Diensten Tech Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Material Accounting Policy Information

2.1 Basis of Preparation:

i) Statement of Compliance

The Financial Statements are prepared on an accrual basis under historical cost Convention
except for certain financial instruments which are measured at fair value. These financial
statements have been prepared in accordance with the Indian Accounting Standards (Ind AS)
as prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended and other relevant provisions of the
Companies Act, 2013, as applicable.

The accounting policies are applied consistently to all the periods presented in the financial
statements.

First time adoption of Ind AS

Upto the year ended 31st March, 2024, the company prepared the financial statements in
accordance with the requirements of previous GAAP, which includes standards notified under
the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act.
These are the company''s first Ind AS financial statements. The date of transition to the Ind AS
is April 01,2023. Refer Note No.38 for principal adjustments made by the company in restating
its Indian GAAP financial statements including the balance sheet as at April 1, 2023 and the
financial statements as at and for the year ended March 31. 2024. The classification and
measurement of financial assets and financial liabilities are made in accordance with Ind As
109 on the basis of facts and circumstances that exists at the date of transition to Ind AS.

These financial statements have been approved by the Board of Directors in their meeting
held on May 12, 2025.

ii) Going concern:

The board of directors have considered the financial position of the Company at March, 31
2025 and the projected cash flows and financial performance of the Company for at least
twelve months from the date of approval of these financial statements as well as planned cost
and cash improvement actions, and believe that the plan for sustained profitability remains on
course.

The board of directors have taken actions to ensure that appropriate long-term cash
resources are in place at the date of signing the accounts to fund the Company''s operations.

iii) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non¬
current classification.

Assets:

An asset is treated as current when it is:

i) Expected to be realised or intended to be sold or consumed in normal operating cycle.

ii) Held primarily for the purpose of trading

iii) Expected to be realised within twelve months after the reporting period, or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Liabilities:

A liability is current when:

(i) It is expected to be settled in normal operating cycle

(ii) It is held primarily for the purpose of trading

(iii) It is due to be settled within twelve months after the reporting period, or

(iv) There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period

All other liabilities are classified as non-current.

Operating cycle:

All assets and liabilities have been classified as current or non-current according to the
Company''s operating cycle and other criteria set out in the Act. Based on the nature of
products and the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents, the Company has ascertained its operating cycle as twelve
months for the purpose of current and non-current classification of assets and liabilities.

iv) Functional and Presentation Currency

The financial statements are presented in '' which is its functional & presentation currency and
all the values are rounded to nearest thousands upto two decimal places except otherwise
stated.

v) Recent accounting pronouncements notified by Ministry of Corporate Affairs are as
under:-

The Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting
Standards) Amendment Rules, 2024, which are applicable for financial periods beginning on or
after April 1, 2024. A key change includes the introduction of Ind AS 117 Insurance Contracts,
which establishes a comprehensive framework for recognition, measurement, presentation,
and disclosure of insurance contracts. In addition, consequential amendments have been
made to several other standards, including Ind AS 101, 103, 105, 107, 109, and 115, to align with
the requirements of Ind AS 117. These amendments aim to enhance transparency and
comparability in financial reporting. The Company is in the process of assessing the
applicability and impact of these amendments on its financial statements.

2.2 Use of estimates and judgments:

The preparation of financial statements is in conformity with Ind AS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses and the disclosure of
contingent liabilities on the date of the financial statements. Actual results could differ from
those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision to accounting estimates is recognised prospectively in current and future
periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are described below. The
Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they
occur. Also, the company has made certain judgements in applying accounting policies which
have an effect on amounts recognized in the financial statements.

Judgements

Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognised in the financial statements:

- useful life of Property, plant and equipment

- useful life of Intangible assets

- provisions and contingent liabilities

- income taxes

- lease classification and judgement regarding whether an arrangement contain a lease
Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of
resulting in a material adjustment in the year ending March 31,2025:

- measurement of defined benefit obligations: key actuarial assumptions

- provision for litigations and contingent liabilities: key assumptions about the likelihood and
magnitude of an outflow of resources

2.3 Measurement of fair values:

A number of the Company''s accounting policies and disclosures require measurement of fair
values, for both financial and non-financial assets and liabilities. The Company has an
established control framework with respect to measurement of fair values. The directors are
responsible for overseeing all significant fair value measurements, including Level 3 fair
values. Directors regularly reviews significant unobservable inputs and valuation
adjustments.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

- Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs)

When measuring the fair value of an asset or liability, the Company uses observable market
data as far as possible. If the inputs used to measure the fair value of an asset or liability fall into
different levels of the fair value hierarchy, then the fair value measurement is categorised in its
entirely in the same level of the fair value hierarchy as the lowest level input that is significant
to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the
reporting period during which the changes have occurred.

