Network People Services Technologies Ltd. कंपली की लेखा नीति

Mar 31, 2025

nSSEH Significant Accounting Policies

1.1 Company Overview:

Network People Services Technologies Ltd. (''the
Company’) is a limited Company domiciled and
incorporated in India. The registered office of the
Company is located at Office No. 427/428/429, A Wing,
NSIL, Lodha Supremus II Road No 22, Wagle Industrial
Estate, Thane, Maharashtra-400604.

The Company carry on the business of software
designing, data processing, warehousing, and
consultancy services, development, customization,
implementation, testing, maintenance, and
benchmarking of computer software and IT solutions,
including import, export, sale, distribution, licensing,
hosting, and support services.

1.2 General Information & Statement of Compliance with
Ind AS:

These financial statements are the separate financial
statements of the Company (also called as standalone
financial statements) prepared in accordance with
Indian Accounting Standard ("Ind AS") notified under
the Companies Act, 2013 ("the Act") read with Rule
3 of the Companies (Indian Accounting Standards)
Rules,2015, as amended.

1.3 Significant Accounting Policies:

1.3.1. Basis of Preparation and Presentation

The Financial Statements have been prepared
on the historical cost basis except for following
assets and liabilities which have been measured
at fair value amount:

(a) Certain Financial Assets and Liabilities
(including derivative instruments if any), and

(b) Defined Benefit Plans - Plan Assets.

The financial statements of the Company
have been prepared to comply with the Indian
Accounting standards (''Ind AS’), including the
rules notified under the relevant provisions of the
Companies Act, 2013.

Upto the year end 31 March, 2024, the Company
has prepared its financial statements in
accordance with the requirement of Indian
Generally Accepted Accounting Principles (GAAP),
which includes Standards notified under the
Companies (Accounting Standards) Rules, 2006
and considered as "Previous GAAP".

The Company has adopted Ind AS with effect from
01 April, 2023, with comparatives being restated.
Accordingly, the impact of transition has been

provided in the Opening Reserves as at 01 April,
2022. The figures for the previous period have been
restated, regrouped and reclassified wherever
required to comply with the requirement of Ind AS
and Schedule III. These financial statements are
the Company’s first Ind AS standalone financial
statements. The Company’s Financial Statements
are presented in Indian Rupees, which is also its
functional currency.

1.3.2. Fair Value Measurement

Some of the Company’s accounting policies
and disclosures require the measurement of fair
values, for both financial and non-financial assets
and liabilities.

The Company has an established control
framework with respect to the measurement of
fair values. This includes a financial reporting
team that has overall responsibility for overseeing
all significant fair value measurements, including
Level 3 fair values.

The financial reporting team regularly reviews
significant unobservable inputs and valuation
adjustments. If third party information, such as
pricing services, is used to measure fair values,
then the financial reporting team assesses
the evidence obtained from the third parties to
support the conclusion that these valuations meet
the requirements of Ind AS, including the level in
the fair value hierarchy in which the valuations
should be classified.

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

The Company recognizes transfers between
levels of the fair value hierarchy at the end of the
reporting period during which the change has
occurred.

1.3.3. Current and Non-Current Classification

The Company presents assets and liabilities in
the Balance Sheet based on Current/Non- Current
classification.

An asset is treated as Current when it is -

- Expected to be realized or intended to be sold
or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months
after the reporting period, or

- 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.

A liability is current when:

- It is expected to be settled in normal operating
cycle;

- It is held primarily for the purpose of trading;

- I t is due to be settled within twelve months
after the reporting period, or

- There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

1.3.4. Property, Plant and Equipment

(a) Tangible Assets

Property, Plant and Equipment are stated at
cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation
and impairment losses, if any. Such cost
includes purchase price, borrowing cost
and any cost directly attributable to bringing
the assets to its working condition for
its intended use, net charges on foreign
exchange contracts and adjustments arising
from exchange rate variations attributable to
the assets.

Subsequent costs are included in the asset’s
carrying amount or recognized as a separate

asset, as appropriate, only when it is probable
that future economic benefits associated
with the item will flow to the entity and the
cost can be measured reliably.

Property, Plant and Equipment which are
significant to the total cost of that item of
Property, Plant and Equipment and having
different useful life are accounted separately.
Other Indirect Expenses incurred relating
to project, net of income earned during
the project development stage prior to its
intended use, are considered as pre-operative
expenses and disclosed under Capital Work-
in-Progress.

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.

Derecognition

Gains or losses arising from derecognition
of a Property, Plant and Equipment are
measured as the difference between the net
disposal proceeds and the carrying amount
of the asset and are recognized in the
Statement of Profit and Loss when the asset
is derecognized.

