredemailIDpostcompletionofactivities.

Shareholdersmaynotethatincasethetaxonsaiddividendisdeductedatahigherrateinabsenceofreceiptoftheaforementioneddetails/documentsfromyou,optionisavailabletoyoutofilethereturnofincomeasperIncomeTaxAct,1961andclaimanappropriaterefund,ifeligible.

E-voting:

IncompliancewiththeprovisionsofSection108oftheActreadwithRule20oftheCompanies(ManagementandAdministration)Rules, 2014 (as amended), Regulation 44 of the SEBI ListingRegulations (as amended),MCACirculars and the SEBI Circular, theCompanyisprovidingitsmembersthefacilitytoexercisetheirrighttovoteonresolutionsproposedtobeconsideredattheAGMbyelectronicmeans(byusingtheelectronicvotingsystemprovidedbyNSDL)eitherbyremotee-votingpriortotheAGMorbyremotee-votingduringtheAGM.InstructionsformembersforattendingtheAGMthroughVC/OAVMareexplainedbelow.

Thememberscanoptforonlyonemodeofremotee-votingi.e.eitherpriortotheAGMorduringtheAGM.ThememberspresentattheMeetingthroughVC/OAVMwhohavenotalreadycasttheirvotebyremotee-votingpriortotheMeetingshallbeabletoexercisetheirrighttocasttheirvotebyremotee-votingduringtheMeeting.Thememberswhohavecasttheirvotebyremotee-votingpriortotheAGMareeligibletoattendtheMeetingbutshallnotbeentitledtocasttheirvoteagain.

Theremotee-votingperiodbeginsonAugust 31, 2020 at 09:00 A.M.andendsonSeptember 02, 2020 at 05:00 P.M.Theremotee-votingmoduleshallbedisabledbyNSDLforvotingthereafter.Oncethevoteonaresolutioniscastbythemember,themembershallnotbeallowedtochangeitsubsequently.

Aperson,whosenameisrecordedinRegisterofMembersorintheRegisterofBeneficialOwnersmaintainedbythedepositoriesasonFriday, August 28, 2020 (‘thecut-offdate’),shallbeentitledtovoteinrespectofthesharesheld,byavailingthefacilityofremotee-votingpriortotheAGMorremotee-votingduringtheAGM.

Mr.HimashuS.Kamdar, (ICSIMembershipNo. 5171)ofM/s.Rathi&Associates,CompanySecretaries inWhole-timePracticehasbeenappointedastheScrutinizertoscrutinizetheremotee-votingprocessande-votingprocessprovidedattheAGMinafairandtransparentmanner.

The way to vote electronically on NSDL e-voting system consists of ‘Two Steps’ which are mentioned below:

Step 1 : Log-in to NSDL e-voting system

i. Visitthee-votingwebsiteofNSDL.OpenwebbrowserbytypingtheURL:https://www.evoting.nsdl.com/eitheronaPersonalComputeroronamobile.

ii. Oncethehomepageofe-votingsystemislaunched,clickontheicon‘Login’whichisavailableunder‘Shareholders’section.

iii. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownonthescreen.

Alternatively,ifyouareregisteredforNSDLeservicesi.e.IDeAS,youcanlog-inathttps://eservices.nsdl.com/withyourexistingIDeASlogin.OnceyoulogintoNSDLeservicesafterusingyourlogincredentials,clickone-votingandyoucanproceedtostep2i.e.Castyourvoteelectronically.

iv. YourUserIDdetailswillbeasperdetailsgivenbelow:

a) FormemberswhoholdsharesindemataccountwithNSDL:8CharacterDPIDfollowedby8DigitClientID(ForexampleifyourDPIDisIN300***andClientIDis12******thenyouruserIDisIN300***12******).

b) FormemberswhoholdsharesindemataccountwithCDSL:16DigitBeneficiaryID(ForexampleifyourBeneficiaryIDis12**************thenyouruserIDis12**************).



c) FormembersholdingsharesinPhysicalForm:

EVENNumberfollowedbyFolioNumberregisteredwiththeCompany(Forexample,formembersholdingOrdinaryShares,iffolionumberis001***andEVENis113072thenuserIDis113072001***.

v. Yourpassworddetailsaregivenbelow:

a) Ifyouarealreadyregisteredfore-voting,thenyoucanuseyourexistingpasswordtologinandcastyourvote.

b) If you are using NSDL e-voting system for the first time, you will need to retrieve the ‘initial password’ which wascommunicatedtoyou.Onceyouretrieveyour‘initialpassword’,youneedtoenterthe‘initialpassword’andthesystemwillforceyoutochangeyourpassword.

c) Howtoretrieveyour‘initialpassword’?

IfyouremailIDisregisteredinyourdemataccountorwiththeCompany,your‘initialpassword’iscommunicatedtoyouonyouremailID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachmenti.e.a.pdffile.Openthe.pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsofclientIDforCDSLaccountorfolionumberforsharesheldinphysicalform.The.pdffilecontainsyour‘UserID’andyour‘initialpassword.

vi. Ifyouareunabletoretrieveorhavenotreceivedthe‘initialpassword’orhaveforgottenyourpassword:

a) Clickon‘ForgotUserDetails/Password?’optionavailableonwww.evoting.nsdl.com(IfyouareholdingsharesinyourdemataccountwithNSDLorCDSL).

b) Clickon‘PhysicalUserResetPassword?’optionavailableonwww.evoting.nsdl.com(Ifyouareholdingsharesinphysicalmode).

c) Ifyouarestillunabletogetthepasswordbyaforesaidtwooptions,youcansendarequestatevoting@nsdl.co.inmentioningyourdemataccountnumber/folionumber,yourPAN,yournameandyourregisteredaddress.

d) MemberscanalsousetheOTP(OneTimePassword)basedloginforcastingthevotes

vii. Afterenteringyourpassword,tickon‘IherebyagreetoallTermsandConditions’.

viii. Clickon‘Login’button.

ix. Afterthe‘Login’button,Homepageofe-votingwillopen

Step 2 : Cast your vote electronically on NSDL e-voting system

i. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe-voting.Clickone-voting.

ii. ClickonActiveVotingCycles.Youwillbeabletoseeallthecompanies‘EVEN’inwhichyouareholdingsharesandwhosevotingcycleisinactivestatus.

iii. Select‘EVEN’oftheCompanyforcastingyourvote:

- EVENforOrdinarySharesis113072. - EVENfor‘A’OrdinarySharesis113073.

iv. Nowyouarereadyfore-votingastheVotingpageopens.

v. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofsharesforwhichyouwishtocastyourvoteandclickon‘Submit’andalso‘Confirm’whenprompted.



vi. Uponconfirmation,themessage‘Votecastsuccessfully’willbedisplayed.

vii. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmationpage.

viii. Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

General Guidelines for shareholders

- Institutionalshareholders(i.e.otherthanindividuals,HUF,NRIetc.)arerequiredtosendscannedcopy(PDF/JPGFormat)oftherelevantBoardResolution/Authorityletteretc.withattestedspecimensignatureofthedulyauthorizedsignatory(ies)whoareauthorizedtovote,totheScrutinizerbye-mailtoassociates.rathi8@[email protected].

- It isstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential. Login to thee-votingwebsitewillbedisabledupon fiveunsuccessfulattempts tokey in thecorrectpassword.Insuchanevent,youwillneedtogothroughthe“ForgotUserDetails/Password?”or“PhysicalUserResetPassword?”optionavailableonwww.evoting.nsdl.comtoresetthepassword.

- Incaseofanyqueries, youmay refer theFrequentlyAskedQuestions (FAQs) forShareholdersande-votingusermanual forShareholdersavailableatthedownloadsectionofwww.evoting.nsdl.comorcallontollfreeno.:1800-222-990orsendarequesttoMr.AmitVishal,SeniorManager-NSDLorMs.PallaviMhatre,[email protected].

Instructions for E-Voting during AGM

- Theprocedurefore-votingduringtheAGMissameastheinstructionsmentionedaboveforremotee-votingsincetheMeetingisbeingheldthroughVC/OAVM.

- TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvoting,byuseofe-votingsystemforallthosememberswhowillbepresentintheAGMthroughVC/OAVMfacilitybuthavenotcasttheirvoteontheresolutionsbyavailingtheremotee-votingfacilityandareotherwisenotbarredfromdoingso.Thee-votingmoduleduringtheAGMshallbedisabledbyNSDLforvoting15minutesaftertheconclusionoftheMeeting.

Instructions for Members for attending the AGM through VC/OAVM

- MemberwillbeprovidedwithafacilitytoattendtheEGM/AGMthroughVC/OAVMthroughtheNSDLe-Votingsystem.Membersmay access the same at https://www.evoting.nsdl.com under shareholders/members login by using the remote e-votingcredentials.ThelinkforVC/OAVMwillbeavailableinshareholder/membersloginwheretheEVENofCompanywillbedisplayed.PleasenotethatthememberswhodonothavetheUserIDandPasswordfore-VotingorhaveforgottentheUserIDandPasswordmayretrievethesamebyfollowingtheremotee-Votinginstructionsmentionedinthenoticetoavoidlastminuterush.FurthermemberscanalsousetheOTPbasedloginforloggingintothee-VotingsystemofNSDL.

- MembersareencouragedtojointheMeetingthroughLaptopsforbetterexperience.

- FurtherMemberswillbe required toallowCameraanduse Internetwithagoodspeed toavoidanydisturbanceduring themeeting.

- PleasenotethatParticipantsConnectingfromMobileDevicesorTabletsorthroughLaptopconnectingviaMobileHotspotmayexperienceAudio/VideolossduetoFluctuationintheirrespectivenetwork.ItisthereforerecommendedtouseStableWi-FiorLANConnectiontomitigateanykindofaforesaidglitches.

- MembersareencouragedtosubmittheirquestionsinadvancewithregardtothefinancialstatementsoranyothermattertobeplacedattheAGM,fromtheirregisteredemailaddress,mentioningtheirname,DPIDandClientIDnumber/folionumberandmobilenumber,toreachtheCompany’[email protected].(IST)onSaturday,August22,2020.QueriesthatremainunansweredattheAGMwillbeappropriatelyrespondedbytheCompanyattheearliestposttheconclusionoftheAGM.



- Memberswhowouldliketoexpresstheirviews/askquestionsasaspeakerattheMeetingmaypreregisterthemselvesbysendingarequestfromtheirregisteredemailaddressmentioningtheirnames,DPIDandClientID/folionumber,[email protected],August25,2020(9:00a.m.IST)andFriday,August28,2020(5:00p.m.IST).Onlythosememberswhohavepre-registeredthemselvesasaspeakerwillbeallowedtoexpresstheirviews/askquestionsduringtheAGM.TheCompanyreservestherighttorestrictthenumberofspeakersdependingontheavailabilityoftimefortheAGM.

- MemberswhoneedassistancebeforeorduringtheAGMmaycontactNSDLonevoting@nsdl.co.inor1800-222-990orcontactMr.AmitVishal,[email protected],Telno:022-24994360;orMs.PallaviMhatre,[email protected],Telno:022-24994545.




Registered Office:PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockNo.III,BackBayReclamation,NarimanPoint,Mumbai400021.CIN: L72200MH1995PLC085488Website: www.allieddigital.netEmail:[email protected]: +912266816400Fax: +912222822030

EXPLANATORY STATEMENTS PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

ITEM NO. 4:

UponrecommendationoftheNominationandRemunerationCommittee,theBoardofDirectorsoftheCompanyattheirmeetingheldonAugust04,2020approvedtherevisioninremunerationofMr.NitinDhanjiShahasChairmanandManagingDirectoroftheCompanyforthefinancialyear2020-21i.e.from1stApril,2020to31stMarch2021,subjecttotheapprovaloftheshareholdersatthisAnnualGeneralMeeting.

MaintermsofrevisionofremunerationofMr.NitinDhanjiShah,ChairmanandManagingDirector:

a) Revision of Salary up to ` 2,00,00,000 as approved by the Board for the financial year 2020-21 i.e. from 1st April, 2020 to31stMarch2021.

b) OthertermsandconditionsasapprovedbetweentheCompanyandMr.NitinDhanjiShah,ChairmanandManagingDirectorwouldremainthesameexceptrevisioninremunerationcomponentslinkedwithbasicsalary.

TheBoardofDirectorsofyourCompanyrecommendstheresolutioninrelationtorevisionofremunerationofMr.NitinDhanjiShah,ChairmanandManagingDirectorfortheapprovalbytheshareholdersoftheCompany.

DisclosurerequiredunderScheduleVoftheCompaniesAct,2013issetoutasthe“Annexure-A” tothisNotice.

ExceptMr.NitinDhanjiShah,ChairmanandManagingDirector,Mr.PrakashDhanjiShah,Whole-timeDirector,Mr.NehalNitinShah,Directorand their relatives,noneof theDirectorsorKeyManagerialPersonnelof theCompanyor their relatives is concernedorinterested,financiallyorotherwiseinthisResolutionexcepttotheextentoftheirshareholding.



ITEM NO. 5

UponrecommendationoftheNominationandRemunerationCommittee,theBoardofDirectorsoftheCompanyinitsmeetingheldonAugust04,2020approvedtherevisioninremunerationofMr.PrakashDhanjiShahasWhole-timeDirectoroftheCompanyforthefinancialyear2020-21i.e.from1stApril,2020to31stMarch2021,subjecttotheapprovaloftheshareholdersatthisAnnualGeneralMeeting.

MaintermsofrevisionofremunerationofMr.PrakashDhanjiShah,Whole-timeDirector:

a) RevisionofSalaryupto`1,00,00,000asapprovedbytheBoardforthefinancialyear2020-21i.e.from1stApril,2020to31stMarch2021.

b) OthertermsandconditionsasapprovedbetweentheCompanyandMr.PrakashDhanjiShah,Whole-timeDirectorwouldremainthesame,exceptrevisioninremunerationcomponentslinkedwithbasicsalary.

TheBoardofDirectorsofyourCompanyrecommendstheresolutioninrelationtoincreaseinremunerationofMr.PrakashDhanjiShah,Whole-timeDirectorfortheapprovalbytheshareholdersoftheCompany.

DisclosurerequiredunderScheduleVoftheCompaniesAct,2013issetoutasthe“Annexure-A”tothisNotice.

ExceptMr.PrakashDhanjiShah,Whole-timeDirector,Mr.NitinDhanjiShah,ChairmanandManagingDirector,Mr.NehalNitinShah,Director,and their relativesnoneof theDirectorsorKeyManagerialPersonnelof theCompanyor their relatives is concernedorinterested,financiallyorotherwiseinthisResolutionexcepttotheextentoftheirshareholding.

ITEM NO. 6

TheBoardofDirectorsoftheCompanyhadappointedMr.MilindMadhavKamat(DIN:01772084)asanAdditionalDirectordesignatedas an IndependentDirectorof theCompanywith effect fromJune11, 2020. In accordancewith theprovisionsof Section161ofCompaniesAct,2013,Mr.MilindMadhavKamatshallholdofficeuptothedateoftheforthcomingAnnualGeneralMeetingandiseligibletobeappointedasanIndependentDirectorforatermuptofiveyears.TheCompanyhasreceivednoticeunderSection160oftheCompaniesAct,2013fromMr.MilindMadhavKamatsignifyinghiscandidatureasanIndependentDirectoroftheCompany.

AbriefprofileofMr.MilindMadhavKamat, includingnatureofhisexpertise isprovided in thisAnnualReport.TheCompanyhasreceivedadeclarationofindependencefromMr.MilindMadhavKamat.IntheopinionoftheBoard,Mr.MilindMadhavKamat,fulfilstheconditionsspecified in theCompaniesAct,2013andtheListingRegulations, forappointmentas IndependentDirectorof theCompany. AcopyofthedraftLetterofAppointmentfor IndependentDirectors,settingouttermsandconditionsofappointmentofIndependentDirectorsisavailableforinspectionattheRegisteredOfficeoftheCompanyduringbusinesshoursonanyworkingdayandisalsoavailableonthewebsiteoftheCompany:www.allieddigital.net.

NoneoftheDirectorsorKeyManagerialPersonnelandtheirrelatives,exceptMr.MilindMadhavKamat.areconcernedor interested(financiallyorotherwise) in thisResolution.TheBoardcommends theOrdinaryResolution setoutat Itemno.6 forapprovalof theMembers.

ITEM NO. 7 and 8

StockOptionsrepresentarewardsystembasedonperformance.Theyhelpcompaniesattract,retainandmotivatethebestavailabletalent.StockOptionsalsoprovideacompanywithanopportunitytooptimiseitspersonnelcosts.Thisalsoprovidesanopportunitytoemployeestoparticipateinthegrowthofthecompany,besidescreatinglongtermwealthintheirhands.

Further,asthebusinessenvironmentisbecomingincreasinglycompetitive,itisimportanttoattractandretainqualified,talentedandcompetentpersonnelintheCompany.YourCompanybelievesinrewardingitsEmployeesincludingemployeesoftheHoldingCompanyoritsSubsidiaryCompany(ies),ifany,fortheircontinuoushardwork,dedicationandsupport,whichhasledtheCompanyanditsHoldingCompanyoritsSubsidiaryCompany(ies)onthegrowthpath.

Keepingin linewiththeabove,“ADSL-EmployeesStockOptionPlan2020”(‘theScheme’)hasbeenformulatedbytheCompanyandtobe implementedbyNomination&RemunerationCommitteeconstitutedunderSection178of theCompaniesAct,2013 in



accordancewith therequirementsofSecuritiesandExchangeBoardOf India (ShareBasedEmployeeBenefits)Regulations,2014(“SEBISBEBRegulations”)issuedbySEBIandotherapplicablelaws.TheSchemehasbeenapprovedbytheBoardofDirectorsattheirMeetingheldonAugust04,2020,subjecttotheapprovalofthemembers.

The Scheme will be operated and administered under the superintendence of the Company’s Nomination and RemunerationCommittee,whichisaCommitteeoftheBoardofDirectors,themajorityofwhoseMembersareIndependentDirectors.TheNominationandRemunerationCommitteewillformulatethedetailedtermsandconditionsoftheSchemeincluding:

• NumberofoptionstobegrantedtoanyEmployee,andintheaggregate;• Termsonwhichtheoptionswillvest;• TheconditionsunderwhichoptionsvestedinEmployeesmaylapseincaseofterminationofEmployeesformisconduct;• TheexerciseperiodwithinwhichanEmployeeshouldexercise theoptions,and lapsingofoptionson failure toexercise the

optionswithin theexerciseperiodanddeterminationofexercisepricewhichmaybedifferent fordifferent class/ classesofEmployeesfallinginthesametrancheofgrantofOptionsissuedunderESOP-2020;

• ThespecifiedtimeperiodwithinwhichtheEmployeeshallexercisethevestedoptionsintheeventofterminationorresignationoftheEmployee;

• TherightofanEmployeetoexercisealltheoptionsvestedinhimatonetimeoratvariouspointsoftimewithintheexerciseperiod;

• Theprocedureformakingafairandreasonableadjustmenttothenumberofoptionsandtotheexercisepriceincaseofrightsissues,bonusissuesandothercorporateactions;

• Thegrant,vestingandexerciseofoptionsincaseofEmployeeswhoareonlongleave;and• Anyotherrelatedorincidentalmatters.

MajordetailsoftheSchemeareasgivenbelow:-

a) Brief Description of the Scheme is given as under:

“ADSL-EmployeesStockOptionPlan2020”(‘theScheme’)hasbeenformulatedbytheCompanyandtobeimplementedbyNomination&RemunerationCommittee constituted under Section 178 of the Companies Act, 2013 in accordancewith therequirements of Securities and Exchange Board Of India (Share Based Employee Benefits) Regulations, 2014 (“SEBI SBEBRegulations”) issuedby SEBI andother applicable laws. The Schemehasbeen approvedby theBoardofDirectors at theirMeetingheldonAugust04,2020,subjecttotheapprovalofthemembersoftheCompany.

b) The total number of options to be granted:

The totalnumberofoptions thatmay, in theaggregate,be issuedwouldbesuchnumberofoptionswhichshallentitle theoptionholderstoacquireinoneormoretranchesupto40,00,000(FortyLakhs)equitysharesof 5/-each(orsuchotheradjustedfigureforanybonus,stocksplitsorconsolidationsorotherre-organisationofthecapitalstructureoftheCompanyasmaybeapplicablefromtimetotime).

SEBISBEBRegulationsrequirethatincaseofanycorporateaction(s)suchasrightsissues,bonusissues,mergerandsaleordivision,andothers,afairandreasonableadjustmentneedstobemadetotheOptionsgranted.Accordingly,ifanyadditionalEquitySharesareissuedbytheCompanytotheOptiongranteesformakingsuchfairandreasonableadjustment,theaboveceilingSharesshallbedeemedtobeincreasedtotheextentofsuchadditionalequitysharesissued.

Anemployeemaysurrenderhis/hervested/unvestedoptionsatanytimeduring/posthisemploymentwiththecompany.Anyemployeewillingtosurrenderhis/heroptionsshallcommunicatethesametotheBoardorCommitteeinwriting.

Vestedoptions lapsedduetonon-exercise,surrenderand/orunvestedoptionsthatgetscancelledduetoresignationoranyotherseparationconditionsofOptiongrantees,surrenderedorotherwise,wouldbeavailableforbeingre-grantedatafuturedate.TheBoardisauthorizedtore-grantsuchlapsed/cancelled/surrenderedoptionsaspertheprovisionsofESOP-2020.

c) Identification of classes of employees entitled to participate and be beneficiaries in the scheme:.

All permanent employeesworking in India or out of India andDirectors (whetherManaging/Whole-timeDirector or not) ofCompanyanditsHoldingCompanyanditsSubsidiaryCompany(ies),(presentorfuture)(excludingpromotersandanemployee



who isaPromoterora personbelongingto thePromoterGroup)and furtherexcludingadirectorwhoeitherbyhimselforthroughhisrelativeorthroughanyBodyCorporate,directlyorindirectlyholdsmorethan10%oftheoutstandingequitysharesoftheCompanyandexcludingIndependentDirectorsasmaybedecidedbytheNominationandRemunerationCommittee.

TheclassofEmployeeseligibleforparticipatingintheSchemeshallbedeterminedonthebasisofthegrade,numberofyears’service,performance, roleassigned to theemployeeandsuchotherparametersasmaybedecidedby theNominationandRemunerationCommitteeinitssolediscretionfromtimetotime.

TheoptionsgrantedtoanEmployeewillnotbetransferabletoanypersonandshallnotbepledged,hypothecated,mortgagedorotherwisealienatedinanyothermanner.

d) Terms of the scheme:

(1) TheCompanyshallnotvarythetermsoftheschemesinanymanner,whichmaybedetrimentaltothe interestsoftheOptionGrantees:Providedthatthecompanyshallbeentitledtovarythetermsoftheschemestomeetanyregulatoryrequirements.

(2) Subjecttotheprovisotosub-regulation(1),thecompanymaybyspecialresolutioninageneralmeetingvarythetermsoftheschemesofferedpursuanttoanearlierresolutionofthegeneralbodybutnotyetexercisedbytheemployeeprovidedsuchvariationisnotprejudicialtotheinterestsoftheOptionGrantees.

(3) Thenoticeforpassingspecialresolutionforvariationoftermsoftheschemesshalldisclosefulldetailsofthevariation,therationaletherefore,andthedetailsoftheOptionGranteeswhoarebeneficiariesofsuchvariation.

(4) TheCompanymayre-pricetheoptionsasthecasemaybewhicharenotexercised,whetherornottheyhavebeenvestedifthetermsofthegrantswererenderedunattractiveduetofallinthepriceofthesharesinthestockmarket;Providedthatthecompanyensuresthatsuchre-pricingshallnotbedetrimentaltotheinterestoftheOptionGranteesandapprovaloftheshareholdersingeneralmeetinghasbeenobtainedforsuchre-pricing.

e) Transferability of Employee Stock Options:

(1) TheOptions granted to an employee shall notbe transferable to anypersonand shall notbepledged, hypothecated,mortgagedorotherwisealienatedinanymanner.However,intheeventofthedeathoftheOptionGrantee,therighttoexercisealltheOptionsgrantedtohimtillsuchdateshallbevestinhislegalheirsornominees.

(2) IntheeventofresignationorterminationoftheOptionGrantee,alltheoptionswhicharegrantedandyetnotvestedasonthatdayshalllapse.

(3) IntheeventthatanOptionGranteewhohasbeengrantedbenefitsunderaschemeistransferredordeputedtoHoldingCompanyanditssubsidiarycompanypriortovestingorexercise,thevestingandexerciseasperthetermsofgrantshallcontinueincaseofsuchtransferredordeputedemployeeevenafterthetransferordeputation.

f) Requirements of vesting and period of vesting:

Vestingofoptionsmaycommenceafteraperiodofnotlessthanoneyearfromthedateofindividualgrant.Thevestingmayoccurinoneormoretranches,subjecttothetermsandconditionsofvesting,asstipulatedintheESOP-2020.

Followingtableshallbeapplicableincaseofvariousscenarios(duringemployment)forvestingandexercising:

Sr. No.

Separations Vested Options Unvested Options

1 Resignation AllVestedOptionsasondateofsubmissionof resignation may be exercised by theOptionGranteeonorbeforehislastworkingdaywiththeCompany.

All Unvested Options on the date ofsubmission of resignation shall standcancelledwitheffectfromthatdate.

2 Termination (With cause like fraud, misconduct etc.)

All Vested Options which were not allottedat the timeof such termination shall standcancelledwith effect from thedate of suchtermination.

All Unvested Options on the date of suchterminationshallstandcancelledwitheffectfromtheterminationdate.



Sr. No.

Separations Vested Options Unvested Options

3 Termination (Without cause)

All Vested Options which were not allottedat the time of such termination may beexercisedbytheOptionGranteeonorbeforehislastworkingdaywiththeCompany.

All Unvested Options on the date of suchterminationshallstandcancelledwitheffectfromtheterminationdate.

4 Retirement or early Retirement approved by Company

All VestedOptionsasondateof retirementmay be exercised by the Option Granteewithin the period as permitted by NRC /Compensation Committee at the time ofsuchretirementorearlyretirement.

All Unvested Options shall vest as peroriginal vesting schedule and may beexercised by theOptionGranteewithin theperiodaspermittedbyNRC/CompensationCommitteeatthetimeofsuchretirementorearlyretirement.

5 Death All Vested Options may be exercised bythe Option Grantee’s nominee or legal heirimmediatelyafter,butinnoeventlaterthan12monthsfromthedateofDeath.

AllUnvestedOptionsasonthedateofdeathshallvestimmediatelyandmaybeexercisedby the Option Grantee’s nominee or legalheir/s within 12 months from the date ofDeath.

6 Permanent Disability All VestedOptionsmaybeexercisedby theOption Grantee or, if the Option Granteeis himself, unable to exercise due to suchdisability, the nominee or legal heir,immediatelyafter,butinnoeventlaterthan12monthsfromthedateofsuchdisability.

AllUnvestedOptionsasonthedateofsuchPermanentDisabilityshallvestimmediatelyandcanbeexercisedbytheOptionGranteeor,iftheOptionGranteeishimselfunabletoexerciseduetosuchincapacity,thenomineeor legal heir immediately after, but in noeventlaterthan12monthsfromthedateofsuchdisability.

7 Abandonment* AlltheVestedOptionsshallstandcancelled. All the Unvested Options shall standcancelled.

8 Any other reason not specified above

The NRC / Compensation Committee shalldecidewhethertheVestedOptionsasonthatdatecanbeexercisedbytheOptionGranteeornot,andsuchdecisionshallbefinal.

All Unvested Options on the date ofseparation shall standcancelledwitheffectfromthatdate.

*TheBoard/Committee,atitssolediscretionshalldecidethedateofcancellationofOption’sandsuchdecisionshallbebindingonallconcerned.

g) Maximum period within which the options shall be vested:

Themaximumvestingperiodmayextendupto5(Five)yearsfromthedateofgrantofoptions,unlessotherwisedecidedbytheNominationandRemunerationCommittee.

h) Exercise price or pricing formula:

ExercisePricemeans thepriceatwhich theOptionGrantee isentitled toacquire theequity sharespursuant to theoptionsgrantedandvestedinhim/herundertheScheme.

TheExercisePriceshallbeasmaybedecidedbytheCommitteeasisallowedundertheSBEBRegulationswhichinanycasewillnotbelowerthanthefacevalueoftheequitysharesoftheCompanyonthedateofsuchgrant.FurthertheExercisePricecanbedifferentfordifferentsetofemployeesforoptionsgrantedonsame/differentdates.

i) Exercise period and process of exercise:

TheExerciseperiodshallnotbemorethan5yearsfromthedateofrespectivevestingofOptions.TheoptionsgrantedmaybeexercisedbytheGranteeatonetimeoratvariouspointsoftimewithintheexerciseperiodasdeterminedbytheCommitteefromtimetotime.



TheVestedoptionsshallbeexercisablebytheemployeesbyawrittenapplication(whichwillincludemakingapplicationsonlineusinganyESOPadministrationsoftware)totheCompanyexpressinghis/herdesiretoexercisesuchoptionsinsuchmannerandonsuchformatasmaybeprescribedbytheNominationandRemunerationCommitteefromtimetotime.Theoptionsshalllapseifnotexercisedwithinthespecifiedexerciseperiod.Theoptionsmayalsolapse,undercertaincircumstancesevenbeforetheexpiryofthespecifiedexerciseperiod.

PaymentoftheExercisePriceshallbemadebyacrossedchequeorademanddraftdrawninfavouroftheCompany,orbyanyotherpaymentmethodsprevalentinRBIrecognizedbankingchannelsorinsuchothermannerandsubjecttosuchproceduresastheBoard/Committeemaydecide.

j) Appraisal Process for determining the eligibility of Employees to the scheme:

Theappraisalprocess fordeterminingtheeligibilityof theEmployeewillbespecifiedbytheNominationandRemunerationCommitteeandwillbebasedoncriteriasuchas thegradeofEmployee, lengthofservice,performancerecord,meritof theEmployee,futurepotentialcontributionbytheEmployeeand/orbyanysuchcriteriathatmaybedeterminedbytheNominationandRemunerationCommittee.

k) Maximum number of options to be issued per Employee and in the aggregate:

ThenumberofOptionsthatmaybegrantedtoanyspecificemployeeunderESOP-2020shallnotexceedthenumberofSharesequivalentto1%oftheIssuedShareCapitaloftheCompanyandinaggregateifthepriorspecificapprovalfrommembersoftheCompanythroughaspecialresolutiontothiseffectisnotobtained.

l) Maximum quantum of benefits to be provided per employee under a scheme:

TheMaximumquantumofbenefitsunderlyingtheoptionsissuedtoaneligibleemployeeshalldependupontheMarketPriceofthesharesasonthedateofsaleofsharesarisingoutofExerciseofoptions.

m) Certificate from Auditors:

TheBoardofDirectorsshallateachannualgeneralmeetingplacebeforetheshareholdersacertificatefromtheauditorsofthecompanythatthescheme(s)hasbeenimplementedinaccordancewiththeprescribedregulationsandinaccordancewiththeresolutionofthecompanyinthegeneralmeeting.

n) Whether the scheme is to be implemented and administered directly by the Company or through a trust:

TheSchemewillbeimplementeddirectlybytheCompanyundertheguidanceoftheNominationandRemunerationCommitteeoftheBoard.

o) Whether scheme involves new issue of shares by the Company or Secondary acquisition by the trust:

TheSchemewillinvolveonlynewissueofsharesbytheCompany.

p) Disclosure and accounting policies:

TheCompanyshalldisclosedetailsofGrant,Vest,ExerciseandlapseoftheEmployeeStockOptionsintheDirectors’ReportorinanannexurethereofasprescribedunderSEBI(SBEB)RegulationsoranyotherApplicableLawsasinforce.FurthertheCompanyshallfollowthelaws/regulationsapplicabletoaccountinganddisclosurerelatedtoEmployeeStockOptions,includingbutnotlimitedtoSEBI(SBEB)RegulationsaswellastheGuidanceNoteonAccountingforEmployeeShare-basedPaymentsand/oranyrelevantAccountingStandardsasmaybeprescribedbytheRegulatoryauthoritiesfromtimetotime,includingthedisclosurerequirementsprescribedtherein.

q) The amount of loan to be provided for implementation of the scheme(s) by the company to the trust, its tenure, utilization, repayment terms, etc:

NotApplicable



r) Maximum percentage of secondary acquisition (subject to limits specified under the regulations) that can be made by the trust for the purposes of the scheme(s):

NotApplicable

s) Method of Valuation of options:

TheCompanyfollowsfairvaluemethodforcomputingthecompensationcost,ifany,fortheoptionsgranted.ThecompanywillfollowIFRS/INDAS/anyotherrequirementsforaccountingoftheStockoptionsasareapplicabletotheCompanyforthesame.

Sincethecompanyoptsforexpensingofsharebasedemployeebenefitsusingthefairvaluemethod,thefollowingstatementwillnotbeapplicableviz.

