b) MATERIAL SIGNIFICANT ACCOUNTING POLICIES

1) Statement of compliance

The financial statements have been prepared
in accordance with Indian Accounting
Standards (“Ind AS”) notified under the
Companies (Indian Accounting Standards)
Rules, 2015. The Ind AS are prescribed under
Section 133 of the Companies Act, 2013
(“the Act”) read with Rule 3 of Companies
(Indian Accounting Standards) Rules, 2015
and relevant amendments and rules issued
thereafter. The Financial Statements are
presented in Indian Rupees (?) and all
values are rounded to the nearest lakhs
(' 00,000),except when otherwise indicated.

2) Basis of preparation and presentation

The financial statements have been prepared
on the historical cost basis except for certain
financial instruments that are measured at fair
values at the end of each reporting period, as
explained in the accounting policies below.
Historical cost is generally based on the fair
value of the consideration given in exchange
for goods and services.

Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date,
regardless of whether that price is directly
observable or estimated using another
valuation technique. In estimating the fair
value of an asset or a liability, the Company
takes into account the characteristics of
the asset or liability if market participants
would take those characteristics into

account when pricing the asset or liability
at the measurement date. Fair value for
measurement and/or disclosure purposes
in these financial statements is determined
on such a basis, except for share-based
payment transactions that are within the
scope of Ind AS 102, leasing transactions
that are within the scope of Ind AS 116, and
measurements that have some similarities to
fair value but are not fair value, such as net
realisable value in Ind AS 2 or value in use in
Ind AS 36.

In addition, for financial reporting purposes,
fair value measurements are categorised into
Level 1,2, or 3 based on the degree to which
the inputs to the fair value measurements are
observable and the significance of the inputs
to the fair value measurement in its entirety,
which are described as follows:

• Level 1 inputs are quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at the measurement
date;

• Level 2 inputs are inputs, other than
quoted prices included within Level
1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs
for the asset or liability.

The principal accounting policies are set out
below.

3) Critical accounting judgements, key
sources of estimation uncertainty
and applicability of new accounting
standards

a) Use of estimates

The preparation of financial statements
in conformity with Ind AS requires
management to make certain estimates
and assumptions that affect the amounts
reported in the financial statements
and notes thereto. The management
believes that these estimates and
assumptions are reasonable and
prudent. However, future results could
differ from these estimates and the
differences between actual results and
estimates are recognised in the period in

which results are known / materialised.
Estimates and underlying assumptions
are reviewed on an ongoing basis and
any revision to accounting estimates is
recognised prospectively in the current
and future period.

This note provides an overview of the
areas that involved a higher degree
of judgement or complexity, and of
items which are more likely to be
materially adjusted due to estimates
and assumptions turning out to be
different than those originally assessed.
Detailed information about each of
these estimates and judgements is
included in the relevant notes together
with information about the basis of
calculation for each affected line item in
the financial statements.

b) Significant Estimates and
judgements

The areas involving critical estimates or
judgements are:

i) Fair valuation measurement & valuation
process

Some of the Company’s assets and
liabilities are measured at fair value
for financial reporting purposes. In
estimating the fair value of an asset or
a liability, the Company uses market-
observable data to the extent it is
available. Where Level 1 inputs are
not available, the Company engages
third party valuers, where required,
to perform the valuation. Information
about the valuation techniques and
inputs used in determining the fair value
of various assets, liabilities and share
based payments are disclosed in the
notes to the financial statements.

ii) Actuarial Valuation

The determination of Company’s
liability towards defined benefit
obligation to employees is made
through independent actuarial valuation
including determination of amounts to
be recognised in the Statement of Profit
and Loss and in other comprehensive
income. Such valuation depend

- The Company exercises judgement
in determining whether the
performance obligation is satisfied
at a point in time or over a period of
time.