(b) Capital Work-in-Progress and Capital
Advances

Cost of Property, Plant and Equipment not
ready for intended use, as on the balance
sheet date, is shown as a "Capital Work-in¬
Progress". The Capital Work-in-Progress is
stated at cost. Any expenditure in relation to
survey and investigation of the properties is
carried as Capital Work-in-Progress. Such
expenditure is either capitalized as cost of
the projects on completion of construction
project or the same is expensed in the period
in which it is decided to abandon such project.
Any advance given towards acquisition of
Property, Plants and Equipment outstanding
at each balance sheet date is disclosed as
"Other Current Assets".

(c) Intangible Assets

Intangible Assets are stated at cost of
acquisition net of recoverable taxes, trade
discount and rebates less accumulated
amortization/depletion and impairment

losses, if any. Such cost includes purchase
price, borrowing costs, and any cost directly
attributable to bringing the asset to its
working condition for the intended use, net
charges on foreign exchange contracts
and adjustments arising from exchange
rate variations attributable to the Intangible
Assets.

Subsequent costs are included in the asset’s
carrying amount or recognized as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated
with the item will flow to the entity and the
cost can be measured reliably.

Amortization

The amortization expenses on Intangible
assets with the finite lives are recognized
in the Statement of Profit and Loss. The
Company’s intangible assets comprises
assets with finite useful life which are
amortized on a straight-line basis over the
period of their expected useful life.

The amortization period and the amortization
method for an intangible asset with finite
useful life is reviewed at each financial
year end and adjusted prospectively, if
appropriate.

Derecognition

Gains or losses arising from derecognition
of an Intangible Asset are measured as the
difference between the net disposal proceeds
and the carrying amount of the asset and are
recognized in the Statement of Profit and
Loss when the asset is derecognized.

1.3.5. Impairment of Non-Financial Assets - Property,
Plant and Equipment and Intangible Assets

The Company assesses at each reporting date
as to whether there is any indication that any
Property, Plant and Equipment and Intangible
Assets or group of Assets, called Cash Generating
Units (CGU) may be impaired. If any such
indication exists, the recoverable amount of an
asset or CGU is estimated to determine the extent
of impairment, if any. When it is not possible to
estimate the recoverable amount of an individual
asset, the Company estimates the recoverable
amount of the CGU to which the asset belongs.

An impairment loss is recognized in the Statement
of Profit and Loss to the extent, asset’s carrying
amount exceeds its recoverable amount. The
recoverable amount is higher of an asset’s fair
value less cost of disposal and value in use. Value
in use is based on the estimated future cash
flows, discounted to their present value using
pre-tax discount rate that reflects current market
assessments of the time value of money and risk
specific to the assets.

The impairment loss recognized in prior
accounting period is reversed if there has been a
change in the estimate of recoverable amount.
There are no losses from impairment of assets to
be recognized in the financial statements.

1.3.6. Lease

(a) The Company as a Lessee

The Company, as a lessee, recognizes a
right- of-use asset and a lease liability for
its leasing arrangements, if the contract
conveys the right to control the use of an
identified asset.

The contract conveys the right to control the
use of an identified asset, if it involves the
use of an identified asset and the Company
has substantially all of the economic benefits
from use of the asset and has right to direct
the use of the identified asset. The cost of
the right-of- use asset shall comprise of the
amount of the initial measurement of the
lease liability adjusted for any lease payments
made at or before the commencement date
plus any initial direct costs incurred. The right-
of-use assets is subsequently measured
at cost less any accumulated depreciation,
accumulated impairment losses, if any,
and adjusted for any remeasurement of the
lease liability. The right-of-use assets are
depreciated using the straight-line method
from the commencement date over the
shorter of lease term or useful life of right-of-
use asset.

The Company measures the lease liability at
the present value of the lease payments that
are not paid at the commencement date of
the lease. The lease payments are discounted
using the interest rate implicit in the lease,
if that rate can be readily determined. If
that rate cannot be readily determined, the
Company uses incremental borrowing rate.

(b) The Company as a Lessor

Leases for which the Company is a lessor
is classified as a finance or operating lease.
Whenever the terms of the lease transfer
substantially all the risks and rewards of
ownership to the lessee, the contract is
classified as a finance lease. All other leases
are classified as operating leases.

For operating leases, rental income is
recognized on a straight-line basis over the
term of the relevant lease.

1.3.7. Investment Properties

Items of investment properties are measured at
cost less accumulated depreciation/amortization
and accumulated impairment losses. Cost
includes expenditure that is directly attributable
to bringing the asset to the location and condition
necessary for its intended use. Investment
properties are depreciated on straight line method
on pro-rata basis at the rates specified therein.
Subsequent expenditure including cost of major
overhaul and inspection is recognized as an
increase in the carrying amount of the asset
when it is probable that future economic benefits
associated with the item will flow to the Company
and the cost of the item can be measured reliably.