2.4 Foreign currency translation

Foreign currency transactions are initially recorded by the Company at their respective
functional currency spot rate at the date the transaction first qualifies for recognition.

1) Monetary assets and liabilities denominated in foreign currencies are translated at the
functional currency spot rates of exchange at the reporting date.

2) Non-monetary items, which are measured in terms of historical cost denominated in a
foreign currency, are translated using the exchange rates at the date of the initial

transactions. Non-monetary items, which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the exchange rate at
the date when fair value was determined.

3) Exchange differences arising on settlement or translation of monetary items are
recognised in the statement of profit and loss in the period in which they arise.

2.5 Revenue recognition

The revenue is recognized in accordance with Indian Accounting Standard - 115 (Ind AS 115)
upon transfer of control of promised services to customers in an amount that reflects the
consideration the company expects to receive in exchange for those products or services.
The Company has concluded that it is the principal in its revenue arrangements because it
controls the services before transferring them to the customer. The Company does not expect
to have any contracts where the period between the transfer of the promised services to the
customer and payment by the customer exceeds one year. As a consequence, it does not
adjust any of the transaction prices for the time value of money.

The specific recognition criteria described below must also be met before revenue is
recognised.

Manpower services

Revenue from manpower services is accounted on accrual basis on performance of the
services agreed, as per contracts with customers.

Recruitment and other services

Revenue from recruitment services, skills and development, regulatory services and payroll is
recognized on accrual basis on performance of the services, as per contracts with customers.

Unbilled Revenue:

Unbilled revenue represents revenue recognized in accordance with Ind AS 115 - Revenue
from Contracts with Customers, for performance obligations that have been satisfied but not
yet billed as at the reporting date. It arises when the Company has transferred control of goods
or services to the customer but does not yet have an unconditional right to payment, typically
due to pending milestones or billing schedules defined in the contract.

Interest Income

For all financial instruments measured at amortised cost, interest income is recorded using the
effective interest rate (EIR). The EIR is the rate that exactly discounts the estimated future
cash receipts over the expected life of the financial instrument or a shorter period, where
appropriate, to the net carrying amount of the financial asset.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. If the company performs by transferring goods or services to a customer before
the customer pays consideration or before payment is due, a contract asset is recognised for
the earned consideration that is conditional.

Trade receivables

A receivable represents the company''s right to an amount of consideration that is
unconditional (i.e., only the passage of time is required before payment of the consideration is
due). Refer to accounting policies of financial assets in section Financial instruments - initial
recognition and subsequent measurement.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the
company has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the company transfers goods or services to
the customer, a contract liability is recognised when the payment is made or the payment is
due (whichever is earlier). Contract liabilities are recognised as revenue when the company
performs under the contract.

Cost to obtain a contract

The company does not capitalise costs to obtain a contract because majorly the contracts
have terms that do not extend beyond one year. The company does not have a significant
amount of capitalized costs related to fulfilment.

Revenue are shown net of discounts, rebates and goods and service tax.

2.6 Taxes

Income tax

Income tax expense comprises current tax expense and deferred tax charge or credit during
the year. Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profits. Deferred tax liabilities are recognised for all taxable temporary
differences. Deferred tax assets are recognised for all deductible temporary differences and
incurred tax losses to the extent that it is probable that taxable profits will be available against
which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition

(other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset is realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that
are recognised in other comprehensive income or directly in equity, in which case, the income
taxes are also recognised in other comprehensive income or directly in equity respectively.

2.7 Leases:

The Company assesses at contract inception whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets representing the right to use the underlying
assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets. However, If ownership of the leased asset transfers to the Company at the end of the
lease term or the cost reflects the exercise of a purchase option, depreciation is calculated
using the estimated useful life of the asset.

Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments

include fixed payments (including in-substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Company and payments of
penalties for terminating the lease, if the lease term reflects the Company exercising the
option to terminate. Variable lease payments that do not depend on an index or a rate are
recognised as expenses in the period in which the event or condition that triggers the payment
occurs.

In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments or a change in the assessment of an
option to purchase the underlying asset.

Lease payments are allocated between principal and finance cost. The finance cost is charged
to profit or loss over the lease period so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12 months or less from the commencement date
and do not contain a purchase option). It also applies the lease of low-value assets recognition
exemption that are considered to be low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense on a straight-line basis over the lease
term.

2.8 Property, Plant and Equipment (PPE):

Plant and equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the cost of replacing part of the plant and
equipment. All repair and maintenance costs are recognised in profit or loss as incurred.

An item of property, plant and equipment and any significant part thereof initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
statement of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits
associated with the expenditure will flow to the company, its cost can be measured reliably
with carrying amount of replaced part and there is increase of future benefit from the existing
asset beyond previously accessed standard of performance.

The company had applied for the one time transition exemption of considering the carrying
cost on the transition date as the deemed cost under Ind AS.

Depreciation methods, estimated useful lives

Depreciation is calculated using the straight-line method over the estimated useful lives of the
plant and equipment as given under Part C of Schedule II of the Act as follows:

2.9 Goodwill

Goodwill is an intangible asset representing the future economic benefits arising from other
assets acquired in a business arrangement that are not individually identified and separately
recognized. Goodwill is considered to have indefinite useful life and hence is not subjected to
amortization but tested for impairment annually. After initial recognition, goodwill is measured
at cost less any accumulated impairment losses.

2.10 Intangible assets:

Intangible assets acquired separately are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortization and
accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite or indefinite. Intangible
assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortization period and the amortization method for an intangible asset with a finite useful life
are reviewed at least at the end of each reporting period. Changes in the expected useful life
or the expected pattern of consumption of future economic benefits embodied in the asset are
considered to modify the amortization period or method, as appropriate, and are treated as
changes in accounting estimates.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains
control) or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising upon derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the statement of profit
and loss when the asset is derecognised.

On transition to lnd AS, the company has elected to continue with the carrying value of all its
intangible asset, measured as per previous GAAP and use that deemed cost of such intangible
asset.

2.11 Impairment of non-financial assets:

The Company assesses, at each reporting date, whether there is an indication that any
property, plant & equipment, right of use assets and intangible assets may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company
estimates the asset''s recoverable amount.

An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value
less costs of disposal and its value in use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.

In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.

Non-financial assets other than goodwill that suffered an impairment are reviewed for
possible reversal of the impairment at the end of each reporting period. A previously
recognised impairment loss is reversed only if there has been a change in the assumptions
used to determine the asset''s recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in the statement of profit and loss unless the asset is carried at a
revalued amount, in which case, the reversal is treated as a revaluation increase.

2.12 Financial instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. Financial assets and financial liabilities
are recognised when the Company becomes a party to the contractual provisions of the
instruments.

(a) Financial Assets

Initial Recognition and Classification

Classification of financial assets depends on the nature and purpose of the financial assets
and is determined at the time of initial recognition. A financial asset is initially recognised at fair
value. In case of financial assets which are recognised at fair value through profit and loss
(FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases,
the transaction cost are attributed to the acquisition value of the financial asset.

Subsequent measurement

Financial assets are subsequently classified and measured at

- amortised cost

- fair value through other comprehensive income (FVTOCI)

- fair value through profit and loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the
period the Company changes its business model for managing financial assets.

Financial Asset carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business
model whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

Financial Asset at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income
if it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial Asset at fair value through profit and loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair
valued through profit or loss.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses( ECL) model for
measurement and recognition of impairment loss on the following financial asset and credit
risk exposure:

- Financial assets measured at amortized cost;

- Financial assets measured at fair value through other comprehensive income(FVTOCI);

- Trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of Ind AS 115

The Company follows "simplified approach" for recognition of impairment loss allowance on
Trade receivables or contract revenue receivables.