v) Impairment of Financial and Non¬
Financial assets

The Company assesses at each
reporting date whether there is an
indication that an asset may be
impaired. If any indication exists,
the Company estimates the asset’s
recoverable amount. An asset’s
recoverable amount is the higher of
an asset’s or Cash Generating Units
(CGU’s) fair value less costs of disposal
and its value in use. It is determined for
an individual asset, unless the asset
does not generate cash inflows that are
largely independent of those from other
assets or a group of assets. Where the
carrying amount of an asset or CGU
exceeds its recoverable amount, the
asset is considered impaired and is
written down to its recoverable amount.
The impairment provisions for Financial
Assets are based on assumptions about
risk of default and expected cash loss
rates. The Company uses judgement
in making these assumptions and
selecting the inputs to the impairment
calculation, based on Group’s past
history, existing market conditions
as well as forward-looking estimates
at the end of each reporting period.
In case of non-financial assets Company
estimates asset’s recoverable amount,
which is higher of an asset’s or Cash
Generating Units (CGU’s) fair value less
costs of disposal and its value in use.
In assessing value in use, the estimated
future cash flows are discounted to their
present value using pre-tax discount rate
that reflects current market assessments
of the time value of money and the risks
specific to the asset. In determining
fair value less costs of disposal, recent
market transactions are taken into
account, if no such transactions can
be identified, an appropriate valuation
model is used.

c) Standard Issue but not effective

On March 23, 2022 the Ministry of
Corporate Affairs (MCA) has notified
Companies (Indian Accounting
Standards) Amendment Rules 2022.
The notification has resulted into
amendments in the following existing
accounting standards which are
applicable from April 01,2022.

i. Ind AS 101 - First time adoption of
Ind AS

ii. Ind AS 103 Business Combination

iii. Ind AS 109 Financial Instrument

iv. Ind AS 16 - Property , Plant and
Equipment

v. Ind AS 37, Provisions , Contingent
Liabilities and Contingent assets

vi. Ind AS 41 Agriculture

The Company is evaluating the impact
of the above on its financial statements.

4) Revenue Recognition

The Company earns revenue primarily
from sale of electronic goods, computer
consumable and other support services.
Revenue is measured at the fair value of the
consideration received or receivable and net
of returns, allowances and rebates and goods
and services tax.

Revenue is recognised upon transfer of
control of promised products or services
to customers in an amount that reflects the
consideration which the Company expects
to receive in exchange for those products
or services. When there is uncertainty on
ultimate collectability, revenue recognition is
postponed until such uncertainty is resolved.
The amount of revenue recognised depends
on whether we act as an agent or as a
principal. Certain arrangements with our
clients are such that our responsibility is to
arrange for a third party to provide a specified
good or service to the client. In these cases
we are acting as an agent as we do not
control the relevant good or service before
it is transferred to the client. When we act
as an agent, the revenue recorded is the
net amount retained. The Company acts
as principal when we control the specified

good or service prior to transfer. When the
Company acts as a principal, the revenue
recorded is the gross amount billed.

In- Warranty Service

In respect of In-warranty service contracts,
where performance obligation is satisfied at
a point of time when the service is extended
to the customer on behalf of the brand,
revenue is recognised net of payments made
to the brand after considering the rights and
obligation of both the Company and the brand
in specific to these contracts.

Out of Warranty Service
In respect of Out of warranty service
contracts, where performance obligation is
satisfied at a point of time when the control of
the goods sold is passed on to the customer
and the service is received by the customer
as per the terms and conditions stipulated
by the brand, revenue is recognised net of
payments made to the brand after considering
the rights and obligation of both the Company
and the brand in specific to these contracts.
Service Contracts

In respect of service contracts, where
performance obligation is satisfied over the
period of time when the service is received by
the customer as per the terms and conditions
stipulated by the brand, transaction price
which is the amount charged to customer
is recognised on a time proportion basis
over the period of time when the customer
receives and accepts the service.