1.3.8. Borrowing Costs

Borrowing costs include exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the
interest cost. Borrowing costs that are directly
attributable to the acquisition or construction of
qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get
ready for its intended use.

Interest income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization.

All other borrowing costs are charged to the
Statement of Profit and Loss for the period for
which they are incurred.

1.3.9. Employee Benefits

(A) Short-Term Employee Benefits

The undiscounted amount of short-term
employee benefits expected to be paid

in exchange for the services rendered by
employees are recognized as an expense
during the period when the employees render
the services.

(B) Post-Employment Benefits

(i) Defined Contribution Plans

The Company recognizes contribution
payable to the provident fund scheme
as an expense, when an employee
renders the related service. If the
contribution payable to the scheme
for service received before the balance
sheet date exceeds the contribution
already paid, the deficit payable to the
scheme is recognized as a liability. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excess is recognized as an asset to the
extent that the pre-payment will lead to
a reduction in future payment or a cash
refund.

(ii) Defined Benefit Plans

(a) Gratuity Scheme: The Company
pays gratuity to the employees
who have completed five years
of service with the Company
at the time of resignation/
superannuation. The gratuity is
paid @ 15 days basic salary and
dearness allowances for every
completed year of service as per
the Payment of Gratuity Act, 1972.
The liability in respect of gratuity
and other post-employment
benefits is calculated using the
Projected Unit Credit Method and
spread over the period during
which the benefit is expected to be
derived from employees’ services.

Remeasurement gains and losses
arising from adjustments and
changes in actuarial assumptions
are recognized in the period
in which they occur in Other
Comprehensive Income.

(iii) Other Long - Term Employee Benefits
Entitlement to annual leave is recognized
when they accrue to employees.

1.3.10.Revenue Recognition

Revenue is recognized upon transfer of control
of promised services to customers in an
amount that reflects the consideration which the
Company expects to receive in exchange for those
services. Revenues from customer contracts are
considered for recognition and measurement
when the contract has been approved by the
parties to the contract, the parties to the contract
are committed to perform their respective
obligations, each party’s rights and obligations and
the payment terms can be identified, the contract
has commercial substance and it is probable that
the entity will collect the consideration to which it
is entitled to in exchange for the services that will
be transferred to the customer.

The Company assesses the services promised
in a contract and identifies distinct performance
obligations in the contract.

Revenue is measured based on the consideration
specified in a contract with a customer and
excludes amounts collected on behalf of third
parties. The Company’s contracts may include
variable consideration including rebates, volume
discounts and penalties. The Company includes
variable consideration as part of transaction price
when there is a basis to reasonably estimate
the amount of the variable consideration and
when it is probable that a significant reversal of
cumulative revenue recognized will not occur
when the uncertainty associated with the variable
consideration is resolved.

The Company allocates the transaction price to
each distinct performance obligation based on
the relative standalone selling price. Revenue
from contracts which are on time and material
basis are recognized when services are rendered,
and related costs are incurred. Revenue from
fixed-price contracts where the performance
obligations are satisfied over time and where
there is no uncertainty as to measurement or
collectability of consideration, is recognized as
per the percentage-of-completion method. Use of
the percentage of completion method requires the
Company to estimate the efforts or cost expended
to date (input method) as a proportion of the
total efforts or costs to be expended. The cost
& efforts expended (or input) method has been
used to measure progress towards completion
as there is a direct relationship between input
and productivity. Estimates of total costs or

efforts are continuously monitored over the
term of the contracts and are recognized in the
net profit prospectively in the period when these
estimates change or when the estimates are
revised. Provisions for estimated losses, if any, on
incomplete contracts are recorded in the period
in which such losses become probable based on
the estimated efforts or costs to complete the
contract.

The Company presents revenue net of discounts,
indirect taxes and value-added taxes in its
statement of profit and loss Contracts assets
are recognized when there is excess of revenue
earned over billings on contracts. Contract assets
are classified as unbilled revenue when there
is unconditional right to receive cash, and only
passage of time is required, as per contractual
terms. Contract liability ("Unearned revenue")
arises when there are billing in excess of revenue.

i) Export Incentives

Export incentive revenues are recognized
when the right to receive the credit is
established and there is no significant
uncertainty regarding the ultimate collection.

ii) Interest Income

Interest Income from a Financial Assets
is recognized using effective interest rate
method.

iii) Dividend Income

Dividend Income is recognized when the
Company’s right to receive the amount has
been established.

iv) Other Income

Other items of income are accounted as
and when the right to receive arises and it is
probable that the economic benefits will flow
to the Company and the amount of income
can be measured reliably.

