1. Company Overview
EQUIPPP Social Impact Technologies Limited (Formerly Proseed India Limited) (“the
Company”) is a public limited Company incorporated and domiciled in India with its
registered office at 8thFloor, Western Pearl Building, Hitech City Road, Kondapur,
Hyderabad-500081, TG, India. The Company is listed on the National Stock Exchange
(NSE) and permitted to trade in Bombay Stock Exchange (BSE). During in the period under
review, the company mainly engaged in new age technologies and next generation IT
solutions & services Company, enabling organizations to capture the business benefits of
emerging technologies of digital engineering, business intelligence, analytics, machine
learning, testing and IT Consulting. The Company offers high degree of skills, IPs and do
main expertise across in areas like Digital Transformation, Enterprise Solutions, Tech
platforms for ESG, CSR and Public Private Partnership (PPP) projects.
2. Basis of Preparation of Financial Statements
a. Compliance with Ind AS:
The Financial Statements comply in all material respects with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act,2013 (the Act) (to
the extent notified) and guidelines issued by the Securities and Exchange Board of India
(SEBI), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
and the relevant amendment rules issued thereafter. The presentation of the Financial
Statements is based on Ind AS Schedule III of the Companies Act, 2013.
b. Use of Estimates:
The preparation of these financial statements is in conformity with the recognition and
measurement principles of Ind AS which requires the management of the Company to
make estimates and judgments that affect the reported balances of assets and liabilities,
disclosures relating to contingent liabilities as at the date of the financial statements and
the reported amounts of income and expense for the periods presented. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised, and future
periods are affected.
Key sources of estimation of uncertainty at the date of the financial statements, which
may cause a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, is in respect of impairment of investments, useful lives of
property, plant and equipment, valuation of deferred tax assets, provisions and
contingent liabilities and fair value measurement of financial in students have been
discussed below. Key source of estimation of uncertainty in respect of revenue
recognition and employee benefits have been discussed in their respective policies.
c. Basis of measurement:
The financial statements have been prepared on the historical cost basis except certain
financial assets and liabilities that are measured at fair value or amortized cost.
d. Functional currency:
The financial statements are presented in Indian Rupees, which is the functional
currency of the Company. The functional currency of an entity is the currency of the
primary economic environment in which the entity operates. All amounts are in Indian
Rupees INR except share data, unless otherwise stated.
e. Operating cycle:
All the assets and liabilities have been classified as current or non-current as per the
Company’s normal operating cycle and other criteria set out in the Schedule III to the
Companies Act, 2013.
Assets: An asset is classified as current when it satisfies any of the following criteria:
i) It is expected to be realized in, or is intended for sale or consumption in, the
company’s normal operating cycle.
ii) It is held primarily for the purpose of being traded.
iii) It is expected to serialized within12monthsafterthereporting date; or
iv) It is cash or cash equivalent unless it is restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other
assets are classified as non - current.
Liabilities: A liability classified as current when it satisfies any of the following criteria:
i) It is expected to be settled in the company’s normal operating cycle.
ii) It is held primarily for the purpose of being traded.
iii) It is due to be settled within12 months after the reporting date; or
The company does not have an unconditional right to defer settlement of the liability
for at least 12 months after the reporting date. Terms of liability that could, at the
option of the counter party, result in its settlement by the issue of equity instruments
do not affect its classification.
Current liabilities include the current portion of non-current financial liabilities. All other
liabilities are classified as non-current.
f. Critical accounting judgment sand key sources of estimation uncertainty.
In the application of the Company’s accounting policies, the management of the
Company are required to make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates. The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimate is revised if their vision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.
The following are the areas of estimation uncertainty and critical judgments that the
management has made in the process of applying the Company’s accounting policies and
that have the most significant effect on the amounts recognized in the financial statements:
(i) Provision and Contingent liability:
On an ongoing basis, Company reviews pending cases, claims by third parties and
other contingencies. For contingent losses that are considered probable, an estimated
loss is recorded as an accrual in financial statements. Loss Contingencies that are
considered possible are not provided for but disclosed as Contingent liabilities in the
financial statements. Contingent Liabilities likelihood, which is remote are not
disclosed in the financial statements. Gain contingencies are not recognized until the
contingency has been resolved and amounts received or receivable
(ii) Useful lives of depreciable assets:
Management reviews the useful lives of depreciable assets at each reporting date. As
of March 31, 2025, management assessed that the useful lives represent the expected
utility of the assets to the Company. Further, there is no significant change in the
useful lives as compared to previous year.
g. Property, Plant and Equipment and Intangible assets:
i) Tangible asset and capital work-in-progress
Tangible assets are stated at cost, less accumulated depreciation and impairment loss,
if any. Direct costs are capitalized until such assets are ready for use. Capital work-in¬
progress comprises the cost of fixed assets that are not yet ready for their intended use
at the reporting date.