Sale of Goods

In respect of Sale of goods, where
performance obligation is satisfied at a point
of time when the control of the goods sold
is passed on to the customer, revenue is
recognised for the transaction price which is
the invoice value charged to the customer.
Sale of Goods- Institutions
In respect of contracts with institutional
customer where goods are sold with
additional warranty period, performance
obligation is satisfied at a point of time when
the control of the goods sold is passed on
to the customer for sale of goods and for
the extended warranty service performance
obligation is satisfied over the period of time
when that particular service is received by
the customer.

Both sale of goods and extended warranty
service qualify to be separate performance
obligation within the definition of the standard
and the transaction price is allocated between
the performance obligations proportionate
to the standalone selling prices of the
components.

In respect of sale of goods, revenue is
recognised at the point in time when the
control is transferred for the value allocated
and in respect of extended warranty service
revenue is recognised on a time proportion
basis over the period of time when the
customer receives and accepts the service.
Extended Warranty Service

In respect of extended warranty service
contracts, where performance obligation
is satisfied over the period of time at the
transaction price which is the amount
charged to customer is recognised on a
time proportion basis over the period of time
when the customer receives and accepts the
service.

5) Property, Plant and Equipment

Land and building held for use in the
production or for administrative purposes,
are stated in the balance sheet at cost less
accumulated depreciation and accumulated
impairment losses. Free hold land is not
depreciated.

Properties in the course of construction
for production, supply or administrative
purposes are carried at cost, less any
recognised impairment loss. Cost includes
professional fees and, for qualifying assets,
borrowing costs capitalised in accordance
with the Company’s accounting policy. Such
properties are classified to the appropriate
categories of property, plant and equipment
when completed and ready for intended use.
Depreciation of these assets, on the same
basis as other property assets, commences
when the assets are ready for their intended
use.

Depreciation is recognised so as to write
off the cost of assets (other than freehold
land and properties under construction)

Amortisation is recognised on a straight¬
line basis over their estimated useful
lives. The estimated useful life and
amortisation method are reviewed at
the end of each reporting period, with
the effect of any changes in estimate
being accounted for on a prospective
basis. Intangible assets with indefinite
useful lives that are acquired separately
are carried at cost less accumulated
impairment losses.

b. Derecognition of intangible assets

An intangible asset is derecognised on
disposal, or when no future economic
benefits are expected from use or
disposal. Gains or losses arising from
derecognition of an intangible asset,
measured as the difference between the
net disposal proceeds and the carrying
amount of the asset, are recognised
in profit or loss when the asset is
derecognised.

c. Useful lives of intangible assets
Estimated useful lives of the intangible
assets are as follows:

7) Impairment of Tangible and Intangible assets
At the end of each reporting period, the
Company reviews the carrying amounts of its
tangible 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 in order
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. When a
reasonable and consistent basis of allocation
can be identified, corporate assets are also
allocated to individual cash-generating
units, or otherwise they are allocated to the
smallest group of cash-generating units for
which a reasonable and consistent allocation
basis can be identified.

Intangible assets with indefinite useful lives
and intangible assets not yet available for use
are tested for impairment at least annually,
and whenever there is an indication that the
asset may be impaired.

Recoverable amount is the higher of fair
value less costs of disposal and 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 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
its 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 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, but 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 profit or loss.

8) Inventories

Inventories are stated at lower of cost or net
realisable value. The cost is calculated on
weighted average method. Cost comprises
expenditure incurred in normal course of
business in brining such inventory to its
present location and condition and includes
where applicable, appropriate overheads
based on the normal level of activity.

Net realisable value is the estimated selling
price less estimated cost for completion of
sale.

Obsolete, slow moving and defective
inventories are identified from time to time
and where necessary, a provision is made for
such inventories.

9) Employee benefits

(i) Short term Employee Benefits

A liability is recognised for benefits
accruing to employees in respect of
wages and salaries in the period the
related service is rendered.

Liabilities recognised in respect of short¬
term employee benefits are measured at
the undiscounted amount of the benefits
expected to be paid in exchange for the
related service.

