Qualitek Labs Ltd. कंपली की लेखा नीति

Mar 31, 2025

A. Revenue Recognition

(i) Sale of services:

The source of revenue of the Company is rendering of services, which includes, services rendered as testing, inspection and certification.

a. Revenue from services is recognised on completed service contract method since the time interval between the initiation of service until its
reporting is generally low and the same becomes chargeable only when the service is completed and reports are issued to the customers.

b. Revenue is recognised only if the consideration can be determined reliably and no significant uncertainty exists regarding the collection of the
consideration.

c. Revenue is exclusive of GST or other reversible taxes, and net of trade discount and quantity discount, if any.

(ii) Other income:

a) Interest Income

Interest income is recognized on time proportion basis taking into account the amount outstanding and the applicable interest rate.

b) Dividend Income

Dividend from investments in shares is recognised in the statement of profit and loss when the right to receive dividend is established.

c) Other income, if any, is recognised on accrual basis.

(iii) Unbilled Revenue

Unbilled revenue is the amount of services that has been rendered to the customers for which the invoice is yet to be made and is accounted for as
"Unbilled accounts receivable” and disclosed under "Trade receivable" in the financial statements.

B. Property, Plant and Equipment

a) Initial Recognition

The cost of an item of property, plant and equipment comprises:

i) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, if any.

ii) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management.

iii) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an
entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to
produce inventories during that period.

The cost of an item of property, plant and equipment is the cash price equivalent at the recognition date. If payment is deferred beyond normal
credit terms, the difference between the cash price equivalent and the total payment is recognised as interest over the period of credit unless such
interest is capitalized.

Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be
capable of operating in the manner intended by management, are recognised in profit or loss.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted and depreciated for as separate
items (major components) of property, plant and equipment.

b) Subsequent Measurement

Subsequently, property, plant and equipment are stated by following cost model, wherein an item of property, plant and equipment is carried at its
cost less any accumulated depreciaition and any accumulated impairment losses.

c) Subsequent Recognition

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from
the existing asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and equipment, included
day to day repair and maintenance expenditure and cost of replacing parts, are charged to the profit and loss for the period during which such
expenses are incurred.

d) De-recognition

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

Capital work-in-progress

Capital work-in-progress comprises of property, plant and equipment that are not ready for their intended use at the end of reporting period and
are carried at cost comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

Depreciation

Depreciation is calculated using the Straight-line method on cost of items of property, plant and equipment less their estimated residual values
overthe estimated useful lives prescribed under Schedule II of the Companies Act, 2013. Assets acquired under finance lease are depreciated over
the shorter of the lease term and their useful lives, unless it is reasonably certain that the Company will obtain ownership by the end of the lease
term, in which case the depreciation rates applicable for similar assets owned by the Company are applied. Leasehold improvements are
depreciated over the shorter of the lease term and their useful lives.

In respect of assets acquired/sold/ disposed during the year, depreciation has been provided on pro-rata basis with reference to the months of
addition/ready for use or disposal.

Where an item of property, plant and equipment with a cost that is significant in relation to the total cost of the asset then it is depreciated
separately.

C. Intangible Assets

a) Initial Recognition

Intangiable assets purchased are intially measured at cost. The cost of an intangible asset comprises its purchase price, including any import duties
and other taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), and any directly attributable
expenditure on making the asset ready for its intended use. Any trade discounts and rebates are deducted in arriving at the cost.

b) Subsequent Measurement

Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

c) Subsequent Recognition

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All
other expenditure is recognised in statement of profit or loss as incurred.

d) De-recognition

Gains or losses arising from de-recognition of intangible assets are measured as the difference between the net disposal proceeds and the carrying
amount of the intangible assets and are recognized in the statement of profit and loss when the intangible asset is de-recognized.

Intangible assets under development:

The Company expenses costs incurred during research phase to profit or loss in the year in which they are incurred. Development phase expenses
are initially recognised as intangible assets under development until the development phase is complete, upon which the amount is capitalised as
intangible asset. Capitalised costs include purchase costs, related acquisition expenses, development costs, and other directly attributable
expenditures.

Amortization of intangible assets:

Intangible assets are amortized on a straight-line basis over the estimated useful economic life. The amortisation period for intangible assets with
finite useful lives is reviewed at each year-end. Changes in expected useful lives are treated as changes in accounting estimates.

D. Impairment of assets

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the
company estimates the recoverable amount of the assets. If such recoverable amount of the asset or the recoverable amount of cash-generating
unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated
as an impairment loss and is recognized in the profit and loss account.

a) Recoverable Amounts

An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (''CGU'') net selling price and its value in use. The 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 group of assets.

b) Value in Use

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. In determining net appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the
Company''s cash-generating units to which the individual assets are allocated. These budgets and forecast calculations are generally covering a
period of five years. For longer periods, a long term growth rate is calculated and applied to project future cash flows after the fifth year.