Property, plant & equipment is eliminated from the financial statements on disposal or
when no further benefit is expected from its use and disposal. Any gain or loss on
disposal of an item of property, plant and equipment is recognized in profit or loss. The
cost of the tangible assets not ready for their intended use as at the Balance Sheet date
together with all related expenses are shown as Capital Work-in-Progress..
ii) Intangible asset
Intangible assets are recorded at the consideration paid for acquisition of such asset
and are carried at cost less accumulated amortization and impairment loss (if any).
iii) Depreciation and Amortization
Depreciation and amortization for the year is recognized in the Statement of Profit and
Loss. Depreciation on Property, Office Equipment are provided on straight line method
over the useful lives of assets, at the rates and in the manner specified in Part C of
Schedule II of the Act. Freehold land is not depreciated.
h. Investments:
Investments that are readily realizable and intended to be held for not more than a year
are classified as current investments. All other investments are classified as non-current
investments. Non-current Investments are carried at cost less diminution in value other
than temporary diminution determined separately for each individual investment.
Current investments are carried at the lower of cost or fair value. The comparison of
cost and fair value is done separately in respect of each category of investment.
i. Measurement of fair values:
Number of Company’s accounting policies and disclosures require the measurement
of fair values, for both financial and non-financial assets and liabilities.
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 (un-observable 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.
a. 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.
I. Sales are recognized on transfer of significant risks and rewards of ownership of
the goods to the buyer as per the terms of contract and no uncertainty exists
regarding the amount of consideration that will be derived from sales of goods. It
also includes goods and services tax and price variation based on the contractual
agreement. It is measured at fair value of the consideration received.
II. Income from services is recognized as they are rendered, based on agreement /
arrangement with the concerned customers.
III. Dividend income is accounted for when the right to receive the income is
established.
b. Provision for Current and Deferred Tax:
Current tax is measured on the basis of estimated taxable income for the current
accounting period in accordance with the applicable tax rates and the provisions of the
Income-tax Act, 1961, and the rules framed there under.
Deferred tax is recognized using the Balance Sheet approach on the temporary
differences between the carrying amounts of assets and liabilities in the financial
statements and the amounts used for taxation purposes. Deferred tax is measured at the
tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset, if there is a legally enforceable right to
offset current tax liabilities and assets, and these relate to income taxes levied by the
same tax authority and are intended to settle current tax liabilities, and assets on a net
basis or such tax assets and liabilities will be realized simultaneously.
In the event of unabsorbed depreciation or carry forward of losses under tax laws,
deferred tax assets are recognized to the extent that it is probable that sufficient future
taxable income will be available to realize such assets.
A deferred tax asset is recognized to the extent that it is probable that future taxable
profits will be available against which the temporary difference can be utilized. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable.
The carrying amount of deferred tax assets is reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the assets to be recovered.
Current and deferred tax are recognized in the statement of profit and loss, except when
the same relate to items that are recognized in other comprehensive income or directly in
equity, in which case, the current and deferred tax relating to such items are also
recognized in other comprehensive in come or directly in equity respectively.
Income tax expense consists of current and deferred tax. Income tax expense is
recognized in the income statement except to the extent that it relates to items recognized
directly in equity, in which case it is recognized inequity.
c. Earnings per Share
The basic EPS is computed by dividing the profit after tax for the year attributable to the
equity share holders by the weighted average number of Equity shares outstanding
during the year.
For the purpose of calculating diluted EPS, profit after tax for the year attributable to
the Equity shareholders and the weighted average number of Equity shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares.
d. Leases
I. Finance Lease: as a Lessee:
Leases, where substantially all the risks and benefits incidental to ownership of
the leased item are transferred to the Lessee, are classified as finance lease. The
assets acquired under finance lease are capitalized lower of fair value or present
value of the minimum lease payments at the inception of the lease and disclosed
as leased assets. Such assets are amortised over the period of lease or estimated
life of such asset, whichever is lower.