v) Surplus/(Loss) on disposal of Property,
Plants and Equipment/Investments
Surplus or loss on disposal of property, plants
and equipment or investment is recorded on
transfers of title from the Company, and is
determined as the difference between the
sales price and carrying value of the property,
plants and equipment or investments and
other incidental expenses.

vi) Rental Income

Rental income arising from operating lease

on investments properties is accounted for
on a straight - line basis over the lease term
except the case where the incremental lease
reflects inflationary effect and rental income
is accounted in such case by actual rent for
the period.

vii) Insurance Claim

Claim receivable on account of insurance
is accounted for to the extent the Company
is reasonably certain of their ultimate
collections.

Other Income

Revenue from other income is recognized when
the payment of that related income is received or
credited.

I.3.H. Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded
at the exchange rate prevailing on the date of
transaction. Monetary assets and liabilities
denominated in foreign currencies are translated at
the functional currency closing rates of exchange
at the reporting date. Exchange differences arising
on settlement or translation of monetary items are
recognized in Statement of Profit and Loss except
to the extent of exchange differences which are
regarded as an adjustment to interest costs on
foreign currency borrowings that are directly
attributable to the acquisition or construction of
qualifying assets which are capitalized as cost of
assets.

Non-monetary items that are measured in terms
of historical cost in a foreign currency are recorded
using the exchange rates at the date of the
transaction. Non-monetary items measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value was
measured. The gain or loss arising on translation
of non-monetary items measured at fair value is
treated in line with the recognition of the gain or
loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value
gain or loss is recognized in Other Comprehensive
Income or Statement of Profit and Loss are also
recognized in Other Comprehensive Income or
Statement of Profit and Loss, respectively).

1.3.12.Government Grants and Subsidies

Grants in the nature of subsidies which are non¬
refundable are recognized as income where there
is reasonable assurance that the Company wi ll
comply with all the necessary conditions attached

to them. Income from grants is recognized on a
systematic basis over periods in which the related
costs that are intended to be compensated by
such grants are recognized.

Refundable government grants are accounted in
accordance with the recognition and measurement
principle of Ind AS 109, "Financial Instruments".
It is recognized as income when there is a
reasonable assurance that the Company will
comply with all necessary conditions attached to
the grants. Income from such benefit is recognized
on a systematic basis over the period of the grants
during which the Company recognizes interest
expense corresponding to such grants.

1.3.13. Financial Instruments - Financial Assets

(A) Initial Recognition and Measurement

All Financial Assets are initially recognized at
fair value. Transaction costs that are directly
attributable to the acquisition or issue of
Financial Assets, which are not at Fair Value
Through Profit or Loss, are adjusted to the
fair value on initial recognition. Purchase and
sale of Financial Assets are recognized using
trade date accounting.

(B) Subsequent Measurement

a) Financial Assets measured at Amortized
Cost (AC)

A Financial Asset is measured at
Amortized 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 to cash flows on specified
dates that represent solely payments
of principal and interest on the principal
amount outstanding.

b) Financial Assets measured at Fair Value
Through Other Comprehensive Income
(FVTOCI)

A Financial Asset is measured at
FVTOCI 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 represents solely payments
of principal and interest on the principal
amount outstanding.

Further, the Company, through an
irrevocable election at initial recognition,
has measured certain investments
in equity instruments at FVTOCI. The
Company has made such election on
an instrument-by-instrument basis.
These equity instruments are neither
held for trading nor are contingent
consideration recognized under a
business combination. Pursuant to
such irrevocable election, subsequent
changes in the fair value of such equity
instruments are recognized in OCI.
However, the Company recognizes
dividend income from such instruments
in the Statement of Profit and Loss.

c) Financial Assets measured at Fair Value
Through Profit or Loss (FVTPL)

A Financial Asset which is not classified
in any of the above categories is
measured at FVTPL. Financial assets
are reclassified subsequent to their
recognition, if the Company changes
its business model for managing those
financial assets. Changes in business
model are made and applied prospectively
from the reclassification date which
is the first day of immediately next
reporting period following the changes
in business model in accordance with
principles laid down under Ind AS 109 -
Financial Instruments.

(C) Investments

Investments are classified in to Current or
Non-Current Investments. Investments
that are readily realizable and intended to
be held for not more than a year from the
date of acquisition are classified as Current
Investments. All other Investments are
classified as Non - Current Investments.
However, that part of Non - Current
Investments which are expected to be
realized within twelve months from the
Balance Sheet date is also presented under
"Current Investments" under "Current portion
of Non-Current Investments" in consonance
with Current/Non-Current classification of
Schedule - III of the Act.