After impairment, depreciation/amortization is provided on the revised carrying amount of the asset over its remaining useful life.

c) Reversal of Impairment

If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

E. Leases

(a) Operating Lease:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases.
Lease payments under an operating lease are recognised as an expense in the statement of profit and loss on a straight-line method over the lease
term.

(b) Finance Lease:

At the inception of a finance lease, Company recognizes the lease as an asset and a liability. Such recognition is at an amount equal to the fair value
of the leased asset at the inception of the lease or present value of minimum lease payments from the standpoint of the company, whichever is
lower. In calculating the present value of the minimum lease payments the discount rate is the interest rate implicit in the lease, if this is practicable
to determine; if not, the Company''s incremental borrowing rate is used.

Lease payments is apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to
periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

The asset is fully depreciated over the lease term or its useful life, whichever is shorter on a straight lining basis.

F. Employee Benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with the Accounting Standard 15 (Revised) on Employee
Benefits. Employee benefit includes salaries and wages, bonus and ex-gratia.

(i) Short term employee benefits:

Expenses like salaries, wages and social security contribution, bonuses payable within 12 months etc. is recognized by the company when an
employee has rendered services.

(ii) Post-employment benefits:

a. Define contribution plan:

The Company makes contributions to the recognised provident fund in accordance with the Employees Provident Fund and Miscellaneous
Provisions Act, 1952. The plan is a defined contribution plan and contributions paid or payable are recognised as an expense in the period in which
services are rendered by the employee.

b. Define benefit plan:

The Company''s gratuity scheme is a post-employment benefit and is in the nature of defined benefit plan. For defined benefit schemes, the cost of
providing benefits is determined using Projected Unit Credit Method, with actuarial valuation being carried out at each balance sheet date.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded as expense or income in the
profit and loss account in the year in which such gains or losses arise. Past service cost is recognised to the extent the benefits are already vested,
and otherwise is amortised on a straight-line method over the average period until the benefits become vested.

(Hi) Other longterm liability:

Liability in respect of compensated absences becoming due and expected to be availed with in one year from the balance sheet date is recognised
on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefits expected to be availed by the
employees. Liability in respect of compensated absences becoming due and expected to be availed more than one year after the balance sheet
date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as at the year
end. The actuarial gains or losses are recognised immediately in the statement of profit and loss.

G. Investments

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made,
are classified as current investments. All other investments are classified as long-term investments.

a) Initial Recognition

On initial recognition, all investments are measured at cost. The cost comprises purchases price and directly attributable acquisition charges such
as brokerage, fees and duties.

b) Subsequent Recognition

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. For
current investments, any reduction to fair value and any reversals of such reductions are included in the profit and loss statement.

Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the
value of the investments.

c) Disposal of an Investment

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credit to the statement of profit
or loss.

When disposing of a part of the holding of an individual investment, the carrying amount to be allocated to that part is to be determined on the
basis of the average carrying amount of the total holding of the investment.

d) Impairment of Investments

As at the end of each accounting year, the company reviews the carrying amounts of its investment in subsidiary to determine whether there is any
indication that those investments have suffered an impairment loss. If such indication exists, the said investments are tested for impairment so as
to determine the impairment loss, if any.

Impairment loss is recognized when the carrying amount of an investment exceeds its recoverable amount.

H. Taxes on income

Tax expenses comprises of current tax and deferred tax.

(i) Current tax

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in
India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted, at the reporting date.

(ii) Deferred tax

Deferred tax is recognized in accordance with Accounting Standard 22 ''Accounting for taxation'' on all the timing differences, subject to
consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognized and carried forward only to the extent that there is
a reasonably certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax is
measured based on the tax rates and the tax laws enacted or substantively enacted at the reporting date. At each balance sheet date the Company
re-assesses unrecognized deferred tax assets, if any.

Deferred tax asset to the extent it pertains to unabsorbed business loss/depreciation is recognised only to the extent that there is virtual certainty
of realisation based on convincing evidence, as evaluated on a case to case basis.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax
liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

I. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the closing number of
equity shares outstanding during the period.

Diluted earnings per share is computed by dividing the net profit or loss for the period as adjusted for dividend, interest and other charges relating
to the dilutive potential equity shares, by the closing number of equity shares considered for deriving basic earnings per share and the closing
number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

J. Foreign currency transactions

(i) 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.

(ii) Restatement

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.

(iii) Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which
they were initially recorded during the year, or reported in the previous financial statements, are recognised as income or expense in the year in
which they arise.