1. CORPORATE INFORMATION:
Colab Platforms Limited ('the Company') is a Public Limited Company incorporated in India under
the Companies Act, 1956 in the year 1989 as JSG Leasing Private Limited. Subsequently, in the year
1995 it was converted into public limited company named as JSG Leasing Limited. On 07th October
2022 the name of the Company had been changed to Colab Cloud Platforms Limited. The recent name
change took place on 10th February 2025. The Company operates in Esports, Gaming and Information
technology related services & solutions. The registered office of the Company is located at Innov8
CP2 44, Backary Portion, Regal Building, New Delhi, Delhi - 110 001. The Company's shares are listed
for trading on BSE Limited since 2019.
The standalone financial statements as on 31st March 2025 were approved by the Board of Directors
at their meeting held on 29 th May 2025.
Recent Amendments:
i. Ind AS 117 Insurance Contracts:
The Ministry of corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide
notification dated 12th August 2024, under the Companies (Indian Accounting Standards)
Amendment Rules, 2024, which is effective from annual reporting periods beginning on or after 01st
April 2024.
Ind AS 117 replaces Ind AS 104 Insurance Contracts. Ind AS 117 applies to all types of insurance
contracts, regardless of the type of entities that issue them as well as to certain guarantees and
financial instruments with discretionary participation features. The application of Ind AS 117 had no
impact on the Company's Standalone Financial Statements as the Company has not entered any
contracts in the nature of insurance of contracts covered thereunder.
ii. Amendment to Ind AS 116 Leases:
The MCA has notified the Companies (Indian Accounting Standards) Second Amendment Rules,
2024, which amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback. The
amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising
in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the
gain or loss that relates to the right of use it retains. The amendment is effective for annual reporting
periods beginning on or after 01st April 2024 and must be applied retrospectively to sale and leaseback
transactions entered into after the date of initial application of Ind AS 116.
The amendment does not have a material impact on the Company's financial statements. The
Company has not early adopted any standard, interpretation or amendment that has been issued but
is not yet effective.
2. SIGNIFICANT ACCOUNTING POLICY INFORMATION AND CRITICAL ACCOUNTING
ESTIMATES & ASSUMPTIONS:
2.1 Statement of Compliance:
The Financial Statements comply, in all material aspects, with Indian Accounting Standards ('Ind AS')
notified under Section 133 of the Companies Act, 2013 ("Act") read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 (as amended) and other relevant provisions of the
Companies Act to the extent applicable and applicable guidelines issued by the Securities and
Exchange Board of India ('SEBI').
Accounting policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to the existing accounting standard requires a change in the
accounting policy thereto in use.
2.2 Basis of Preparation of financial statements:
The standalone financial statements of the company have been prepared and presented in accordance
with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time). These financial statements have been
prepared on a historical cost basis, except for the Financial Assets and Liabilities which have been
measured at fair value.
The financial statements are presented in the Indian Rupees which is also the company's functional
currency. All financial information presented in INR THOUSANDS has been rounded to the nearest
of THOUSANDS, unless otherwise indicated.
These standalone financial statements have been prepared on historical cost basis and on an accrual
basis, except for certain financial instruments which are measured at fair value or amortized cost at
the end of each reporting period.
The statement of cash flows has been prepared under indirect method, whereby profit or loss 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 items of income or expense associated with investing or
financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated.
Current/ non-current classification:
All assets and liabilities have been classified as current and non-current as per the Company's normal
operating cycle and other criteria set out in the schedule III of the Companies Act.
An Asset is treated as current when it is:
Expected to be realised or intended to be sold or consumed in normal operating cycle;
a) Held primarily for the purpose of trading;
b) Expected to be realised within twelve months after the reporting period; or
c) 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:
a) It is expected to be settled in normal operating cycle
b) It is held primarily for the purpose of trading
c) It is due to be settled within twelve months after the reporting period; or
d) 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.
Deferred tax liabilities are classified under non-current Liabilities.
2.3 Use of Estimates and Assumptions:
The preparation of standalone financial statements requires the management of the Company to
make estimates and assumptions that affect the reported amounts of assets and liabilities on the date
of standalone financial statements, disclosure of contingent liabilities as at the date of the financial
statements, and the reported amounts of income and expenses during the reported period. Actual
results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised prospectively.
The Company uses the following critical accounting judgements, estimates and assumptions in
preparation of its standalone financial statements:
i. Revenue Recognition
The Company applies the percentage of completion method in accounting for its fixed price
development contracts. Use of the percentage of completion method requires the Company to
estimate the efforts or costs expended to date (input method) as a proportion of the total efforts or
costs to be expended. Efforts or costs expended have been used to measure progress towards
completion as there is a direct relationship between input and productivity. Provisions for estimated
losses, if any, on uncompleted contracts are recorded in the period in which such losses become
probable based on the expected contract estimates at the reporting date.
Judgement is also required to determine the transaction price for the contract and to ascribe the
transaction price to each distinct performance obligation. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as volume discounts,
service level credits, performance bonuses, price concessions and incentives. The transaction price is
also adjusted for the effects of the time value of money if the contract includes a significant financing
component. The estimated amount of variable consideration is adjusted in the transaction price only
to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognized will not occur and is reassessed at the end of each reporting period. The Company
allocates the elements of variable considerations to all the performance obligations of the contract
unless there is observable evidence that they pertain to one or more distinct performance obligations.
The Company exercises judgments while determining the transaction price allocated to performance
obligations using the expected cost-plus margin approach.
ii. Income taxes and deferred taxes
Significant judgments are involved in determining the provision for income taxes including judgment
on whether tax positions are probable of being sustained in tax assessments. A tax assessment can
involve complex issues, which can only be resolved over extended time periods. Deferred tax is
recorded on temporary differences between the tax bases of assets and liabilities and their carrying
amounts, at the rates that have been enacted or substantively enacted at the reporting date. The
ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits
during the periods in which those temporary differences and tax loss carry forwards become
deductible. The Company considers the expected reversal of deferred tax liabilities and projected
future taxable income in making this assessment.
iii. Property, plant and equipment
Property, plant and equipment represent a significant proportion of the asset base of the Company.
The useful lives and residual values of Company's assets are determined by management at the time
the asset is acquired and reviewed at the end of each reporting period. The lives are based on
historical experience with similar assets as well as anticipation of future events, which may impact
their life.
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