Liabilities recognised in respect of
other long-term employee benefits are
measured at the present value of the
estimated future cash outflows expected
to be made by the Company in respect
of services provided by employees up to
the reporting date.

(ii) Retirement benefit costs and
termination benefits

Payments to defined contribution
retirement benefit plans are recognised
as an expense when employees have
rendered service entitling them to the
contributions.

For defined benefit retirement benefit
plans, the cost of providing benefits is
determined using the projected unit
credit method, with actuarial valuations
being carried out at the end of each
annual reporting period.

Defined benefit costs are categorised as
follows:

• Service cost (including current
service cost, past service cost,
as well as gains and losses on
curtailments and settlements);

• net interest expense or income;
and

• Remeasurement

The Company presents the first two
components of defined benefit costs in
profit or loss in the line item ‘Employee
benefits expense’.

Past service cost is recognised in
profit or loss in the period of a plan
amendment.

Net interest is calculated by applying
the discount rate at the beginning of the
period to the net defined benefit liability
or asset.

Remeasurement, comprising actuarial
gains and losses, the effect of the
changes to the asset ceiling (if applicable)
and the return on plan assets (excluding
net interest), is reflected immediately in
the balance sheet with a charge or credit
recognised in other comprehensive
income in the period in which they occur.
Remeasurement recognised in other
comprehensive income is reflected
immediately in retained earnings and is
not reclassified to profit or loss.

Curtailment gains and losses are
accounted for as past service costs. The
retirement benefit obligation recognised
in the balance sheet represents
the actual deficit or surplus in the
Company’s defined benefit plans. Any
surplus resulting from this calculation
is limited to the present value of any
economic benefits available in the form
of refunds from the plans or reductions
in future contributions to the plans.

Contributions paid/payable to defined
contribution plans comprising of
Superannuation (under a scheme of
Life Insurance Corporation of India) and
Provident Funds for certain employees
covered under the respective Schemes
are recognised in the Statement of Profit
and Loss each year.

A liability for a termination benefit is
recognised at the earlier of when the
entity can no longer withdraw the offer
of the termination benefit and when
the entity recognises any related
restructuring costs.

Gratuity for employees is covered under
a Scheme of Life Insurance Corporation
of India (LIC) and contributions in
respect of such scheme are recognised
in the Statement of Profit and Loss. The
liability as at the Balance Sheet date

is provided for based on the actuarial
valuation carried out as at the end of the
year.

10) Taxes on income

Tax expense comprises of current and
deferred taxes.

Current tax:

The current tax payable is based on the
taxable profit for the year. Taxable profit
differs from Profit before tax as reported in the
statement of profit and loss account because
of items of income or expenditure that are
taxable or deductible in other years and
items that are never taxable or deductible.
Company computes current tax using tax
rate that have been enacted by the end of the
reporting period.

Deferred Tax:

Deferred tax is recognised on temporary
differences between the carrying amounts
of assets and liabilities in the financial
statements and the corresponding tax
bases used in the computation of taxable
profit. Deferred tax liabilities are generally
recognised for all taxable temporary
differences. Deferred tax assets are generally
recognised for all deductible temporary
differences to the extent that it is probable
that taxable profits will be available against
which those deductible temporary differences
can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary
difference arises from the initial recognition
(other than in a business combination) of
assets and liabilities in a transaction that
affects neither the taxable profit nor the
accounting profit.

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 asset to be
recovered.

Deferred tax liabilities and assets are
measured at the tax rates that are expected
to apply in the period in which the liability is
settled or the asset realised, based on tax
rates (and tax laws) that have been enacted
or substantively enacted by the end of the
reporting period.

The measurement of deferred tax liabilities
and assets reflects the tax consequences
that would follow from the manner in which
the Company expects, at the end of the
reporting period, to recover or settle the
carrying amount of its assets and liabilities.

Current and deferred tax for the year:

Current and deferred tax are recognised
in profit or loss account, except when they
relate to items that are recognised in other
comprehensive income or directly in equity
respectively