All the equity investment which covered
under the scope of Ind AS 109, "Financial
Instruments" is measured at the fair value.

Investment in Mutual Fund is measured at
fair value through profit and loss (FVTPL).
Trading Instruments are measured at fair
value through profit and loss (FVTPL).

(D) Investment in Subsidiaries, Associates and
Joint Ventures

The Company has accounted for its
investments in Subsidiaries, associates and
joint venture at cost less impairment loss (if
any).

(E) Impairment of Financial Assets

In accordance with Ind AS 109, the Company
uses ''Expected Credit Loss’ (ECL) model, for
evaluating impairment of Financial Assets
other than those measured at Fair Value
Through Profit and Loss (FVTPL).

1.3.14. Financial Instruments - Financial Liabilities

(A) Initial Recognition and Measurement

All Financial Liabilities are recognized at fair
value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are
directly recognized in the Statement of Profit
and Loss as finance cost.

(B) Subsequent Measurement

Financial Liabilities are carried at amortized
cost using the effective interest method. For
trade and other payables maturing within
one year from the balance sheet date, the
carrying amounts approximate fair value due
to the short maturity of these instruments.

1.3.15. Derivative Financial Instruments and Hedge
Accounting

The Company enters into derivative contracts
in the nature of forward currency contracts with
external parties to hedge its foreign currency risks
relating to foreign currency denominated financial
assets measured at amortized cost. If risk found
significant.

The Company formally establishes a hedge
relationship between such forward currency
contracts (''hedging instrument’) and recognized
financial assets (''hedged item’) through a formal
documentation at the inception of the hedge
relationship in line with the Company’s Risk
Management objective and strategy.

The hedge relationship so designated is accounted
for in accordance with the accounting principles
prescribed for a cash flow hedge under Ind AS
109, ''Financial Instruments’.

Recognition and measurement of cash flow
hedge:

The Company strictly uses foreign currency
forward contracts to hedge its risks associated
with foreign currency fluctuations relating to
certain forecasted transactions. As per Ind AS 109
- Financial Instruments, foreign currency forward
contracts are initially measured at fair value and
are re-measured at subsequent reporting dates.
Changes in the fair value of these derivatives
that are designated and effective as hedges of
future cash flows are recognized in hedge reserve
(under reserves and surplus) through other
comprehensive income and the ineffective portion
is recognized immediately in the statement of
profit and loss.

The accumulated gains/losses on the derivatives
accounted in hedge reserve are transferred to the
statement of profit and loss in the same period in
which gains/losses on the underlying item hedged
are recognized in the statement of profit and loss.

Derecognition:

Hedge accounting is discontinued when
the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies
for hedge accounting. When hedge accounting
is discontinued for a cash flow hedge, the net
gain or loss will remain in hedge reserve and
be reclassified to the statement of profit and
loss in the same period or periods during which
the formerly hedged transaction is reported in
the statement of profit and loss. If a hedged
transaction is no longer expected to occur, the
net cumulative gains/losses recognized in hedge
reserve is transferred to the statement of profit
and loss.

Fair Value Hedge:

The Company designates derivative contracts
or non-derivative Financial Assets/Liabilities as
hedging instruments to mitigate the risk of change
in fair value of hedged item due to movement
in interest rates, foreign exchange rates and
commodity prices.

Changes in the fair value of hedging instruments
and hedged items that are designated and qualify
as fair value hedges are recorded in the Statement
of Profit and Loss. If the hedging relationship no
longer meets the criteria for hedge accounting, the
adjustment to the carrying amount of a hedged
item for which the effective interest method is

used is amortized to Statement of Profit and Loss
over the period of maturity.

1.3.16. Derecognition of Financial Instruments

The Company derecognizes a Financial Asset
when the contractual rights to the cash flows
from the Financial Asset expire or it transfers
the Financial Asset and the transfer qualifies for
derecognition under Ind AS 109. A Financial liability
(or a part of a financial liability) is derecognized
from the Company’s Balance Sheet when the
obligation specified in the contract is discharged
or canceled or expires.

1.3.17. Financial Instruments - Offsetting

Financial Assets and Financial Liabilities are offset
and the net amount is presented in the balance
sheet when, and only when, the Company has
a legally enforceable right to set off the amount
and it intends, either to settle them on a net
basis or to realize the asset and settle the liability
simultaneously.

1.3.18. Taxes on Income

The tax expenses for the period comprises of
current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss, except
to the extent that it relates to items recognized in
the Other Comprehensive Income. In which case,
the tax is also recognized in Other Comprehensive
Income.

(a) Current Tax

Current tax assets and liabilities are measured
at the amount expected to be recovered from
or paid to the Income Tax authorities, based
on tax rates and laws that are enacted at the
Balance sheet date.