Incasethecompanyoptsforexpensingofsharebasedemployeebenefitsusingtheintrinsicvalueintrinsicvalue,thedifferencebetweentheemployeecompensationcostsocomputedandtheemployeecompensationcostthatshallhavebeenrecognizedifithadusedthefairvalue,shallbedisclosedintheDirectors’reportandtheimpactofthisdifferenceonprofitsandonearningspershare(“EPS”)ofthecompanyshallalsobedisclosedintheDirectors’report.’

t) Rights of the option holder:

Theemployeeshallnothaverighttoreceiveanydividendortovoteorinanymannerenjoythebenefitsofashareholderinrespectofoptiongrantedtohim,tillsharesareallotteduponexerciseofoption.

u) Consequence of failure to exercise option:

Allunexercisedoptionsshalllapseifnotexercisedonorbeforetheexercisedperiodends.Theamountpayablebytheemployee,ifany,atthetimeofgrantofoption,-

(a) maybeforfeitedbythecompanyiftheoptionisnotexercisedbytheemployeewithintheexerciseperiod;or

(b) mayberefundedtotheemployeeiftheoptionsarenotvestedduetonon-fulfilmentofconditionsrelatingtovestingofoptionaspertheScheme.

v) Other terms:

TheBoardorNominationandRemunerationCommitteeshallhavetheabsoluteauthoritytovary,modifyoralterthetermsoftheSchemeinaccordancewiththeregulationsandguidelinesasprescribedbytheSecuritiesandExchangeBoardofIndiaorregulationsthatmaybeissuedbyanyappropriateauthority,fromtimetotime,unlesssuchvariation,modificationoralterationisdetrimentaltotheinterestoftheOptionGrantees.

TheBoardorNominationandRemunerationCommitteemay,ifitdeemsnecessary,modify,change,vary,amend,suspendorterminatetheESOP-2020,subjecttocompliancewiththeApplicableLawsandRegulations.

ThesharesmaybeallotteddirectlytotheOptionGranteesinaccordancewiththeSchemeandsuchSchememayalsocontainprovisionsforprovidingfinancialassistancetotheEmployeestoenabletheEmployeestoacquireorsubscribetotheshares.

AstheSchemewouldentailfurthersharestobeofferedtopersonsotherthanexistingMembersoftheCompany,consentofthemembersissoughtpursuanttotheprovisionsofsection42and62(1)(b)andallotherapplicableprovisions,ifany,oftheCompaniesAct,2013andaspertherequirementofClause6oftheSEBISBEBRegulations.

NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyincludingtheirrelativesareinterestedorconcernedintheresolutionNo.7and8,excepttotheextentoftheirshareholdingentitlements,ifany,undertheESOPScheme.

YourDirectorsrecommendtheResolutionsetoutinItemNo.7and8oftheNoticeforadoptionbytheShareholdersasSpecialResolution/s.



ITEM NO. 9:

TheresolutionsetoutatItemNo.7andItemNo.8providesthataCompanymaygrantoptiontoanemployeeandtoadirectoroftheCompanyanditsHoldingCompanyanditssubsidiarycompany(ies)notexceedingonepercentoftheissuedcapitaloftheCompanyinoneyear.However,theCompanymayidentifycertainemployee/stowhomitmaybenecessarytograntoptionsexceedingonepercentinoneyeartoensurecontinuityoftheirservicewiththeCompany.TheresolutionassetoutinItemNo.9providesthattheCompanymaygrantoptionequaltoorexceedingOnepercentbutnotexceedingtwopercentinoneyeartoidentifiedemployee/sordirector/softheCompanyanditsHoldingCompanyanditssubsidiary.

NoneoftheDirectors,KeyManagerialPersonneloftheCompanyincludingtheirrelativesareinterestedorconcernedintheresolutionNo.9,excepttotheextentoftheirentitlements,ifany,undertheESOPScheme.

TheDirectorsrecommendtheResolutionssetoutinItemNo.9oftheNoticeforadoptionbytheShareholdersasSpecialResolution.

ITEM NO. 10:

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

TheBoardofDirectorsoftheCompanyonrecommendationoftheAuditCommitteeatitsmeetingheldonJuly30,2020,approvedavailingoftheservicesrelatedto:

1) Sale,purchaseorsupplyofanygoodsormaterials–uptomaximumof`50crores;and2) Availingorrenderingofanyservices–uptomaximumof`150crores.

Thedetailsofthetransactions,proposedtobeenteredinto,areasunder:

Particulars InformationNameoftheRelatedParty AlliedDigitalServices,LLC,USNameofDirector(s)orKeyManagerialPersonnelwhoisrelated,ifany

NitinDhanjiShah,ChairmanandManagingDirector;PrakashDhanjiShah,Whole-timeDirector;andNehalNitinShah,Director.

NatureofRelationship Promoter–DirectorMaterialtermsofthetransaction Availingorrenderingofanyservicesandsale,purchaseorsupply

ofanygoodsormaterialsMonetaryValue Sale,purchaseandsupplyofgoods`50crores

Availingorrenderingofservices`150croresWhether the transactions have been approved by the AuditCommitteeandtheBoardofDirectors

Yes

AstheaggregateofthetransactionstobeenteredintowiththesaidRelatedPartymayexceed10%oftheCompany’sturnoverforthefinancialyearendedMarch31,2020,thesaidtransactionwouldbedeemedtobea‘material’relatedpartytransaction.UnderRegulation23(4)oftheSEBILODR,allmaterialrelatedpartytransactionsarerequiredtobeapprovedbyshareholdersandalltherelatedpartiesshallabstainfromvotingonsuchresolutionwhethertheentityisarelatedpartytothetransactionornot.

Thecontractsand/orarrangementswithrelatedpartiesforavailingorrenderingofservicesthatarerepetitiveinnatureandinordinarycourseofbusinessandalsoatarms’lengthbasis.

ExceptMr.NitinDhanjiShah,ChairmanandManagingDirectorandMr.PrakashShah,Whole-timeDirector,Mr.NehalShah,DirectornoneoftheDirectorsorKeyManagerialPersonneloftheCompanyortheirrelativesisconcernedorinterested,financiallyorotherwiseinthisResolutionexcepttotheextentoftheirshareholding.



ITEM NO. 11:

InviewofthefutureoutlookoftheCompany, itsgrowthtargetsandprospects,theCompanyrequiresadditional fundingto interaliaaugment its long termresources including for servicingand/or repaymentof indebtedness, capitalexpenditure, investmentin subsidiaries/associatesof theCompany for variouspurposes, includingbutnot limited to fund theirbusinessgrowth, capitaladequacy, business purposes, projects, operations and for general corporate purposes as per Company’s and its subsidiaries/associatesgrowthandbusinessrelatedplansfromtimetotime.

TheBoardofDirectorsoftheCompanyattheirmeetingheldonJuly30,2020hadapprovedtheissueofEquityWarrantsandaccordinglyproposestoissueandallotinaggregateandupto40,00,000(FortyLakhs)equitywarrants(“EquityWarrants”)eachconvertibleintoorexchangeableforOne(1)equityshareoffacevalueof`5/-each(“theEquityShares”)Mr.NitinDhanjiShah,PromoteroftheCompanyasdefined inSEBI (ICDR)Regulations,2018 (“ProposedAllottee”)underPromoterCategoryonapreferentialbasis incompliancewithapplicableprovisionsofSEBI (ICDR)Regulations,2013.EachEquityWarrant isconvertible intoOne (1)EquityShareandtheconversioncanbeexercisedatanytimeduringtheperiodofeighteen(18)monthsfromthedateofallotmentofEquityWarrants,asthecasemaybe,onsuchothertermsandconditionsasapplicable,entitlingtheProposedAllotteetosubscribetoandbeallottedtheEquityWarrantsconvertibleintoEquitySharesoftheCompany.

ThedetailsofthePreferentialAllotmentasrequiredintermsofRegulation163oftheSEBIRegulationsandtheapplicableprovisionsoftheCompaniesActareasfollows:

(a) The objects of the preferential issue:

TheproceedsofthePreferentialAllotmentareproposedtobeusedbytheCompanyforvariouspurposes,tointeraliaaugmentitslongtermresourcesincludingforservicingand/orrepaymentofindebtedness,capitalexpenditure,investmentinsubsidiaries/associatesof theCompany for variouspurposes, includingbutnot limited to fund theirbusinessgrowth, capital adequacy,businesspurposesandforgeneralcorporatepurposesasperCompany’sanditssubsidiaries/associatesgrowthandbusinessrelatedplansfromtimetotime.

(b) Total number of Equity Shares to be offered:

It is proposed to issue and allot in aggregate and up to 40,00,000 (Forty Lakhs) Equity Warrants, each convertible into orexchangeableforOne(1)EquityShareoffacevalueof`5each,insuchmannerandonsuchprice,termsandconditionsasmaybedeterminedbytheBoard induecompliancewiththeprovisionsofChapterVIofSEBI (ICDR)Regulations,2018andotherprovisionsofapplicablelawprovidedthatsuchpriceshallnotbelessthantheminimumpricecalculatedinaccordancewiththesaidRegulations.

(c) Intent of the promoters, directors or key managerial personnel of the issuer to subscribe to the offer:

ExceptMr.NitinDhanjiShah,PromoteroftheCompanyandproposedallottee,noothermemberbelongingfromthepromotergroup,directorsorkeymanagerialpersonnelhasgiventheirintentiontosubscribetotheoffer.

(d) Basis on which the price has been arrived at:

TheIssuePriceforissueofequitysharesonexercise/conversionoftheWarrantsshallbedecidedbytheBoardofDirectorsbutshallnotbelessthantheminimumpricecalculatedinaccordancewiththeoftheSEBI(ICDR)Regulations,2018.

(e) Relevant Date:

TheRelevantDateforthepurposeofdeterminingthepricingofsharesarisingoutofWarrantsinaccordancewithChapterVofSEBI(ICDR)Regulations,2018isAugust04,2020beingthedatethatis30dayspriortothedateonwhichtheresolutionisdeemedtobepassed.

(f) The proposal of the promoter, directors or key management personnel to subscribe to the Preferential Allotment:

Mr.NitinDhanji Shah,Promoterof theCompany is intending toparticipate / subscribe to theproposed issueandnootherDirector(s)orKeyManagerialPersonnel(s)aresubscribingtothisoffer.



(g) The name of the Proposed Allottees and the percentage of shareholding post allotment:

Sr. No

Name of the Proposed Allottees Shareholding post allotment (%)

1. Mr.NitinDhanjiShah 34.65

(h) Shareholding pattern before the proposed issue and after the proposed conversion of Equity warrants as follows:

Sr. No.

Category and Name of the Members Pre-issue Shareholding Post issue Shareholding (Post conversion of Equity Warrants)

No. of shares held as on

August 04, 2020

% of holding No. of Shares % of holding

1. NitinDhanjiShah 14783031 29.45 18783031 34.65

(i) The proposed time within which the issue or allotment shall be completed:

As requiredunder theSEBI (ICDR)Regulations,2018,EquityWarrants shallbe issuedandallottedby theCompanywithinaperiodofFifteen(15)daysfromthedateofpassingofthisresolutionprovidedthatwheretheissueandallotmentofthesaidEquityWarrantsispendingonaccountofpendencyofanyapprovalforsuchissueandallotmentbyanyregulatoryauthorityortheCentralGovernment,theissueandallotmentshallbecompletedwithinaperiodofFifteen(15)daysfromthedatereceiptoflastofsuchapprovals.

(j) Change in control, if any, in the Company that would occur consequent to the preferential offer:

ThereshallbenochangeinthemanagementorcontroloftheCompanypursuanttotheaforesaidissueandallotmentofEquityWarrantsandincludingtheconversionthereofintoEquitySharesoftheCompany.

(k) The identity of the natural persons who are the ultimate beneficial owners of the Equity Shares proposed to be allotted and / or who ultimately control the proposed allottees, the percentage of pre and post-Preferential Allotment capital that may be held by them and change in control, if any, in the Company, consequent to the Preferential Allotment:

TheidentityofthenaturalpersonwhoistheultimatebeneficialownerofthesharesproposedtobeallottedandthepercentageofthepreandpostpreferentialissuecapitalthatmaybeheldbyproposedAllotteeisgivenbelow:

Name of the Proposed Allottee

Category Ultimate Beneficial Owners

Percentage of post-Preferential Allotment

capital to be held

Change in Control

Mr.NitinDhanjiShah Promoter Mr.NitinDhanjiShah 34.65 -

(l) The number of persons to whom allotment on preferential basis have already been made during the year, in terms of number of securities as well as price:

DuringtheperiodfromApril01,2019tilldateofthisnotice,theCompanyhasnotmadeanyallotmentonpreferentialbasis.

(m) Justification for the allotment proposed to be made for consideration other than cash together with valuation report of the registered valuer:

NotApplicable

(n) Lock-in period:

TheEquityWarrantsandtheEquitySharesbeingallottedpursuanttoexerciseofsuchEquityWarrantsshallbesubjecttoalock-inforsuchperiodasspecifiedunderapplicableprovisionsofSEBI(ICDR)Regulations,2018.



(o) Auditors’ Certificate:

AcopyofthecertificatefromRathi&Associates,PracticingCompanySecretaries,certifyingthatthePreferentialAllotmentisbeingmadeinaccordancewiththerequirementscontainedinChapterVIoftheSEBIRegulationsshallbeavailableforinspectionattheregisteredofficeoftheCompanyonanyworkingday,exceptSaturdayandholiday,between11:00a.m.(IST)to1:00p.m.(IST)fromthedateofdispatchofnoticetillSeptember03,2020andwillalsobeavailableonthewebsiteoftheCompanyi.ewww.allieddigital.net

(p) Listing:

TheCompanywillmakeanapplicationtotheStockExchangesatwhichtheexistingsharesarealreadylisted,forlistingoftheequitysharesbeingissuedonconversionofEquityWarrants.SuchEquityShares,onceallotted,shallrankpari passuwiththeexistingequitysharesoftheCompanyinallrespects,includingdividend.

(q) Other Disclosures/undertaking:

(i) NeithertheCompanynoranyofitsPromotersorDirectorshavebeendeclaredaswilfuldefaultersbyanybankorfinancialinstitutionorconsortiumthereof,inaccordancewiththeguidelinesonwilfuldefaultersissuedbytheReserveBankofIndia.

(ii) ThePromoterandmembersofthePromoterGrouphavenotsoldEquitySharesoftheCompanyinthe6monthsprecedingtheRelevantDate.

(iii) TheCompanyisincompliancewiththeconditionsofcontinuouslistingofequitysharesasspecifiedinthelistingagreementwiththeStockExchange(s)wheretheEquitySharesoftheCompanyarelisted.

TheconsentoftheMembersisbeingsoughtbyaSpecialResolutioninaccordancewiththeprovisionsoftheCompaniesAct, 2013 and the rulesmade thereunder, SEBI ICDRRegulations, as amended, SEBI LODRRegulations andanyotherapplicablelaws.ExceptMr.NitinDhanjiShah,ChairmanandManagingDirector,theproposedallotteenoneoftheDirectorsorKeyManagerialPersonneloftheCompanyortheirrelativesisconcernedorinterested,financiallyorotherwiseinthisResolution.




Registered Office:PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockNo.III,BackBayReclamation,NarimanPoint,Mumbai400021CIN: L72200MH1995PLC085488.Website: www.allieddigital.netEmail:[email protected]: +912266816400Fax: +912222822030



BRIEF PROFILE OF THE DIRECTOR PROPOSED TO BE APPOINTED AS THE INDEPENDENT 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. Milind Madhav KamatDate of Birth 05/07/1960Nature of his expertise in specific functional areas InformationTechnologyQualifications Bachelor’s Degree in Engineering Post Graduate Degree in

FinancialManagementExperience 35+yearsNumber of Shares held in the Company NilTerms and Conditions of Appointment/re-appointment -During his tenure with the company he shall not disclose

directly or indirectly any information/document about thecompany

-Duringhisemploymentwiththecompanyhemaycomeacrossofcompanies’plans,policies,undisclosedrecordsdesignand/orstrategieswhichareconfidentialinnatureandherequirestomaintainitsconfidentiality.

Date of Appointment on the Board June11,2020Relationship with other Director, Manager and other Key Managerial Personnel of the Company

None

Number of Meetings attended during the year NilName of the other Companies in which also holds Directorship None



For Annexure A:

Further Disclosure in pursuant to the provisions of Schedule V of the Companies Act, 2013

I GENERAL INFORMATION1. NatureofIndustry InformationTechnology

2. Date or expected date of commencement of Commercialproduction

The Company has been engaged in the business of InformationTechnologyformorethan2decades.

3. In case of new companies, expected date of commencement ofactivities as per project approved by the financial institutionsappearingintheprospectus

NotApplicable

4. Financialperformancebasedonthegivenindicators FinancialperformancebasedontheAuditedAccountsfortheyearendedMarch31,2020isasunder:

Sales `9978Lakhs

ProfitafterTax `788Lakhs

AssetTurnoverRatio 0.17

CurrentRatio 2.67

ProfittoNetSales 8%

5. Exportperformanceandnetforeignexchangecollaborations ThetotalexportsalesrealisedduringtheyearendedMarch31,2020amountsto`3,595Lakhs

6. Foreigninvestmentsorcollaborations,ifany TheCompany’totalinvestmentasonMarch31,2020initsForeignSubsidiaryCompaniesis`14,743Lakhs.

II INFORMATION ABOUT THE APPOINTEEMr. Nitin Dhanji Shah Mr. Prakash Dhanji Shah

1. Backgrounddetails Mr.NitinShahhasexpertiseinthefieldofInformationTechnologyandhasexperienceof35+years.

Mr.PrakashShahhasexpertiseinthefieldofFinance,TaxationandAccountsandhasexperienceof30+years.

2. Recognitionorawards - PromisingEntrepreneurofIndiaawardedbyEconomicTimes

- OutastandingGlobalLeadershipAwardawardedbyEconomicStudies

-

3. Jobprofileandhissuitability OverallManagement OverallManagement

4. Comparativeremunerationprofilewithrespectofindustry,sizeofthecompany,profilewiththepositionandperson.

TheproposedremunerationisinlinewiththeothercompaniesintheITIndustries

5. PecuniaryrelationshipdirectlyorindirectlywiththeCompany,orrelationshipwiththemanagerialpersonnel,ifany.

BrotherofMr.PrakashShah,Whole-timeDirectorandFatherofMr.NehalShah,ExecutiveDirector

BrotherofMr.NitinShah,ChairmanandManagingDirectorandrelativeofMr.NehalShah,ExecutiveDirector

III OTHER INFORMATION1. Reasonsoflossofinadequacyofprofits Though theCompanyhasmadeprofit during the year, Company

isexpectedtoperformbetterincomingyearsandtheproductivityandprofitsareexpectedtobeimproved.

2. Stepstakenorproposedtobetakenforimprovement

3. Expectedincreaseinproductivityandprofitsinmeasurableitems

IV Other Disclosure Theotherdisclosuresasrequiredonallelementsofremunerationpackage such as salary, benefits, bonuses, pensions, details offixed components and performance linked incentives along withperformance criteria, service contract details, notice period,severance fees,etc.havebeenmade in theBoards’Reportunderthe heading “Corporate Governance Report” forming part of theAnnualReportfor2019-20



DearMembers,

TheDirectorsarepleasedtopresenttheTwentySixthAnnualReportonthebusinessandoperationsalongwiththeAuditedStandaloneandConsolidatedFinancialStatementsfortheyearendedMarch31,2020. 1. FINANCIAL PERFORMANCE:

TheStandaloneandConsolidatedfinancialstatementsforthefinancialyearendedMarch31,2020,formingpartofthisAnnualReport,havebeenpreparedinaccordancewiththeIndianAccountingStandards(IndAS)asnotifiedbytheMinistryofCorporateAffairs.

KeyhighlightsoffinancialperformanceofyourCompanyforthefinancialyear2019-20: (`InLakhs)

Particulars STANDALONE CONSOLIDATED2019-20 2018-19 2019-20 2018-19

TotalOperatingIncome 9,419 7,523 33,014 23,973OtherIncome 558 412 558 412Total Income 9,978 7,935 33,572 24,384 Less:OperatingExpenditure 7,159 4,866 28,248 20,118Profit before Interest, Depreciation, Amortization, Tax & Exceptional Item 2,819 3,069 5,324 4,266 Less:Depreciation 1,370 1,385 2,221 2,162Less:Financecost 619 921 699 1,003Profit before Tax and Exceptional Item 830 762 2,404 1,102 ExceptionalItem - 351 - 351Profit before Tax 830 1,113 2,404 1,453 Less:ProvisionforTaxation - - 441 65Less:DeferredTaxLiability 41 150 41 150Net Profit after tax 788 963 1,922 1,238 OtherComprehensiveIncome (25) (35) 50 (35)SharesofProfit/(Loss)ofAssociates&JointVentures - - 2 -Total Comprehensive Income (after tax) 764 928 1,975 1,203 Attributable to Owners of the Company 2,281 1,196 Attributable to Non-Controlling Interest - - 306 (7)Paid-upequitysharecapital(FaceValueof`5/-) 2,510 2,510 2,510 2,510ReservesexcludingRevaluationReservesasperBalanceSheetofpreviousAccountingYear 44,618 43,797 43,128 41,171Earning per Share Basic 1.57 1.92 3.83 2.46Diluted 1.57 1.92 3.83 2.46

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

Your Company is focusing on growth and achieving profitability along with a renewed commitment to customer services.Positivemodificationsareexpectedinthenearfutureboostingcompany’srevenue.YourCompanyisalsofocusingextensivelyonexpandingthebusinessandimprovementsinoperationsthroughvariousstrategicprojectsforoperationalexcellence.

BOARDS’ REPORT



TherewasnochangeinthenatureofbusinessoftheCompany,duringtheyearunderreview.

a) Standalone Financial Statements:

Duringtheyearunderreview,therewas26%increaseinthetotalincomeofthecompany,andtherewasactualincreaseof9%intheProfitbeforeexceptionalitemsandtaxesfortheyear.

b) Consolidated Financial Statements: Duringtheyearunderreview,theoverallconsolidatedincomegrewby38%andtheprofitaftertaxlevelof`19.22Crs.

washigherbyalmost55%asagainstthepreviousyearamountof`12.37Crs.mainlyduetoincreasedsalesvolumeandconsiderablereductioninthefinancecosts.

c) Ongoing Projects & State of Affairs:

TheOngoingProjects&StateofAffairsoftheCompanyispresentedaspartofManagementDiscussionandAnalysisReportwhichformspartoftheAnnualReport.

FurtherinformationregardingthepotentialimpactofCOVID-19andvariousstepstakenbyyourCompanyareprovidedaspartoftheManagementDiscussionandAnalysisReport(MDAR).

d) Revision of Financial Statement:

Therewasnorevisionofthefinancialstatementspertainingtopreviousfinancialyearduringtheyearunderreview.

e) Disclosure of Internal Financial Controls:

TheBoardofyourCompanyhaslaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandoperatingeffectively.YourCompanyhasadoptedpoliciesandproceduresforensuringtheorderlyandefficientconductof itsbusiness, includingadherencetotheCompany’spolicies,thesafeguardingof itsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialdisclosures.

f) Investor Education and Protection Fund:

In terms of the provisions of Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules,2016,InvestorEducationandProtectionFund(AwarenessandProtectionofInvestors)Rules,2001,`81,481.75ofunpaid/unclaimeddividendswasunpaid/unclaimedisyettobetransferredtotheInvestorEducationandProtectionFund.TheCompanyisintheprocessofdoingtheneedful.

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

a. The Company has Seven (7) Foreign Subsidiaries, two (2) Indian Subsidiaries and three (3) Associate Companies. TheCompanydidnothaveanyjointventurecompany.

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 October31,20073. AlliedDigitalSingaporePteLimited Subsidiary October12,2010



Sr. No.

Name of Company Subsidiary / Joint ventures/ Associate Company

Date of becoming of Subsidiary/Joint Ventures/

Associate Company.4. AlliedDigitalAsiaPacificPtyLimited(Australia) Subsidiary September16,20105. AlliedDigitalServices(UK)Ltd. Subsidiary December04,20136. AlliedDigitalServicesOy. Subsidiary June08,20187. AlliedDigitalServices(Ireland)Limited Subsidiary November04,20198. EnPointeTechnologiesIndiaPrivateLimited Subsidiary December29,20069. Allied-eCopSurveillancePrivateLimited Subsidiary August06,200710. AssetliteEquipmentIndiaPrivateLimited Associate September26,200911. SoftShellSystem(I)PrivateLimited Associate August07,201512. AlliedCNTSolutionsPrivateLimited Associate July06,2004

ThereisnomaterialchangeinthenatureofthebusinessofSubsidiariesorAssociateCompanies.

PursuanttotheprovisionsofSection129(3)oftheCompaniesAct,2013(‘theAct’),thestatementcontainingthesalientfeaturesofthefinancialstatementofSubsidiariesandAssociatesCompaniesintheprescribedFormAOC-1isappendedas“Annexure I”totheBoard’sReport.

b. Material Subsidiaries:

Allied Digital Services LLC, USA isaMaterialSubsidiarywhose income in the immediatelyprecedingaccountingyearexceedstwentypercentoftheconsolidatedincomeoftheCompanyanditsSubsidiaries.

ThePolicyfordeterminingMaterialSubsidiariesasapprovedmaybeaccessedontheCompany’swebsiteatthelink:

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

Duringtheyearunderreview,theBoardofDirectorsreviewedtheaffairsofthesubsidiariesfromtimetotimeandtherehasbeennomaterialchangeinthenatureofthebusinessofsubsidiaries.

4. RECENT DEVELOPMENTS:

YourCompany isadoptingnewtechnologiesas it foreseesmassivegrowth in ITSolutionsandServices inthedomainof IoT(InternetofThings),SmartCitiesandnextgenerationAutomationsolutionsleveragingmachinelearningandArtificialIntelligence(“AI”).

TheCompanyhasdevelopedadvancedsolutionsforCovid-19pandemic,suchasbringingintelligentalertsofcrowdgatheringduringthepandemic,automatedcentralizedpublicannouncementsinstreets,Dronebasedsurveillance.Duringtheyear,yourcompanyhascontinuedtosharpenIoTandcomputervision-basedtechnologyskillsets,toenhancesmartcitysolutionsandinnovativethermalscanningsolutions.

5. DIVIDEND:

YourBoardispleasedtorecommendforyourconsideration,adividendof`0.50(FiftyPaiseonly)perEquitySharesof`5/-forthefinancialyear2019-20.Theaforesaiddividendwillinvolveatotalpayoutof`251.03LakhsandissubjecttotheapprovalofMembersattheensuingGeneralMeetingofyourCompany.TheproposeddividendpayoutisinaccordancewiththeCompany’sDividendPolicy.

6. TRANSFER TO RESERVES:

YourCompanyhasnotrecommendedtransferofanyamountoutoftheprofittoreservesduringtheyearunderreview.Hence,theentireamountofprofitfortheyearunderreviewhasbeencarriedforwardtotheProfitandLosssurplusaccount.



7. DEPOSITS:

YourCompanyhasnotacceptedorrenewedanyamountfallingwithinthepurviewofprovisionsofSection73oftheCompaniesAct,2013(“theAct”)readwiththeCompanies(AcceptanceofDeposits)Rules,2014frompublicduringtheyearunderreview.However,asontheBalanceSheetdatei.e.March31,2020,therewereunclaimedfixeddepositsamountingto`5.91lakhslyingwiththeCompany.

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

Particulars March 31,2020 March 31,2019Depositsacceptedduringtheyear --- ---Depositsunclaimedattheendoftheyear 5.91 15.57Defaultinrepaymentofdepositsorpaymentofinterestthereon --- ---

YourCompanyhasnotdefaultedinrepaymentofdepositsorpaymentofinterest.

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:

InlinewiththerequirementsoftheCompaniesAct,2013andamendmenttotheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations’’),yourCompanyhasformulatedaPolicyonRelatedPartyTransactionswhichisalsoavailableontheCompany’swebsiteat:

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

ThePolicyintendstoensurethatproperreporting,approvalanddisclosureprocessesareinplaceforalltransactionsbetweentheCompanyandRelatedParties.

AllRelatedPartyTransactionsareplacedbeforetheAuditCommitteeandtheBoard,onquarterlybasisforreviewandapprovals.PrioromnibusapprovalisobtainedforRelatedPartyTransactionsfortransactionswhichareofforeseeableandofarepetitivenature.

AllRelatedPartyTransactionsenteredduringthefinancialyearunderreviewwereinOrdinaryCourseoftheBusinessandatArm’sLengthbasis.Noneofthetransactionsenteredintowiththerelatedparties,whethersinglyortakentogetherwiththetransactionenteredintowiththerelatedpartyduringtheyear,wasmateriallysignificantrelatedpartytransactionexceptthosedisclosedinthefinancialstatements.

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

PursuanttoRegulation23(9)oftheListingRegulations,yourCompanyhasfiledthereportsonrelatedpartytransactionswiththeStockExchanges.

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

PursuanttotheprovisionsofSection186ofCompaniesAct,2013andScheduleVoftheListingRegulations,thedisclosureonparticularsofLoans,Advances,andGuaranteesgivenandinvestmentsmadeareprovidedaspartoftheFinancialStatements.



11. MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL

a) CHANGE IN BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL:

TheBoardofyourCompanyisdulyconstitutedinaccordancewiththerequirementsoftheCompaniesAct,2013readwiththeListingRegulations.

Dr.ShrikantParikh,Ms.ShubhadaJahagirdar,Prof.Venugopal Iyengar, IndependentDirectorsof theCompanywerere-appointedonApril01,2020asIndependentDirectorsoftheCompanyforsecondtermforcontinuousperiodoffiveyearstoholdofficeuptoMarch31,2024.

PursuanttotheprovisionsofSection152oftheCompaniesAct,2013,Mr.NehalNitinShah,(DIN:02766841)Director,beinglongestintheoffice,shallretirebyrotationattheensuingAnnualGeneralMeetingoftheCompanyandbeingeligible,hasofferedhimselfforre-appointment.

Prof.VenugopalIyengar(DIN:02591297),IndependentDirectoroftheCompanyceasedtobeDirectoroftheCompanyduetohissuddendemiseonApril29,2020.TheBoardappreciatehisvaluablecontributiontotheCompanyduringhistenureandexpressdeepsympathy,sorrowandcondolencetohisfamily.

Mr.MilindMadhavKamat(DIN:01772084)wasappointedasanAdditionalDirector(IndependentDirector)witheffectfromJune11,2020foraperiodoffiveyearssubjecttotheapprovalofshareholdersintheensuingAnnualGeneralMeetingonthetermsandconditionsasrecommendedbytheNomination&RemunerationCommitteeandapprovedbytheBoardoftheCompanyintheirmeetingheldonJune11,2020.

Inaccordancewith theprovisionsof theCompaniesAct,2013noneof the IndependentDirectorsare liable to retirebyrotation.

b) DECLARATION GIVEN BY THE INDEPENDENT DIRECTORS:

Definitionof ‘Independence’ofDirectors isderived fromRegulation16of theListingRegulationsandSection149(6)oftheCompaniesAct,2013.TheCompanyhasreceivednecessarydeclarationsunderSection149(7)oftheCompaniesAct,2013andRegulation25(8)oftheListingRegulations,fromtheIndependentDirectorsstatingthattheymeettheprescribedcriteria for Independence.All IndependentDirectorshaveaffirmedcompliance to thecodeofconduct for independentdirectorsasprescribedinScheduleIVtotheCompaniesAct,2013.

12. DISCLOSURES RELATED TO BOARD, COMMITTEES AND POLICIES:

a. BOARD MEETINGS:

FivemeetingsoftheBoardwereheldduringtheyearunderreview.TheMeetingswereheldonMay29,2019,August13,2019,October31,2019,November13,2019andFebruary4,2020.Briefdetailsof thesaidMeetingsareprovided intheCorporateGovernanceReport,whichisapartofthisAnnualReport.

b. DIRECTORS’ RESPONSIBILITY STATEMENT:

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

a. inthepreparationoftheannualaccounts,theapplicableaccountingstandardshadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

b. thedirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearasatMarch31,2020andoftheprofitoftheCompanyforthatperiod;

c. thedirectorshadtakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;



d. thedirectorshadpreparedtheannualaccountsonagoingconcernbasis;

e. thedirectors,hadlaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively;and

f. thedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.

c. COMMITTEES OF BOARD:

TheBoardhasconstitutedthefollowingCommittee(s)asmandatedundertheprovisionsoftheCompaniesAct,2013andListingRegulations.Therearecurrentlyfive(5)CommitteesoftheBoardnamely:

- AuditCommittee; - NominationandRemunerationCommittee; - StakeholdersRelationshipCommittee; - CorporateSocialResponsibilityCommittee;and - ManagementCommittee.

DetailsofCommitteesalongwiththeircharter,compositionandattendanceofDirectorsatMeetingsoftheCommitteesareprovidedintheCorporateGovernancereport.

I. AUDIT COMMITTEE:

TheAuditCommitteehasbeenconstitutedby theBoard, inaccordancewith theprovisionsofSection177of theCompaniesAct,2013 readwithRegulation18ofListingRegulations.During theyearunder review, theBoardhadacceptedalltherecommendationsoftheAuditCommittee.

ThecompositionandotherdetailsoftheAuditCommitteeispresentedintheCorporateGovernanceReport.