Under the simplified approach, the Company does not track changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition. The Company uses a provision matrix to determine impairment loss
allowance on the portfolio of trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of trade receivable and is adjusted for forward
looking estimates. At every reporting date, the historical observed default rates are updated
and changes in the forward looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the statement of profit and loss. This amount is reflected under the head
''other expenses'' in the statement of profit and loss.

Write-off: The gross carrying amount of a financial asset is written off when the Company has
no reasonable expectations of recovering the financial asset in its entirety or a portion thereof.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e.
removed from the Company''s Balance Sheet) when: (i) The contractual rights to receive cash
flows from the asset has expired, or (ii) The Company has transferred its contractual rights to
receive cash flows from the financial asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ''pass-through'' arrangement;
and either (a) the Company has transferred substantially all the risks and rewards of the asset,
or (b) the Company has neither transferred nor retained substantially all the risks and rewards
of the asset, but has transferred control of the asset.

(b) Financial liabilities and equity instruments

Classification of Debt and Equity

Debt or equity instruments issued by the Company are classified as either financial liabilities or
as equity in accordance with the substance of the contractual arrangements and in
accordance with Ind AS 109 ""Financial Instruments"" read with Ind AS 32 "Financial
Instruments Presentation".

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by the Company are recognised
at the proceeds received, net of direct issue costs.

Financial Liability- Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs. The Company
financial liabilities include loans and borrowings, trade payables, trade deposits, retention
money, liabilities towards services, sales incentive and other payables.

Subsequent Measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:
-Financial liabilities at amortised cost

-Financial liabilities at fair value through profit and loss (FVTPL)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term.

Financial liabilities at amortised cost (Loans and borrowings)

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are
recognised in the statement of profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of profit and loss.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or have expired. When an existing financial liability is
replaced by another from the same lender on substantially different terms or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the
de-recognition of the original liability and the recognition of a new liability. The difference (if
any) in the respective carrying amounts is recognised in the statement of profit and loss.

(c) Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognized amounts and there
is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.

2.13 Borrowing cost:

Borrowing costs consist of interest and other costs that the Company incurs in connection
with the borrowing of funds. Borrowing costs directly attributable to acquisition or
construction of Property, Plant & Equipment and Intangible Assets, which necessarily takes
substantial time to get ready for their intended use are capitalised. All other borrowing costs
are charged to statement of profit and loss.

2.14 Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, that are readily convertible to a
known amount of cash and subject to an insignificant risk of changes in value.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
include cash in hand, deposits held with banks, other short-term highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

2.15 Retirement and other employee benefits

(a) Short Term Employee Benefits

All employee benefits expected to be settled wholly within twelve months of rendering the
service are classified as short-term employee benefits. When an employee has rendered
service to the Company during an accounting period, the Company recognises the
undiscounted amount of short-term employee benefits expected to be paid in exchange for
that service as an expense unless another Ind AS requires or permits the inclusion of the
benefits in the cost of an asset. Benefits such as salaries, wages and short-term compensated
absences, bonus and ex-gratia etc. are recognised in statement of profit and loss in the period
in which the employee renders the related service.

A liability is recognised for the amount expected to be paid after deducting any amount
already paid under short-term cash bonus or profit-sharing plans if the Company has a
present legal or constructive obligation to pay this amount as a result of past service provided
by the employee, and the obligation can be estimated reliably. If the amount already paid
exceeds the undiscounted amount of the benefits, the Company recognises that excess as an
asset /prepaid expense to the extent that the prepayment will lead to, for example, a reduction
in future payments or a cash refund.

(b) Defined benefit plan

Gratuity, which is a defined benefit plan, is accrued based on an independent actuarial
valuation, done on projected unit credit method as at the balance sheet date. The Company
recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or
liability. Remeasurement gains and losses arising from experience adjustments and changes
in actuarial assumptions are recognised in the period in which they occur in other
comprehensive income and is transferred to retained earnings in the statement of changes in
equity in the balance sheet. Such accumulated re- measurements are not reclassified to the
statement of profit and loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of :

a) The date of the plan amendment or curtailment, and

b) The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset. The Company recognises the following changes in the net defined benefit obligation as
an expense in the statement of profit and loss:

- Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and

- Net interest expense or income.