(b) Deferred Tax

Deferred tax is recognized 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 profit.
Deferred tax assets are recognized to the
extent it is probable that taxable profit will
be available against which the deductible
temporary differences, and the carry forward
of unused tax losses can be utilized. 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 realized, based on tax rates (and tax

laws) that have been enacted or substantively
enacted by the end of the reporting period.
The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each
reporting period.

Presentation

The Company offsets current tax assets and
current tax liabilities, where it has a legally
enforceable right to set off the recognized
amounts and where it intends either to
settle on a net basis, or to realize the asset
and settle the liability simultaneously. In
case of deferred tax assets and deferred tax
liabilities, the same are offset if the Company
has a legally enforceable right to set off
corresponding current tax assets against
current tax liabilities and the deferred tax
assets and deferred tax liabilities relate to
income taxes levied by the same tax authority
on the Company.

1.3.19.Segment Reporting

(a) The generally accepted accounting principles
used in the preparation of the financial
statements are applied to record revenue and
expenditure in individual segments.

(b) Expenses that are directly identifiable to
segments are considered for determining the
segment result. Expenses which relate to the
Company as a whole and are not allocable
to segments are included under unallocated
corporate expenses.

(c) Segment assets and liabilities include those
directly identifiable with the respective
segments. Unallocated corporate assets and
liabilities represent the assets and liabilities
that relate to the Company as a whole and
not allocable to any segment.

(d) Looking to the nature of company segment
reporting is not applicable.

1.3.20.Earnings per Share

Basic earnings per share is calculated by dividing
the net profit after tax by the weighted average
number of equity shares outstanding during the
year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures
used in determination of basic earnings per share
to take into account the conversion of all dilutive
potential equity shares. Dilutive potential equity
shares are deemed converted as at the beginning
of the period unless issued at a later date.

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Mar 31, 2024

The estimated useful life of the intangible assets, amortisation method and the amortisation period are reviewed at the end of each financial year and the amortisation period is revised to reflect the changed pattern, if any

Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. During the period of development, the asset is tested for impairment annually.

1.5) Revenue recognition

a. Revenue from services: Revenue is recognized based on contractual terms and upon rendering of services as per terms of agreement.

b. Interest Income: Interest income is recognized using the time-proportion method, based on rates implicit in the transaction.

c. Other income: Other income is recognized based on the contractual obligations on accrual basis.

1.6) Employee benefits

(a) Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the services have been rendered.

Note 1 - SIGNIFICANT ACCOUNTING POLICIES:

1.1) Basis of preparation of financial statements

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.

1.2) Use of Estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumption that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period.

Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Where no reliable estimate can be made, a disclosure is made as contingent liability. Actual results could differ from those estimates. The differences if any will be dealt accordingly in subsequent years.

1.3) Property, Plant and Equipment

a. Tangible Assets

Property, plant and equipment are stated at historical cost less accumulated depreciation, and accumulated impairment loss, if any. Historical cost comprises of the purchase price including duties and non-refundable taxes, borrowing cost if capitalization criteria are met, directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management And initial estimate of decommissioning, restoring and similar liabilities.

Subsequent costs related to an item of property, plant and equipment are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are recognized in statement of profit and loss during the reporting period when they are incurred.

An item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gains or losses arising from derecognition are measured as the difference between the net disposal

proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

b. Intangible Assets

Intangible assets include software / application which are developed and are measured on the basis of cost incurred for its development. The cost of intangible assets in our business combination is the capitalized value of the cost incurred to develop the asset till it is put to use. Such costs include salary of professional personnel hired, project expenses, research costs, etc. Following initial recognition, intangible assets are carried at cost less any accumulated amortization.

An item of intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gains or losses arising from derecognition are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Subsequent costs related to intangible assets are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

c. Intangible Assets under development

Intangible Assets under development include software/ application under development net off accumulated impairment loss, if any, as at the Balance sheet date. Directly attributable expenditure incurred on project under development are shown under CWIP. At the point when an asset is capable of operating in the manner intended by management, the Intangible assets under development is transferred to the appropriate category of Intangible assets.

Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its present condition for intended use.

1.4) Depreciation

a. Depreciation of Tangible assets :

Property, plant and equipment individually costing Rs. 5,000 or less are depreciated at 100% in the year in which such assets are ready to use.

Depreciation is calculated using the Written down value method over their estimated useful lives. The estimates of useful lives of tangible assets are as follows:

(b) Long Term Employee Benefits

(i) Defined Contribution Plan:

Provident Fund and Group Insurance Scheme:

Employees of the company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate (presently 12%) of the employees'' basic salary or Rs 1800/-. These contributions are made to the fund administered and managed by the Government of India.