II. NOMINATION AND REMUNERATION COMMITTEE:

PursuanttotheprovisionsofSection178oftheCompaniesAct,2013readwithRegulation19ofListingRegulations,theBoardhasconstitutedtheNominationandRemunerationCommittee,whichinter-aliarecommendstotheBoardthe criteria for appointment of Director(s) alongwith the compensation, terms of Executive Directors and seniormanagerialpersonnel’s.

TheBoardhasapprovedtheNominationandRemunerationPolicyforDirectors,KeymanagerialpersonnelandallotheremployeesoftheCompany.ThesaidpolicyishostedonthewebsiteoftheCompany.TheWeblinkofthesameisasfollows:

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

ThecompositionandotherdetailsoftheNominationandRemunerationCommitteeispresentedaspartofCorporateGovernanceReportwhichformspartoftheAnnualReport.

III. STAKEHOLDERS RELATIONSHIP COMMITTEE:

TheStakeholdersRelationshipCommitteeisdulyconstitutedinaccordancewiththeprovisionsSection178oftheCompaniesAct,2013readwithRegulation20ofListingRegulations.TheprimaryobjectiveStakeholdersRelationshipCommitteeoftheCompanyistoconsiderandresolvethegrievancesofsecurityholders/membersoftheCompany.

The compositionandotherdetailsof theStakeholdersRelationshipCommittee ispresentedaspartofCorporateGovernanceReportwhichformspartoftheAnnualReport.



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

TheCSRCommittee isdulyconstitutedasperprovisionsofSection135of theCompaniesAct,2013,consistingofthree(3)Directorsofwhichtwo(2)DirectorsareNon–ExecutiveIndependentDirectorsandone(1)ExecutiveDirectorand the Chairperson is an Independent Director. The said Committee has been entrustedwith the responsibilityof formulatingandrecommending to theBoard,CorporateSocialResponsibilityPolicy (CSRPolicy) indicating theactivities tobeundertakenbyyourCompany,monitoring the implementationof the frameworkof theCSRPolicyandrecommendingtheamount tobespentonCSRactivities.ThedetailedreportonCSRactivities isattachedas“Annexure II”tothisreport.

The key philosophy of the Company’s CSR initiative is to promote development through social and economictransformation.TheCSRPolicyoftheCompanycanbeaccessedontheCompany’swebsiteinthelinkprovidedhereinbelow:

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

V. MANAGEMENT COMMITTEE:

TheManagementCommitteewasconstitutedbytheBoardonApril28,2009.TheCommitteeisentrustedwiththeoperationalandadministrativepower.TheCommitteecomprisesofthree(3)membersi.e.Mr.NitinShah,ChairmanandManagingDirector,Mr.PrakashShah,Whole-timeDirectorandMr.PareshShah,ChiefExecutiveOfficerof theCompany.

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

TheparticularsasprescribedunderSection134(3)(m)oftheCompaniesAct,2013readwithRule8oftheCompanies(Accounts)Rules,2014,areasfollows:

A. CONSERVATION OF ENERGY

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

Your Company has always considered energy and natural resource conservation as a focus area. Though theoperationsoftheCompanyarenotenergyintensive,itstronglybelievesthatitistheneedofthehourtodobesteffortstoconserveenergyandnaturalresourceslikewater.

YourCompanycontinuestotakesustainablestepsvoluntarilytocontributetowardsbetterenvironment.

Selectedfewsteps/impactarelistedbelow:

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

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

YourCompanyisusingelectricityasmainsourceofitsenergyrequirementanddoesnothaveanyalternatesourceofenergy.



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

During the year under review, there was no such investment in energy saving equipment apart from promotingreplacementofCFLtoLEDbulbswhereapplicable.

B. TECHNOLOGY ABSORPTION

i. The efforts made towards technology absorption:

YourCompanyhasinnovationaspartofitsmotto.Itisalwaysthrivetobeapioneerforadoptionnewtechnologies,whicheitherbeusefulforgeneratingnewbusinessforitscustomersorforitsself-use.Itevaluatesthebestavailabletechnologyforimprovingitsperformanceandqualityofitsserviceoperations.

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

YourCompanyhasadoptednewtechnologytostrengthenits infrastructureintheUS,whichis leveragedbymanycustomersthathashelpedgivingtopqualityuninterruptedservices.Ithasadoptednewtechnologiestoapplytosolvechallengesfacedbycustomers.

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

YourCompanyhasnotimportedtechnologyduringthethreeprecedingyearsunderreview.

iv. Expenditure incurred on Research and Development:

YourCompanyhasbeencontinuouslyworkingoninnovativeprojects,whichareeitherpartof-

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

14. FOREIGN EXCHANGE EARNINGS AND OUTGO:

ThedetailsoftheForeignExchangeearnedintermsofActualInflowsandtheForeignOutflowduringtheyearintermsofActualOutflowsareasfollows:

(`InLakhs)

Particulars 2019-20 2018-19Earnings 3,595 4,342Outflow(includingCapitalimports) 229 114NetForeignExchangeEarnings(NFE) 3,366 4,228NFE/Earnings(%) 94 97

15. MANAGEMENT DISCUSSION AND ANALYSIS:

IntermsofRegulation34oftheListingRegulations,theManagementDiscussionandAnalysisReport,capturingtheCompany’sperformance,industrytrendsandothermaterialchangeswithrespecttotheCompanyanditsSubsidiaries,whereverapplicable,arepresentedinaseparatesectionformingapartofthisAnnualReport.

16. CORPORATE GOVERNANCE:

YourCompanybelievesinadoptingbestpracticesofCorporateGovernance.CorporateGovernanceprinciples,whichformthecorevaluesoftheCompany.TheseguidingprinciplesarealsoarticulatedthroughtheCompany’scodeofbusinessconduct,CorporateGovernanceGuidelines,asperScheduleVofListingRegulations,theAuditors’certificateonCorporateGovernanceis



annexedtotheBoards’Report.TherequisitecertificatefromthePracticingCompanySecretary,confirmingcomplianceoftheconditionsofCorporateGovernanceisattachedtotheReportonCorporateGovernance.

17. EXTRACT OF ANNUAL RETURN:

Pursuanttosection92(3)andsection134(3)(a)oftheCompaniesAct,2013readwithRule12oftheCompanies(ManagementandAdministration)Rules,2014,anextractoftheAnnualReturnasonMarch31,2020is inFormMGT-9whichisannexedas“Annexure III’’ tothisreport.

Further, theCompanyhasalsoplacedacopyoftheAnnualReturnoftheFinancialYear2018-2019, filedwiththeMinistryofCorporateAffairsonthewebsitei.e.www.alieddigital.net

18. ANNUAL EVALUATION:

TheevaluationframeworkforassessingtheperformanceofDirectorsoftheCompanycomprisesofcontributionsatthemeetings,strategicperspectiveorinputsregardingthegrowthandperformanceoftheCompany,amongothers.

PursuanttotheprovisionsoftheCompaniesAct,2013andtheListingRegulations,theDirectorshavecarriedouttheAnnualPerformanceEvaluationoftheBoard,IndependentDirectors,Non-ExecutiveDirectors,ExecutiveDirectors,CommitteesandtheChairmanoftheBoard.

TheNominationandRemunerationCommitteeconsideredanddiscussedtheinputsreceivedfromtheDirectorsandtheoutcomeofsuchevaluationprocesswassatisfactory,whichreflectedtheoverallengagementoftheBoardanditsCommitteeswiththeCompany.

Further,theIndependentDirectorsattheirmeetingheldonFebruary04,2020,reviewedtheperformanceoftheBoard,ChairmanoftheBoard,ExecutiveandNon-ExecutiveDirectors.

19. FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS:

In compliance with the requirements of Listing Regulations, your 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:

Your Company has formulated and published aWhistle Blower Policy to provide Vigil Mechanism for employees includingDirectorsoftheCompanytoreportgenuineconcernsandtoensurestrictcompliancewithethicalandlegalstandardsacrosstheCompany.TheprovisionsofthisPolicyareinlinewiththeprovisionsoftheSection177(9)oftheCompaniesAct,2013readwithRule7oftheCompanies(MeetingsofBoardanditsPowers)Rules,2014.

TheemployeesofyourCompanyhavetherighttoreporttheirconcernorgrievancetotheChairmanoftheAuditCommittee.YourCompanyiscommittedtoadheretothehigheststandardsofethical,moralandlegalconductofbusinessoperations.TheWhistleBlowerPolicyishostedonthewebsiteoftheCompanyat:

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



21. AUDITORS AND REPORTS:

ThemattersrelatedtoAuditorsandtheirReportsareasunder:

a. Statutory Auditors

At theTwenty FifthAnnualGeneralMeetingheldonSeptember 10, 2019, M/s. Shah&Taparia, CharteredAccountant,Mumbai(FirmRegistrationNo.109463W)wasappointedasStatutoryAuditorsoftheCompanyforsecondtermoffiveyearsi.e.conclusionofTwentyFifthAnnualGeneralMeetinguntilconclusionofThirtiethAnnualGeneralMeetingoftheCompany.

TheAuditor’sReporttotheShareholdersfortheFinancialYearendedonMarch31,2020doesnotcontainanyqualificationorobservation.ThenotestoaccountsreferredtoinAuditors’Reportareself-explanatory,andtherefore,donotcallforanyfurtherexplanationorcommentsfromtheBoard.

b. Secretarial Auditors

TheBoardhadappointedM/s.Rathi&Associates,CompanySecretariesasSecretarialAuditorsforthefinancialyear2019-20.SecretarialAuditReportissuedbytheminFormMR-3forthefinancialyear2019-20formspartofthisreportandmarkedas“Annexure IV”.

ThecommentsonthespecificobservationsmadeintheaboveSecretarialAuditReport(whichissubjecttoverificationoffinancialstatementsfortheyearendedMarch31,2020anddocumentsfiledundertheprovisionsofFEMAinrespectoftheOverseasDirectInvestment)areasunder:-

- The Company had allotted 2186667 Equity Shares to Mr. Nitin Dhanji Shah and 1832134 Equity Shares toMr.PrakashDhanjiShah,PromotersoftheCompanyinDematerializedForm.Hence,thesaidsharesareshownintheDEMATformintheshareholdingpatternoftheCompany.Further,thecorporateactionprocedureforcreditofthesaidshareswascompletedduringFinancialYear2019-20andtradingapprovalswerereceivedinFebruary2020.

- TheCompanywillensuretimelypaymentoftheAnnualListingFeestoStockExchanges.

- Theentirepre-preferentialshareholdingofMr.NitinDhanjiShahandMr.PrakashDhanjiShaharepresentlylocked-inasrequiredunderthelaw.

c. Internal Auditor

PursuanttotheprovisionsofSection138andSection179(3)oftheCompaniesAct,2013,M/s.SatyaPrakashNatani&Co.(FirmRegistrationNo.115438W),MumbaiisappointedastheInternalAuditorsoftheCompanyfortheFinancialYear2020-21.

TheAuditCommitteehasacceptedalltherecommendationoftheInternalAuditors.

d. COMPLIANCE WITH SECRETARIAL STANDARDS

YourCompanycomplieswithallapplicablemandatorySecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia.

22. INTERNAL FINANCIAL CONTROL AND ITS ADEQUACY:

TheBoardhaslaiddownInternalFinancialControlstobefollowedbytheCompany.YourCompanyhasadoptedpoliciesandproceduresforensuringtheorderlyandefficientconductof itsbusiness, includingadherencetotheCompany’spolicies,thesafeguardingofitsassets,preventionanddetectionoffraudsanderror,reportingmechanisms,accuracyandcompletenessoftheaccountingrecords,andtimelypreparationofreliablefinancialdisclosures.



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

InformationrequiredpursuanttoSection197(12)oftheCompaniesAct,2013readwithRule5(1)ofTheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isprovidedas“Annexure V”tothisreport.

FurtherdetailswithregardstopaymentofremunerationtoDirectorsandKeyManagerialPersonnelareprovidedinFormNo.MGT-9,ExtractofAnnualReturnappendedas“Annexure III”.

24. PARTICIPATION IN THE GREEN INITIATIVE:

IncommitmenttokeepinlinewiththeGreenInitiativeundertakenbytheMinistryofCorporateAffairs(MCA)andSecuritiesandExchangeBoardofIndia(SEBI),electroniccopiesoftheAnnualReport2019-20alongwiththeNoticeofAnnualGeneralMeetingweresenttoallthememberswhoseemailaddressesareregisteredwiththeCompany/DepositoryParticipant(s)/RegistrarandShareTransferAgent.

Also,alltheMembersarerequestedtojointhesaidprogrambysendingtheirpreferrede-mailaddressestotheRegistrarandShareTransferAgent.

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

YourCompanyhasalwaysbelievedinprovidingasafeandharassmentfreeworkplaceforeveryindividualworkinginitspremisesthroughvariouspoliciesandpractices.YourCompanyalwaysendeavourstocreateandprovideanenvironmentthatisfreefromdiscriminationandharassmentincludingsexualharassment.Accordingly,yourCompanyhasadoptedapolicyonprevention,prohibitionandredressalofsexualharassmentatworkplaceinlinewiththeprovisionsoftheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andtheRulesthereunder.

DuringtheyearendedMarch31,2020,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:

YourCompany’srobustriskmanagementframeworkidentifiesandevaluatesalltherisksthattheorganizationfacessuchasstrategic, financial,credit,market, liquidity,security,property, legal, regulatory, reputationalandother risks.YourCompanyrecognizesthattheserisksneedtobemanagedandmitigatedtoprotectitsshareholdersandotherstakeholders,toachieveitsbusinessobjectivesandenablesustainablegrowth.TheriskframeworkisaimedateffectivelymitigatingtheCompany’svariousbusinessandoperationalrisks,throughstrategicactions.Riskmanagementis integralpartofourcriticalbusinessactivities,functionsandprocesses.Therisksarereviewedforthechangeinthenatureandextentofthemajorrisksidentifiedsincethelastassessment.Italsoprovidescontrolmeasuresforrisksandfutureactionplans.

YourCompanybelievesthattheoverallriskexposureofpresentandfuturerisksremainswithinit’sriskcapacity.

28. FRAUD REPORTING:

During theyearunder review, therewerenomaterialor serious instancesof fraud fallingwithin thepurviewofSection143(12)oftheCompaniesAct,2013andrulesmadethereunder,byofficersoremployeesreportedbytheStatutoryAuditorsoftheCompanyduringthecourseoftheauditconducted.



29. GENERAL:

TheDirectorsstatesthat,nodisclosureorreportingisrequiredinrespectofthefollowingitemsastherearenotransactionsontheseitemsduringtheyearunderreview:

1. Issueofequityshareswithdifferentialrightsastodividend,votingorotherwise;

2. Issueofshares(includingsweatequityshares)toemployeesoftheCompanyunderanyscheme;

3. NeithertheManagingDirectornortheWhole-timeDirectoroftheCompanyreceivedanyremunerationorcommissionfromanyofitssubsidiaries.

30. ACKNOWLEDGEMENT:

TheBoardwishestoplaceonrecorditssincereappreciationofthecontributionsmadebytheemployeesofyourCompanyanditssubsidiariesduringtheyearunderreview.TheDirectorsofyourCompanythankit’scustomers,clients,vendorsandotherbusinessassociatesfortheircontinuedsupportintheCompany’sgrowth.

TheDirectorsalsoexpresstheirdeepsenseofgratitudetotheGovernmentAuthorities,Banks,FinancialInstitutionsandotherStakeholdersfortheirsupportandlookforwardtotheircontinuedassistanceinfuture.

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: July 30, 2020 DIN: 00189903 DIN: 00189842



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Part “B”: Associates and Joint VenturesStatementpursuanttoSection129(3)oftheCompaniesAct,2013relatedtoAssociateCompaniesandJointVentures

(InformationinrespectofeachassociateispresentedwithamountsinLakhs)

Sr.No.

Name of the Associates / Joint Ventures

Assetlite Equipment India Private Limited

Softshell Systems India Private Limited

Allied CNT Solutions Private Limited

1 LatestauditedBalanceSheetdate March31,2020 March31,2020 March31,20202 SharesofAssociates/JointVenturesheld

bythecompanyontheyearendNoofshares - 117924 142,000AmountofInvestmentinofAssociates/JointVentures

- 600.00 14.00

ExtentofHolding - 20.34 47.333 Descriptionofhowthereissignificant

influenceCommonDirectorshipin

theCompanyEquityshareholdingofmorethan20%ofthe

totalcapital

Equityshareholdingofmorethan20%ofthe

totalcapital4 ReasonswhytheAssociate/Joint

VentureisnotconsolidatedFinancialStatementsofaforesaidassociate

Companyisconsolidated

FinancialStatementsofaforesaidassociate

Companyisconsolidated

FinancialStatementsofaforesaidassociate

Companyisconsolidated5 NetworthattributabletoShareholding

asperlatestauditedBalanceSheet43.00 654.17 (3.11)

6 Profit/Lossfortheyear i.ConsideredinConsolidation - 2.46 - ii.NotConsideredinConsolidation - - -





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(the“CSRCommittee”)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: ` 1482.33 Lakhs

4. Prescribed CSR Expenditure (two percent of the amount as per item 3 above): ` 29.65 Lakhs

5. Details of CSR spent during the financial year:

a) Totalamountspentforthefinancialyear:`0.50Lakhsb) Amountunspent,ifany:`29.15Lakhsc) MannerinwhichtheamountspentduringF.Y.20isdetailedbelow:

(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. DonationforChildrenEducation

PromotingEducations

amongChildren

MumbaiMaharashtra

`0.50Lakhs `0.50Lakhs `0.50Lakhs Direct



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

TheCompanyisintheprocessofidentifyingtheactivitiestospenditsCSRExpenditureswisely.

7. Responsibility Statement:

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

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

Nitin Shah Shubhada JahagirdarPlace: Mumbai Chairman and Managing Director Chairperson of CSR CommitteeDate: July 30, 2020 DIN: 00189903 DIN: 00895950



ANNEXURE III

FORM MGT-9EXTRACT OF ANNUAL RETURN

AsonfinancialyearendedonMarch31,2020[Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the

Companies (Management and Administration) 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,Block

III,NarimanPoint,Mumbai–400021.Tel:+912266816400Fax:+912222822030Email:[email protected];Website:www.allieddigital.net

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

LinkIntimeIndiaPrivateLimitedCIN:U67190H1999PTC118368C-101, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West),Mumbai–400083.Tel.No.:+912249186270FaxNo.:+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:-

Sl. 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-owned

Subsidiary

100 2(87)

3 ALLIED DIGITAL SINGAPORE PTE LTD Address:28BukitPasohRoadYeeLanCourtSingapore089842

201021848K Wholly-owned

Subsidiary

100 2(87)

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

146376918 Wholly-owned

Subsidiary

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:PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,NarimanPoint,Mumbai–400021,India

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-owned

Subsidiary

100 2(87)

8 ALLIED DIGITAL SERVICES OY. Address:KalliolawAsianajotoimistoEtelaranta1200130Helsinki,Finland

2917877-7 Wholly-owned

Subsidiary

100 2(87)

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

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)

12 ALLIED DIGITAL SERVICES (IRELAND) LIMITED Address:ColiemoreHouse,ColiemoreRoad,Dalkey,Co.Dublin

660087 WhollyOwned

Subsidiary

100 2(87)

* 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, 2019)

No. of Shares held at the end of the year (March 31, 2020)

% Change during

the yearDemat Physical Total % of

Total Shares

Demat Physical Total % of Total

SharesA. Promoters(1) Indiana) Individual/HUF 24216368 - 24216368 48.23 24295019 - 24295019 48.39 0.15

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): 24624580 - 24624580 49.04 24703231 - 24703231 49.20 0.15(2) Foreigna) 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)

24624580 - 24624580 49.04 24703231 - 24703231 49.20 0.15

B. Public Shareholding(1) Institutionsa) MutualFunds - - - - - - - - -

b) Banks/FinancialInstitutions - - - - 1441 - 1441 0.00 0.00

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 21441 - 21441 0.04 0.00(2) Non-Institutionsa) Bodiescorporates - - - - - - - - -

i)Indian 1413952 - 1413952 2.81 1353923 - 1353923 2.70 (0.11)

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

b) NBFCregisteredwithRBI - - - - 169000 - 169000 0.34 0.34

c) Individuals

i) Individualshareholdersholdingnominalsharecapitalupto`1lakh

11108208 20106 11128314 22.17 10752734 20106 10772840 21.46 (0.71)



Category of Shareholders No. of Shares held at the beginning of the year (April 1, 2019)

No. of Shares held at the end of the year (March 31, 2020)

% Change during

the yearDemat Physical Total % of

Total Shares

Demat Physical Total % of Total

Sharesii) Individualshareholdersholding

nominalsharecapitalinexcessof`1lakh

7661663 30000 7691663 15.32 8354124 30000 8384124 16.70 1.38

d) Others

d-i)ClearingMember 205720 - 205720 0.41 36407 - 36407 0.07 (0.34)

d-ii)ForeignNationals - - - - - - - - -

d-iii)NRI(Repat) 623767 - 623767 1.24 485550 - 485550 0.97 (0.27)

d-iv)NRI(Non-Repat) 1884402 - 1884402 3.75 1883049 - 1883049 3.75 -

d-v)ForeignCompanies - - - - - - - - -

d-vi)HinduUndividedFamily 1123130 - 1123130 2.24 905963 - 905963 1.80 (0.44)

Sub-total(B)(2): 24020842 1540106 25560948 50.91 23940750 1540106 25480856 50.76 (0.15)Total Public Shareholding (B)=(B)(1)+(B)(2)

24040842 1540106 25580948 50.95 23962191 1540106 25502297 50.80 (0.15)

C. Shares held by Custodian for GDRs & ADRs

- - - - - - - - -

Grand Total (A+B+C) 48665422 1540106 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

% change in share holding during

the year

No. of Shares

% of total Shares of the

Company

% of Shares

Pledged/ encum-bered

to total shares

No. of Shares

% of total Shares of the

Company

% of Shares

Pledged/ encum-bered

to total shares

1. NitinDhanjiShah 14783031 29.45 - 14783031 29.45 - -2. PrakashDhanjiShah 8178348 16.29 3.03 8178348 16.29 - -3. TejalPrakashShah 1198000 2.34 1.99 1198000 2.39 - -4. RohanShah 35500 0.07 - 86095 0.17 - 0.105. NehalShah 20489 0.04 - 48545 0.09 - 0.056. DharaShah 500 0.00 - 500 0.00 - -7. RameshManilalShah 500 0.00 - 500 0.00 - -8. VivilInvestmentsPvt.Ltd. 187150 0.37 - 187150 0.37 - -9. KotakMahindraTrusteeshipServices

Limited127440 0.25 - 127440 0.25 - -

10. PrakashShahactingasBeneficiary&familytrusteeofPadmaPragnaPrivateTrust

93622 0.19 - 93622 0.19 - -

Total 24624580 49.05 5.02 24703231 49.20 - 0.15



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 29.45There is no change in the absoluteshareholdingduringtheyear.

- -

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

There is no change in the absoluteshareholdingduringtheyear.

- -

Attheendoftheyear N.A. N.A. 8178348 16.293. Tejal Prakash Shah 1198000 2.39 1198000 2.39

There is no change in the absoluteshareholdingduringtheyear.

- -

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

Add: 27.03.2020 31635 0.06 67135 1.33Add: 31.03.2020 18960 0.04 86095 0.17

Attheendoftheyear N.A. N.A. 86095 0.175. Nehal Shah 20489 0.04 20489 0.04

Add: 04.10.2019 10000 0.02 30489 0.06Add: 11.10.2019 10011 0.02 40500 0.08Add: 31.03.2020 8045 0.02 48545 0.10Attheendoftheyear N.A. N.A. 48545 0.10

6. Dhara Shah 500 0.00 500 0.00There is no change in the absoluteshareholdingduringtheyear

- -

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

There is no change in the absoluteshareholdingduringtheyear

- -

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



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, 2019)

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

31, 2020)No. of Shares % of total

shares of the company

No of shares % of total shares of the

company1 COLLAB9 INC (FORMLY KNOWN AS “EN POINTE

TECHNOLOGICS SALES INC”) Atthebeginningoftheyear-01.04.2019 1490000 2.97 1490000 2.97 AttheEndoftheyear(oronthedateofseparation,

ifseparatedduringtheyear)31.03.2020N.A. N.A. 1490000 2.97

2 K S GOPALASWAMY Atthebeginningoftheyear-01.04.2019 1212528 2.42 1212528 2.42 AttheEndoftheyear(oronthedateofseparation,


3 SURESH AYODYA MAHADEVAN Atthebeginningoftheyear-01.04.2019 520000 1.04 520000 1.04 AttheEndoftheyear(oronthedateofseparation,


4 JIMMY JEHANGIR PARAKH Atthebeginningoftheyear-01.04.2019

5676351.13 567635 1.13

Less: 09.08.2019 MarketSale (4995) 0.01 562640 1.12Less: 16.08.2019 MarketSale (12000) 0.02 550640 1.10Less: 23.08.2019 MarketSale (5029) 0.01 545611 1.09Less: 30.08.2019 MarketSale (16514) 0.03 529097 1.05Less: 06.09.2019 MarketSale (4004) 0.01 525093 1.05Less: 13.09.2019 MarketSale (8481) 0.02 516612 1.03Less: 20.09.2019 MarketSale (26977) 0.05 489635 0.98Less: 15.11.2019 MarketSale (19137) 0.04 470498 0.94Less: 29.11.2019 MarketSale (37000) 0.07 433498 0.86AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A 433498 0.86

5 NITIN GORDHANBHAI THAKKER Atthebeginningoftheyear-01.04.2019 342377 0.68 342377 0.68 AttheEndoftheyear(oronthedateofseparation,


6. ROHINI KUMAR GUPTA Atthebeginningoftheyear-01.04.2019 302418 0.60 302418 0.60

Less: 26.04.2019 MarketSale (29999) (0.06) 272419 0.54Add: 03.05.2019 MarketPurchase 10000 0.02 282419 0.56Add: 10.05.2019 MarketPurchase 9777 0.02 292196 0.58Add: 17.05.2019 MarketPurchase 2500 0.00 294696 0.59Add: 24.05.2019 MarketPurchase 6680 0.01 301376 0.60



Sr. No






companyAdd: 31.05.2019 MarketPurchase 26313 0.05 327689 0.65Add: 07.06.2019 MarketPurchase 32648 0.07 360337 0.72Add: 14.06.2019 MarketPurchase 29751 0.06 390088 0.78Add: 05.07.2019 MarketPurchase 21000 0.04 411088 0.82Add: 09.08.2019 MarketPurchase 12660 0.03 423748 0.84Add: 16.08.2019 MarketPurchase 4000 0.01 427748 0.85Add: 30.08.2019 MarketPurchase 13000 0.03 440748 0.88Less: 13.09.2019 MarketSale (8300) (0.02) 432448 0.86Less: 20.09.2019 MarketSale (74583) (0.15) 357865 0.71Less: 27.09.2019 MarketSale (5000) (0.01) 352865 0.70Add: 30.09.2019 MarketPurchase 10000 0.02 362865 0.72Less: 18.10.2019 MarketSale (3514) (0.01) 359351 0.72Add: 25.10.2019 MarketPurchase 150 0.00 359501 0.72Add: 08.11.2019 MarketPurchase 4000 0.01 363501 0.72Add: 15.11.2019 MarketPurchase 58913 0.12 422414 0.84Less: 22.11.2019 MarketSale (122852) (0.24) 299562 0.60Less: 29.11.2019 MarketSale (96062) (0.19) 203500 0.41Less: 06.12.2019 MarketSale (32000) (0.06) 171500 0.34Less: 17.01.2020 MarketSale (11002) (0.02) 160498 0.32Less: 31.01.2020 MarketSale (33431) (0.07) 127067 0.25Add: 07.02.2020 MarketPurchase 66913 0.13 193980 0.39Less: 14.02.2020 MarketSale (16977) (0.03) 177003 0.35Add: 13.03.2020 MarketPurchase 51607 0.10 228610 0.46Add: 20.03.2020 MarketPurchase 54200 0.11 282810 0.56Add: 27.03.2020 MarketPurchase 963 0.00 283773 0.57

AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A. 283773 0.57

7 JHAVERI SATISHKUMAR UMEDLALAtthebeginningoftheyear-01.04.2019 250940 0.50 250940 0.50AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A. 250940 0.50

8 PREETI TUSHAR PAREKHAtthebeginningoftheyear-01.04.2019 208500 0.42 208500 0.42Add: 26.04.2019 MarketPurchase 20000 0.04 228500 0.46Add: 09.08.2019 MarketPurchase 6500 0.01 235000 0.47AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A. 235000 0.47



Sr. No






company9 SHARAD RAMANLAL DESAI

Atthebeginningoftheyear-01.04.2019 250000 0.50 250000 0.50Add: 10.05.2019 MarketPurchase 5000 0.01 255000 0.51Add: 21.06.2019 MarketPurchase 10000 0.02 265000 0.53Add: 16.08.2019 MarketPurchase 3000 0.01 268000 0.53Add: 23.08.2019 MarketPurchase 7000 0.01 275000 0.55Less: 30.08.2019 MarketSale (250) 0.00 274750 0.55Less: 20.09.2019 MarketSale (6500) (0.01) 268250 0.53Less: 27.09.2019 MarketSale (1000) 0.00 267250 0.53Add: 08.11.2019 MarketPurchase 2100 0.00 269350 0.54Less: 29.11.2019 MarketSale (10501) (0.02) 258849 0.52Add: 06.12.2019 MarketPurchase 4347 0.01 263196 0.52Add: 13.12.2019 MarketPurchase 583 0.00 263779 0.53Less: 17.01.2020 MarketSale (1592) 0.00 262187 0.52Less: 31.01.2020 MarketSale (13187) (0.03) 249000 0.50Less: 07.02.2020 MarketSale (9428) (0.02) 239572 0.48Less: 14.02.2020 MarketSale (14000) (0.03) 225572 0.45Less: 06.03.2020 MarketSale (2500) 0.00 223072 0.44Less: 20.03.2020 MarketSale (3000) (0.01) 220072 0.44Less: 27.03.2020 MarketSale (2000) 0.00 218072 0.43AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A. 218072 0.43

10 RAJENDRA RAJARAM DHOLEAtthebeginningoftheyear-01.04.2019 205000 0.41 205000 0.41AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A. 205000 0.41

11. ARCO ELECTRO TECHNOLOGIES PRIVATE LIMITED*Atthebeginningoftheyear-01.04.2019 177000 0.35 177000 0.35AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)31.03.2020

N.A. N.A. 177000 0.35

* Not in the list of Top 10 shareholders as on 31-03-2020. The same has been reflected above since the shareholder were Top 10 shareholders during 01-04-2019.



v. SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

Sr.No. For each of the Directors and KMP

Shareholding at the beginning of the year (April 1, 2019)

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)(31.03.2020)

N.A. N.A. 14783031 29.45

2. Prakash Dhanji Shah 8178348 16.29 8178348 16.29AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. 8178348 16.29

3. Nehal Nitin Shah 20489 0.04 20489 0.04Add: 13.04.2018 10000 0.02 30489 0.06Add: 20.07.2018 10011 0.02 40500 0.08Add: 31.03.2020 8045 0.02 48545 0.10AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. 48545 0.10

4. Venugopal Ramaswami Iyengar NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. NIL 0

5. Shrikant Navnitlal Parikh NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. NIL 0

6. Shubhada Keshav Jahagirdar NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. NIL 0

7. Paresh Bipinchandra Shah NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. NIL 0

8. Gopal Tiwari NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.03.2020)

N.A. N.A. NIL 0

9. Neha Sunil Bagla NIL 0 NIL 0AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)(31.08.2020)

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 financial year(01.04.2019)

3203 3246 16

ChangeinIndebtednessduringthefinancialyear (765) (515) (10)Indebtednessattheendofthefinancialyear(31.03.2020) 2438 2731 6



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/Manager Total Amount (in Lakhs)Nitin Shah

Chairman & Managing Director

Prakash Shah Whole-time Director

1 Grosssalary (a)Salary as per provisions contained in section

17(1)oftheIncomeTaxAct,196199.30 49.65 148.95

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

- - -

(c)Profits in lieu of salary under section 17(3) oftheIncomeTaxAct,1961

- - -

2 Stockoption - - -3 SweatEquity - - -4 Commission - - - as%ofprofit - - - others(specify) - - -5 Others,pleasespecify - - - Total (A) 99.30 49.65 148.95

B. REMUNERATION TO OTHER DIRECTORS:

(`inLakhs)Sl. No

Particulars of Remuneration Name of the Directors Total Amount

1 Independent Directors

(a)Feeforattendingboard/committeemeetings* Mr.ShrikantNavnitlalParikh 1.55Mr.VenugopalRamaswamiIyengar 1.44Ms.ShubhadaKeshavJahagirdar 1.05

(b)Commission - (c)Others,pleasespecify - Total (1) 4.04 2 Other Executive Directors: - (a)Feeforattendingboard/committeemeetings - (b)Commission - (c)Otherspleasespecify Mr.NehalShah 7.20 Total (2) 7.20 3 Other Non-Executive Directors (a)Feeforattendingboard/committeemeetings - (b)Commission - (c)Others,pleasespecify - Total (3) - Total (1+2+3) 11.24 Total Managerial Remuneration 11.24 OverallCeilingaspertheCompaniesAct,2013 N.A.