Compensated absences

The employees of the Company are entitled to be compensated for unavailed leave as per the
policy of the Company, the liability in respect of which is provided, based on an actuarial
valuation (using the projected unit credit method) at the end of each year. Accumulated
compensated absences, which are expected to be availed or encashed within 12 months from
the end of the year are treated as short-term employee benefits and those expected to be
availed or encashed beyond 12 months from the end of the year are treated as other long-term
employee benefits. Actuarial gains/ losses are recognised in the statement of profit and loss in
the year in which they arise.

(c) Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays
fixed contributions to a statutory authority and will have no legal or constructive obligation to
pay further amounts.

Retirement benefits in the form of Provident Fund, Employee State Insurance and Labour
Welfare Fund are primary defined contribution scheme and contributions paid/payable
towards these funds are recognised as an expense in the statement of profit and loss during
the year in which the employee renders the related service.

(d) Share based payments

Some employees of the Company receive remuneration in the form of employee stock option
plan of the Company (equity settled instruments) for rendering services over a defined vesting
period. Equity instruments granted are measured by reference to the fair value of the
instrument at the date of grant. The expense is recognised in the statement of profit and loss
with a corresponding increase in equity over the period that the employees unconditionally
becomes entitled to the award. The equity instruments generally vest over the vesting period
i.e. the period over which all the specified vesting conditions are to be satisfied. The fair value
determined at the grant date is expensed over the vesting period of the respective tranches of
such grants (accelerated amortization).

At the end of each period, the entity revises its estimates of the number of options that are
expected to vest based on the non-market vesting and service conditions. It recognises the
impact of the revision to original estimates, if any, in the statement of profit and loss, with a
corresponding adjustment to equity. The stock option compensation expense/ Share based
payment expense is determined based on the Company''s estimate of equity instruments that
will eventually vest.

The diluted effect of outstanding options is reflected as the additional share dilution in the
computation of diluted earning per share.

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Mar 31, 2024

1) . CORPORATE INFORMATION

Diensten Tech Limited (formerly known as JKT Consulting Limited) (CIN: U74140DL2007PLC160160) was incorporated on 06.03.2007 as a Public Limited Company. The Certificate of Commencement of Business was granted by the Registrar of Companies, NCT of Delhi and Haryana with effect from 19.06.2007. The Company has its registered office at A-2, Local Shopping Complex, Masjid Moth, Greater Kailash - II, New Delhi - 110048 and its corporate office at F- 3, Sector 3, Noida 201301. The main objectives of the Company is to render as principals, consulting services including service related to hiring, recruitment and deputation of technical and other personnel (including labour-skilled, semi-skilled or unskilled) for deployment in India or Abroad in various fields of technologies and provide Business solution and consultation in the field of Computer Science, Project Planning and other related areas to its clients in India and Abroad.

2) . SIGNIFICANT ACCOUNTING POLICIESA Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3c) of the Companies (Accounting Standard) Rules, 2006, as amended and other provisions of the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

The financial statements are presented in Rupees '', which is the functional currency of the Company and all values are rounded to the nearest thousands except otherwise stated.

B Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities, including the disclosure of contingent liabilities as of the date of the financial statements and the reported income and expenses during the reporting period like provision for employee benefits, useful lives of property plant & equipments and provision for taxation etc. The Management believe

that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates between the actual results and the estimates are recognized in the periods in which the results are known/ materialize.

C Revenue Recognition

The company derives its revenues primarily from (a) Information Services and Consulting Services and (b) Corporate Training Services. Revenue from Information Services and Consulting Services on time basis is recognized as the related services are rendered. Prereceived Income represent the excess of billing over cost an earning while accrued income represent the excess of cost and earning over billing. Corporate Training Services Revenue is recognized on a time proportion basis taking into account the time spent thereon compared with the scheduled completion thereof and the total course fee.

- Unbilled revenue represents value of services performed in accordance with the contract terms but not billed

- Sales of traded goods is recognized on passing of risks & rewards of goods to the customers and as per the terms of the sales.

- The revenue are shown net of trade discount, goods and services tax and sales returns.

- Revenue relating to interest income is recognised on time proportionate basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists.

D Property Plant & Equipment and Capital work-in-progress

Tangible Assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of freight, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition for intended use.

