Note 1
Significant accounting policies and Notes to Accounts for the Standalone Financial Statements for the financial year ended March 31,2026
1. Corporation Information and Nature of business
The Company is incorporated on September 09, 2022. The Company is based out of Mumbai and has branch office in Ahmedabad.
During the year, the Company incorporated a Wholly-Owned Subsidiary by the name of Accelerate Next Inc in the United States of America. The Wholly-Owned Subsidiary of the Company has further acquired a 100% stake in another Company, Beanstalk Web Solutions LLC, in the United States of America, (Step-Down Subsidiary of AccelerateBS India Limited).
The business of the Company is to carry on the business in India or across the world of Information Technology (IT) related Consultancy, Software Development, implementation, providing Services for support and maintenance, trade in Computers and its peripherals, computer stationery ad all connected parts for providing IT Services, act as commission agents. To carry on the business of providing outsourcing services for all processes, sub-Processes, transactions, activities and all other work performed by business including IT enabled processes / sub processes, to collect data, voice or video and processing, call centre services including In-bound and Out-bound calling services of all kinds, technical support, managed data centre, managed technical centre, training centre, web support back office, business or financial analysis, scientific analysis, research work and analysis, storage, disaster recovery, accounting, pay roll, inventory management, customer relationship management, enterprises resources planning and to develop software, provide consultancy, software solution and services that are normally offered by the outsourcing business and information technology services providers, the software development houses and application services providers.
During the financial year 2023-24, the Company got listed on the Bombay Stock Exchange (SME Platform) in July, 2023.
2. Significant accounting policies
2.1. Accounting convention
The Financial Statements have been prepared in accordance with accounting principles generally accepted in India (GAAP) under historical cost convention on an accrual basis and GAAP includes accounting standard specified under Section 133 of the Companies Act, 2013 (the Act) read with the Companies (Accounting Standards) Rules, 2021 (as amended) and presentation requirements of Division I of Schedule III to the Companies Act, 2013, except otherwise mentioned elsewhere in the Financial Statements.
The Standalone Financial Statements of the Company have been prepared on a going concern basis. The accounting policies are applied consistently to all the periods presented in the standalone financial statements.
All assets and liabilities have been classified as current and non-current in accordance with the Normal operating cycle of the Company and other criteria set out in the Schedule III of the Act. Based on nature of services, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
2.2. Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP requires the Management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities as of the date of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these events and assumptions and estimates could result in the outcomes requiring material adjustments to the carrying amount of assets and liabilities in future periods.
2.3. Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Income from consultancy services
Income from consultancy services is recognized when invoices are raised after the contract conditions are satisfied and as per the terms of agreement with the customers and the milestones achieved under the agreement. The Company collects Goods and Services Tax on behalf of the Government and, therefore, it is not an economic benefit flowing to the Company. Hence, it is excluded from revenue in the Financial Statements. Consultancy income received in advance is recognized as a liability in the Financial Statements.
Income from Export Consultancy Services is recognized at the rate prevailing on the date of the invoice.
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the statement of profit and loss.
2.4 Foreign currency translation
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 exchange rate prevailing at the reporting date (closing rate). Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. 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 such value was determined.
Exchange differences
Exchange differences arising on the settlement of monetary items or on reporting the Company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous Financial Statements, are recognized as income or as expenses in the year in which they arise.
2.5 Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are
met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognized in profit or loss as incurred. The Company has estimated the useful lives of the assets based on the lives mentioned in the Schedule II of the Companies Act.
Depreciation on property, plant and equipment is calculated on reducing balance method using the rates prescribed under Companies Act 2013.
Intangible Assets
The Company has a trademark in its name which is depreciated as per the rates prescribed in the Companies Act, 2013 on the reducing balance method.
Intangible Assets under Development
The Company is creating a tool for its customers which will generate a fixed revenue in the nature of subscription fees. The costs attributed to the Intangible Assets under Development comprise the salary costs based on the number of hours deployed by the employees.
3. Investments in Wholly-Owned Subsidiary
The Company has decided to account for its equity investments in subsidiaries under AS 13 on “Accounting for Investments” at cost. Cost comprises the consideration paid for acquiring the shares, fees paid to the services providers for carrying out due diligence and other professional services and other direct costs incurred to make the investment.
At the end of each reporting period the Company assesses whether there are indicators of diminution in the value of its investments and provides for impairment loss, where necessary.
The investment in Wholly-Owned Subsidiary is classified as a non - current investment in the Financial Statements.
4. Impairment of assets
At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. Recoverable amount is higher of fair value less cost of disposal and value in use. In assessing the value in use, the estimated future cash flows are discounted at their present value using the pre-tax discount rate that reflects current market assessment of time value of money and the risks specific to assets for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than it's carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit or Loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset or cash generating unit in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit or Loss.
5. Related Party Transactions
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