* The amount includes sitting fees paid for attending Board Meeting, Audit Committee Meeting, Nomination and Remuneration Committee Meeting, Stakeholders Relationship Committee and Corporate Social Responsibility Committee.



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)Salary as per provisions

containedinsection17(1)oftheIncomeTaxAct,1961

35.63 7.92 11.57 55.12

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

- - - -

(c)Profits in lieu of salary undersection 17(3) of the IncomeTaxAct,1961

- - - -

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

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

5 Others - - - - Total 35.63 7.92 11.57 55.12

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. DIRECTORSPenalty

NILPunishmentCompoundingC. OTHER OFFICERS IN DEFAULTPenalty

NILPunishmentCompounding

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

Nitin Shah Prakash ShahPlace : Mumbai Chairman and Managing Director Whole-time DirectorDate : July 30, 2020 DIN: 00189903 DIN: 00189842



ANNEXURE IV

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED MARCH 31, 2020

[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,TheMembersAllied Digital Services LimitedMumbai

DearSirs,

WehaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticebyAlliedDigitalServicesLimited (hereinaftercalled“theCompany”).SecretarialAuditwasconducted inamanner thatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

BasedonourverificationoftheCompany’sBooks,Papers,MinutesBooks,FormsandReturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationandexplanationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,theCompanyhas,duringtheauditperiodcoveringtheFinancialYearendedMarch31,2020compliedwiththestatutoryprovisionslistedhereunder,andalsothattheCompanyhasproperBoardprocessesandcompliancemechanisminplacetotheextent, inthemannerandsubjecttothereportingmadehereinafter,howeversubjecttoverificationof:

Wehaveexaminedthebooks,papers,minutesbooks,formsandreturnsfiledandotherrecordsmaintainedbyAllied Digital Services Limited (“theCompany”)fortheFinancialYearendedonMarch31,2020,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 Direct

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

i. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;ii. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;iii. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“Listing

Regulations,2015”);andiv. theSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009whichwas

effectivetillNovember9,2018andTheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018witheffectfromNovember10,2018;

ProvisionsofthefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’)werenotapplicabletotheCompanyduringthefinancialyearunderreport:-

i. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;ii. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993;iii. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009and;iv. 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,LawsandRegulationsapplicablespecificallytotheCompanyi.e.InformationTechnologyAct,2000asamendedfromtimetotime;



During the financialyearunder 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,2015statesthat,“The listed entity shall ensure that hundred percent of shareholding of promoter(s) and promoter group is in dematerialized form and the same is maintained on a continuous basis in the manner as specified by the Board.”

Asregardsatotalof4018801equitysharesallottedtothetwopromoters of the company towards conversion of warrantson 14 August 2014, the Company has stated that the saidshares were allotted in demat form and accordingly shownthesaidsharesasdematshares in itsquarterlyshareholdingpattern filed for June 2019, September 2019 and December2019.However asper theRTA’s records , the said shares arementioned as physical shares due to the fact that corporateaction procedure for credit of said shares in the respectivedemataccountsofthetwopromoterswascompletedduringFY2019-20andtradingapprovalswerereceivedinFebruary2020.

2. Regulation14ofListingRegulations,2015statesthat,“The listed entity shall pay all such fees or charges, as applicable, to the recognised stock exchange(s), in the manner specified by the Board or the recognised stock exchange(s).”

-

3. Regulation 167 (6) [Regulation 78 (6) of SEBI (ICDR)Regulations, 2009] of SEBI (ICDR) Regulations, 2018 statesthat,“the entire pre-preferential allotment shareholding of the allottees, if any, shall be locked-in from the relevant date upto a period of six months from the date of preferential allotment.”

The Trading approval is received by Mr. Nitin Shah andMr. Prakash Shah from stock exchanges(s) [Bombay StockExchangeandNationalStockExchange]onFebruary04,2020andFebruary17,2020respectively.

We further report that:

TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThecompositionoftheBoardofDirectorsduringthefinancialyearunderreportwasincompliancewiththeprovisionsoftheAct.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentat leastsevendays inadvance,andasystemexists for seekingandobtaining further informationandclarificationson theagenda itemsbeforethemeetingandformeaningfulparticipationatthemeeting.

Noneofthedirectorshavecommunicateddissentingviews,inthematters/agendaproposedfromtimetotimeforconsiderationoftheBoardanditsCommitteesthereof,duringtheyearunderthereport,hencedissentingviewswerenotrequiredtobecapturedandrecordedaspartoftheminutes.

WefurtherreportthatthereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Wefurtherreportthatduringtheauditperiodtherewerenospecificevents/actionshavingamajorbearingontheCompany’saffairs.

For RATHI & ASSOCIATES COMPANY SECRETARIES

HIMANSHU S. KAMDAR PARTNER FCS No. 5171Date : July 14, 2020 C.P. No. 3030Place : Mumbai UDIN: F005171B000452420

Note:ThisreportshouldbereadwithourletterwhichisannexedasAnnexure-Iandformsanintegralpartofthisreport.



ANNEXURE – I

ToTheMembersAllied Digital Services LimitedMumbai

DearSirs,

Ourreportofevendateistobereadalongwiththisletter.

1. MaintenanceofSecretarialrecordistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. WehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestcheckbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpracticesthatwefollowedprovideareasonablebasisforouropinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4. Whereverrequired,wehaveobtainedtheManagementRepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

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

6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.


HIMANSHU S. KAMDAR PARTNER FCS No. 5171Date : July 14, 2020 C.P. No. 3030Place : Mumbai UDIN: F005171B000452420



ANNEXURE V

DETAILS OF REMUNERATION

DetailspertainingtoremunerationasrequiredunderSection197(12)oftheCompaniesAct,2013readwithRule5(1)ofCompanies(AppointmentandRemunerationofManagerialPersonnel)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 2019-20 and the percentage increase in remuneration of each Director during the Financial Year 2019-20 are as under:

Sr. No.

Name and Designation of Director Remuneration (` In Lakhs)

% Increase in Remuneration in

the Financial Year 2019-20

Ratio

1. Mr.NitinShah,Chairman&ManagingDirector 99.30 32.21 32.102. Mr.PrakashShah,Whole-timeDirector 49.65 28.89 16.053. Mr.NehalShah,Director 7.20 - 2.274. Dr.ShrikantParikh,IndependentDirector# N.A. - -5. Mr.VenugopalIyengar,IndependentDirector# N.A. - -6. Ms.ShubhadaJahagirdar,IndependentDirector# N.A. - -7. Mr.PareshShah,ChiefExecutiveOfficer 11.57 - -8. Mr.GopalTiwari,ChiefFinancialOfficer 35.63 - -9. Ms.NehaBagla,CompanySecretary 7.92 - -

# Non-Executive Directors have received only sitting fees and no other remuneration have been paid to them.

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

TheMedianremunerationoftheemployeesis`3,09,324inthefinancialyear2019-20ascomparedto`2,69,293inthefinancialyear2018-19.Hencethereisanincreaseof14.87%inmedianremunerationinthefinancialyear2019-20.

iii. There where 680 permanent employees on the rolls of Company as on 31st March, 2020.

iv. Average percentile increase 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:

Thesaidincreaseinthesalariesofemployeeswasinlinewiththeindividualperformanceoftheemployees,projectrequirements,marketprojectioninthefinancialyear2019-20.TheincreaseintotalmanagerialremunerationwaslinkedwiththeimprovementintheoverallperformanceoftheCompany.

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.




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Industry Overview

Global Overview

Theuncertaintyandunpredictabilitybrought inbythepandemicCovid-19,has impacteda largenumberof industriesacrosstheworld.Developedanddevelopingcountriesalike,havebeenimpacted,andtheglobaleconomicgrowthisstalled.AccordingtosurveyofCFOsbyBCG,‘COVID-19CFOPulseSurvey’,78%oftheCFOspredictthatsaleswilldecline.

With no signs of definitive recovery path, the intelligentsia are struggling to predict the future socio-economic scenarios. Thecommutativemacro-economicimpactanditsimplicationsonITindustryisstillbeingstudied.Itisthushardtopredicttheoutlookfortheyear2020-21.Aswewritethis,USandIndiafaceagrowingcrisis,evenasEuropeisshowingsignsofrecovery.

Amidst the slowdown, a few industries havebeen called to the front andhealthcare is one of them. Theundisputable role of apreventivevaccineforcoronavirus,seemstobethemagicbulleteachcountryishopingfor.Theinvestmentsarethusflowingintodrugdiscovery,aswellasinexpansionofhealthcareinfrastructuretohandletheexponentialincreaseofpatients.

TheroleofITasthebusinessenabler,hascometotheforefront.WithinITindustry,theimpacthasbeenvaried.Whilethecompanieslikeours,whichprovideIToperationsservicesaswellastransformativeprojects,arefacingmilderimpact,theheadwindsarefierceforthosecompanieswhichdependsolelyonsoftwaredevelopmentprojectsandproducts.

Thereisasimultaneousdualaskonenterprisestoday.Thereisanacuteneedtokeepthelightson,aswellaschangethebusinessmodels,forreducingoperationalcostsandintroductionofnewerservicelines.TheITinvestmentsareaccordinglyemergingintotwomajorstreams;oneforbusinessresiliencelikecloudmigration,workfromhomesolutionsandcybersecurityandtheothertoidentifynewbusinesslines,RoboticProcessAutomation,AdvancedAnalyticsandAI,andIoT.

Globally,thecloudbusinesscontinuestogrow,includinginIndia.With‘WorkingfromHome’beingthemajorenabler,thereisanincreaseddemand forcollaborativesolutionsandcybersecurity.Machine learning,AIandDatasciencecontinuetodominate thetrainingsspace,atleastforthisyear.Duetoeconomicconstraintsonnewprojectbudgets,weareseeingsmalldampeningofAIandIoTrelatedbusiness.Smartcitysolutionshavesloweddown,asthegovernmentsarebusyhandlingthepandemic.

RemoteServices,onlinemedia,healthcare,FMCG,andtosomeextent logisticscompaniesareexpected toexperiencegrowth. ITindustrywillseealargepartofdemandcominginfromtheseindustries.Thebusinesseswhichutilizethistime,torevisitthebusinessmodelcanvass,traintheirresourcesandideateonnewvaluecreation,willbouncebackhigherandfaster,oncethetimesimprove.

India Overview

Aswewritethisreport,IndiahasjustcomeamongthetopfivecountriesintermsofnumberofCovid-19cases.Thenumbersareonarapidupwardtrajectory,withnosignsofslowingdownintheimmediatevicinity.Inaddition,thebrewingpoliticalchallengesintheregion,areputtingIndianeconomyinoneofitstoughesttimes.

Thefocusfor Indiancompanies issurvivalthroughbusinesssustainability.A largenumberofcompaniesfacedasuddenneedforbusinesscontinuityplanning,leadingtothedemandforITleadBCP,cloud-basedsolutions,workfromhomeandcybersecurity.WhileIToperationsremainunaffected,thedemandfortransformativesolutionsshouldpickupfromthethirdquarter.

Our Business

ADSLisalsoimpactedbytheunprecedentedbusinessenvironment.Theimpact,however,isnotassevere,sinceyourcompanyhasaholisticportfolio,spanningbothITmodes,“run”and“build”.WehavecontinuedstrongdemandfromIToperationsbusiness(“run”),evenaswewitnesssomeslownessintransformative“build”business.NewtechnologyadoptionandlargetransformationalprojectshasalwaysbeenastrengthatAlliedDigital.

Wehavehadawonderfulyearofgrowthandexhibitedmatureleadershipinfinancialplanning,businesscontinuityplanning,newtechnologyadoptionandcustomerfocus.Theleadershipteamhascontinuedtospendtimeinintrospection,trainingandupgradingthecompanyonnewtechnologiesandre-polishingitsofferings.ADSLhasincreaseditsexpertiseinAI,CyberSecurity,CloudDevOps,

MANAGEMENT DISCUSSION AND ANALYSIS



IoTandRPA.Thismadeourbusinessmodelmuchmoreresilient,relevantonthedimensionsofcustomerintimacyandvalueofferings.Weareatthepolepositionandreadyforthefuturegrowthcycles.

During lockdowntimes,yourcompanyhasshownexemplarysuccess inmanagingoperationsandcustomerssupportseamlessly.Takingadvantageoffullyredundant,highlyavailableITinfrastructureandprocesses,ourglobalworkforcewasabletoseamlesslyworkremotely. Thoseengagedinessential,governmentorhealthservicesonthefieldcontinuetoworkrelentlesslyoncustomerpremises.Thecompanyeducatedallitsemployeesandcontinuestotakeadequateprecautionsfortheirpersonalhealthandsafety.

Core Offering: Infrastructure Management Services

InIndia,justlikepreviousyears,weaddedlargeandmediumdealsinourcoreservicesarea,whichincludesFacilitymanagement,NOCandSOCservices.OurconstantendeavortobringglobalbestpracticestotheIndiacustomersand‘PartnerledSales’modelbroughtpositiveoutcomes.

USoperationscontinuedtogrowinrevenues.OurmeticulousaccountmanagementforglobaldeliveryinServiceDesks,FieldServices,AIbasedSOCandNOC,enabledpenetratingexistingaccounts.Ourdeliveryexcellencecontinuestoearnrecognitionamongstourpartnerbase,andpropellednewcustomerwinsinmultipleindustryverticals. Weexcelledinbringingvaluablecustomerinsightsleveraging,powerfulanalytics. Europeoperationscontinued to runandwinconfidenceof themarket.Unfortunately,due to thecovid-19scenario,thedesiredgrowthrateinEuropehasbeenslightlydeferred.

TheADiTaaSversion5.0isupgradedwithtechnologyrefresh.Itisnowcloudfriendlyandtheupgradationsofferamajorboostforautomationandchatbots.Wewonappreciationsonourcloudservices,forincreasingourDevOpsskillsets,andexemplaryworkonseveralcloudmigrationandsupportinitiatives.Weset-upaglobal“CenterofExcellence”forservicedeliveryinitiatingtheplanofbecomingmarketleaderinITservices.ThefourareasoffocusonareSmartGovernance,“AutomationandAI,“IndustrybenchmarkedStandardization” and “Advanced Training” in new technologies.We added cognitive technologies such as AI, AR/VR, RPA to ourportfolio,toactivatenewrevenuestreamsincomingyears.

Smart Cities Solutions

PuneCityproject,ourfirst,completed18quartersandhastwomorequartersremaining.WecontinuetobringvaluetothepoliceandtheGovernmentofMaharashtraeveninthesetoughtimes.Oureffortshavebeenapplaudedbyvariousdepartments,citizensandmedia.Thereisahighprobabilitythattherewouldbeacontractextensionforatleastayear,ifnotfivemoreyears.Wehavebeenactivelycompletingprojectsinothercities,namelyRajkot,Aurangabad,BidkinandKalyan-Dombivli.

WedevelopedadvancedsolutionsforCovid-19pandemic,suchasbringingintelligentalertsofcrowdgatheringduringthepandemic,automatedcentralizedpublicannouncementsinstreets,Dronebasedsurveillance,tonameafew. Duringtheyear,wecontinuedtosharpen IoTandcomputervision-basedtechnologyskillsets, toenhancesmartcitysolutionsand innovative thermalscanningsolutions.

We re-skilled our engineering services division to address Global IT solution needs, in areas of IoT and camera sensor-basedtechnologies.Wedevelopednewservicerevenuefromglobalmarkets,byleveragingour“MasterSystemIntegration”expertiseinIndia.

Trending Technologies - Artificial Intelligence

Artificialintelligenceisgaininganimportantpositioninalltransformativeprojects.SeverallargecompanieslikeGoogle,MicrosoftandAmazonhavereleasedAIframeworksandMachineLearningtoolsandlibraries,whichwillfurtherbringstrongimpetustotheindustryforAIadoption.

AlliedDigitalstandshighlyinvestedingrowth,byaddingAIcapabilitiestoallitscurrentservices(GlobalserviceDesk,FieldServices,NOCandSOC) .ADiTaaSplatform5.0,hasbuilt-inNaturalLanguageProcessingandintelligentChatbotfeatures.WehaveformedvariousindustryandeducationinstitutepartnershipstopromoteAIinitiatives,deliverenterpriseprojectsandimparttraininginAIandDesignthinking.Withthebeginningofpost-covidera,weforeseeahugedemandforAIskillsetsglobally,andAlliedDigitalisallset,topickupsuchopportunities.



Financial Highlights:

ThekeyfinancialhighlightsoftheCompanyonaconsolidatedbasisforthefinancialyearendedMarch31,2020aregivenbelow:(`inlakhs)

Particulars ConsolidatedFY 2020 FY 2019 Y-o-Y Change

Revenue 33,572 24,384 38%EBITDA 5,324 4,266 25%EBITDA Margin 16% 17% -PBT 2,404 1,452 66%PAT 1,922 1,237 55%PAT Margin 6% 5% -

Key Financial Ratios:

Particulars Standalone ConsolidatedFY 2020 FY 2019 FY 2020 FY 2019

DebtorsTurnover 0.60 0.56 1.66 1.24InventoryTurnover 1.54 1.21 6.85 5.09InterestCoverageRatio 2.34 1.83 4.44 2.45CurrentRatio 2.67 2.52 2.66 2.17DebtEquityRatio 0.10 0.14 0.11 0.14OperatingProfitMargin(%) 32% 31% 22% 20%NetProfitMargin(%) 8% 12% 6% 5%

• DebtorsturnoverratioandInventoryturnoverratiohasimprovedmainlyduetohigherturnoverachievedduringtheyear.

• InterestCoverageRatiohasimprovedduetoconsiderablereductionindebtandreducedfinancecostsduringtheyear.

• TheCompanyreportedNetProfitMarginof8%fortheFY2019-20ascomparedto12%forpreviousyearwhichwashighermainlyduetoexceptionalincomeduringthepreviousfinancialyear.

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

ReturnonNetWorthstandsat1.67%forFY2019-20asagainst2.08%intheFY2018-19.

Key Drivers of Growth

Innovation and Adaptability

AlliedDigital has the clearperspectiveof theutilizing such testing times, to introspect, research the industryofferingsandmapcustomertrends.Yourcompanyisgearedtoadapttothe“newnormal”,beitearlyadoptionofnewtechnologies,scalingnewbarsinservicesthroughinnovationordevelopinginnovativesolutionssuchas“WorkfromHome”,IoTsolutions,Dronebasedsurveillance,SocialdistancingsolutionsoraugmentingnewcognitivefeaturesinADiTaaS. WearesteadfastontheInnovationjourney.HavingadoptedDesignThinkingmethodologiesinthecompany,theleadershipcontinuestoideateandbuildnewcustomersolutionsfornewlydefinedproblems.Wecontinueonourmottoof“Passion,InnovationandTeamwork”.

New markets

Inthesetoughtimes, technology isgoingtobethekeyenabler forbringingbusinessresilience.Asconstant innovatorswithhighdegreeofclientintimacy,weunderstandthatit’stimetosharpenourpencil.Weseeourselvesatathresholdformassivegrowthinthecomingyears.



AlliedDigitalcontinuedtosustainexisting“run”businessbydeliveringexcellentoperationalservicestoitsclientsandscalingnewbenchmarks.Our“build”modeiswellgearedtodeliverservicesandsolutionsinnewtechnologies,andundertaketransformativeprojects,asindustry’sleadingSystemsIntegratorandGlobalTransformationArchitect.

Human Resources

HumanResourcespracticeshavebeenhugelyinstrumentalinthecompany’sgrowth.Onallcounts,beithandlingresourcesefficiently,hiringnewresourcesforrapidlyscalingexistingornewprojects,thehumanresourcedivisionhasbeenapillarofstrength.ThestartofthisyearhasbeenextremelychallengingforourHR.DuringthegrowingCovid-19pandemic,theteamhasplayedaleadershiproleinensuringsmoothservicedeliverybydriving“Workfromhome”policies.Thedepartmenthasbeendrivingcontinuouscommunicationandprovidingextracaretosupportandfieldstaffacrosstheglobe.Theteamreceivedtoolkits foremployeeprotectionandhasactivelyreachedouttoallcustomersformutualco-operation.Inadditiontothisexemplarywork,ithasbeenengagingmanagement,aswellastopskilledresources,intonewtechnologytrainingsandideationworkshops.ThetotalpermanentemployeestrengthasMarch31,2020is680.

Government Initiatives

AIcontinuestobethekeyenablerfornationalgrowth.AlliedDigitalisactivelyinvolvedinpromotingstartupsforincubationand“MakeinIndia”initiatives.Inthefinancialyeargoneby,AlliedDigitalcreatedextracapacitytofueltechnologyandbusinessmentorshiptostartupsaswellastoimparttrainingandawarenessprogramsintheareaofAI,cybersecurity.Newsupportinitiativetodrivestudentinnovationprojectsisplanedwithvariouswell-knownengineeringinstitutes.Indiawillre-startonitsgrowthpathincomingquarters,andofcoursetechnologywillplayasignificantroleinimplementingthetransformation.

Risks and Concerns

Volatile Global Outlook

Likeanyothercorporatewithglobalpresence,theCompanyisexposedtointerestraterisk,currencyfluctuations,creditriskandregulatoryrisks.Company’sinternalauditsensuresarobustriskmanagementreadiness.Risksarereviewedonthequarterlybasisbythemanagement.Thisyeartheaddedriskofglobalslowdownduringthepandemic,isbeingactivelystudiedandearlyindicatorsarebeingexaminedformitigation.

Technology

Technologyisdirectlyrelatedtoinnovationandchangeiseminent.TheCompanyhasbeenconstantlypursuingchangemanagementandinnovation,thusenhancingthepotentialtotapnewbusinessopportunities.TheCompanycontinuouslyengagesintrainingandskilldevelopmentprogramstoupdatetheknowledgebase.AlliedDigitalnowhasaclearroadmapfornextthreeyearsofitsoperationandwillfocusonnewopportunities.ItwillcontinuetoinvestintoR&Dtodevelopnewofferingsacrossthegeographies.

Compliance Risk

Company’soperationsarespreadacrosstheglobeandhenceitbecomesimperativefortheorganizationtocomplywithlegalandregulatorylawsofvariouscountries.Failingtocomplywiththespecificcountry’slawsandregulationmayexposethecompanytolegalandfinancialpenaltiesandalsodilutethebrandimage.Identifiedkeystakeholdersacrosssalesandbusinessunitsandcorporatefunctionsensurecomplianceofallapplicablelawsonacontinuousbasis.Anychangesintheapplicableregulationsareupdatedandmonitoredby respectivedepartments.Thecompanyhasalsoappointed third-partyagencies, tosupportstandardcompliance incertaincountries,forreducinglocalstatutoryrisks.

Delivery Risk

Asthereisimmensecompetitioninstandardcoreservices,thereisaconstantriskoflosingthecustomerorincurringpenaltieswhennotdeliveredtotopmoststandards.Forinstance,thePuneprojectisrunonhighestavailabilitystandards,byADSLandsoaremanysuchglobaloperations.EnsuringhighqualityservicebydeliveringtopSLAsischallenging,butthecompanyhasbeenperformingconsistentlywell. Ithasbeenabletoget timelypayments fromgovernmentandcorporates, thuscontrollingthereceivablesrisk.Globaldeliveryposesmultiplechallenges,butcurrentsuccessstoriesbuildconfidence indeliveringcomplex large-scaleprojects.Thisyear,thestartof“CenterofExcellence”inservicedeliveryisonebigsteptowardsriskreductionandpromotingindirectbusinessgrowth.



Contract Management

Sometimesambiguitiesarecreatedinthescopeofworkwhichleadtounalignedexpectationsfromthepartiesinvolvedintheproject.Wehavestandardizedcertaincontractsandareconstantlyputtingeffortsonstrongercontractmanagementandbuildingdeeperinsightsintocustomer’senvironmenttoavoidrisksofservicefailureatdesiredlevels.

Employee Related Risk

Asatalent-drivenorganization,oneofourkeystrategies,istohavethebesttalent,withhighlyspecializedskillsineachpartofourbusiness.Webalancetherightlevelsattherightlocations,attheappropriatetime,toenhanceourdifferentiationandcompetitiveness.

OurattritionratehasreducedoverthelastyearinIndia,thoughsomechallengeshaveemergedintheUS,asthelocalinflationishigherthanpastfewyears.AlliedDigitalismitigatingrisksbycross-trainingandworkingdiligentlywithin-houseaswellasthirdpartyrecruiters.InEurope,duetoimmigrationlawchanges,thereareattritionissues,butAlliedhasdevelopedaconstantvigilanceinitsdeliveryoperationssothatthecustomerdeliverablesareneveraffected.Thisyear,duetothepandemic,employeehealthhasbeenanimportantfactorandHRhasbeenplayingactiverole.Adequatebusinessinsurancepoliciesarealsoinplaceonerrors,omissionsandgeneralliability.

Internal Control systems

Adequateinternalcontrolsensurethattransactionsareauthorized,recorded,reportedcorrectlyandassetsaresafeguardedagainstloss fromunauthorizeduseordisposition. Inaddition,operational controlsand fraud riskcontrols, cover theentire spectrumofinternalfinancialcontrols.YourcompanyhasputalotofemphasisonimprovingtheinternalcontrolsystemsinmultipleareassuchasFinance,Sales,LegalandHR.

• Infinance,theinternalchecksandbalancesaremanagedbyaformalsystemofinternalaudit.Alertmechanismisinplaceforregulatorychanges.TransitiontoGSTcompliantprocesseswassmooth.TheCompanyhasappointed,M/sS.P.Natani,CharteredAccountants,MumbaiasInternalAuditorsoftheCompanytocarryouttheInternalAudit.

• Onthesalesfront,moreemphasisisgiventocustomercreditchecks,profitabilityandsalesclosures.• Onthedeliveryandoperationsend,weimprovedonalertscommunication,automationandcustomersystemshealthchecks.

Thishasvastlyimprovedtheoverallqualityofdelivery,reducingcustomerconcerns.• IntheUS,newsoftwarehasbeenimplementedformanagingcontracts.WeplantoimplementthesameinIndia.• WehaveembarkedonamajorinitiativeofCMMILevel3compliancethisyear.Theworkisonthelaststageforachievingthe

certificationbeforethisyearend.

Otherinitiativessuchasmanagementperformanceauditwerealsosuccessfullyimplementedlastyear.ThequalitymanagementsystemofthecompanyisISOcertifiedeachyear.

Way Forward

• Lastyear,thecompanyhasbeenonagoodgrowthpath,withmanynewcustomersaddedglobally.Newsmartcityprojectshavebeenadded.Thisyearthoughgloballychallenging,wehopetoweatherthisstormquitewell.

• Thisyearourrevenueswillcontinuefromourexistingcontracts,andalsofromnewbusinessfromareasonablystrongcurrentsalespipeline.

• ThePuneCityprojectiscontinuinginfullswing.Wearequitepositiveofgettingextensionduetoourcontinuinggoodperformance.• Thecompanyhasenteredintonewpartnershipsacrosstheglobe,whichwillfurtherenhancesalesinUS,EuropeandIndia.• Managementplanstocontinuewithcostcontrolmeasurethatithasputinplaceoverthelastfewyears.• Themanagement iscurrently lookingatvariousalternativestomonetizetheHardAssets (RealEstate)of thecompany.This

includescreatingavalue-addedsharedofficesinfrastructuremanagement.AIbasedincubationcenterdevelopment.

Inthisroller-coasterglobaleconomy,thecompanystandstallonastrongfootholdofexpertiseinnewtechnologiesandproventrackrecordofoperationalexcellence.Thecompanycontinuestoliveitsmotto“Passion,TeamworkandInnovation”.andhonoritspromiseof“ITManaged,Responsibly”.



TheDirectorspresenttheCompany’sReportonCorporateGovernancefortheyearendedMarch31,2020,intermsofRegulation34(3)readwithScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(The“ListingRegulations”).

CorporateGovernancereferstoasetoflaws,regulationsandgoodpracticesthatenableanorganizationtoperformefficientlyandethicallygeneratelongtermwealthandcreatevalueforallitsstakeholders.TheCompanybelievesthatsoundCorporateGovernanceiscriticalforenhancingandretaininginvestortrustandtheCompanyalwaysseekstoensurethatitsperformancegoalsaremetwithintegrity.Integrityandtransparencyarekeytoourcorporategovernancepracticestoensurethatwegainandretainthetrustofourstakeholdersatalltimes.

- PHILOSOPHY ON CODE OF GOVERNANCE:

TheCompany’sphilosophyonCorporateGovernance isembeddedin itsrich legacyofethicalgovernancepractices,mostofwhichwereimplementedbeforetheyweremandatorilyprescribed.TheCompanybelievesthatCorporateGovernanceisasetofguidelinestohelpfulfilitsresponsibilitiestoallitsstakeholders.ItisareflectionoftheCompany’sculture,policies,relationshipwithstakeholders,commitmenttovaluesandethicalbusinessconduct.

- GOVERNANCE STRUCTURE:

BOARD OF DIRECTORS

TheBoardofDirectors(“Board”)determinesthepurposeandvaluesoftheCompany.TheprimaryroleoftheBoardisthatoftrusteeshiptoprotectandenhancestakeholders’valuesthroughstrategicsupervisionoftheCompanyanditssubsidiaries.

TheBoardisentrustedwiththeultimateresponsibilityofthemanagement,generalaffairsdirectionandperformanceoftheCompanyandhasbeenvestedwiththerequisitepowers,authoritiesandduties.

a) Board of Directors:

TheBoardofDirectors(“Board”)isatthecoreofourCorporateGovernancepracticesandoverseeshowthemanagementservesandprotectsthelong-terminterestsofallourstakeholders.TheCompanybelievesthatanactive,well-informedandindependentBoardisnecessarytoensurehigheststandardsofCorporateGovernance.

TheBoardoftheCompanyhasanoptimumcombinationofExecutive,Non-ExecutiveandIndependentDirectorswhohaveanin-depthknowledgeofbusiness,inadditiontotheexpertiseintheirareasofspecialization.

AsonMarch31, 2020, theBoard comprisesof six (6)Directors, three (3)Directors are IndependentDirectors includingaWomanDirectorandthree (3)ExecutiveDirectors.TheChairmanof theCompany isanExecutiveDirector.TheBoardperiodicallyevaluatestheneedforchangeinitscompositionandsize.TheCompositionoftheBoardisinconformitywiththeprovisionsoftheCompaniesAct,2013(“theAct”)andRegulation17oftheListingRegulations.NoneoftheIndependentDirectorshaveattainedtheageof75years.

AcertificatehasbeenreceivedfromM/s.Rathi&Associates,PracticingCompanySecretaries,thatnoneoftheDirectorsontheBoardoftheCompanyasonMarch31,2020havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofCompaniesbytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairsoranysuchstatutoryauthorityismarkedas‘‘Annexure I’’.

Skills/Expertise/Competence

The Board of the Company comprises of highly qualifiedmembers and leaders in their respective fieldswho possessrequiredskills,expertiseandcompetencethatallowthemtomakeeffectivecontributiontotheBoardanditscommittees.

CORPORATE GOVERNANCE



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

Global Business Understandingof globalbusinessdynamics across various geographicalmarkets, industryverticalsandregulatoryjurisdictions,KnowledgeofForeignexchangemarketstrends.

Strategy and Planning CorporatePlanningandStrategy,driving changesand long-termgrowth, strategic choicesandexperience inguidingand leadingmanagement teams tomakedecisions inuncertainenvironments,RiskManagement.

Governance Experienceindevelopinggovernancepractices,servingthebestinterestsofallstakeholders,maintainingboardandmanagementaccountability,buildinglong-termeffectivestakeholderengagementsanddrivingcorporateethicsandvalues.

Technology UnderstandingofTechnology,Abilitytocreateinnovationanddesignsolutionorcreatenewbusinessmodelsusingthetechnology.

Financial Properallocationoffinancialassets,managementandmonitoring,supervisionoffinancialreportingandaccounting,taxationandotherCompliancesrelatedthereto.

Leadership Extended leadership experience with practical understanding of organizations, processes,strategicplanning,andriskmanagement.Demonstratedstrengthsindevelopingtalentalongwithdrivingchangeandlong-termgrowth

Diversity Diversityofthought,experience,knowledge,perspective,genderandculturebroughttotheBoardbyindividualmembers.Variedmixofstrategicperspectives,geographicalfocuswithknowledgeandunderstandingofkeygeographies.

Values PersonalcharacteristicsareinlinewiththeCompany’svalues,suchasintegrity,accountability,andhighperformancehigh-performancestandards.

Below is a list of core skills, expertise and competencies of the individual Directors:

Name of Directors Global Business

Strategy and

Planning

Governance Technology Financial Leadership Diver-sity

Values

Mr.NitinShah

Mr.PrakashShah -

Mr.NehalShah - -

Dr.ShrikantParikh -

Ms.ShubhadaJahagirdar - - -

Prof.VenugopalIyenger -

These skills/competencies are broad-based, encompassing several areas of expertise/experience. Each Director may possess varied combinations of skills/experience within the described set of parameters, and it is not necessary that all Directors possess all skills/experience listed therein.