Lease payments are apportioned between the finance charges and reduction of
the lease liability based on implicit rate of return. Lease management fees, lease
charges and other initial direct costs have been capitalized.
II. Operating Lease: as a Lessee:
Leases, where sizable portion of the risks and rewards of ownership are retained
by the lessor, are classified as operating leases and lease rentals thereon are
charged to the Statement of Profit and Loss on a straight-line basis over the lease
term.
e. Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other
than the company’s functional currency (foreign currencies) are recognized at the rates of
exchange prevailing at the dates of the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are retranslated at the rates prevailing
at that date. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated. Exchange differences on monetary items are recognized in
profit or loss in the period in which they arise.
f. Property, Plant and Equipment
I. Tangible Asset and Capital work-in-progress
Tangible assets are stated at cost, less accumulated depreciation and impairment
loss, if any. Direct costs are capitalized until such assets are ready for use. Capital
work-in-progress comprises the cost of fixed asset that are not yet ready for their
intended use at the reporting date.
Property, plant & equipment is eliminated from the financial statements on
disposal or when no further benefit is expected from its use and disposal. Any
gain or loss on disposal of an item of property, plant and equipment is
recognized in profit or loss account. Cost of the tangible assets not ready for their
intended use at the Balance Sheet date together with all related expenses is shown
as Capital Work-in-Progress.
II. Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognized as
separate assets, as appropriate, only when it is probable that the future economic
benefits associated with expenditure will flow to the Company and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the
Statement of Profit and Loss at the time of incurrence.
III Depreciation and Amortization
Depreciation and amortization for the year is recognized in the Statement of Profit
and Loss. Depreciation on Property, Office Equipment are provided on straight line
method over the useful lives of assets, at the rates and in the manner specified in
Part C of Schedule II of the Act. Freehold land is not depreciated.
Depreciation on additions is provided on a pro-rata basis from the month of
installation or acquisition and in case of Projects from the date of commencement
of commercial production. Depreciation on deductions / disposals is provided on a
pro-rata basis up to the date of deduction / disposal.
g. Intangible assets
Intangible assets are stated at cost less accumulated amortization and impairment loss (if
any). Intangible assets are amortized over their respective estimated useful lives on a
straight-line basis, from the date that they are available for use.
I. Amortization :
The estimated useful life of an identifiable intangible asset is based on a number
of factors including the effects of obsolescence, demand, competition and other
economic factors (such as the stability of the industry and known technological
advances) and the level of maintenance expenditures required to obtain the
expected future cash flows from the asset.
Computer software is amortized on straight line basis over a period of eleven
years.
The estimated useful life of the intangible assets and the amortization period are
reviewed at the end of each financial year and the amortization period is revised
to reflect the changed pattern, if any.
h. Cash and Cash equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand and
short-term deposits with banks that are readily convertible into cash which are subject to
insignificant risk of changes in value and are held for the purpose of meeting short-term
cash commitments.
i. Cash flow statement
Cash flows are reported using the indirect method, where by profit or loss before tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from regular revenue generating,
investing and financing activities of the Company are segregated and ultimately reconciled
to the Closing cash and bank balance.
j. Employee benefits:
I. Short-term Employee Benefits:
Short-term employee benefits are recognized as an expense on accrual basis.
II. Defined Contribution Plan:
Contribution payable to recognized provident fund and approved superannuation
scheme, which are substantially defined contribution plans, is recognized as
expense in the Statement of Profit and Loss, as and when, they are incurred.
The provident fund contribution (when applicable) as specified under the law is
paid to the Provident Fund to the Regional Provident Fund Commissioner.
III. Defined Benefit Plan:
The Company provides for gratuity, covering eligible employees in accordance
with the Payment of Gratuity Act, 1972. The Gratuity provides a lump sum
payment to vested employees at retirement, death, incapacitation or termination
of employment, of an amount based on the respective employee's salary and the
tenure of employment.
Liability with regard to the Gratuity plan are determined by actuarial valuation,
performed by an independent actuary, at each balance sheet date using the
projected unit credit method. The Company recognised the net obligation as a
liability in the Balance Sheet. The effect of change in the net obligations are
recognised in the statement of Profit & Loss account under Employment Benefit
Expenses.
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