Subsequent costs related to an item of Property, Plant & Equipment are recognised in the carrying amount of the item if the recognition criteria are met.Gain/loss on sale of property, plant & equipment are measured as the difference between the net proceeds and carrying amount of the asset and are recognised in the statement of profit and loss in the period in which the asset is sold.

Property, plant & equipment under construction and cost of assets not put to use before year end are shown as capital work in progress, while advance paid towards acquisition of property, plant & equipment are shown as capital advance under the head Loans and Advances.

E Intangible Assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment. Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

Customer Contracts, Assembled Workforce and Goodwill are recognised as intangible assets representing the future economic benefits arising from business undertaking acquired as per Business Transfer Agreement that are not individually identified and separately recognized.

F Depreciation and Amortization Property Plant & Equipment

Depreciation on property plant & equipment is provided using straight line method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

In respect of property plant & equipment whose useful life has been revised, the unamortized depreciable amount is charged over the revised remaining useful life.

Intangible Assets

The Intangible Assets are amortized over the useful life over which future economic benefits are expected to realize. The amortization period is reviewed at the end of each financial year. Changes in expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Intangible Assets with indefinite useful lives are not amortised, but are tested for impairment annually.

G Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date, to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of assets is estimated.

An impairment loss is recognized, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use which is determined based on the estimated future cash flow generated from the continuing use of an asset and from its disposal at the end of its useful life, discounted to their present value.

An impairment loss is reversed, if there has been a change in the estimates made to determine and recognize the recoverable amount in the earlier year, and to the extent that the assets'' carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortization), had no impairment loss been recognised.

H Foreign Currenc Transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non - monetary items which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction; and non monetary items which are

carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on restatement of monetary items at rates different from those at which they were initially recorded during the period, are recognized as income or as expenses in the period in which they arise.

I Provision for Current and Deferred Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an assets in the Balance Sheet where it is probable that future economic benefits associated with it will flow to the Company.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized only to the extent there is a reasonable certainty that assets can be realized in future. However, where there is unabsorbed depreciation or carry forward of losses and item related to capital losses, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence of realization of such assets.

J Retirement BenefitsShort term employee benefits

All employee benefits payable /available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, etc., are recognised in the Statement of Profit and Loss in the period in which the employee renders the related service.

Defined Contribution Plan

Contributions payable to recognized Provident Fund and Labour Welfare Fund which are substantially defined contribution plans, are recognised as expense in the Statement of Profit & Loss, as they are incurred.

Defined Benefit Plan

The Company''s gratuity scheme is a defined benefit plan. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the

Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance Sheet date relevant to the maturity period of the obligation. Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.

Other long term employee benefits

Benefits under the Company''s compensated absences scheme constitute other long-term employee benefits. The obligation in respect of compensated absences is provided on the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measure each unit separately to build up the final obligation. Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.

K Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are recognized as operating leases. Operating Lease payments are recognized as an expenses in the statement of profit and loss as per the lease terms.

The leases, where substantially all the risks and rewards of ownership vest in the Company are classified as finance lease. Such leases are capitalized at the inception of the lease at the lower of fair value or present value of minimum lease payments and a liability is created for an equivalent amount.

L Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and are adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes to accounts. A contingent asset is neither recognized nor disclosed in financial statements.

M Borrowing costs

Borrowing costs are interest and other costs (including exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred by the Company in connection with the borrowing of funds.

Borrowing costs directly attributable to acquisition or construction of the Property, plant and equipment and Intangible Assets, which necessarily take a substantial Year of time to get

ready for their intended use are capitalized. Other borrowing costs are recognised as an expense in the Year in which they are incurred.

N Earning Per Share (EPS)

In determining Earning per Share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary item.

Basic earning per share is computed by dividing the Net Profit after tax by the weighted average number of equity shares outstanding during the Year.

Diluted earnings per shares is computed by dividing the Net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity share that could have been issued upon conversion of all dilutive potential shares, if any.

O Cash and Cash Equivalent

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are shortterm balances (with an original maturity of three months or less from the date of acquisition) and which are subject to insignificant risk of changes in value.

P Cash Flow Statement

Cash Flows are reported using indirect method, whereby the Net Profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.