Composition of the Board and the Directorship(s)/ Committee Membership(s)/ Chairmanship(s) held as on March 31, 2020 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 ChairmanMr.NitinShah Chairman&ManagingDirector

(Promoter)- - -

Mr.PrakashShah Whole-timeDirector(Promoter) - - -Mr.NehalShah ExecutiveDirector(Promoter) - - -Ms.ShubhadaJahagirdar Non-ExecutiveIndependentDirector - - -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.

Declaration by Independent Directors

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

Independent Director Databank Registration

PursuanttoanotificationdatedOctober22,2019issuedbytheMinistryofCorporateAffairs,alldirectorshavecompletedtheregistrationwiththeIndependentDirectorsDatabank.Requisitedisclosureshavebeenreceivedfromthedirectorsinthisregard.

Number of Independent Directorships

AsperRegulation 17Aof the ListingRegulations, IndependentDirectors of theCompanydonot serve as IndependentDirector inmorethanseven listedcompanies.Further, theManagingDirectorandWhole-timeDirectorof theCompanydoesnotserveasanIndependentDirectorinanylistedentity.

Independent Directors’ Meeting

IntermsoftheprovisionsoftheCompaniesAct,2013andListingRegulations,theIndependentDirectorsoftheCompanyshallmeetatleastonceinayear,withoutthepresenceofExecutiveDirectorsandmembersofManagement.TheIndependentDirectorsmetonNovember13,2019andreviewedthebelow:

- theperformanceoftheNon-IndependentDirectorsandtheBoardasawhole;- theperformanceoftheChairmanoftheBoard,taking intoaccounttheviewsoftheExecutiveandNon-Executive

Directors;- thequality,quantityandtimelinesofflowofinformationbetweenthecompanies’managementandtheBoardthatis

necessaryfortheBoardtoeffectivelyandreasonablyperformtheirduties.

AlltheindependentDirectorsoftheCompanyattendedthesaidIndependentDirectorsMeeting.TheIndependentDirectorsexpressedtheirsatisfactiontothedesiredlevelonthegovernanceoftheBoard.



b) Board Procedure and Meetings:

The Board meets at regular intervals to discuss and decide on business strategies/policies and review the financialperformanceoftheCompanyanditssubsidiaries.

The agenda for the Board Meetings broadly covers the information required as enumerated in Regulation 17(7) readwithPartAofScheduleIIoftheListingRegulations.TheCompanySecretaryunderthedirectionoftheChairmanandinconsultationwiththeWhole-timeDirectorandtheChiefFinancialOfficerpreparesthedetailedagendaforthemeetings.ThenoticeanddetailedagendaalongwiththerelevantnotesandothermaterialinformationaresentinadvancetoeachDirectorandinexceptionalcasestabledattheMeetingfortheapprovaloftheBoard.ThisensurestimelyandinformeddecisionsbytheBoard.Minimumfourpre-scheduledBoardMeetingsareheldeveryyear(onemeetingineverycalendarquarter).However,incaseofaspecialandurgentbusinessneed,theBoard’sapprovalistakenbypassingresolutionsbycirculation,aspermittedbylaw,whichisconfirmedinthesubsequentBoardmeeting.

The Company Secretary attends the BoardMeetings and advises the Board on Complianceswith applicable laws andgovernance.FurthertheimportantdecisionstakenattheBoard/CommitteeMeetingsarecommunicatedtotheconcerneddepartments.

TheBoardofDirectorshavebeenentrustedwiththedutiesasenumeratedinListingRegulations,Section166oftheActandScheduleIVofthesaidActThereisacleardemarcationofresponsibilityandauthorityamongsttheBoardofDirectors.

During the financial year endedMarch 31, 2020, Five (5) BoardMeetingswere held onMay 29, 2019, August 13, 2019,November13,2019,October31,2019andFebruary04,2020.Themaximumintervalbetweenanytwomeetingswaswellwithinthemaximumallowedgapof120days,asstipulatedunderSection173(1)oftheAct,andRegulation17(2)oftheListingRegulationsandtheSecretarialStandardsissuedbyInstituteofCompanySecretariesofIndia.ThePreviousAnnualGeneralmeetingoftheCompanywasheldonSeptember10,2019.

The following table gives the attendance record 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 05 YesMr.PrakashShah 05 YesMr.NehalShah 05 YesMs.ShubhadaJahagirdar 05 YesDr.ShrikantParikh 05 YesProf.VenugopalIyengar 05 No

c) Relationship between the Directors inter-se:

Mr.NitinShah,Chairman&ManagingDirector,Mr.PrakashShah,Whole-timeDirectoroftheCompanyarerelatedtoeachotherastheyarebrothersandMr.NehalShah,DirectoristhesonofMr.NitinShah,Chairman&ManagingDirectorandrelativeofMr.PrakashShah,Whole-timeDirector.

NoneoftheDirectorsotherthantheabove-mentionedDirectorsarerelatedtoeachother.

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

NoneoftheNon-ExecutiveDirectorsoftheCompanyholdanysharesandconvertibleinstrumentsintheCompany.



e) Familiarisation programme imparted to Independent Directors:

TheDirectorsareapprisedregardingtheirrolesandresponsibilitiespursuanttotheprovisionsoftheCompaniesAct,2013andListingRegulationsandothervariousstatutes.

AllIndependentDirectorsaremadeawareaboutthenewprojectstobeundertakenbytheCompanyandaboutvarious

departmentsoftheCompanyandtheirfunctioning.FurtherIndependentDirectorsarebriefedregardingtheoperationsofvariousdepartmentsunderrespectivefunctionalheads.Inaddition,theChairmanandManagingDirector,regularlyhasonetoonediscussionwiththeIndependentDirectorstofamiliarizethemwiththebusinessoperationsandonthebusinessmodel,strategies,operations,functions,policiesandproceduresoftheCompanyanditssubsidiaries.

ThedetailsofsuchfamiliarizationprogrammeforIndependentDirectorsarepostedonthewebsiteoftheCompanyandtheweblinkforthesameisasbelow:

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

f) Risk Management:

TheCompanyhasinplacemechanismstoinformtheBoardabouttheriskassessmentandminimizationproceduresandperiodical review to ensure that executivemanagement controls risk bymeans of a properly defined framework. Therisksarereviewedperiodicallyforthechangeinnatureandextentofthemajorrisksidentifiedsincethelastassessment.Systematic andproactive identificationof risks andmitigation thereof enables effectiveor quickdecisionmakingandbooststheperformanceoftheorganisation.

Committees of the Board:

TheBoardcommitteesplayacrucialroleinthegovernancestructureoftheCompanyandarebeingsetouttodealwithspecificareas/activitieswhichconcerntheCompanyandneedacloserreview.TheyaresetupundertheformalapprovaloftheBoard,tocarryouttheclearlydefinedrolewhichisconsideredtobeperformedbymembersoftheBoard,asapartofgoodcorporategovernance.

TheBoardsupervisestheexecutionofitsresponsibilitiesbytheCommitteesandisresponsiblefortheiraction.

TheseCommitteesareentrustedwithsuchpowersandfunctionsasdetailedinitsrespectivetermsofreference.Besides,theCommitteeshelpfocusattentiononspecificmattersoftheCompany.

EachCommitteeexceptManagementCommitteeisguidedbytheprovisionsoftheCompaniesAct,2013andListingRegulations,whichdefinesthescope,powersandcompositionoftheCommittee.

AlldecisionsandrecommendationsoftheCommitteesareplacedbeforetheBoardforinformationandapproval.TheBoardhasconstitutedthefollowingCommitteesviz.,

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

AUDIT COMMITTEE:

a) Brief Description:

TheAuditCommitteeof theCompany isdulyconstitutedasperRegulation18of theListingRegulations, readwiththeprovisionsofSection177oftheCompaniesAct,2013.AlltheMembersoftheAuditCommitteearefinanciallyliterateandcapableofanalysingFinancialStatementsoftheCompany.



The Chief Financial Officer is the permanent invitee to the Audit Committee. The Committeemembersmay invite theInternalAuditor/StatutoryAuditoranyotherconcernedOfficeroftheCompanyinthemeetings,wheneverrequiredoncasetocase.

TheAuditCommitteeactsasalinkbetweentheManagement,StatutoryAuditors,InternalAuditorsandtheBoardofDirectorsandoverseesthefinancialreportingprocess.TheCompanySecretaryactsastheSecretaryoftheAuditCommittee.

b) Terms of reference:

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. MatterstobespecifiedintheDirector’sResponsibilityStatementtobeincludedintheBoard’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:

ThecompositionoftheAuditCommitteeoftheCompanyisinaccordancewiththeprovisionsofSection177oftheCompaniesAct,2013andintermswithRegulation18ofListingRegulations.AllmembersoftheAuditCommitteearefinanciallyliterateandbringinexpertiseinthefieldsofFinance,Taxation,RiskandInternationalFinance.TheAuditCommitteecomprisesofthree(3)Membersoutofwhichtwo(2)areIndependentDirectorandone(1)ExecutiveDirectoroftheCompany.



Four (4)meetingsoftheAuditCommitteewereheldduringthefinancialyear.ThesewereheldonMay29,2019,August13,2019,November13,2019andFebruary04,2020.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

04 04

2. Prof.VenugopalIyengar Member Non-ExecutiveIndependentDirector

04 04

3. Mr.PrakashShah Member Whole-timeDirector 04 04

AlltherecommendationsoftheAuditCommitteehavebeenacceptedbytheBoardofDirectors.TheChairmanoftheAuditCommitteewaspresentattheAnnualGeneralMeetingoftheCompanyheldonSeptember10,2019.

NOMINATION & REMUNERATION COMMITTEE (‘NR COMMITTEE’):


TheprimaryroleoftheNRCommitteeistoassisttheBoardbyidentifyingprospectivedirectors/keymanagerialpersonnelandmakerecommendationsonappointmentstotheBoardandtheseniormost levelofExecutiveManagementbelowtheBoardalongwithdevisingapolicyforremunerationpayabletothem.TheNRCommittee isresponsibleformakingrecommendationsonBoardappointmentsandonmaintainingabalanceof skillsandexperienceon theBoardand itsCommittees.


ThepurposeandresponsibilitiesoftheCommitteeshallincludemattersasprescribedunderapplicablelaworbytheBoardincompliancewithapplicablelawfromtimetotime,whichinter-aliaincludesthefollowing:

i. Formulation of the criteria for determining qualifications, positive attributes and independence of a director andrecommendtotheBoardofDirectorsaPolicy,relatingtotheremunerationofthedirectors,keymanagerialpersonnelandotheremployees;

ii. FormationofcriteriaforevaluationofperformanceofIndependentdirectorsandtheBoardofDirectors;

iii. DevisingaPolicyondiversityofBoardofDirectors;

iv. Identifyingpersonswhoarequalifiedtobecomedirectorsandwhomaybeappointed inseniormanagementandrecommendtotheBoardtheirappointmentandremovalandshallcarryoutevaluationofeverydirector’sperformance;

v. Whethertoextendorcontinuethetermsofappointmentoftheindependentdirector,onthebasisofthereportofperformanceevaluationofindependentdirectors.

vi. RecommendtotheBoard,allremuneration,inwhateverform,payabletoseniormanagement.


ThecompositionoftheNRCommitteeoftheCompanyisinaccordancewiththeprovisionsofSection178oftheCompaniesAct,2013,andintermswithRegulation19ofListingRegulations.TheNRCommitteecomprisesofthree(3)IndependentDirectorsoftheCompany.

Two(2)meetingoftheNRCommitteewereheldduringthefinancialyear2019-2020.ItwasheldonAugust13,2019and

February04,2020.TheCompanySecretaryactsastheSecretarytotheCommittee.TheChairmanoftheNRCommitteewas



presentattheAnnualGeneralMeetingoftheCompany.Theattendanceofeachcommitteememberatthemeetingswasunder:

Sr. No.


year


1. Dr.ShrikantParikh Chairman Non-ExecutiveIndependentDirector

02 02

2. Prof.VenugopalIyengar Member Non-ExecutiveIndependentDirector

02 02

3. Ms.ShubhadaJahagirdar Member Non-ExecutiveIndependentDirector

02 02

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

- RaisingofvalidconcernstotheBoardandconstructivecontributiontoresolutionofissuesatmeetings

ToimprovetheeffectivenessoftheBoardanditsCommitteesaswellasindividualDirectors,aformalandrigorousBoardreview/evaluationisinternallyundertakenonanannualbasis.Forthefinancialyear2019-20,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:

TheremunerationoftheExecutiveDirectors isdeterminedandrecommendedbytheNRCommitteetotheBoard.TheBoardconsidersandifitisdeemedfit,theBoardapprovestherecommendationofNRCommitteesubjecttotheapprovalofthemembersoftheCompany.

Mr.NitinShah,ChairmanandManagingDirectorandMr.PrakashShah,Whole-timeDirector,wereappointedw.e.f.

April01,2016andMr.NehalShah,ExecutiveDirectorwasappointedw.e.f.July30,2018



• Details of remuneration paid to Executive Directors for the year ended March 31, 2020 are as under:

Name of Executive Directors

Designation Remuneration during 2019-20All 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

`99.30lakhsReferNotea)

Nil ReferNoteb) Nil

Mr.PrakashShah Whole-timeDirector `49.65lakhsReferNotea)

Nil ReferNoteb) Nil

Mr.NehalShah Director `7.20lakhsReferNotea)

Nil ReferNoteb)andc)

Nil

a) The amount include 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, Director 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-ExecutiveDirectorsforthefinancialyearendedMarch31,2020areasunder:

Name of the Non-Executive Director Sitting Fees paid for the F.Y. 2019-20Prof.VenugopalIyengar `145,000Dr.ShrikantParikh `155,000Ms.ShubhadaJahagirdar `105,000

STAKEHOLDERS RELATIONSHIP COMMITTEE:


TheprimaryobjectiveStakeholdersRelationshipCommitteeoftheCompanyisreviewandredressstakeholder’sgrievancelike transfer of shares, non-receiptof Annual report, non-receiptof declareddividends etc. and tooversee the variousaspectsoftheinterestofthestakeholders.


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.


AsonMarch31,2020,theStakeholders’RelationshipCommitteecomprisesoftwo(2)IndependentDirectorsandone(1)ExecutiveDirector.

One (1)meetingoftheStakeholders’RelationshipCommitteewasheldduringthefinancialyear2019-2020i.e.February04,2020.Prof.VenugopalIyengar,Non-ExecutiveIndependentDirectorisheadingtheCommitteeandMs.NehaSunilBagla,CompanySecretaryactsastheSecretarytotheCommittee.TheChairmanoftheStakeholdersRelationshipCommitteewaspresentattheAnnualGeneralMeetingoftheCompany.Theattendanceofeachcommitteememberwasunder:

Sr. No.


year


1. Prof.VenugopalIyengar Chairman Non-ExecutiveIndependentDirector

01 01

2. Dr.ShrikantParikh Member Non-ExecutiveIndependentDirector

01 01

3. Mr.PrakashShah Member Whole–timeDirector 01 01

d) Compliance Officer:

TheComplianceOfficerbriefstheCommitteeonthegrievances/queriesoftheinvestorsreceivedandthestepstakenbytheCompanyforredressingthesaidgrievances.

DetailsofComplianceofficerasperListingRegulationsareasfollows:

Ms. Neha Sunil BaglaCompany Secretary & Compliance OfficerPremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,NarimanPointMumbai–400021Tel:+912266816400Fax:+912222822030Email:[email protected]

e) Investor’s/ Shareholders’ Grievance Redressal:

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



TheStatusoftheInvestorsComplaintsasonMarch31,2020isasfollows:

Source of Complaint No. of Complaints received

No. of Complaints resolved

Not resolved to the satisfaction of

shareholders

No. of Complaints Pending

DirectlyfromInvestors 22 22 0 0ThroughSEBI,StockExchanges. 0 0 0 0Total 22 22 0 0

To redress the shareholders grievances, the companyhas a dedicated Email Id [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:

DuringtheFinancialYear2019-20,three(3)ManagementCommitteeMeetingwasheldonOctober04,2019,October14,2019andOctober22,2019.

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.

xiv. 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)meetingofCSRCommitteewasheldonFebruary04,2020.ThedetailedcompositionandattendanceoftheCSRCommitteeisgivenbelow:

Sr. No.


year


1. Ms.ShubhadaJahagirdar Chairperson Non-Executive&IndependentDirector

01 01

2. Dr.ShrikantParikh Member Non-Executive&IndependentDirector

01 01

3. Mr.PrakashShah Member Whole-timeDirector 01 01



1. GENERAL BODY MEETINGS:

DetailsofAnnualGeneralMeetingsheldinlastthree(3)yearsalongwithSpecialResolutionspassedthereatareasfollows:

Financial Year Day, Date, Time and Venue of AGM Particulars of Special Resolution(s)2018-19 Day and Date

Tuesday,September10,2019Time 04:00P.M.Venue: WalchandHirachandHall,4thFloor,IMCBuilding,IndianMerchantChamberMarg,Churchgate,Mumbai-400020.

Nil

2017-18 Day and Date Monday,September03,2018Time 04:00P.M.Venue: WalchandHirachandHall,4thFloor,IMCBuilding,IndianMerchantChamberMarg,Churchgate,Mumbai-400020.

1. ApprovalforrevisioninRemunerationofMr.NitinShah,ChairmanandManagingDirectoroftheCompany.

2. ApprovalforrevisioninRemunerationofMr.PrakashShah,Whole-timeDirectoroftheCompany.

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

4. Tomortgage, pledge, hypothecate or charge, in addition to theexisting mortgages, hypothecations and charges created / tobecreatedby theCompanypursuant toSection180(1)(a)of theCompaniesAct,2013.

5. Toborrowmoneytogetherwiththemoneyalreadyborrowedupto 10,000,000,000pursuanttoSection180(1)(c)oftheCompaniesAct,2013.

6. Tomake investmentspursuant toSection186of theCompaniesAct,2013.

2016-17 Day and Date Wednesday,September20,2017Time 04:00P.M.Venue: WalchandHirachandHall,4thFloor,IMCBuilding,IndianMerchantChamberMarg,Churchgate,Mumbai-400020.

ToappointMr.PareshShah(DIN:05117129)asExecutiveDirectorandChiefExecutiveOfficeroftheCompanyforaperiodofthreeyears.

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

Postal Ballot:

Duringtheyearunderreview,theCompanycommencedprocessofseekingapprovalofshareholdersthroughPostalBallotasperprovisionsofSection110oftheCompaniesAct,2013andthesaidprocesswascompletedonMay02,2020.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; Voting Period:April01,2019toApril30,2019; Date of Declaration of Results: May02,2019.



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: 20,428,725 1,006 20,426,294 99.99 1,425 0.01Re-appointment of Dr. ShrikantParikh (DIN: 01735830) as anIndependent Director of theCompany, for continuous period offiveyearstoholdofficeuptoMarch31,2024.Special Resolution: 20,428,725 1,006 20,426,224 99.99 1,495 0.01Re-appointment of Prof. Venugopallyengar (DIN: 02591297) as anIndependent Director of theCompany, for continuous period offiveyearstoholdofficeuptoMarch31,2024.Special Resolution: 20,428,725 1,006 20,425,787 99.99 1,932 0.01Re-appointment of Ms. ShubhadaJahagirdar (DIN: 00895950) asan Independent Director of theCompany, for continuous period offiveyearstoholdofficeuptoMarch31,2024.

2. DISCLOSURES:

i. Related Party Transactions:

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

AllRelatedPartyTransactionsthatwereenteredintoduringthefinancialyearunderreviewwereonarm’slengthbasisandintheordinarycourseofbusinessandisincompliancewiththeapplicableprovisionsoftheCompaniesActandtheListingRegulations.NoneofthetransactionsenteredintowithrelatedpartiesfallsunderthescopeofSection188(1)oftheAct.

TheCompany’sPolicyonmaterialityofrelatedpartytransactionsandondealingwithrelatedpartytransactionsishostedonitswebsiteandcanbeaccessedatthelink:

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

ii. Compliances by the Company:

TheCompanyhascompliedwiththerequirementsoftheStockExchangeswherethesecuritiesoftheCompanyarelistedi.e.BSELimited&NationalStockExchangeofIndiaLimited,theSecuritiesandExchangeBoardofIndia(SEBI)andRegulatoryAuthoritiesonmattersrelatedtothecapitalmarketandnopenalties/strictureshavebeenimposedontheCompanyduringthelastthreeyears.



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

TheCompanypromotesethicalbehaviour forall itsbusinessactivitiesandhasput inplaceamechanismfordirectors,employeesandotherstakeholderstoreportconcernsaboutunethicalbehaviour,actualorsuspectedfraudorviolationoftheCompany’sCodeofConduct.

Duringtheyearunderreview,noemployeewasdeniedaccesstotheAuditCommittee.ThepolicyhasbeenpostedonthewebsiteoftheCompanyat:

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

iv. Mandatory & Non-mandatory requirement:

TheCompanyhascompliedwithall themandatoryCorporateGovernancerequirementsundertheListingRegulations.WithregardtoCorporateGovernancerequirementsspecifiedinRegulation17to27andclauses(b)to(i)ofsubRegulation(2)ofRegulation46ofListingRegulations.

Adoptionofnon-mandatoryrequirementsasprescribedunderListingRegulationsarereviewedbytheBoardfromtimetotime.

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: Company’s corporate website i.e. www.allieddigital.net provides comprehensive information on company’sportfolioofbusinesses.ThewebsitehasanentiresectiondedicatedtoCompany’sprofile,itscorevalues,visionandmission,corporategovernance,business linesand industry sections.Anexclusive sectionon ‘Investors’enables themtoaccessinformationattheirconvenience.AnnualReportcontaining,interalia,AuditedAnnualAccounts,Consolidatedaccounts,Director’sReport,Auditor’sReport,ManagementDiscussionandAnalysisStatement,CorporateGovernanceReportandotherimportantinformationiscirculatedtomembersandothersentitledthereto.TheAnnualReportoftheCompanyisavailableontheCompany’swebsiteinauser-friendlyanddownloadableform.

ThePressReleasesgivingananalysisoftheperformanceoftheCompanyareplacedontheCompany’swebsiteforthebenefitoftheinstitutionalinvestors,analystsandothershareholdersimmediatelyafterthefinancialresultsarecommunicatedtotheStockExchanges.TheCompanydidnotmakeanypresentationto the institutional investorsor to theanalystsandtherefore,nodetailsofthepresentationshavebeencommunicatedtotheStockExchanges.

Intimation to the Stock Exchanges:TheCompany intimatestheStockExchanges(i.e.BSEandNSE,wherethesharesofthecompanyarelisted)allpricesensitiveinformationorsuchothermatterswhichin itsopinionarematerialandofrelevancetotheShareholdersandarerequiredtobedisclosedunderRegulation30readwithPartAofScheduleIIIoftheListingRegulations.



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: As per themandate received from BSE Limited (‘BSE’),the Company has been uploading its Financial Information, Shareholding Pattern, Report on Corporate Governance,other material events/ information and other mandatory compliances on the dedicated website of BSE i.e.http://listing.bseindia.com/login.aspx.

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

viii. Code of Conduct:

TheCodeofBusinessConductforDirectorsandSeniorManagementPersonnel(“theCode”),asadoptedbytheBoard,isacomprehensiveCodeapplicabletoallDirectorsandSeniorManagementPersonnel.TheCodelaysdownthestandardofconductwhichisexpectedtobefollowedbytheDirectorsandbytheSeniorManagementPersonnelintheirbusinessdealings and in particular onmatters relating to integrity in theworkplace, in business practices and in dealingwithstakeholders.All theBoardofDirectorsandSeniorManagementPersonnelhaveaffirmedcompliance to theCode.TheCodehasalsobeenhostedontheCompany’swebsiteatwww.allieddigital.net.

3. GENERAL SHAREHOLDER INFORMATION:

A. Annual General Meeting detail:

Date : September03,2020Time: 02:00p.m.Financial Year : April1,2019toMarch31,2020Financial Calendar (Tentative): Financial Reporting for:

For the Quarter ended Tentative DateJune30,2020 ByAugust14,2020September30,2020 ByNovember14,2020December31,2020 ByFebruary14,2021March31,2021 ByMay30,2021

Book Closure date: August29,2020toSeptember03,2020(bothdayinclusive)Registered Office of the Company: PremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,Nariman

PointMumbai–400021.Email:[email protected]:www.allieddigital.net

Dividend Payment Date OnorafterSeptember09,2020,subjecttotheapprovalofShareholdersattheensuingAnnualGeneralMeeting.

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:+91–22–26598120



• BSE Limited (BSE)(Stock Code/ Script Code: 532875) Address:PhirozeJeejeebhoyTowers,DalalStreet,Mumbai–400001. Tel.:+91–22–22721233/4, Fax:+91–22–22721919

Listing Fees and Custodian Fees to Depositories

TheCompanyhaspaidAnnualListingfeesfortheyear2019-2020toboththeStockExchangesandtheCompanyhaspaidAnnualCustodianFeestoeachofthedepositoriesbasedonthenumberoffoliosasonMarch31,2020.

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.:+91-022-49186270Fax No.: +91-22-49186060Email:[email protected]: www.linkintime.co.in

C. Share Transfer System:

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

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

D. Distribution of Share Holding as on March 31, 2020:

Equity Shares slabs Shareholders SharesNumber Percentage (%) Number Percentage (%)

1-500 16732 79.82 2281242 4.54501-1000 1801 8.59 1522173 3.031001-2000 1012 4.83 1572651 3.132001-3000 427 2.04 1098404 2.193001-4000 196 0.94 702942 1.404001-5000 189 0.90 904248 1.805001-10000 284 1.36 2118084 4.22>10001 320 1.52 40005784 79.69TOTAL 20961 100.00 50205528 100.00



E. Category wise Shareholding as at March 31, 2020:

Category No. of Shares Held Percentage to total Number of Shares (%)

Promoters,Directors&PromoterGroup 24295019 48.39PersonActinginConcert 408212 0.81ForeignPortfolioInvestors 20000 0.04ForeignInstitutionalInvestor 0 0Individual(Public) 19156964 38.16Overseascorporatebodies 1490000 2.97ForeignIndividualsorNRI 2368599 4.72Anyother 2466734 4.91Total 50205528 100

F. Dematerialization of Shares:

AsonMarch31,2020,4,86,65,422equitysharesrepresenting96.94%ofthetotalequitysharecapitaloftheCompanywereheldindematerialisedformwithNationalSecuritiesDepositoryLimited(‘NSDL’)andCentralDepositoryServices(India)Limited(‘CDSL’).Thebreak-upofequitysharesheldinphysicalanddematerializedformasofMarch31,2020isgivenbelow.

Particulars No. of Shares Percentage (%) PhysicalShares 1540106 3.06HeldindematerialisedforminCDSL 9632435 19.19HeldindematerialisedforminNSDL 39032987 77.75Total 50205528 100.00



G. 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.

H. Plant Location: TheCompanyisintoprovidingITserviceonlyhencedoesnothaveanyplant.

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

TheCompanyhasdesignatedseparateE-mailIdfortheinvestorgrievanceandRedressalandtoimprovethequalityoftheservicestotheinvestor.Thee-mailaddressforinvestorgrievanceisinvestors@allieddigital.net.

J. Dividend Distribution Policy:

YourCompanyhas formulated thePolicyondistributionofdividendand the same is availableon thewebsiteof yourCompanyandaweblinkforthesameishttp://www.allieddigital.net/in/inv_policies.html

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-400021.Fax:+912249186060 Tel:+912266816400E-mail:[email protected] Fax:+912222823030Website:www.linkintime.co.in Email:[email protected]

Website:www.allieddigital.net

L. Market information:

MonthlyhighandlowpricesoftheCompany’sEquitySharesandperformanceincomparisontoBSESensexandNSENiftyfromApril01,2019toMarch31,2020arenotedhereinbelow:

Month ADSLon BSE Sensex Volume ADSLon NSE S&PCNXNifty VolumeHigh Low High Low High Low High Low

Apr-19 19.39 12.31 39487.45 38460.25 148551 19.20 12.85 11856.15 11549.1 1811242May-19 17.99 13.60 40124.96 36956.1 112424 17.90 13.55 12041.15 11108.3 592409Jun-19 18.55 13.35 40312.07 38870.96 75902 18.40 13.25 12103.05 11625.1 670595Jul-19 14.70 12.20 40032.41 37128.26 49663 14.95 12.00 11981.75 10999.4 394928Aug-19 15.80 10.30 37807.55 36102.35 133790 15.90 10.30 11181.45 10670.15 959911Sep-19 17.30 12.77 39441.12 35987.8 172935 17.25 12.40 11694.85 10670.25 1741738Oct-19 14.98 13.00 40392.22 37415.83 86827 14.50 12.90 11945 11090.15 705025Nov-19 26.30 13.42 41163.79 40014.23 317630 26.25 13.50 12158.8 11802.65 5591672Dec-19 25.50 19.20 41809.96 40135.37 287230 25.00 19.30 12293.9 11832.3 2181984Jan-20 25.00 19.15 42273.87 40476.55 192259 25.20 18.75 12430.5 11929.6 885207Feb-20 23.90 17.95 41709.3 38219.97 151311 24.05 18.10 12246.7 11175.05 570138Mar-20 18.90 10.70 39083.17 25638.9 243489 19.45 10.50 11433 7511.1 706157



4. 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’sStandaloneandConsolidatedFinancialStatementsforthefinancialyearendedMarch31,2020isunmodified.

Separate posts of Chairman and Chief Executive Officer (CEO): TheChairmanoftheBoardisanExecutiveDirectorandhispositionisseparatefromthatoftheCEO.

Reporting of Internal Auditor: TheInternalAuditorreportsdirectlytotheAuditCommitteeoftheCompany.

5. 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.



6. CEO and CFO Certification:

TheChiefExecutiveOfficer (“CEO”)andtheChiefFinancialOfficer (“CFO”)of theCompanyhasgivenannualcertificationonfinancialreportingandinternalcontrolstotheBoardintermsofRegulation17(8)readwithPartBofScheduleIIoftheListingRegulations.TheCEOandCFOhasalsogivenquarterlycertificationonfinancialresultswhileplacingthefinancialresultsbeforetheBoardintermsofRegulation33(2)oftheListingRegulations.TheannualcertificategivenbytheCEOandCFOformspartofthisreportandmarkedas‘‘Annexure II’’.

7. Certificate on Corporate Governance:

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



Annexure I

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS(PursuanttoRegulation34(3)andScheduleV-ParaC-Clause(10)(i)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)

To,The Members of ALLIED DIGITAL SERVICES LIMITEDPremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,BlockIII,NarimanPointMumbai400021

Ihaveexaminedtherelevantregisters,records,forms,returnsanddisclosuresreceivedfromtheDirectorsofAlliedDigitalServicesLimitedhavingCIN:L72200MH1995PLC085488,andhavingregisteredofficeatPremisesNo.13A,13thFloor,EarnestHouse,NCPARoad,Block III,NarimanPoint,Mumbai400021(hereinafterreferredtoas ‘theCompany’),producedbeforemebytheCompanyfor thepurposeofissuingthisCertificateinaccordancewithRegulation34(3)readwithScheduleV-ParaC-Clause10(i)oftheSecuritiesExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

Inmyopinionandtothebestofmyinformationandaccordingtotheverifications(includingDirectorIdentificationNumber(DIN)statusontheportalwww.mca.gov.in)asconsiderednecessaryandexplanationsfurnishedtomebytheCompanyanditsofficers,IherebycertifythatnoneoftheDirectorsontheBoardoftheCompanyasstatedbelowfortheFinancialYearendedon31stMarch,2020,havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofcompaniesbytheSecuritiesandExchangeBoardofIndia,MinistryofCorporateAffairsoranysuchotherStatutoryAuthority.

Sr. No

Name of the Director DIN Date of Appointment

1. Mr.PrakashDhanjibhaiShah 00189842 10/02/19952. Mr.NitinDhanjiShah 00189903 10/02/19953. Ms.ShubhadaKeshavJahagirdar 00895950 01/10/20144. Mr.ShrikantNavnitlalParikh 01735830 23/05/20165. Mr.NehalNitinShah 02766841 30/07/20186. Mr.VenugopalRamaswamiIyengar* 02591297 28/04/2009

*Mr.VenugopalRamaswamiIyengarceasedtobetheDirectoroftheCompanyw.e.f.29thApril,2020.

Ensuringtheeligibilityfortheappointment/continuityofeveryDirectorontheBoardistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpressanopiniononthesebasedonourverification.ThiscertificateisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.


HIMANSHU S. KAMDAR PARTNER FCS No. 5171Place : Mumbai C.P. No. 3030Date: July 30, 2020 UDIN: F005171B000452420



Annexure II

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

SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)

ToTheBoardofDirectorsAllied Digital Services Limited

We,PareshShah,CEOandGopalTiwari,CFO,ofAlliedDigitalServicesLimited,tothebestofourknowledgeandbelief,herebycertifythat:

I. WehavereviewedFinancialstatementsandthecashflowstatementfortheyearendedMarch31,2020andthattothebestofourknowledgeandbelief:

- 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-

- significantchanges,ifany,ininternalcontroloverfinancialreportingduringtheyear;

- significantchanges,ifany,inaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatements;and

- Noinstancesofsignificantfraudwereobservedduringtheyearunderreview.