(ii) Defined Benefit Plan:

Leave Encashment: The Company has provided for the liability at year end on the basis of valuation report received by the valuer .

Gratuity: The Company provides for gratuity obligations through a defined retirement plan (''the Gratuity Plan'') covering all eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment based on respective employee salary and years of employment with the Company. The Company provides for the Gratuity Plan based on projection valuations in accordance with Accounting Standard 15 (Revised), "Employee Benefits".

1.7) Borrowing Cost

Borrowing Cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of Borrowings. General and specific borrowing costs directly attributable to the acquisition/ construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time the assets are substantially ready for their intended use. All other borrowing costs are recognized as an expense in Statement of Profit and Loss in the period in which they are incurred.

1.8) Transactions in Foreign Exchange

Transaction dominated in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Assets and Labilities denominated in foreign currency are converted at the exchange rate prevailing as at the balance sheet date. Exchange differences other than those relating to acquisition of fixed assets are recognized in the statement of profit and loss. Exchange differences relating to purchase of fixed assets are adjusted to the carrying cost of fixed assets.

The company is dealing in Foreign Exchange. During the year company had export is Nill (Previous Year:-Nil)

1.9) Segment Reporting

(a) The generally accepted accounting principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments.

(b) Expenses that are directly identifiable to segments are considered for determining the segment result. Expenses which relate to the Company as a whole and are not allocable to segments are included under unallocated corporate expenses.

(c) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

(d) Looking to the nature of company segment reporting is not applicable.

1.10) Operating Leases- As Lessee

Lease rentals in respect of assets taken on "Operating Lease" are charged to Profit and Loss Account on a straight line basis over the lease term.

1) Not Later than one year , Rent Rs. 90,760.00/-

2) Later than one year but not later than five years, , No Lease

3) Later than five years. No Lease

1.11) Earnings per Share

In determining earning per share, the Company considers the net profit / (loss) after tax and includes the post-tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

1.12) Taxation

a. Income tax

Provision for Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws.

b. Deferred tax

Deferred taxation is provided using the liability method in respect of the taxation effect originating from all material timing differences between the accounting and tax treatment of income and expenditure, which are expected with reasonable probability to reverse in subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using

the tax rates that have been enacted or substantively enacted by the balance sheet date.

1.13) Impairment of assets

Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

1.1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These financial statements have been prepared to comply in all material aspects with applicable
accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of
the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the
provisions of the Act (to the extent notified) and other accounting principles generally accepted in
India, to the extent applicable.

1.2) USE OF ESTIMATES:

The preparation of the financial statements in conformity with GAAP requires the management to
make estimates and assumption that affect the reported balances of assets and liabilities and
disclosures relating to contingent assets and liabilities as at the date of the financial
statements and reported amounts of income and expenses during the period.

Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be
reasonably estimated. Where no reliable estimate can be made, a disclosure is made as contingent
liability. Actual results could differ from those estimates. The differences if any will be dealt
accordingly in subsequent years.

1.3) PROPERTY, PLANT AND EQUIPMENT:

(a) Tangible Assets

Property, plant and equipment are stated at historical cost less accumulated depreciation, and
accumulated impairment loss, if any. Historical cost comprises of the purchase price including
duties and nondrefundable taxes, borrowing cost if capitalization criteria are met, directly
attributable expenses incurred to bring the asset to the location and condition necessary for it to
be capable of being operated in the manner intended by management and initial estimate of
decommissioning, restoring and similar liabilities.

Subsequent costs related to an item of property, plant and equipment are recognized as a
separate asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognized when
replaced. All other repairs and maintenance are recognized in statement of profit and loss during
the reporting period when they are incurred.

An item of property, plant and equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gains or losses arising from
derecognition are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and loss when the asset is
derecognized.

(b) Intangible Assets

Intangible assets include software / application which are developed and are measured on the
basis of cost incurred for its development. The cost of intangible assets in our business
combination is the capitalized value of the cost incurred to develop the asset till it is put to use.
Such costs include salary of professional personnel hired, project expenses, research costs, etc.
Following initial recognition, intangible assets are carried at cost less any accumulated
amortization.

An item of intangible asset is derecognized on disposal or when no future economic benefits are
expected from its use or disposal. The gains or losses arising from derecognition are
measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of profit and loss when the asset is
derecognized.

Subsequent costs related to intangible assets are recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably.

(c) Intangible Assets underdevelopment

Intangible Assets under development include software/ application under development net
off accumulated impairment loss, if any, as at the Balance sheet date. Directly attributable
expenditure incurred on project under development are shown under CWIP. At the point when an
asset is capable of operating in the manner intended by management, the Intangible assets under
development is transferred to the appropriate category of Intangible assets. Fixed Assets are
stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price
and any directly attributable cost of bringing the asset to its present condition for intended use.

