Note no. 20: Corporate Information

The company is registered with the Registrar of Companies, Maharashtra State, Pune vide Registration no. L72900PN2011PLC138607 dated 21 February 2011 under the Companies Act, 1956. The registered office of the Company is situated at 3rd & 4th, Sr. No. 133/1/316111 GK mall, near Konkane Chowk, Pimple Saudagar, Pune MH 411027 IN. The Company is mainly engaged in business of IT Staffing, software development and information technology enabled services.

Note no. 21: Significant Accounting Policies:

A. Basis of Preparation of Financial Statements:

These financial statements are prepared on historical cost basis (except for revaluation of certain fixed assets) in accordance with applicable Accounting Standards notified under the relevant provision of the Companies Act, 2013 and on the accounting principles of a going concern. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

All 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. Based on the nature of Services and the time between the hiring of Technical personal for Execution of Software projects and their realization in cash and cash equivalents, the company has ascertained its operating cycle as three to four months for the purpose of current and non-current classification of assets and liabilities. The financial statements are presented in Indian rupees.

B. Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires Board of Directors to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

C. Revenue Recognition:

i) Services:

Revenue is measured by the charges made to customers or clients for goods supplied and services rendered to them and by the charges and rewards arising from the use of resources by them. Sales are net of sales returns, trade and other discounts, sales taxes and excise duties.

i) Other Income:

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

D. Fixed Assets and Depreciation:

Depreciation on fixed asset is provided to the extent of depreciable amount on straight line method over the useful life of assets as prescribed in Part C of Schedule II to the Companies Act, 2013. The revised carrying amount of the fixed assets identified as impaired, is amortized over the estimated residual life of the respective fixed asset. The Company has used the following lives to provide for depreciation on its fixed assets.

E. Transactions in Foreign Currency:

Transactions in foreign currency are recorded at the rate of exchange in force on the date of the transactions. Current assets, current liabilities and borrowings denominated in foreign currency are translated at the exchange rate prevalent at the date of the Balance Sheet. The resultant gain/loss are recognized in the Statement of Profit & Loss, except in cases where they relate to the acquisition of fixed assets in which case, they are adjusted to the carrying cost of such assets.

F. Government Grants and Subsidy:

Grants and subsidies from the government are recognized when there is reasonable assurance that (a) the company will comply with the conditions attached to them, and (b) the grant/subsidy will be received. When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is reduced from the cost of the asset. Grants which are given as equity support are disclosed as promoter contribution under the head Capital Reserve.

G. Investments:

a) Investments, which are readily realizable and are 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.

b) Long-term investments are valued at cost less provision for diminution other than temporary, in the value of such investments. Current investments are valued at lower of cost and fair value.

H. Borrowing Costs:

Borrowing cost attributable to the acquisition and construction of qualifying fixed assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss Account.

I. Segment Reporting:

In the opinion of the management, the Company has identified and initiated segment reporting from the FY 2024-25 and accordingly the Segment Report for half year ended 30th September 2024 and half year and year ended 31st March 2025 is presented hereby in accordance with AS-1 7.

J. Leases:

a) Finance Lease: -

Assets acquired under finance lease are capitalized and the corresponding lease liability is recognized at lower of the fair value of the leased assets and the present value of minimum lease payments at the inception of the lease. Initial costs directly attributable to lease are recognized with the asset under lease.

b) Operating Lease: -

Lease of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments/revenue under operating leases are recognized as an expense/income on accrual basis in accordance with the respective lease agreements.

K. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the company's earnings per share are the net profit or loss for the period after deducting preference dividends and any attributable tax thereto for the period.

The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

L. Income Tax:

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1 961.

Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognized and carry forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the group reassesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws. The Income Tax Expense for FY 24-25 is Rs. 756.54 thousand.

M. Impairment of Assets:

In accordance with AS 28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the Company's assets related to cash generating units, the carrying amounts of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of such assets exceeds its recoverable amount. Impairment loss is recognized in the profit and loss account. If at the balance sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the assets are restated to that effect.

N. Contingent Liabilities / Assets and Provisions

Contingent Liabilities in respect of show cause notices received are considered only when they are converted into demands. Contingent Liabilities under various fiscal laws include those in respect of which the Company / Department is in appeal. A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent Liabilities are disclosed in notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

Note no. 22: - Additional Information to the Financial Statements

22.01 Contingent liability as may arise on account of none/late compliance of certain fiscal statement - amount unascertainable.

22.02 The amounts under the head short term borrowing, trade payables, trade receivables and loans and advances including those adjusted during the year are subject to confirmation and reconciliation and consequent adjustment thereof, if any.

22.03 Expenditure incurred on employees holding shares of the company, who were in respect of remuneration of more than 2 Lakh p.m., if employed for part of the year or 24 Lakh p.a.-

- Mr. Ritesh Sharma: Rs. 2,927.84 /- Thousand

22.04 Remuneration to Directors:

i) Remuneration paid during the year:

-Mrs. Poonam Sharma: Rs. 1,463.92/- Thousand -Mr. Ritesh Sharma: Rs. 2,927.84 /- Thousand

ii) Remuneration paid during previous year:

-Mrs. Poonam Sharma: Rs. 29,27,844

- Mr. Ritesh Sharma: Rs. 29,27,844

22.05 Appropriate Income Tax Provision made for Income tax liability during the year.

22.06 Disclosure required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006. At the year end, company has requested status as a Micro, Small & Medium Enterprises from all of their suppliers but only few suppliers intimated to the company about its status as a Micro, Small & Medium Enterprises or its registration under the Micro, Small & Medium Enterprises Development Act, 2006.