Place: Mumbai Paresh Shah Gopal TiwariDate: July 30, 2020 Chief Executive Officer Chief Financial Officer



Annexure IIICERTIFICATE 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”),fortheyearended31stMarch,2020,asstipulatedinChapterIVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”).

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

Inouropinionandtothebestofour informationandaccordingtotheexplanationgiventousandtherepresentationsmadebytheDirectorsandManagementoftheCompany,wecertifythattheCompanyhascompliedwithallthemandatoryrequirementsofCorporateGovernanceasstipulatedintheChapterIVoftheListingRegulationsexcept 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.

For and on behalf of Rathi & Associates Company Secretaries Himanshu S. KamdarDate: July 30, 2020 Membership No. 5171Place: Mumbai COP No: 3030

DECLARATION BY THE MANAGING DIRECTOR UNDER REGULATION 34(3) READ WITH PART D OF SCHEDULE V THE SEBI LISTING REGULATIONS

To,TheMembersAllied Digital Services Limited

I hereby declare that all theDirectors and the designated employees in the SeniorManagement of the Company have affirmedcompliancewiththeirrespectiveCodesofconductforthefinancialyearendedMarch31,2020.


Place: Mumbai Nitin ShahDate: July 30, 2020 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”), whichcomprisetheBalanceSheetasatMarch31,2020, theStatementofProfitandLoss (includingOtherComprehensive Income), theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedonthatdate,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“thestandalonefinancialstatements”).

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompanies Act, 2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywiththeIndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies (Indian Accounting Standards)Rules,2015,asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2020,theprofitandtotalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.

Basis for opinion

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

Emphasis of matter

WedrawattentiontoNote2totheaccompanyingnotestoStandaloneFinancialStatementwithregardtomanagement’sevaluationofuncertaintyduetotheoutbreakofCOVID-19anditsimpactonfutureoperationsoftheCompany.Ouropinionisnotmodifiedinrespectofthismatter.

Key audit matters

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

SR NO

KEY AUDIT MATTERS AUDITOR’S RESPONSE

1 Revenue recognition Principal Audit Procedures Fixed price contracts

The Company engages in Fixed price contracts, includingcontracts with multiple performance obligations. Revenuerecognition in such contracts involves judgments relatingto identification of distinct performance obligations,determination of transaction price for such performance

Our audit procedures included Obtained an understandingofthesystems,processesandcontrolsforevaluationoffixedpricecontractstoidentifydistinctperformanceobligationsandrecognition of revenue. Evaluated the design and operatingeffectivenessofinternalcontrolsincludingITcontrolsrelatingtorecordingofthecontractvalue,determiningthetransactionprice, allocation of consideration to different performance

INDEPENDENT AUDITOR’S REPORT



SR NO


obligations and the appropriateness of the basis used tomeasurerevenuerecognisedoveraperiod.

IncaseofFixedpricecontractswhereperformanceobligationsaresatisfiedoveraperiodoftime,revenueisrecognisedusingthepercentageofcompletionmethodbasedonmanagement’sestimate of contract efforts. The estimation of total effortsor costs involves significant judgement and is assessedthroughouttheperiodofthecontracttoreflectanychangesbased on the latest available information. These contractsmayalsoinvolverecognizingonerousobligationsthatrequirecritical estimates to be made by the management. In caseof Fixedpricemaintenancecontracts, revenue is recognisedeither on a straight line basis or using the percentage ofcompletionmethodoratanamountequaltosumsbilledtocustomer, depending on themost appropriatemethod thatdepictsthevalueofservicedeliveredtothecustomer.

obligations, measurement of efforts incurred and processaround estimation of efforts required to complete theperformanceobligationsandthemostappropriatemethodtorecogniserevenue.

• On selected sample of contracts, we tested that therevenue recognised is in accordance with the revenuerecognition accounting standard. We - evaluated theidentificationofperformanceobligations;-consideredthetermsof thecontracts todetermine the transactionprice,- determined if the Company’s evaluation of the methodusedforrecognitionofrevenueisappropriate;-testedtheCompany’s calculation of efforts incurred, estimation ofcontracteffortsincludingestimationofonerousobligation,through a retrospective review of efforts incurred withestimated efforts; - assessed appropriateness of contractassets/ unbilled revenue on balance sheet date byevaluatingunderlyingdocumentation.

• Tested aged contract assets to assess possible delaysin achieving milestones, which may require a change inestimated efforts to complete the remainingperformanceobligations.

• Evaluated management assessment of the impacton revenue recognition and consequential impact onthe expected credit loss allowance and other areas ofjudgement, including for possible effects, if any from theCOVID-19pandemic.

• Performed analytical procedures over revenue andreceivables.

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

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

Ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhether theother information ismaterially inconsistentwith thestandalone financial 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; selection



andapplicationofappropriateaccountingpolicies;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,ortheoverrideofinternalcontrols.

• 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 standalone financial statements that, individuallyor inaggregate,makes itprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.



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

ReportonOtherLegalandRegulatoryRequirements

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) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2020takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2020frombeingappointedasadirectorintermsofSection164(2)oftheAct.

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

g) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhaspaid/providedmanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofSection197readwithscheduleVtotheAct.

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

i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsstandalonefinancial[ReferNoteNo28(3)]

ii. TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbythecompany.

For SHAH & TAPARIACharteredAccountants(FirmRegnNo109463W)

RAMESH PIPALAWAPartner

Place:Mumbai M.No.103840Date:11thJune,2020 UDIN:20103840AAAAGP765



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. ThecompanyhasnotacceptedanydepositsfromthepublicduringtheFY2019-20.However,inrespectofexistingdepositstheoutstandingamounttowardstheprincipalandinterestinrespectofsomeunclaimeddepositsareasunder:

Principal Amount due as on 31.03.2020 Interest Due upto 31.03.2020 Total Dues as at 31.03.2020`5.91Lakhs `1.05Lakhs `6.96Lakhs

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

vii. Accordingtotheinformationandexplanationsgiventous,inrespectofstatutorydues:

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



(b) TherewerenoundisputedamountspayableinrespectofProvidentFund,Employees’StateInsurance,IncomeTax,GoodsandServiceTax,,CessandothermaterialstatutoryduesinarrearsasatMarch31,2020foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(c) DetailsofduesofIncomeTax,SalesTax,ServiceTax,ExciseDutyandValueAddedTaxwhichhavenotbeendepositedasatMarch31,2020onaccountofdisputearegivenbelow:

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) `32.82Lakhs AY2006-07 CommissionerofIncomeTaxAppeals,Mumbai

IncomeTaxAct,1961 Penaltyu/s271(1)(c) `18.22Lakhs AY2010-11 CommissionerofIncomeTaxAppeals,Mumbai

viii. TheCompanyhasnotdefaultedinrepaymentofanyloansorborrowingsfromfinancialinstitutions,banksandgovernmentorhasnotissuedanydebentures.

ix. Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompanydidnotraiseanymoneybywayofinitialpublicofferorfurtherpublicofferincludingdebtinstruments.Thetermloansoutstandingatthebeginningofthecurrentyearandthoseraisedduringthecurrentyearhavebeenappliedforthepurposesforwhichthosewereraised.

x. Tothebestofourknowledgeandaccordingtotheinformationandexplanationsgiventous,nofraudbytheCompanyornomaterialfraudontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringtheyear.

xi. In our opinion and according to the information and explanations given to us, the Company has paid / 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”)asofMarch31,2020inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheBoardofDirectorsoftheCompanyisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsof India.These responsibilities include thedesign, implementationandmaintenanceofadequate internal financial 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 internal financial controlsover financial 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)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionor timelydetectionofunauthorisedacquisition, use,ordispositionof thecompany’sassets thatcouldhaveamaterialeffectonthefinancialstatements.



Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiventous,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2020,basedon the internal controlover financial reportingcriteriaestablishedby theCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.






BALANCE SHEET AS AT 31ST MARCH, 2020.(`InLakhs)

Particulars Note As at 31st March 2020

As at 31st March 2019

ASSETSNon-Current assetsProperty,PlantandEquipment 2(i) 4,512 4,688InvestmentProperty 3 8,113 8,203IntangibleAssets 4 4,046 4,954RightofuseAsset 2(ii) 167 -FinancialAssets

Investments 5 15,519 15,506Loans 6(i) 251 162OtherFinancialAssets 7(i) 376 454

OtherNon-CurrentAssets 8(i) 1,022 1,277Assetclassifiedasheldforsale 9 59 -Total Non-Current Assets 34,064 35,243

Current assetsInventories 10 3,483 3,383Financial Assets

TradeReceivables 11 16,560 14,246CashandCashEquivalents 12(i) 267 458Otherbankbalances 12(ii) 605 765Loans 6(ii) 138 127OtherFinancialAssets 7(ii) 3,792 4,695

OtherCurrentAssets 8(ii) 1,515 1,287Total Current Assets 26,360 24,961 Total Assets 60,424 60,204

EQUITY AND LIABILITIESEquity

EquityShareCapital 13 2,510 2,510OtherEquity 14 44,618 43,797

Total Equity 47,128 46,307 LIABILITIESNon-Current LiabilitiesFinancial Liabilities

Borrowings 15(i) 553 1,317OtherFinancialLiabilities 16(i) 156 4

Provisions 17(i) - 2DeferredTaxLiabilities(Net) 18 2,694 2,653Total Non-Current Liabilities 3,403 3,976

Current LiabilitiesFinancial Liabilities

Borrowings 15(ii) 4,616 5,132TradePayables 19-TradepayablestoMicroandSmallenterprises - --TradepayablestootherthanMicroandSmallenterprises 4,100 2,948OtherFinancialLiabilities 16(ii) 235 72

Provisions 17(ii) 942 1,768Total Current Liabilities 9,893 9,920 Total Equity and Liabilities 60,424 60,204

For Shah & Taparia For Allied Digital Services Limited CharteredAccountants FRN:109463W Ramesh Pipalawa Nitin Shah Prakash ShahM.No.103840 Chairman&ManagingDirector WholeTimeDirector Place:Mumbai Gopal Tiwari Neha Bagla Date :11thJune,2020 ChiefFinancialOfficer CompanySecretary



PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2020.(`InLakhs)

Particulars Note Year Ended 31st March, 2020

Year Ended 31st March, 2019

RevenuefromOperations 20 9,419 7,523

OtherIncome 21 558 412

Total Revenue 9,978 7,935

ExpensesPurchaseofstock-in-trade 22 2,307 1,358

Changesininventoriesoffinishedgoods,work-in-progressandstock-in-trade 23 (100) (72)

Employeebenefitsexpense 24 3,159 2,500

FinanceCosts 25 619 921

Depreciationandamortisationexpense 4 1,370 1,385

Otherexpenses 26 1,793 1,080

Total Expenses 9,148 7,173 Profit / (Loss) from ordinary activities after finance costs but before exceptional items 830 762ExceptionalItems 27 - 351

Profit / (Loss) from ordinary activities before tax 830 1,113 Tax expenseCurrentTax 149 210

MATCredit (149) (210)

DeferredTax 41 150

Net Profit / (Loss) from ordinary activities after tax 788 963 Other Comprehensive IncomeItems that will not be Reclassified to P&LActuarialGain/(Loss)onGratuity 28 (25) (35)

Items that will be Reclassified Subsequently to P&L - -Total Comprehensive Income (after tax) 764 928 Paid-upequitysharecapital

(FaceValueof`5/-) 2,510 2,510

ReservesExcludingRevaluationReservesasperbalancesheetofpreviousaccountingyear 44,618 43,797

Earning per Share (Refer Note 29) (of ` 5/- each) Basic 1.57 1.92

Diluted 1.57 1.92

Theaccompanyingnotesformanintergralpartofthefinancialstatements. Asperourreportofevendate For Shah & Taparia For Allied Digital Services Limited CharteredAccountants FRN:109463W Ramesh Pipalawa Nitin Shah Prakash ShahM.No.103840 Chairman&ManagingDirector WholeTimeDirector Place:Mumbai Gopal Tiwari Neha Bagla Date :11thJune,2020 ChiefFinancialOfficer CompanySecretary



STATEMENT OF CHANGE IN EQUITY (`InLakh)

A. Equity Share Capital BalanceBalanceasat01.04.2019 2510ChangeinEquityShareCapitalDuringtheyear -Balanceasat31.03.2020 2510

B. Other Equity (`InLakh)

Particulars Other EquityReserve and Surplus

Securities premium account

Retained Earnings

Capital Redemption

Reserve

General Reserve

Employee Stock Option Outstanding

& Other Com-prehensive

income

Total

Balanceasat01.04.2019 37,019 4,604 30 1,374 769 43,796ProfitfortheYear - 788 - - (25) 763Transfers - - 684 (684) -AdjustmentforPriorPeriod - 58 58AdjustmentINDAS&Consolidation

- - - -

Balanceasat31.03.2020 37,019 5,451 30 2,058 60 44,618 Theaccompanyingnotesformanintergralpartofthefinancialstatements. Asperourreportofevendate For Shah & Taparia For Allied Digital Services Limited CharteredAccountants FRN:109463W Ramesh Pipalawa Nitin Shah Prakash ShahM.No.103840 Chairman&ManagingDirector WholeTimeDirector Place:Mumbai Gopal Tiwari Neha Bagla Date :11thJune,2020 ChiefFinancialOfficer CompanySecretary



STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH, 2020. (`InLakhs)

Sr. No.

Particulars For the year ended March 31, 2020

For the year ended March 31, 2019

I CASH INFLOW FROM OPERATING ACTIVITIES(a) Profit/LossasperProfit&LossAccountafterTax 789 963

Adjustments:AdjustmentsforPriorperiodtaxes&INDAseffectfromSurplusinP&L (13) -AdjustmentforPriorperiodtaxes 58 -Acturiallossonvaluationofgratuity (25) -BadDebtWrittenoffduringtheyear - 217Depreciationandamortization 1,370 1,385ForeignEchangeGain (247) -IncomefromInvestingActivities (140) (412)DeferredTax 41 150FinanceCost 619 921Changes in Assets and LiabilitiesInventories (101) (72)Tradereceivables (2,314) 200loansandadvances (101) 63OtherFinancialAssets 981 (827)otherassets (228) (13)Tradepayables 1,152 (1,051)Liabilities&Provisions 131 1,273otherLiability (1,002) (617)Net Cash generated by Operating Activities 971 2,182

II CASH INFLOW FROM INVESTING ACTIVITIESPaymenttowardacquistionofthefixedassetsincludingintangible (219) 4DisposaloftheInvestment\ChangesduetoIndAsinInvestments - (15)Interestreceived 140 345Repaymentofloangiven 255 66Net Cash generated by Investing Activities 176 401

III CASH INFLOW FROM FINANCING ACTIVITIESFromborrowings 672 2,515Repaymentofloan (1,771) -Leasepayment (46) (4,713)FinanceCost (600) (921)Net Cash generated by Financing Activities (1,745) (3,120)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (599) (537)Add:Cashandcashequivalentsatthebeginningoftheperiod(B)(referAnnexureI) 1,470 1,760Cashandcashequivalentsattheendoftheperiod(A+B) 871 1,223SupplementaryInformationRestrictedCashBalance&CashEquivalent(Refernotebelow) 605 765



Note:BalanceinFixedDepositwithbankspledgedagainstguranteesgivenbybankAsperourreportofevendate

Annexure I For the year ended March 31, 2020


Cashonhandandbalanceswithbanks 266 458ShortTermInvestment 605 765Cashandcashequivalentsaspreviouslyreported 871 1,223Effectofexchangeratechanges - 247Cashandcashequivalentsasrestated 871 1,470

For Shah & Taparia For Allied Digital Services Limited CharteredAccountants FRN:109463W Ramesh Pipalawa Nitin Shah Prakash ShahM.No.103840 Chairman&ManagingDirector WholeTimeDirector Place:Mumbai Gopal Tiwari Neha Bagla Date:11thJune,2020 ChiefFinancialOfficer CompanySecretary



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-endIT infrastructureservices. Itprovideswiderangeof informationtechnologyandconsultancyservicesincludingInfrastructureServices,EnduserITSupport, ITassetlifecycle,enterpriseapplicationsandintegratedsolutions.

TheCompany’sregisteredofficeisinMumbaiandhaspresenceinpanIndia,andithasSubsidiarycompaniesinIndia,USA,UK,Singapore,AustraliaandFinland.

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.

Estimation of uncertainties relating to the global health pandemic from COVID-19

TheCompanyhasconsideredthepossibleeffectsthatmayresultfromthepandemicrelatingtoCOVID-19onthecarryingamountsofreceivables,unbilledrevenuesandinvestmentinsubsidiaries.Indevelopingtheassumptionsrelatingtothepossiblefutureuncertaintiesintheglobaleconomicconditionsbecauseofthispandemic,theCompany,asatthedateofapprovalofthesefinancialstatementshasusedinternalandexternalsourcesofinformationincludingcreditreportsandrelatedinformation,economicforecasts.TheCompanyhasperformedsensitivityanalysisontheassumptionsusedandbasedoncurrentestimatesexpectsthecarryingamountoftheseassetswillberecovered.TheimpactofCOVID-19ontheCompany’sfinancialstatementsmaydifferfromthatestimatedasatthedateofapprovalofthesefinancialstatements.



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),nonderivative financial 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 toclassifyanequityinstrumentasatFVTOCI,thenallfairvaluechangesontheinstrument,excludingdividendarerecognisedinOCIwhichisnotsubsequentlyrecycledtostatementofprofitandloss.

(ix) Financial assets at FVTPL

FVTPLisaresidualcategoryforfinancialassets.AnyfinancialassetwhichdoesnotmeetthecriteriaforcategorizationasatamortisedcostorasFVTOCI,isclassifiedasFVTPL.

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

FinancialassetsincludedwithintheFVTPLcategoryaremeasuredatfairvalueswithallchangesinthestatementofprofitandloss.

a) Non-derivativefinancialliabilities

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

(ii) FinancialliabilitiesatFVTPL:FinancialliabilitiesatFVTPLrepresentedbycontingentconsiderationaremeasuredatfairvaluewithallchangesrecognisedinthestatementofprofitandloss.

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 futureeconomicbenefitsassociatedwiththesewill flowtotheCompanyandthecostofthe 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) Impairment

Financial assets

InaccordancewithIndAS109,theCompanyappliesexpectedcreditloss(ECL)modelformeasurementandrecognitionofimpairmentloss.TheCompanyfollows‘simplifiedapproach’forrecognitionofimpairmentlossallowanceontradereceivable.

TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.Rather,itrecognisesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.

(xiii) Employee benefits

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



Theexpenditurefordefinedcontributionplansisrecognizedasexpenseduringtheperiodwhentheemployeeprovidesservice.Underadefinedbenefitplan,itistheCompany’sobligationtoprovideagreedbenefitstotheemployees.TherelatedactuarialandinvestmentrisksfallontheCompany.Thepresentvalueofthedefinedbenefitobligationsiscalculatedusingtheprojectedunitcreditmethod.

Gratuity :-

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

LiabilitieswithregardtotheGratuityPlanaredeterminedbyactuarialvaluation,performedbyanindependentactuary,ateachBalanceSheetdateusingtheprojectedunitcreditmethod.

TheCompanyrecognizesthenetobligationofadefinedbenefitplaninitsBalanceSheetasanassetorliability.Gainsandlossesthroughremeasurementsofthenetdefinedbenefitliability/(asset)arerecognizedinothercomprehensiveincomeandarenotreclassifiedtoprofitorlossinsubsequentperiods.Theactualreturnoftheportfolioofplanassets,inexcessoftheyieldscomputedbyapplyingthediscountrateusedtomeasurethedefinedbenefitobligationisrecognizedinothercomprehensiveincome.TheeffectofanyplanamendmentsarerecognizedinnetprofitintheStatementofProfitandLoss.

Provident Fund :-

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

(xiv) Share based payments

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

(xv) Provisions

ProvisionsarerecognizedwhentheCompanyhasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationattheendofthereportingperiod,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognizedasanasset,ifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

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



(xvi) Revenue

TheCompanyderivesrevenueprimarilyfromITInfrastructureServices,EnterpriseApplication&IntegratedSolutionsandrelatedservices.TheCompanyrecognizesrevenuewhenthesignificanttermsofthearrangementareenforceable,serviceshavebeendeliveredandthecollectabilityisreasonablyassured.

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’s2018AnnualReportforthepoliciesineffectforrevenuepriortoApril1,2018.

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,theperformanceobligationsaresatisfiedasandwhentheservicesare renderedsince thecustomergenerallyobtainscontrolof theworkas itprogresses.Revenue from licenseswherethecustomerobtainsa“righttouse”the licenses isavailabletothecustomer.Revenuefromlicenseswherethecustomerobtainsa“righttoaccess”isrecognizedovertheaccessperiod.TheCompanyhasappliedtheprinciplesunderIndAS115toaccountforrevenuesfromtheseperformanceobligations.Whenimplementationservicesareprovidedinconjunctionwith the licensingarrangementandthe licenseand implementationhavebeen identified as twoseparateperformance obligations, the transaction price for such contracts are allocated to each performance obligation of thecontractbasedontheirrelativestandalonesellingprices.Intheabsenceofstandalonesellingpriceforimplementation,theperformanceobligationisestimatedusingtheexpectedcostplusmarginapproach.Wherethelicenseisrequiredtobesubstantiallycustomizedaspartoftheimplementationservice,theentirearrangementfeeforlicenseandimplementationis considered tobea singleperformanceobligationand the revenue is recognizedusing thepercentage-of-completionmethodastheimplementationisperformed.

Deferredcontractcostsareincrementalcostsofobtainingacontractwhicharerecognizedasassetsandamortizedoverthetermofthecontract.

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



TheCompanypresentsrevenuesnetofindirecttaxesinitsStatementofProfitandLoss.

RevenuesfortheyearsendedMarch31,2020andMarch31,2019areasfollows:(in`Lakhs)

Particulars Year ended March 31,2020 2019

Revenuefromservices 7805 6296Revenuefromproducts 1559 1206OtherOperatingIncome 55 21

Total revenue from operations 9419 7523

Disaggregate revenue information

Thetablebelowpresentsdisaggregatedrevenues fromcontractswithcustomers for theyearendedMarch31,2020byofferingsandcontract-type.TheCompanybelievesthatthisdisaggregationbestdepictshowthenature,amount,timinganduncertaintyofourrevenuesandcashflowsareaffectedbyindustry,marketandothereconomicfactors.

(`inLakh)

Particulars Year ended March 31, 2020

RevenuebyofferingsInfrastructureManagementServices 3941EndUserServices 5478

Total 9419

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.Revenuesinexcessofbillingsisrecordedasunbilledrevenueandisclassifiedasafinancialassetforthesecasesasrighttoconsiderationisunconditionaluponpassageoftime.

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

TradereceivableandunbilledrevenuesarepresentednetofimpairmentintheBalanceSheet.



DuringtheyearendedMarch31,2020,theCompanyrecognizedrevenueof`4168LakhfromOpeningunearnedrevenueasofApril1,2019.

DuringtheyearendedMarch31,2020,Unbilledrevenueof`3144Lakh

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,Revenue from Contracts with CustomersonthefinancialsresultsoftheCompanyfortheyearendedandasatMarch31,2020isinsignificant.OnaccountofadoptionofIndAS115,unbilledrevenuesof`3144LakhMarch31,2020havebeenconsideredasanon-financialasset.

(xvii) 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.



(xviii) Earnings per share

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

(xix) Adoption of Ind AS 116 – Leases

i) The Company as a Lessor:

LeasesforwhichtheCompanyisalessorisclassifiedasafinanceoroperatinglease.Wheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee,thecontractisclassifiedasafinancelease.Allotherleasesareclassifiedasoperatingleases.

Foroperatingleases,rentalincomeisrecognizedonastraightlinebasisoverthetermoftherelevantlease. Theleaserentalschargedduringtheperiodareasfollows

(`InLakhs)Particulars Year ended March 31,

2020 2019Leaserentalsrecognizedduringtheperiod 55 41

ii) The Company as a Lessee:

EffectiveApril1,2019,theGroupadoptedIndAS116,LeasesandappliedthestandardtoallleasecontractsexistingonApril1,2019usingthemodifiedretrospectivemethodandhastakenthecumulativeadjustmenttoretainedearnings,onthedateofinitialapplication.Consequently,thecompanyrecordedtheleaseliabilityatthepresentvalueoftheleasepaymentsdiscountedat the incrementalborrowing rateand theROUasset at its carryingamountas if thestandardhadbeenappliedsincethecommencementdateofthelease,butdiscountedatthelessee’sincrementalborrowingrateatthedateofinitialapplication.ComparativesasatandfortheyearendedMarch31,2019havenotbeenretrospectivelyadjustedandthereforewillcontinuetobereportedundertheaccountingpoliciesincludedaspartofourAnnualReportforyearendedMarch31,2019.

Ontransition,theadoptionofthenewstandardresultedintherecognitionofROUassetof`167lakhand`167lakhonaconsolidatedandstandalonebasis,respectively,‘Netinvestmentinsublease’ofROUassetof`203Lakhonbothstandaloneandconsolidatedbasis,anda leaseliabilityof`203Lakhand`203onaconsolidatedandstandalonebasis,respectively.Thecumulativeeffectofapplyingthestandard,amountingto 37Lakhand 37Lakh,wasdebitedtoretainedearnings,netoftaxesonaconsolidatedandstandalonebasis,respectively.Theeffectofthisadoptionisinsignificantontheprofitbeforetax,profitfortheperiodandearningspershare.IndAS116,Leasesresultedinanincreaseincashinflowsfromoperatingactivitiesandanincreaseincashoutflowsfromfinancingactivitiesonaccountofleasepayments.

ThechangesinthecarryingvalueofROUassetsfortheyearendedMarch31,2020areasfollows:(`InLakhs)

Particulars

Category of ROU asset

BuildingsBalanceasatApril1,2019 -ReclassifiedonaccountofadoptionofIndAS116) 203Additions(1) -



(ÌnLakhs)Particulars

Category of ROU asset

BuildingsDeletion -Depreciation 37BalanceasatMarch31,2020 167

TheaggregatedepreciationexpenseonROUassetsisincludedunderdepreciationandamortizationexpenseintheStatementofProfitandLoss.

Thebreak-upofcurrentandnon-currentleaseliabilitiesasatMarch31,2020isasfollows(ÌnLakhs)

Particulars As at March 31, 2020

Currentleaseliabilities 23Non-currentleaseliabilities 152

Total 173

ThemovementinleaseliabilitiesduringtheyearendedMarch31,2020asfollows

TheCompanydoesnot face a significant liquidity riskwith regard to its lease liabilities as the current assets aresufficienttomeettheobligationsrelatedtolease.

(ÌnLakhs)Particulars Year ended

March 31, 2020Balanceatthebeginning -Additions 203FinancecostaccruedduringtheperiodDeletions -Paymentofleaseliabilities 28Translationdifference -Balanceattheend 175

(xx) Fair value hierarchy Level wise disclosure of financial instruments

(ÌnLakhs)Particulars As at

March 31, 2020As at

March 31, 2019Level Valuation techniques and key inputs

Non-currentinvestmentsinequitysharesmeasuredatFVTOCI

NA NA 1 Quotedbidpricesinanactivemarket

Non-currentinvestmentsinunquotedpreferencesharesmeasuredatFVTPL

174 160 3 Discounted cash flow - Future cash flows arebasedontermsofPreferenceSharesdiscountedataratethatreflectsmarketrisks

Longtermborrowings(includingcurrentmaturities)Carryingvalue NA NA 2 Discounted cash flow–observable future cash

flows are basedon termsdiscounted at a ratethatreflectsmarketrisks

Fairvalue NA NA



(`InLakhs)Particulars As at

March 31, 2020As at

March 31, 2019Level Valuation techniques and key inputs

Foreigncurrencyoptions–Assets

NA NA 2 Inputsotherthanquotedpricesincludedwithinlevel1thatareobservableforassetorliability,either directly (i.e. as prices) or indirectly(derivedfromprices)

Foreigncurrencyoptions–Liability


Foreigncurrencyforwardcontracts–Liability


Commodityforwardcontracts–Assets


Interestrateswaps–Assets NA NA 2 Inputsotherthanquotedpricesincludedwithinlevel1thatareobservableforassetorliability,either directly (i.e. as prices) or indirectly(derivedfromprices)

Interestrateswaps-Liability NA NA 2 Inputsotherthanquotedpricesincludedwithinlevel1thatareobservableforassetorliability,either directly (i.e. as prices) or indirectly(derivedfromprices)

Thecarryingamountsoftradereceivables,tradepayables,capitalcreditors,cashandcashequivalentsandotherbankbalancesareconsideredtobethesameastheirfairvalues,duetotheirshorttermnature.

Sensitivity Analysis of Level III

Valuation technique

Significant unobservable inputs

Change Sensitivity of the input to fair value

InvestmentsinunquotedPreferenceshares

DCFmethod DiscountingRate 0.50% 0.50% Increase (decrease) in thediscountwoulddecrease(increase)thefairvalueby`10Lakh(`10Lakh)

Reconciliation of Level III fair value measurement:(`InLakhs)

As at March 31, 2020


Openingbalance 160 148Additionalinvestment - -Reclassificationofallowanceforloss - -Allowanceforloss - -Gainrecognisedinthestatementofprofitandloss 14 12Closingbalance 174 160



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Note 05: Investments i) Non Current Investments

(`InLakhs)

Sr. No.



(1) Non- Quoted, Long Term, Trade: (Carried at Cost)(a) Investment in Equity instruments of 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 Limited 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) Enpointe Technologies (India) Private Limited 1 1

999(PreviousYear:999)equitysharesof`100Eachfullypaidup(viii) Allied Digital Services OY 2 2

2500(Previousyear:2500)equitysharesofEURO1each,fullypaidupTotal Investment in Subsidiaries 14,745 14,745

(b) Investment in Equity instruments of Associates:(i) Soft Shell System (I) Pvt Ltd 600 600

117,924 (Previous year.117924) equity shares of 10/- each fully paid up at apremiumofRs498.81perequityshares

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

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

(i) UthopiaGreenTranspvtltd 0 0200(PreviousYear:200)equitysharesof`10/-each

Total Investment in Others 0 0 Wherevertheamountis‘0’,itdenotesvaluelessthan`50,000/-asallvalueisroudedofftothenearest`1Lakh.



(ÌnLakhs)

Sr. No.



(c) Investment carried at Fair Value through Amortised Cost(i) 450000(PreviousYear :450000) PreferenceShares@100/-ofDevyogBuilders

PvtLtd174 161

Total Investment in Prefernce Shares 174 161 Total Non Current Investments 15,519 15,506

Note: Aggregateamountofunquotedinvestmentis`15,519Lakh(P.Y.2018-19`15,506Lakh)Thereisnoimpairmentinvalueofinvestment Note 6 : Loans

(ÌnLakhs)

Sr. No.



(i) Non-Current (Unsecured, considered good)Loansandadvancestorelatedparties 251 162

Total Long Term Loans and Advances 251 162

(ii) CurrentLoansandadvances(others) 138 127

Total Short-term loans and advances 138 127 Total loans 389 289

Note 7: Other Financial Assets

(ÌnLakhs)

Sr. No.



(i) Non-Current(a) SecurityDeposits

Unsecured,consideredgood - 55(b) Others 376 400

Total 376 454

(ii) Current(a) RentalSecurityDeposits

Unsecured,consideredgood* 13 7(b) Unbilledrevenue 3,144 4,168(c) Others 596 402(d) IntererestAccrued 39 118

Total 3,792 4,695 Total Other Financial Assets 4,168 5,149

*Financialassetscarriedatamortisedcost



Note 8: Other Assets (ÌnLakhs)

Sr. No.



(i) Non-CurrentReceivablesfromGovernmentAuthorities 1022 1,277

Total 1,022 1,277 (ii) Current(a) MATCreditEntitlement 1,460 1,145(b) Prepaidexpenses 55 142

Total 1,515 1,287 Total Other Assets 2,536 2,564

Note 9: Asset classified as held for sale(ÌnLakhs)

Sr. No.



Assetclassifiedasheldforsale 59 -Total Inventories 59 -

Note 10: Inventories(ÌnLakhs)

Sr. No.



StockinTrade 3,483 3,383Total Inventories 3,483 3,383

Note:Inventoriesarevaluedatlowerofcostandnetrealizablevalue

Note 11: Trade Receivables(ÌnLakhs)

Sr. No.



Tradereceivablesoutstanding foraperiod less thansixmonths fromthedatetheyaredueforpaymentUnsecured,consideredgood 3,598 2,591

3,598 2,591 TradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpaymentUnsecured,consideredgood 12,962 11,655

Total Trade Receivable 16,560 14,246



Trade Receivable stated above include debts due from:(ÌnLakhs)

Sr. No.



PrivateCompanyinwhichdirectorisamember 6,217 3,428 6,217 3,428

Note 12 (i): Cash and Cash Equivalents:(ÌnLakhs)

Sr. No.



(a) BalanceswithBanksInCurrentAccount 261 454

(b) Cashonhand 6 4Total Cash and Cash Equivalents 267 458

Note 12 (ii): Other Balances with Bank:(ÌnLakhs)

Sr. No.