The estimated useful life of the intangible assets, amortisation method and the amortisation period
are reviewed at the end of each financial year and the amortisation period is revised to reflect the
changed pattern, if any.

Amortisation of the asset begins when development is complete and the asset is available for use.
It is amortised over the period of expected future benefit. Amortisation expense is recognised in the
statement of profit and loss unless such expenditure forms part of carrying value of another asset.
During the period of development, the asset is tested for impairment annually.

1.5) REVENUE RECOGNITION:

(a) Revenue from services: Revenue is recognized based on contractual terms and upon
rendering of services as per terms of agreement.

(b) Interest Income: Interest income is recognized using the timeDproportion method, based on
rates implicit in the transaction.

(c) Other income: Other income is recognized based on the contractual obligations on accrual basis.

1.6) EMPLOYEE BENEFITS:

(a) Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the services have
been rendered.

(b) Long Term Employee Benefits

i) Defined Contribution Plan:

Provident Fund and Group Insurance Scheme: Employees of the company are entitled to
receive benefits under the Provident Fund, which is a defined contribution plan. Both the
employee and the employer make monthly contributions to the plan at a predetermined rate
(presently 12%) of the employees'' basic salary or Rs 1800/-. These contributions are made to the
fund administered and managed by the Government of India.

ii) Defined Benefit Plan:

Leave Encashment: The Company has provided for the liability at year end on the basis of
valuation report received by the valuer.

Gratuity: The Company provides for gratuity obligations through a defined retirement plan (''the
Gratuity Plan'') covering all eligible employees. The Gratuity Plan provides a lump sum
payment to vested employees at retirement or termination of employment based on respective
employee salary and years of employment with the Company. The Company provides for the
Gratuity Plan based on projection valuations in accordance with Accounting Standard 15 (Revised),
"Employee Benefits".

1.7) BORROWING COST:

Borrowing Cost includes interest and amortization of ancillary costs incurred in connection
with the arrangement of Borrowings. General and specific borrowing costs directly attributable
to the acquisition/ construction of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use, are added to the cost of those assets,
until such time the assets are substantially ready for their intended use. All other borrowing
costs are recognized as an expense in Statement of Profit and Loss in the period in which they are
incurred.

1.8) TRANSACTIONS IN FOREIGN EXCHANGE

Transaction dominated in foreign currency are recorded at the exchange rate prevailing on the date
of transaction. Assets and Labilities denominated in foreign currency are converted at the exchange
rate prevailing as at the balance sheet date. Exchange differences other than those relating to
acquisition of fixed assets are recognized in the statement of profit and loss. Exchange differences
relating to purchase of fixed assets are adjusted to the carrying cost of fixed assets.

The company is dealing in Foreign Exchange. During the year company had export is Nill (Previous
Year:- 11,158,440).

1.9) SEGMENT REPORTING

(a) The generally accepted accounting principles used in the preparation of the financial statements are
applied to record revenue and expenditure in individual segments.

(b) Expenses that are directly identifiable to segments are considered for determining the
segment result. Expenses which relate to the Company as a whole and are not allocable to segments
are included under unallocated corporate expenses.

(c) Segment assets and liabilities include those directly identifiable with the respective segments.
Unallocated corporate assets and liabilities represent the assets and liabilities that relate to the
Company as a whole and not allocable to any segment.

(d) Looking to the nature of company segment reporting is not applicable.

1.10) OPERATING LEASES- as Lessee

Lease rentals in respect of assets taken on "Operating Lease" are charged to Profit and Loss Account
on a straight line basis over the lease term.

1) Not Later than one year, Rent Rs. 1,74,990/-

2) Later than one year but not later than five years, No Lease

3) Later than five years. No Lease

1.10) EARNINGS PER SHARE

In determining earning per share, the Company considers the net profit / (loss) after tax and includes
the postDtax effect of any extraordinary items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding during the period.

1.12) TAXATION

(a) Income tax

Provision for Current tax is made based on the liability computed in accordance with the relevant
tax rates and tax laws.

(b) Deferred tax

Deferred taxation is provided using the liability method in respect of the taxation effect originating
from all material timing differences between the accounting and tax treatment of income and
expenditure, which are expected with reasonable probability to reverse in subsequent
periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets
are recognized using the tax rates that have been enacted or substantively enacted by the balance
sheet date.

1.13) IMPAIRMENT OF ASSETS

Management periodically assesses using, external and internal sources, whether there is an
indication that an asset may be impaired. An asset is impaired when the carrying amount of the asset
exceeds its recoverable amount. An impairment loss is charged to Profit and Loss Account in the year
in which an asset is identified as impaired.