(a) BalanceswithBanksInfixeddepositaccounts(pledgewithbankagainstguaranteesgivenbybank) 605 765AboveFixeddeposithavematurityof12monthsorless

605 765 Note 13: Equity Share Capital (a) Authorised, Issued, Subscribed & Paid - up and par value per share

(ÌnLakhs)Share Capital As at 31 March 2020 As at 31 March 2019

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 Closing BalanceEquity shares with voting rightsYear ended 31 March, 2019-Numberofshares 5,02,05,528 5,02,05,528-Amountin`Lakh 2,510 2,510Year ended 31 March, 2018-Numberofshares 5,02,05,528 5,02,05,528-Amountin`Lakh 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:

(`InLakhs)

Name of Shareholder As at 31 March 2020 As at 31 March 2019 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.Ofthese2,02,500optionshadlapsedastheemployeesholdingthesaidnumberofgrantshadbeenterminatedinprecedingFinancialyear.Thebalance25,12,500optionswerenotexercisedandhencearenowlapsed.

(`InLakhs)

Particular 2019-20 2018-19Opening Outstanding option 25,12,500 25,12,500EmployeeStockOptionSchemeannouncedduringtheYear - -Grantedduringtheyear - -Exercisedduringtheyear(Post-split) - -Forfeited/lapsedduringtheyear(Post-split) (25,12,500) -ClosingOutstandingoption - 25,12,500



Note 14: Other Equity (i) Reserves and Surplus

(`InLakhs)

Sr. No.

Particulars As atMarch 31, 2020


(a) Capital Redemption ReserveOpeningBalance 30 30ClosingBalance 30 30

(b ) Securities Premium AccountOpeningBalance 37,019 37,019

(+) Securitiespremiumcreditedonallotmentofequityshares - -(-) Utilisedduringtheyearfor: - -

ClosingBalance 37,019 37,019 (c) General Reserves

OpeningBalance 1,374 1,338(+) TransferfromESOPOutstanding 684 36

ClosingBalance 2,058 1,374 (d ) Surplus

Openingbalance 4,604 3,641(+) NetProfit/(NetLoss)Forthecurrentyear 789 963(-) AdjustmentsforPriorperiodtaxes 58 -

ClosingBalance 5,451 4,604 Total Reserves and Surplus 44,558 43,027

(ii) Other component of equity

(`InLakhs)

Sr. No.



(a ) Employee Stock Options OutstandingOpening 684 720(Less):TransfertoGeneralReserves (684) (36)TotalESOPOutstanding - 684

(b) Accumulated Other Comprehensive IncomeOpening 85 120Add:DuringtheYear (25) (35)

Total Other Comprehensive Income 60 85 Total Other Component of Equity 60 769

Total 44,618 43,796



Note 15: Borrowings(`InLakhs)

Sr. No.



(i) Non Current BorrowingsSecured

a. Kotak Bank - 1,317Security details Shared pari passu with Barclays Bank MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbaiMortgageof13A,EarnestHouse,13Floor,NarimanPoint,MumbaiMortgageofGalano3,4,7,301,302,305,306.307&308BldgNo3,SectorIII,MIDCMahape,NaviMumbaiHypothecationChargeonMovableassetsexceptVehiclesHypothecationChargeonCurrentAssetsPersonalGuaranteeofPromotors

b. Caparo Financial Solution Ltd 471 -Equitablemortgage of the immovable property situated at Office no. 406 4thFloor,Seepz,SEZ,MID.C.,Marol,Andheri-East,Mumbai-400096

c. HDFC Bank 82 -EquitablemortgageoftheVechiles

Total Non-Current Borrowings 553 1317

(ii) Current BorrowingsSecured

a Loansrepayableondemandi)FromBank 1,885 1,886Unsecured

a Loansandadvancesfromrelatedparties(RepayableonDemand) 2731 3,246Total Current Borrowings 4,616 5,132

Total Borrowings 5,168 6,449

Detailofsecuredshort-termborrowingalongwithsecurityandtermofrepayment: (`InLakhs)



LoansrepayableondemandFromBarclaysBank(ForeignCurrencyLoan) 1,885 1,886

1,885 1,886 Security Details Shared Pari-Pasu with Kotak Bank (a) MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbai (b) Mortgageof13A,EarnestHouse,13Floor,NarimanPoint,Mumbai (c) MortgageofGalano3,4,7,301,302,305,306.307&308BldgNo3,SectorIII,MIDCMahape,NaviMumbai (d) HypothecationChargeonMovableassetsexceptVehicles (e) HypothecationChargeonCurrentAssets (f) PersonalGuaranteeofPromotors



Note 16: Other Financial Liabilities (ÌnLakhs)

Sr. No.



(i) Other Non-Current Financial LiabilitiesDeferredRentIncome-SecurityDepositsRent 4 4LeaseLiability 152 -

Total Non-Current Borrowings 156 4(ii) Other Current Financial Liabilities(a) Securitydepositforrentedproperty 4 3(b) Others 4 46(c) CurrentMaturities 191 -(d) FixedDepositsfrompublic 6 16(e) UnpaidDivided 8 8(f) LeaseLiability 23 -

Total Other Current Financial Liabilities 235 72 Total Borrowings 391 76

InrespectofFixedDepositfrompublicunclaimedamountoverdueasat31.03.2020;(Principal-` 5.91LakhsandcalculatedInterest-` 1.04Lakhs). Note 17: Provisions

(ÌnLakhs)

Sr. No.



(i) Non-Current Provisions(a) Provision for employee benefits:

-Provisionforgratuity - 2Total Non-Current Provisions - 2

(ii) Current Provisions(a) Provisionforemployeebenefitsandothers 275 432(b) ProvisionforExpenses* 666 1,336

Total Current Provisions 942 1,768 Total Provisions 942 1,770

Note 18: Deferred tax liabilities Thenetdeferredtaxasat31stMarch,2020,comprisesofthefollowingcomponents:

(ÌnLakhs)

Sr. No.



Deferred Tax LiabilityTimingdifferenceofdepriciationbetweenW.D.V.ofAssetsasperCompaniesActandIncomeTaxAct

Total Deffered Tax Liability 2,694 2,653 Net Deffered Liability/ (Asset) 2,694 2,653



Note 19: Trade Payables (ÌnLakhs)

Sr. No.



Trade payables-TradepayablestoMicroandSmallenterprises - --TradepayablestootherthanMicroandSmallenterprises 4,100 2,948

Total Trade Payables 4,100 2,948 Note 20: Operating Income

(ÌnLakhs)

Sr. No

Particulars For the year ending March 31, 2020

For the year ending March 31, 2019

Services,SolutionsandSales 9,364 7,502OtherOperatingrevenue 55 21

Total Operating Income 9,419 7,523 Note 21 : Other Income

(ÌnLakhs)

Sr. No



InterestIncome(ReferNote21.A) 140 345Netgainonforeigncurrencytransactions 247 -Othernon-operatingincome(ReferNote21.B) 172 66

Total Other Income 558 412 Note 21.(A)

(ÌnLakhs)

Sr. No



Interest Income comprises:Interestondepositsfrombanks 140 345

Total - Interest Income 140 345 Note 21.(B)

(ÌnLakhs)

Sr. No



Other non-operating income comprises:SundryBalanceW/back 152 -

MiscellaneousIncome 20 23IncomefromOfficeRent - 43

Total Other non-operating income 172 66



Note 22: Purchase of Traded Goods (ÌnLakhs)

Sr. No



PurchaseofTradedGoodsandServices 2,307 1,358Total Purchase of Traded Goods 2,307 1,358

Note 23: Changes in Inventories of Stock-in-Trade

(ÌnLakhs)

Sr. No



ClosingStock 3,483 3,383Less:OpeningStock 3,383 3,311

Net (increase) / decrease (100) (72) Note 24 : Employee Benefits Expenses

(ÌnLakhs)

Sr. No



(a) Salariesandwages 3,032 2,430(b) ContributionstoProvidentFund 29 26(c) ContributionstoESIC 22 24(d) ContributionstoLabourWelfareFund 0 0(e) ContributionstoGratuity 60 9(f) Staffwelfareexpenses 15 10

Total Employee Benefit Expenses 3,159 2,500

Wherevertheamountis‘0’,itdenotesvaluelessthan`50,000/-asallvalueisroundedofftothenearest`1Lakh Note 25 : Finance Cost

(ÌnLakhs)

Sr. No



(a)InterestexpenseonBorrowings 459 712(b)Otherborrowingcosts 160 209

Total Finance Cost 619 921



Note 26: Other expenses (ÌnLakhs)

Sr. No



RentincludingLeaseRentals 17 41RepairsandMaintenance 164 84Insurance 20 34Communication 57 42TravellingandConveyance 139 116ElectricityExpenses 142 158FreightandForwarding 2 18AdvertisementExpenses 4 5LegalandProfessionalFees 349 353PaymentstoAuditors(ReferNote(26A)below) 12 10RatesandTaxes 228 88BrokerageCharges 9 2Printing&StationeryExpenses 7 11BusinessPromotionExpenses 32 30OfficeExpenses 58 55LabourCharges 45 9SundryBalancesWrittenOff 121 -PriorPeriodExpenses 114 -MiscellaneousExpenses 275 26

Total Other Expenses 1,793 1,080

Note 26(A): Details of Auditors’ Remuneration: (ÌnLakhs)

Sr. No



PaymentstotheAuditors(a) ForStatutoryAudit 10 8(b) ForTaxationMatters 2 2

Total 12 10 Note 27: Exceptional Items

(ÌnLakhs)Sr. No



ReversalofExpenses - (622)Baddebtwrittenoff - 271

Total - 351

Note 28: Component of Other Comprehensive Income (ÌnLakhs)

Sr. No



(a) Items that will not be reclassified to profit or lossActurialGain/LossonGratuity 25 35

Total 25 35



Note 29 : Earning Per Shares

Sr. No

Particular 2019-20 2018-19

A Weightedaveragenumberofequitysharesof`5/-eachI Numberofsharesatthebeginningoftheyear(nos)of`5/-each 50205528 50205528

(PreviousYearof` 5/-each)II NumberofSharesattheendoftheyear(Nos)of` 5/-each 50205528 50205528III ESOPoutstandingtoemployees NIL NILIV Weightedaveragenumberofequitysharesof`5/-each

(PreviousYearof` 5/-each)outstandingduringtheyear(Nos)forbasicEPS 50205528 50205528V Weightedaveragenumberofequitysharesof`5/-each 50205528 50205528

DilutiveEPSB NetProfitaftertaxavailableforequityshareholders(In`Lakh) 789 963C Basicincomeaspershare(inrupees)[B/A(V)] 1.57 1.92D Dilutedincomepershare(inrupees)[B/A(VI)] 1.57 1.92

30 (1) : Employee Benefits Gratuity Plan (i) Anamountof`25.36lakhshasbeenrecognizedtowardstheEmployeesGratuityFundagainsttheliabilityof`198.05lakhsas

pertheActuarialValuationforGratuityason31stMarch2020.TheCompanyhasitsEmployeesGratuityFundmanagedbyBirlaSunLifeInsuranceCompany.TheparticularsunderAS15(Revised)furnishedbelowarethosewhicharerelevantandavailabletothecompanyandwhichareaspertheActurialValuationReport:-

Valuation Date Valuation Date31st March, 2020 31st March, 2019

I Assumptions as atMortality IALM(2006-08)Ult IALM(2006-08)UltDiscountRate 7% 8%Rateofincreaseincompensation 5% 5%Rateofreturn(expected)onplanassets 9% 0.09Withdrawalrates 1to6% 1to6%

II Changes in present value of obligationsPVOatbeginningofperiod 19849921 15928192Interestcost 1410521 1057005CurrentServiceCost 4296299 3664786BenefitsPaid (2775214) (4294326)Actuarial(gain)/lossonobligation 2536751 3494264PVOatendofperiod 25318278 19849921

III Changes in fair value of plan assetsFairValueofPlanAssetsatbeginningofperiod 44190 239165AdjustmenttoOpeningFairValueofPlanAssets 0 (649)




ExpectedReturnonPlanAssets 4,323 10,842BenefitPaid (2775214) (4294326)Actuarialgain/(loss)onplanAssets 2657725 4000778FairValueofPlanAssetsatendofperiod 68976 44190

IV Fair Value of Plan AssetsFairValueofPlanAssetsatbeginningofperiod 44190 239165AdjustmenttoOpeningFairValueofPlanAssets (4323) (649)ActualReturnonPlanAssets 4,323 10,842Contributions 2800000 4100000BenefitPaid (2775214) (4294326)FairValueofPlanAssetsatendofperiod 68976 44190FundStatus 25249302 19805731ExcessofactualoverestimatedreturnonPlanAssets 2657725 4000778

V Actuarial Gain/(Loss) RecognizedActuarialGain/(Loss)fortheperiod(Obligation) (25,36,751) (34,94,264)ActuarialGain/(Loss)fortheperiod(PlanAssets) (26,57,725) (40,00,778)TotalGain/(Loss)fortheperiod (51,94,476) (74,95,042)ActuarialGain/(Loss)recognizedfortheperiod (51,94,476) (74,95,042)UnrecognizedActuarialGain/(Loss)atendofperiod - -

VI Amounts to be recognized in the Balance Sheet and statement of Profit & Loss AccountPVOatendofperiod 2,53,18,278 1,98,49,921FairValueofPlanAssetsatendofperiod 68,976 44,190FundStatus 2,52,49,302 1,98,05,731UnrecognizedActuarialGain/(Loss) - -NetAsset/(Liability)recognizedinthebalancesheet (1,98,05,731) (1,56,89,027)

VII Expense recognized in the statement of P & L AccountCurrentServiceCost 42,96,299 36,64,786Interestcost 14,06,198 10,46,163ExpectedReturnonPlanAssets - -NetActuarial(Gain)/Lossrecognizedfortheperiod 57,02,497 47,10,949ExpenserecognizedinthestatementofP&LAccount 57,02,497 47,10,949

VIII Movements in the Liability recognized in Balance SheetOpeningNetLiability 1,98,05,731 1,56,89,027AdjustmenttoOpeningFairValueofPlanAssets - 649Expensesasabove 57,02,497 47,10,949Contributionpaid (28,00,000) (41,00,000)




OtherComprehensiveIncome(OCI) 25,41,074 35,05,106ClosingNetLiability 2,52,49,302 1,98,05,731

IX Experience Analysis - Liabilities Acturial(Gain)/Lossduetochangeinbasis 0 0Experience(Gain)/LossduetochangeinExperience 0 0Total 0 0ExperienceAnalysis–PlanAssets 57,02,497 5,06,514Experience(Gain)/LossduetochangeinPlanAssets 34,94,264 34,94,264

X Schedule VI DetailsCurrentLiabilityNon-currentLiability 2,52,49,302 1,98,05,731

Note 30 (2):Additional Information pursuant to the provisions of part II of the Schedule III of the Companies Act 2013:- (`inLakhs)

Particular Year ended 31.03.20

Year ended 31.03.19

i IncomeinForeignCurrency(Exports) SalesofServicesandproducts 3,595 3,077

ii ExpenditureinForeignCurrency(subjecttodeductionoftaxwhereapplicable)aTravelling 4 6

bCloudComputing 225 107iii ValueofImportscalculatedonC.I.F.basis-TradedGoods - -

Note 30 (3): Contingent Liabilites and commitment Contingent liabilities (to the extent not provided for) (`inLakhs)

Particulars As at 31st March, 2020

As at 31st March, 2019

BankGuaranteesIssued 640 2285IncomeTax(Litigation) 51 51

Total 691 2336



Note 30 (4): Summary of Related Party transaction A) Nature of transaction with the Related Parties (`InLakhs)

Particulars Subsidiary Associate2019-20 2018-19 2019-20 2018-19

Sale of Goods / Services / FacilityAlliedDigitalServices,LLC(USA) 3,564 4,226 0 0AlliedDigitalServices(UK)Ltd. 31 116 0 0Purchase of Goods, Services and FacilitiesAlliedDigitalServices,LLC(USA) 225 107 0 0

B) Balances with Related Party

Particulars Subsidiary Associate2019-20 2018-19 2019-20 2018-19

Sundry DebtorsAlliedDigitalAsiaPacificPtyLtd.(Australia) 425 390 - -AlliedDigitalServices,LLC(USA) 5,727 2,955 - -AlliedDigitalServices(UK)Ltd. 66 59 - -AlliedDigitalINC(USA) 6 6 - -AssetliteEquipment(I)PrivateLimited 5 5

Sundry CreditorsAlliedDigitalServicesLLC(USA) 2,707 1,879 - -AssetliteEquipmentIndiaPrivateLimited - - 13 13

Loan and advanceAssetliteEquipmentIndiaPrivateLimited - - 54 54

Short Term BorrowingEn-PointeTechnologiesIndiaPvt.Ltd. 61 61 - -AlliedDigitalSingaporePteLtd. 10 10 - -AlliedDigitalServicesLLC(USA) 1,675 2,180 - -AlliedDigitalINC(USA) 861 861 - -

Non-current investmentAlliedDigitalServicesLLC(USA) 7,531 7,531 - -AlliedDigitalINC(USA) 7,075 7,075 - -AlliedDigitalSingaporePteLtd. 6 6 - -AlliedDigitalAsiaPacificPtyLtd.(Australia) 128 128 - -Alliede-CopSurveillanceIndiaPvt.Ltd. 1 1 -AlliedDigitalServicesOY 2 2 - -AlliedDigitalServices(UK)Ltd. 1 1 - -



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 Outstanding as at the end of the year

Maximum amount outstanding

during the year

Investment in shares of the

companySubsidiariesAllied Digital INC (USA)2019-20 - - 7,5312018-19 - - 7,531

En-Pointe Technologies India Pvt. Ltd.2019-20 62 62 -2018-19 62 62 -

Allied Digital Singapore Pte Ltd.2019-20 10 10 62018-19 11 11 6

Allied Digital Asia Pacific Pty Ltd. (Australia)2019-20 - - 1282018-19 - - 128

Allied e-Cop Surveillance India Pvt. Ltd.2019-20 - - 12018-19 - - 1

Allied Digital Services (UK) Ltd.2019-20 - - 12018-19 - - 1

AssociatesAssetlite Equipment India Private Ltd.2019-20 54 54 -2018-19 54 54 -



Summarized segment information for the year ended March 2020. (ÌnLakhs)

Particulars Year Ended31st March, 2020

Year Ended31st March, 2019

Segment RevenueEnterpriseComputingbasedSolutions 6,594 5,266InfrastructureManagementbasedSolutions 2,826 2,257Un-allocable-Expenses/(Income) (558) (701)Net Segment Revenue 8,862 6,822 Profit before Interest, Un-allocable expenses & TaxEnterpriseComputingbasedSolutions 1384 3518InfrastructureManagementbasedSolutions 3228 1301

4,612 4,819 Less:i)Interest 619 921ii)Un-allocableExpenses(netofun-allocableincome) 3,158 2,970

Total Profit Before Tax 835 928 Un-allocable-CapitalEmployed 44,618 43,797

Total Capital Employed 45,453 44,725 Information regarding geographical revenue is as follow. (ÌnLakhs)

Revenue Year Ended31st March, 2020


India 5,825 5,230UK 31 253USA 3,564 2,040

Total 9,419 7,523 Information regarding customer Wise Revenue is as follow (ÌnLakhs)

Revenue Year Ended31st March, 2020


GovtofMaharashtra 2,169 3,776AlliedDigitalServicesLLC(USA) 3,564 2,040Others 3,687 1,707

Total 9,419 7,523



THIS PAGE IS IN

TENTIONALLY

LEFT BLANK



ToTheMembersofAllied Digital Services Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

WehaveauditedtheaccompanyingconsolidatedfinancialstatementsofAlliedDigitalServicesLimited(“theHoldingCompany”)anditssubsidiaries(theHoldingCompanyanditssubsidiariestogetherreferredtoas“theGroup”),anditsassociatewhichcomprisetheConsolidatedBalanceSheetasatMarch31,2020,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 theconsolidatedstateofaffairsoftheGroupanditsassociateasatMarch31,2020,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.

Emphasis of matter

WedrawattentiontoNote2totheaccompanyingnotestoConsolidatedFinancialStatementwithregardtomanagement’sevaluationofuncertaintyduetotheoutbreakofCOVID-19anditsimpactonfutureoperationsoftheCompany.Ouropinionisnotmodifiedinrespectofthismatter.

Key Audit Matters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditoftheconsolidatedfinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditoftheconsolidatedfinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinourreport.

SR NO


1 Revenue recognition Principal Audit ProceduresFixed price contractsThe Company engages in Fixed price contracts, includingcontracts with multiple performance obligations. Revenuerecognition in such contracts involves judgments relatingto identification of distinct performance obligations,

Our audit procedures included Obtained an understandingof the systems, processes and controls for evaluationof fixed price contracts to identify distinct performanceobligationsandrecognitionofrevenue.Evaluatedthedesignand operating effectiveness of internal controls including

INDEPENDENT AUDITOR’S REPORT



SR NO


determination of transaction price for such performanceobligations and the appropriateness of the basis used tomeasurerevenuerecognisedoveraperiod.

IncaseofFixedpricecontractswhereperformanceobligationsaresatisfiedoveraperiodoftime,revenueisrecognisedusingthepercentageofcompletionmethodbasedonmanagement’sestimate of contract efforts. The estimation of total effortsor costs involves significant judgement and is assessedthroughouttheperiodofthecontracttoreflectanychangesbased on the latest available information. These contractsmayalsoinvolverecognizingonerousobligationsthatrequirecritical estimates to bemade by themanagement. In caseofFixedpricemaintenancecontracts, revenue isrecognisedeither on a straight line basis or using the percentage ofcompletionmethodoratanamountequaltosumsbilledtocustomer,dependingon themostappropriatemethod thatdepictsthevalueofservicedeliveredtothecustomer.

IT controls relating to recording of the contract value,determiningthetransactionprice,allocationofconsiderationtodifferentperformanceobligations,measurementofeffortsincurred and process around estimation of efforts requiredto complete the performance obligations and the mostappropriatemethodtorecogniserevenue.

• On selected sample of contracts, we tested that therevenue recognised is in accordance with the revenuerecognition accounting standard. We - evaluated theidentificationofperformanceobligations;-consideredthetermsofthecontractstodeterminethetransactionprice,- determined if the Company’s evaluation of themethodusedforrecognitionofrevenueisappropriate;-testedtheCompany’s calculation of efforts incurred, estimation ofcontracteffortsincludingestimationofonerousobligation,through a retrospective review of efforts incurred withestimated efforts; - assessed appropriateness of contractassets/ unbilled revenue on balance sheet date byevaluatingunderlyingdocumentation.

• Tested aged contract assets to assess possible delaysin achieving milestones, which may require a change inestimatedefforts tocompletetheremainingperformanceobligations.

• Evaluated management assessment of the impacton revenue recognition and consequential impact onthe expected credit loss allowance and other areas ofjudgement, including for possible effects, if any from theCOVID-19pandemic.

• Performed analytical procedures over revenue andreceivables.

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 formofassuranceconclusionthereon.

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,consolidated



financialperformance,consolidated totalcomprehensive income,consolidatedchanges inequityandconsolidatedcash flowsoftheGroup 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,ortheoverrideofinternalcontrols.

• 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 the financial statementsof suchentities included in theconsolidated financialstatements,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`2,003Lakhsasat31stMarch,2020,totalrevenuesof`27,107Lakhsandnetcashflowsamountingto`591.99Lakhsfortheyearendedonthatdate,asconsideredintheconsolidatedfinancialstatements.ThesefinancialstatementshavebeenauditedbyotherauditorwhosereporthavebeenfurnishedtousbytheManagementandouropinionontheconsolidatedfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthissubsidiaryandourreportintermsofsub-section(3)ofSection143oftheAct,insofarasitrelatestotheaforesaidsubsidiaryisbasedsolelyonthereportoftheotherauditor.

(b) Wedidnotauditthefinancialstatementsofsevensubsidiaries,whosefinancialstatementsreflecttotalassetsof`25,773Lakhsasat31stMarch,2020,totalrevenuesof`82Lakhsandnetcashflowsamountingto`(12.19)Lakhsfortheyearendedonthatdate,asconsideredintheconsolidatedfinancialstatements.TheconsolidatedfinancialstatementsalsoincludetheGroup’sshareofnet lossof`1 lakhsfortheyearended31stMarch,2020,asconsideredintheconsolidatedfinancialstatements, inrespectofoneassociate,whosefinancialstatementshavenotbeenauditedbyus.ThesefinancialstatementsareunauditedandhavebeenfurnishedtousbytheManagementandouropinionontheconsolidatedfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesesubsidiaries,jointlycontrolledentitiesandassociates,andourreportintermsofsub-section(3)ofSection143oftheActinsofarasitrelatestotheaforesaidsubsidiaries,jointlycontrolledentitiesandassociates, isbasedsolelyonsuchunauditedfinancialstatements. InouropinionandaccordingtotheinformationandexplanationsgiventousbytheManagement,thesefinancialstatementsarenotmaterialtotheGroup.

Ouropinionon theconsolidated financial statements,andour reportonOtherLegalandRegulatoryRequirementsbelow, 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) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsoftheHoldingCompanyasonMarch31,2020takenon recordby theBoardofDirectorsof theHoldingCompanyand the reportsof thestatutoryauditorsof its subsidiarycompaniesandassociatesincorporatedinIndia,noneofthedirectorsoftheGroupcompaniesandassociatesincorporatedinIndiaisdisqualifiedasonMarch31,2020frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) Withrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureA”.

g) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhaspaid/providedmanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofSection197readwithscheduleVtotheAct.

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

i. TheconsolidatedfinancialstatementsdiscloseimpactofpendinglitigationsontheconsolidatedfinancialpositionoftheGroupanditsassociates–ReferNoteNo28(3)tothestandalonefinancialstatements.

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”)

InconjunctionwithourauditoftheconsolidatedfinancialstatementsoftheCompanyasofandfortheyearendedMarch31,2020,wehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofAlliedDigitalServicesLimited(hereinafterreferredtoas“Company”)anditssubsidiarycompaniesanditsassociate,whicharecompaniesincorporatedinIndia,asofthatdate.

Management’sResponsibilityforInternalFinancialControls

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 internal financial 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 internal financial controlsover financial 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,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2020,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytherespectivecompaniesconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.






CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2020. (`InLakhs)Particulars Note As at

31st March 2020As at

31st March 2019ASSETSNon-Current assetsProperty,PlantandEquipment 2(i) 5,233 4,728InvestmentProperty 3 8,113 8,203IntangibleAssets 4 4,186 5,209RightofuseAsset 2(ii) 167 -Goodwill 9,622 9,622FinancialAssets

Investments 5 774 840Loans 6(i) 251 162OtherFinancialAssets 7(i) 376 454

OtherNon-CurrentAssets 8(i) 1,022 1,794Assetclassifiedasheldforsale 9 59 -Total Non-Current Assets 29,803 31,013 Current assetsInventories 10 3,509 3,408FinancialAssets

TradeReceivables 11 20,251 19,648CashandCashEquivalents 12 1,784 1,396Otherbankbalances 13 605 765Loans 6(ii) 138 127OtherFinancialAssets 7(ii) 3,860 4,762

OtherCurrentAssets 8(ii) 2,350 2,208Total Current Assets 32,497 32,314 Total Assets 62,300 63,327

EQUITY AND LIABILITIESEquityEquityShareCapital 14 2,510 2,510OtherEquity 15 43,128 41,171Equity Attributable to Shareholders 45,638 43,681 Non-ControllingInterest 1,196 889Total Equity 46,834 44,570 LIABILITIESNon-Current LiabilitiesFinancialLiabilities

Borrowings 16(i) 553 1,317OtherFinancialLiabilities 17(i) 156 4

Provisions 18(i) - 2DeferredTaxLiabilities(Net) 19 2,533 2,557Total Non-Current Liabilities 3,242 3,881 Current LiabilitiesFinancialLiabilities

Borrowings 16(ii) 4,616 5,132TradePayables 20-TradepayablestoMicroandSmallenterprises-TradepayablestootherthanMicroandSmallenterprises 5,967 2,358OtherFinancialLiabilities 17(ii) 236 2,769

OtherCurrentLiabilities 21 450 1,867Provisions 18(ii) 955 2,750Total Current Liabilities 12,224 14,876 Total Equity and Liabilities 62,300 63,327 AsperourreportofevendateFor Shah & Taparia For Allied Digital Services Limited CharteredAccountants FRN:109463W Ramesh Pipalawa Nitin Shah Prakash ShahM.No.103840 Chairman&ManagingDirector WholeTimeDirector Place:Mumbai Gopal Tiwari Neha Bagla Date :11thJune,2020 ChiefFinancialOfficer CompanySecretary



CONSOLIDATED PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2020. (`InLakhs)

Particulars Note Year Ended31st March, 2020


Income from Operations NetSales/IncomefromOperations 22 33,014 23,973OtherIncome 23 558 412Total income from Operations (net) 33,572 24,384

Expenses Purchaseofstock-in-trade 24 19,321 13,456Changesininventoriesoffinishedgoods,work-in-progressandstock-in-trade 25 (100) (72)Employeebenefitsexpense 26 4,816 3,657FinanceCosts 27 699 1,003Depreciationandamortisationexpense 4 2,221 2,162Otherexpenses 28 4,212 3,078Total Expenses 31,168 23,284 Profit / (Loss) from operations before exceptional items 2,404 1,101 ExceptionalItems - 351Profit / (Loss) from ordinary activities before tax 2,404 1,452 Tax expense CurrentTax 591 275MATcredit (149) (210)DeferredTax 41 150Net Profit / (Loss) from ordinary activities after tax 1,922 1,237 Shares of Profit/(Loss) of Associates & Joint Ventures 2 5 Net Profit / (Loss) for the Period 1,924 1,237 Other Comprehensive IncomeItemsthatwillnotbeReclassifiedtoP&LGratuityActurialGain/(Loss) 30 (25) (35)ItemsthatwillbeReclassifiedSubsequentlytoP&LForeignCurrencyTranslationDifference 75 -Total Comprehensive Income (after tax) 1,975 1,202 Net Profit/(Loss) attributable to: Owners 2,281 1,195 Non-Controlling Interest 306 (7)Paid-upequitysharecapital (FaceValueof`5/-) 2,510 2,510ReservesExcludingRevaluationReservesasperbalancesheet 43128 41171Earning per Share (of ` 5/- each) Basic 3.83 2.46Diluted 3.83 2.46

Asperourreportofevendate For Shah & Taparia For Allied Digital Services Limited CharteredAccountants FRN:109463W Ramesh Pipalawa Nitin Shah Prakash ShahM.No.103840 Chairman&ManagingDirector WholeTimeDirector Place:Mumbai Gopal Tiwari Neha Bagla Date :11thJune,2020 ChiefFinancialOfficer CompanySecretary



STATEMENT OF CHANGE IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2020. (`InLakhs)

A. Equity Share Capital BalanceBalanceasat01.04.2019 2510ChangeinEquityShareCapitalDuringtheyear -Balanceasat31.03.2020 2510

B. Other Equity (`InLakhs)

Particulars Other EquityReserve and Surplus

Securities premium account

Retained Earnings

Capital Redemption

Reserve

General Reserve

Employee Stock Option

Outstand-ing & Other

Comprehen-sive income

Total

Balanceasat01.04.2019 37,056 1,841 30 1,374 870 41,172ProfitfortheYear - 1,924 - - 50 1,974Transfers - - 684 (684) -AdjustmentforPriorPeriodItems - (17) - - - (17)AdjustmentINDAS&Consolidation - - - - - -Balanceasat31.03.2020 37,056 3,748 30 2,058 236 43,128

Asperourreportofevendate




CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020.(`InLakhs)

Sr. No.



I CASH INFLOW FROM OPERATING ACTIVITIES(a) Profit/Loss as per Profit & Loss Account after Tax 1975 1230

Adjustments:AdjustmentsforPriorperiodtaxes&INDAseffectfromSurplusinP&L (13) -MinorityinterestandAssociatesprofit (309)BadDebtWrittenoffduringtheyear - 271Depreciationandamortization 2,221 -ForeignEchangeGain (247) -GratuityExp 60 2,162IncomefromInvestingActivities (558) (66)DeferredTax 65 150FinanceCost 699 1,003ActuarialgainthroughOCI 25 (35)Incometaxpaid 441 275FCTR (75) (5)

(b) Changes in Assets and LiabilitiesInventories (101) (97)Tradereceivables (603) (4,617)loansandadvances (101) 1,425OtherFinancialAssets 981 (906)otherassets (142) 568Tradepayables 3,610 (2,107)OtherFinancialliability (2,709) (825)Liabilities&Provisions (3,215) 3,489Net Cash generated by Operating Activities 3,526 1,913

II CASH INFLOW FROM INVESTING ACTIVITIESPaymenttowardacquistionofthefixedassetsincludingintangible (1,577) 22DisposaloftheInvestment\ChangesduetoIndAsinInvestments 78 92Assetclassifiedasheldforsale - -InterestWriteoff - 345Repaymentofloangiven 773OtherNon-OperatingIncome 558 66Net Cash generated by Investing Activities (168) 525

III CASH INFLOW FROM FINANCING ACTIVITIESRepaymentofloan (1,281) (4,713)Leasepayment (46) -Fromborrowings 152 2,515FinanceCost (699) (1,003)Net Cash generated by Financing Activities (3,377) (3,201)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (19) (762)



(`InLakhs)Sr. No.



Add: Cash and cash equivalents at the beginning of the period (B)( As per Annexure I)

2,408 2,923

Cashandcashequivalentsattheendoftheperiod(A+B) 2,389 2,161Supplementary InformationRestrictedCashBalance&CashEquivalent(Refernotebelow) 605 765

(`InLakhs)

Annexure I For the year ended March 31, 2020


Cashonhandandbalanceswithbanks 1,784 1,396ShortTermInvestment 605 765Cashandcashequivalentsaspreviouslyreported 2389 2,161Effectofexchangeratechanges - 247Cashandcashequivalentsasrestated 2389 2,408

Asperourreportofevendate




SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNT1) 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.

TheCompany’sregisteredofficeisinMumbaiandhaspresenceinpanIndia,andithasSubsidiarycompaniesinIndia,USA,UK,SingaporeAustraliaandFinland.

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,itssubsidiariesandassociateasatMarch31,2020.

Subsidiaries;SubsidiariesareentitiescontrolledbytheGroup.TheGroupcontrolsanentitywhenitisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedateonwhichcontrolcommencesuntilthedateonwhichcontrolceases.

Equityaccountedinvestees;TheGroup´sinterestsinequityaccountedinvesteescompriseinterestsinassociate.AnassociateisanentityinwhichtheGrouphassignificantinfluence,butnotcontrolorjointcontrol,overthefinancialandoperatingpolicies.Interestsinassociateareaccountedforusingtheequitymethod.Theyareinitiallyrecognisedatcostwhichincludestransactioncosts.Subsequenttoinitialrecognition,theconsolidatedfinancialstatementsincludetheGroup´sshareofprofitorlossandOCIofequityaccountedinvesteesuntilthedateonwhichsignificantinfluenceceases.

Assets,liabilities,incomeandexpensesofasubsidiaryacquiredordisposedofduringtheyearareincludedintheconsolidatedfinancial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.Consolidated financial 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,incomeandexpensesofthesubsidiaryarebasedontheamountsoftheassetsandliabilitiesrecognisedintheconsolidatedfinancialstatementsattheacquisitiondate.

b) Offset(eliminate)thecarryingamountoftheparent´sinvestmentineachsubsidiaryandtheparent´sportionofequityofeachsubsidiary.

c) Eliminateinfullintragroupassetsandliabilities,equity,income,expensesandcashflowsrelatingtotransactionsbetweenentitiesofthegroup.Profitorlossandeachcomponentofothercomprehensiveincome(OCI)areattributedtotheequityholdersoftheparentoftheGroupandtothenon-controllinginterests,evenifthisresultsinthenon-controllinginterestshavingadeficitbalance.Whennecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestobringtheiraccountingpolicies into linewiththeGroup´saccountingpolicies.All intra-groupassetsand liabilities,equity, income,expensesandcashflowsrelatingtotransactionsbetweenmembersoftheGroupareeliminatedinfullonconsolidation.WhentheGrouplosescontroloverasubsidiary,itderecognisestheassetsandliabilitiesofthesubsidiary,andanyrelatednon-controllinginterestandothercomponentsofequity.Anyinterestretainedintheformofsubsidiaryismeasuredatfairvalueatthedatethecontrolislost.Anyresultinggainorlossisrecognisedinthestatementofprofitandloss.

d) EstimationofuncertaintiesrelatingtotheglobalhealthpandemicfromCOVID-19

TheCompanyhasconsideredthepossibleeffectsthatmayresultfromthepandemicrelatingtoCOVID-19onthecarryingamountsofreceivables,unbilledrevenuesandinvestmentinsubsidiaries.Indevelopingtheassumptionsrelatingtothepossiblefutureuncertaintiesintheglobaleconomicconditionsbecauseofthispandemic,theCompany,asatthedateofapprovalofthesefinancialstatementshasusedinternalandexternalsourcesofinformationincludingcreditreportsandrelatedinformation,economicforecasts.TheCompanyhasperformedsensitivityanalysisontheassumptionsusedandbasedoncurrentestimatesexpectsthecarryingamountoftheseassetswillberecovered.TheimpactofCOVID-19ontheCompany’sfinancialstatementsmaydifferfromthatestimatedasatthedateofapprovalofthesefinancialstatements.

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompany,anditssubsidiariesandassociateasdisclosedbelow:

Summaryofsignificantaccountingpolicies

(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),nonderivative financial liabilitiesatamortisedcostorFVTPLandderivativefinancialinstruments(underthecategoryoffinancialassetsorfinancialliabilities)atFVTPL.Theclassificationoffinancialinstrumentsdependsontheobjectiveofthebusinessmodelforwhichitisheld.Managementdeterminestheclassificationofitsfinancialinstrumentsatinitialrecognition.

(vii) Debt instruments at FVTOCI

Adebtinstrumentshallbemeasuredatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:

(a) theobjectiveofthebusinessmodelisachievedbybothcollectingcontractualcashflowsandsellingfinancialassetsand(b) theasset’scontractualcashflowrepresentSolelyPaymentsofPrincipalandInterest(SPPI)

DebtinstrumentsincludedwithinFVTOCIcategoryaremeasuredinitiallyaswellasateachreportingperiodatfairvalueplustransactioncosts.Fairvaluemovementsarerecognisedinothercomprehensiveincome(OCI).However,theCompanyrecognisesinterestincome,impairmentlosses&reversalsandforeignexchangegain/(loss)instatementofprofitandloss.Onderecognitionoftheasset,cumulativegainorlosspreviouslyrecognisedinOCIisreclassifiedfromequitytoprofitandloss.Interestearnedisrecognisedundertheeffectiveinterestrate(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.AnyfinancialassetwhichdoesnotmeetthecriteriaforcategorizationasatamortisedcostorasFVTOCI,isclassifiedasFVTPL.

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

FinancialassetsincludedwithintheFVTPLcategoryaremeasuredatfairvalueswithallchangesinthestatementofprofitandloss.

a) Non-derivativefinancialliabilities

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

(ii) FinancialliabilitiesatFVTPL:FinancialliabilitiesatFVTPLrepresentedbycontingentconsiderationaremeasuredatfairvaluewithallchangesrecognisedinthestatementofprofitandloss.

b) Derivativefinancialinstruments:Derivativesarerecognizedandmeasuredatfairvalue.Attributabletransactioncostsarerecognizedinstatementofprofitandloss.



(x) Property, plant and equipment

a) Recognitionandmeasurement: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 futureeconomicbenefitsassociatedwiththesewill flowtotheCompanyandthecostofthe 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)andthe



levelofmaintenanceexpendituresrequiredtoobtaintheexpectedfuturecashflowsfromtheasset.Theestimatedusefullivesofintangiblesareasfollows:

Type of Asset Method Estimated useful lifeIntellectualProperty Straightline 10Years

(xii) Impairment

Financial assets

InaccordancewithIndAS109,theCompanyappliesexpectedcreditloss(ECL)modelformeasurementandrecognitionofimpairmentloss.TheCompanyfollows‘simplifiedapproach’forrecognitionofimpairmentlossallowanceontradereceivable.

TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotrackchangesincreditrisk.Rather,itrecognisesimpairmentlossallowancebasedonlifetimeECLsateachreportingdate,rightfromitsinitialrecognition.

(xiii) 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.Gainsandlossesthroughremeasurementsofthenetdefinedbenefitliability/(asset)arerecognizedinothercomprehensiveincomeandarenotreclassifiedtoprofitorlossinsubsequentperiods.Theactualreturnoftheportfolioofplanassets,inexcessoftheyieldscomputedbyapplyingthediscountrateusedtomeasurethedefinedbenefitobligationisrecognizedinothercomprehensiveincome.TheeffectofanyplanamendmentsarerecognizedinnetprofitintheStatementofProfitandLoss.

Provident Fund :-

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

(xiv) Share based payments

EmployeesoftheCompanyreceiveremunerationintheformofequitysettledinstruments,forrenderingservicesoveradefinedvestingperiod.Equityinstrumentsgrantedaremeasuredbyreferencetothefairvalueoftheinstrumentatthedateofgrant.Theexpenseisrecognizedinthestatementofprofitandlosswithacorrespondingincreasetothesharebasedpaymentreserve,acomponentofequity.Theequityinstrumentsgenerallyvestinagradedmanneroverthevestingperiod.



Thefairvaluedeterminedatthegrantdateisexpensedoverthevestingperiodoftherespectivetranchesofsuchgrants(acceleratedamortization).Thestockcompensationexpense isdeterminedbasedontheCompany’sestimateofequityinstrumentsthatwilleventuallyvest.Thefairvalueoftheamountpayabletotheemployeesinrespectofphantomstocks,whicharesettledincash,isrecognizedasanexpensewithacorrespondingincreaseinliabilities,overtheperiodduringwhichtheemployeesbecomeunconditionallyentitledtopayment.Theliabilityisremeasuredateachreportingdateandatsettlementdatebasedonthefairvalueofthephantomstockoptionsplan.Anychangesintheliabilityarerecognizedinstatementofprofitandloss.

(xv) Provisions

ProvisionsarerecognizedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationattheendofthereportingperiod,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognizedasanasset,ifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

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

(xvi) Revenue

TheGroupderivesrevenuesprimarilyfrombusinessofITandITeSservices,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. RefertoNote1Significant Accounting Policies intheCompany’s2018AnnualReportforthepoliciesineffectforrevenuepriortoApril1,2018.

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,theGrouphasappliedtheguidanceinIndAS115,RevenuefromContractswithCustomers,byapplyingtherevenuerecognitioncriteriaforeachdistinctperformanceobligation.Thearrangementswithcustomersgenerallymeetthecriteria forconsidering ITand ITeSrelatedservicesasdistinctperformanceobligations.Forallocatingthetransactionprice,theCompanyhasmeasuredtherevenueinrespectofeachperformanceobligationofacontractatitsrelativestandalonesellingprice.Thepricethatisregularlychargedforanitemwhensoldseparatelyisthebestevidenceofitsstandalonesellingprice.IncaseswheretheCompanyisunabletodeterminethestandalonesellingprice,theCompanyusestheexpectedcostplusmarginapproachinestimatingthe



standalonesellingprice.ForITandITeSandrelatedservices,theperformanceobligationsaresatisfiedasandwhentheservicesare renderedsince thecustomergenerallyobtainscontrolof theworkas itprogresses.Revenue from licenseswherethecustomerobtainsa“righttouse”the licenses isavailabletothecustomer.Revenuefromlicenseswherethecustomerobtainsa“righttoaccess”isrecognizedovertheaccessperiod.TheCompanyhasappliedtheprinciplesunderIndAS115toaccountforrevenuesfromtheseperformanceobligations.Whenimplementationservicesareprovidedinconjunctionwith the licensingarrangementandthe licenseand implementationhavebeen identified as twoseparateperformance obligations, the transaction price for such contracts are allocated to each performance obligation of thecontractbasedontheirrelativestandalonesellingprices.Intheabsenceofstandalonesellingpriceforimplementation,theperformanceobligationisestimatedusingtheexpectedcostplusmarginapproach.Wherethelicenseisrequiredtobesubstantiallycustomizedaspartoftheimplementationservice,theentirearrangementfeeforlicenseandimplementationis considered tobea singleperformanceobligationand the revenue is recognizedusing thepercentage-of-completionmethodastheimplementationisperformed.

Deferredcontractcostsareincrementalcostsofobtainingacontractwhicharerecognizedasassetsandamortizedoverthetermofthecontract.

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

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 for fixed-pricedevelopment contracts isbasedonpercentage-of-completionmethod. Invoicing totheclientsisbasedonmilestonesasdefinedinthecontract.Thiswouldresultinthetimingofrevenuerecognitionbeingdifferentfromthetimingofbillingthecustomers.Unbilledrevenueforfixed-pricedevelopmentcontractsisclassifiedasnon-financialassetasthecontractualrighttoconsiderationisdependentoncompletionofcontractualmilestones.

TradereceivableandunbilledrevenuesarepresentednetofimpairmentintheBalanceSheet.

DuringtheyearendedMarch31,2020,theCompanyrecognizedrevenueof`4168LakhfromopeningunearnedrevenueasofApril1,2019.

DuringtheyearendedMarch31,2020,Unbilledrevenueof`3144Lakh



Performance obligations and remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to berecognizedasattheendofthereportingperiodandanexplanationastowhentheCompanyexpectstorecognizetheseamountsinrevenue.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,RevenuefromContracts with CustomersonthefinancialsresultsoftheCompanyfortheyearendedandasatMarch31,2020isinsignificant.OnaccountofadoptionofIndAS115,unbilledrevenuesof`3144LakhMarch31,2020hasbeenconsideredasanon-financialasset.

(xvii) 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.

(xviii) Earnings per share

Basicearningspershareiscomputedusingtheweightedaveragenumberofequitysharesoutstandingduringtheperiod.DilutedEPSiscomputedbydividingthenetprofitaftertaxbytheweightedaveragenumberofequitysharesconsideredforderivingbasicEPSandalsoweightedaveragenumberofequitysharesthatcouldhavebeenissueduponconversionofalldilutivepotentialequityshares.Dilutivepotentialequitysharesaredeemedconvertedasofthebeginningoftheperiod,



unlessissuedatalaterdate.Dilutivepotentialequitysharesaredeterminedindependentlyforeachperiodpresented.Thenumberofequitysharesandpotentiallydilutiveequitysharesareadjustedforbonusshares,asappropriate.

StandardsissuedbyMinistryofCorporateAffairs(“MCA”),throughCompanies(IndianAccountingStandards)AmendmentRules,2019andCompanies(Indian AccountingStandards)SecondAmendmentRules,hasnotifiedthefollowingnewandamendmentstoIndAswhichtheCompanyhasappliedastheyareeffectivefromApril1,2019;

(xix) Adoption of Ind AS 116 – Leases

EffectiveApril1,2019,theGroupadoptedIndAS116,LeasesandappliedthestandardtoallleasecontractsexistingonApril1,2019usingthemodifiedretrospectivemethodandhastakenthecumulativeadjustmenttoretainedearnings,onthedateof initialapplication.Consequently,thecompany recordedthe lease liabilityatthepresentvalueofthe leasepaymentsdiscountedattheincrementalborrowingrateandtheROUassetatitscarryingamountasifthestandardhadbeenappliedsince thecommencementdateof the lease,butdiscountedat the lessee’s incrementalborrowingrateatthedateof initialapplication.Comparativesasatand for theyearendedMarch31,2019havenotbeenretrospectivelyadjustedandthereforewillcontinuetobereportedundertheaccountingpoliciesincludedaspartofourAnnualReportforyearendedMarch31,2019.

Ontransition,theadoptionofthenewstandardresultedintherecognitionofROUassetof`167lakhand`167lakhonaconsolidatedandstandalonebasis,respectively,‘Netinvestmentinsublease’ofROUassetof`203Lakhonbothstandaloneandconsolidatedbasis,andaleaseliabilityof`203Lakhand`203onaconsolidatedandstandalonebasis,respectively.Thecumulativeeffectofapplyingthestandard,amountingto`37Lakhand`37Lakh,wasdebitedtoretainedearnings,netoftaxesonaconsolidatedandstandalonebasis,respectively.Theeffectofthisadoptionisinsignificantontheprofitbeforetax,profitfortheperiodandearningspershare.IndAS116,Leasesresultedinanincreaseincashinflowsfromoperatingactivitiesandanincreaseincashoutflowsfromfinancingactivitiesonaccountofleasepayments.

ThechangesinthecarryingvalueofROUassetsfortheyearendedMarch31,2020areasfollows: (`InLakhs)

Particulars

Category of ROU ass set

BuildingsBalanceasatApril1,2019 -ReclassifiedonaccountofadoptionofIndAS116) 203Additions(1) -Deletion -Depreciation 37Balance as at March 31, 2020 167

The aggregate depreciation expense on ROU assets is included under depreciation and amortization expense in theStatementofProfitandLoss.

Thebreak-upofcurrentandnon-currentleaseliabilitiesasatMarch31,2020isasfollows (`InLakhs)


Currentleaseliabilities 23Non-currentleaseliabilities 152

Total 173



ThemovementinleaseliabilitiesduringtheyearendedMarch31,2020asfollows

TheCompanydoesnotfaceasignificantliquidityriskwithregardtoitsleaseliabilitiesasthecurrentassetsaresufficienttomeettheobligationsrelatedtolease

(`InLakhs)

Particulars Year ended March 31, 2020

Balanceatthebeginning -Additions 203FinancecostaccruedduringtheperiodDeletions -Paymentofleaseliabilities 28Translationdifference -Balance at the end 175

(xx) Fair value hierarchy Level wise disclosure of financial instruments

(`InLakhs)Particulars As at March 31,

2020As at March 31,

2019Level Valuation techniques and key inputs

Non-currentinvestmentsinequitysharesmeasuredatFVTOCI

NA NA 1 Quotedbidpricesinanactivemarket

Non-currentinvestmentsinunquotedpreferencesharesmeasuredatFVTPL

174 160 3 Discounted cash flow - Future cash flows arebasedontermsofPreferenceSharesdiscountedataratethatreflectsmarketrisks

Longtermborrowings(includingcurrentmaturities)Carryingvalue NA NA 2 Discounted cash flow – observable future cash

flows are based on terms discounted at a ratethatreflectsmarketrisks

Fairvalue NA NAForeigncurrencyoptions–Assets

NA NA 2 Inputsotherthanquotedpricesincludedwithinlevel1thatareobservableforassetor liability,either directly (i.e. as prices) or indirectly(derivedfromprices)

Foreigncurrencyoptions–Liability


Foreigncurrencyforwardcontracts-Liability


Commodity forward contracts –Assets




(`InLakhs)Particulars As at March 31,

2020As at March 31,

2019Level Valuation techniques and key inputs

Interestrateswaps-Assets NA NA 2 Inputsotherthanquotedpricesincludedwithinlevel1thatareobservableforassetor liability,either directly (i.e. as prices) or indirectly(derivedfromprices)

Interestrateswaps-Liability NA NA 2 Inputsotherthanquotedpricesincludedwithinlevel1thatareobservableforassetor liability,either directly (i.e. as prices) or indirectly(derivedfromprices)

Thecarryingamountsoftradereceivables,tradepayables,capitalcreditors,cashandcashequivalentsandotherbankbalancesareconsideredtobethesameastheirfairvalues,duetotheirshorttermnature.

Sensitivity Analysis of Level III

Valuation technique

Significant unobservable inputs

Change Sensitivity of the input to fair value

InvestmentsinunquotedPreferenceshares

DCFmethod DiscountingRate 0.50% 0.50% Increase (decrease) in the discountwoulddecrease(increase)thefairvalueby`10Lakh(`10Lakh)

Reconciliation of Level III fair value measurement: (`InLakhs)



Openingbalance 160 148Additionalinvestment - -Reclassificationofallowanceforloss - -Allowanceforloss - -Gainrecognisedinthestatementofprofitandloss 14 12Closingbalance 174 160



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Note 05: Investments

i) Non Current Investments(ÌnLakhs)

Sr. No.

Particulars As at Mar 31, 2020

As at Mar 31, 2019

(1) Non- Quoted, Long Term: (Carried at Cost)(a) Investment in Associates

Soft Shell System (I) Pvt Ltd117,924(Previousyear:117,924)sharesof10/-eachfullypaidupatapremiumofRs498.81pershare

600 600

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

UthopiaGreenTransPvtLtd 0 0Total Investment in Others 0 0

(c) Investment carried at fair value through amortized cost450000(PreviousYear:450000)Preferenceshares@100/-DevyogBuildersPvtLtd 174 240

Total Investment in Preference Shares 174 240 Total Non Current Investments 774 840

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

Note 6: Loans(ÌnLakhs)

Sr. No.

Particulars As at Mar 31, 2020

As at Mar 31, 2019

(i) Non-Current(a) Loansandadvancestorelatedparties(Unsecured,ConsideredGoods) 251 162

Total Long Term Loans and Advances 251 162 (ii) Current

Loansandadvances(others)Unsecured,consideredgood 138 127Total Short-term loans and advances 138 127

Total loans 389 289

Note 7: Other Financial Assets (ÌnLakhs)

Sr. No.



(i) Non-Current(a) SecurityDeposits - 55(b) Others 376 399

Total 376 454 (ii) Current(a) RentalSecurityDeposits

Unsecured,consideredgood 13 7(b) Unbilledrevenue 3,144 4,168(c) Others 664 587(d) IntererestAccrued 39 -

Total 3,860 4,762 Total Other Financial Assets 4,236 5,216



Note 8: Other Assets (ÌnLakhs)

Sr. No.



(i) Non-CurrentReceivablesfromGovernmentAuthorities 1,022 1,794

Total 1,022 1,794 (ii) Current(a) MATCreditEntitlement 1,460 1,152(b) Other 890 1,056

Total 2,350 2,208 Total Other Assets 3,371 4,002

Note 9: Asset classified as held for sale (ÌnLakhs)

Sr. No.



Assetclassifiedasheldforsale 59 -Total Inventories 59 -

Note 10: Inventories (ÌnLakhs)

Sr. No.



StockinTrade(forTrading) 3,509 3,408Total Inventories 3,509 3,408

Note 11: Trade Receivables (ÌnLakhs)

Sr. No.



Tradereceivablesoutstanding foraperiod less thansixmonths fromthedatetheyaredueforpaymentUnsecured,consideredgood 7,273 5,955

7,273 5,955 TradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpaymentUnsecured,consideredgood 12,978 13,694Unsecured,considereddoubtful - -Less:Provisionfordoubtfuldebts - -

12,978 13,694 Total Trade Receivable 20,251 19,648



Trade Receivable stated above include debts due from: (ÌnLakhs)

Sr. No.



PrivateCompanyinwhichdirectorisamember 6,217 2,393 6,217 2,393

Note 12: Cash and Cash Equivalents: (ÌnLakhs)

Sr. No.



(a) Balances with BanksInCurrentAccount 1,778 1,391

(b) Cash on hand 6 4Total Cash and Cash Equivalents 1,784 1,396

Note 13: Other Balances with Bank: (ÌnLakhs)

Sr. No.



(a) BalanceswithBanksInfixeddepositaccounts(pledgewithbankagainstguaranteesgivenbybank)AboveFixeddeposithavematurityof12monthsorless. 605 765

605 765

Note 14: Share Capital (a) Authorised, Issued, Subscribed & Paid - up and par value per share (ÌnLakhs)

Share Capital As at 31 March 2020 As at 31 March 2019 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 BalanceEquity shares with voting rightsYear ended 31 March, 2019-Numberofshares 5,02,05,528 - - - 5,02,05,528-Amount 2,510 - - - 2,510Year ended 31 March, 2020-Numberofshares 5,02,05,528 - - - 5,02,05,528-Amount 2,510 - - - 2,510



The Company Stock Options Plans which are summarized as under: (i) Stock Option Scheme (2010)

TheCompanybyaSpecialResolutionpassedatAnnualGeneralMeetingheldon29thSeptember2010approvedtheEmployeeStockOptionSchemeundersection79AoftheCompaniesAct1956tobereadalongwithSEBI(EmployeeStockOptionandEmployeeStockPurchaseScheme)Guidelines,1999whereby30,00,000optionsconvertibleintoEquitySharesof`5/-eachtobegrantedtoeligibleemployeesoftheCompany.Thisstockoptionschemeistitledas‘”ESOP2010”.Outofthesame4,87,500optionshavebeengrantedduringthefinancialyear2012-13.Ofthese2,02,500optionshadlapsedastheemployeesholdingthesaidnumberofgrantshadbeenterminatedinprecedingFinancialyear.Thebalance2512500optionswerenotexercisedandhencearenowlapsed.

(`Inlakh)Particular 2019-20 2018-19OpeningOutstandingoption 25,12,500 25,12,500EmployeeStockOptionSchemeannouncedduringtheYear - -Grantedduringtheyear - -Exercisedduringtheyear(Post-split) - -Forfeited/lapsedduringtheyear(Post-split) (25,12,500) -ClosingOutstandingoption - 25,12,500

Note 15: Other Equity (i) Reserves and Surplus

(`InLakhs)Sr. No.



(a) Capital Redemption ReserveOpeningBalance 30 30ClosingBalance 30 30

(b) Securities Premium AccountOpeningBalance 37,056 37,056

(+) Securitiespremiumcreditedonallotmentofequityshares -(-) Utilisedduringtheyearfor: -

ClosingBalance 37,056 37,056(c) General Reserves 1,374 1,338

Add:TransferfromESOPOutstanding 684 36ClosingBalance 2,058 1,374

(d ) SurplusOpeningbalance 1,841 646MinorityInterest - -

(+) NetProfit/(NetLoss)Forthecurrentyear 1,924 1,195(+) ExcessProvisionmadeforProposedDividend - -(+) ExcessProvisionmadeforDividendDistributionTax - -(-) Dividendsproposedtobedistributedtoequityshareholders - -(-) Adjustmentforconsolidation -(-) ShortProvisionofTaxofearlieryears(Net) - -(-) BaddebtsandotherbalancesAdjusted - -(-) AdjustmentofPriorPeriodDebt (17) (0)

ClosingBalance 3,748 1,841(e) Foreign Currency Translation Reserve -

Total Reserves and Surplus 42,892 40,300



(ii) Other component of equity(`InLakhs)

Sr. No.



(a ) Employee Stock Options OutstandingOpening 684 720Less:TransfertoGeneralReserves (684) (36)TotalESOPOutstanding 0 684

(b) Accumulated Other Comprehensive IncomeOpening 187 222Add:DuringtheYear (25) (35)

Total Other Comprehensive Income 162 187 Total Other Component of Equity 237 870

Total Reserve and Surplus 43,128 41,171

Note 16: Borrowings(`InLakhs)

Sr. No.



(i) Non Current BorrowingsSecured

a. Kotak Bank - 1,317Security details Shared pari passu with Barclays Bank MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbaiMortgageof13A,EarnestHouse,13Floor,NarimanPoint,MumbaiMortgageofGalano3,4,7,301,302,305,306.307&308BldgNo3,SectorIII,MIDCMahape,NaviMumbaiHypothecationChargeonMovableassetsexceptVehiclesHypothecationChargeonCurrentAssetsPersonalGuaranteeofPromotors

b. Caparo Financial Solution Ltd 471 -Equitablemortgage of the immovable property situated at Office no. 406 4thFloor,Seepz,SEZ,MID.C.,Marol,Andheri-East,Mumbai-400096

c. HDFC Bank 82 -EquitablemortgageoftheVechiles

Total Non-Current Borrowings 553 1317

(ii) Current BorrowingsSecured

a Loansrepayableondemandi)FromBank 1,885 1,886Unsecured

a Loansandadvancesfromrelatedparties(RepayableonDemand) 2731 3,246Total Current Borrowings 4,616 5,132

Total Borrowings 5,168 6,449



Detailofsecuredshort-termborrowingalongwithsecurityandtermofrepayment: (`InLakhs)



LoansrepayableondemandFromBarclaysBank(ForeignCurrencyLoan) 1,885 1,886

1,885 1,886 Security Details Shared Pari-Pasu with Kotak Bank (a) MortgageofBuildingNo.4,Sector1,MBP,MIDC,Mahape,NaviMumbai (b) Mortgageof13A,EarnestHouse,13Floor,NarimanPoint,Mumbai (c) MortgageofGalano3,4,7,301,302,305,306.307&308BldgNo3,SectorIII,MIDCMahape,NaviMumbai (d) HypothecationChargeonMovableassetsexceptVehicles (e) HypothecationChargeonCurrentAssets (f) PersonalGuaranteeofPromotors

Note 17: Other Financial Liabilities(`InLakhs)

Sr. No.



(i) Other Non-Current Financial LiabilitiesDeferredRentIncome-SecurityDepositsRent 4 4LeaseLiability 152 -Total Non-Current Borrowings 156 4

(ii) Other Current Financial Liabilities(a) Securitydepositforrentedproperty 4 3(b) CurrentMaturities 191 -(c) LeaseLiabilty 23 -(d) FixedDepositsfrompublic 6 16(e) UnpaidDivided 8 8(f) Others 5 2744

Total Other Current Financial Liabilities 236 2,769 Total Borrowings 392 2,774

InrespectofFixedDepositfrompublicunclaimedamountoverdueasat31.03.2020;(Principal-`5.91LakhsandcalculatedInterest-`1.04Lakhs).



Note 18: Provisions(ÌnLakhs)

Sr. No.



(i) Non-Current Provisions(a) Provisionforemployeebenefits:

-Provisionforgratuity* - 2Total Non-Current Provisions - 2

(ii) CurrentProvisions 955 2,750Total Current Provisions 955 2,752

Note 19: Deferred tax liabilities(ÌnLakhs)



Deferred Tax LiabilityTimingdifferenceofdepriciationbetweenW.D.V.ofAssetsasperCompaniesActandIncomeTaxAct

2,533 2557

Total Deffered Tax Liability 2,533 2,557 Net Deffered Liability/ (Asset) 2,533 2,557

Note 20: Trade Payables(ÌnLakhs)

Sr. No.



Trade payables-TradepayablestoMicroandSmallenterprises-TradepayablestootherthanMicroandSmallenterprises 5,967 2358

Total Trade Payables 5,967 2,358

Note 21: Other liabilities(ÌnLakhs)

Sr. No.



Other Current LiabilitiesOtherCurrentLiabilities 450 1,867

Total Other Current Liabilities 450 1,867 Total Other Liabilities 450 1,867



Note 22 : Operating Income (ÌnLakhs)



Services,SolutionsandSales 32,959 23,952OtherOperatingRevenue 55 21

Total Operating Income 33,014 23,973

Note 23 : Other Income(ÌnLakhs)



InterestIncome(ReferNote23.A) 140 345Netgainonforeigncurrencytransactions 247 -Othernon-operatingincome(ReferNote23.B) 172 66

Total Other Income 558 412

Note 23.A(ÌnLakhs)

Particulars For the year ending Mar 31, 2020

For the year ending Mar 31, 2019

Interest Income comprises:Interestondepositsfrombanks 140 345

Total - Interest Income 140 345

Note 23.B(ÌnLakhs)



Other non-operating income comprises:IncomefromOfficeRent - 43MiscellaneousIncome 20 23SundryBalanceW/back 152 -

Total Other non-operating income 172 66

Note 24 Purchase of Traded Goods(ÌnLakhs)



PurchaseofTradedGoodsandServices 19,321 13,456Total Purchase of Traded Goods 19,321 13,456



Note 25: Changes in Inventories of Stock-in-Trade(ÌnLakhs)



ClosingStock 3,483 3,383Less:OpeningStock 3,383 3,311Net (increase) / decrease (100) (72)

(i) Inventoriesarevaluedatlowerofcostandnetrealizablevalue.

Note 26 : Employee Benefits Expenses(ÌnLakhs)

Sr. No



(a) Salariesandwages(IncludingDirectors’Remuneration)(Refernote(26A) 4,689 3,588(b) ContributionstoProvidentFund 29 26(c) ContributionstoESIC 22 24(d) ContributionstoGratuity 60 9(e) Staffwelfareexpenses 15 10

Total Employee Benefit Expenses 4,816 3,657

(26A) Details of Managerial Remuneration:(ÌnLakhs)



Salaries 172 140Total 172 140

Note 27 : Finance Cost(ÌnLakhs)



(a)InterestexpenseonBorrowings 539 794(b)Otherborrowingcosts 160 209

Total Finance Cost 699 1,003



Note 28: Other expenses(ÌnLakhs)



RentincludingLeaseRentals 15 42RepairsandMaintenance 392 273Insurance 84 84Communication 151 138TravellingandConveyance 224 183ElectricityExpenses 148 162FreightandForwarding 2 18AdvertisementExpenses 6 44LegalandProfessionalFees 1,436 1,336PaymentstoAuditors(ReferNote(28A)below) 12 10RatesandTaxes 227 106BrokerageCharges 517 215SecurityCharges 183 -Printing&StationeryExpenses 8 12BusinessPromotionExpenses 51 30OfficeExpenses 65 65LabourCharges 45 9AvidBankInterest 148 7SundryBalancesWrittenOff 107 39PriorPeriodExpenses 114 -MiscellaneousExpenses 277 306

Total Other Expenses 4,212 3,078

Note 28 (A): Payment to Auditors(ÌnLakhs)

Sr. No



Payments to the Auditors (a) ForStatutoryAudit 10 8(b) ForTaxationMatters 2 2

Total 12 10

Note 29: Exceptional Items(ÌnLakhs)



ReversalofExpenses - (622)Baddebtwrittenoff - 271

- 351

Note 30: Component of Other Comprehensive Income(ÌnLakhs)

Sr. No



(a) Items that will not be reclassified to profit or lossActurialGain/LossonGratuity (25) (35)

Total (25) (35)

Premises No. 13A, 13th Floor, Earnest House, NCPA Road, Block No. III, Back Bay Reclamation, Nariman Point, Mumbai 400 021CIN: L72200MH1995PLC085488

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Annual Report for FY 2019-20 · 2020. 8. 29. · Raghuvanshi Mill Compound, Mumbai – 400083....

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Transcript of Annual Report for FY 2019-20 · 2020. 8. 29. · Raghuvanshi Mill Compound, Mumbai – 400083....