Accounting Policies of 3C IT Solutions & Telecom (India) Ltd. Company

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES

a. System of Accounting

These financial statements are prepared in conformity with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual basis.
GAAP comprises mandatory Accounting Standards as prescribed under Section 133 of the
Companies Act, 2013(''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014,
provision of the Act (to the extent notified). Accounting policies have been consistently
applied except where a newly-issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in the accounting policy hitherto in use.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at the date
of the financial statements and the results of operations during the reporting year end.
Although, these estimates are based upon management''s best knowledge of current events
and actions, actual results could differ from these estimates.

c. Property, Plant and Equipment

- Items of Property, Plant and Equipment are measured at cost, which includes capitalized
borrowing costs, less accumulated depreciation, goods and service tax (to the extent not
availed as input credit) and accumulated impairment loss, if any. Cost includes duties,
freight and other incidental expenses directly related to acquisition and installation of the
assets. Any trade discounts, and rebates are deducted in arriving at the purchase price.

- An item of Property, Plant and Equipment is eliminated from the financial statements on
disposal or when no further benefit is expected from its use and disposal. Gains / losses
arising from disposal are recognized in the Statement of Profit and Loss.

- Depreciation is provided on Written down Value Method over the useful life of the assets at
the rates and in the manner prescribed under part "C" of Schedule II of the Companies Act,
2013. Depreciation for assets purchased/ sold during a period is proportionately charged.

d. Inventories

Inventories include only traded finished goods and are valued on the principle laid down by
AS 2 "Inventories" on the basis of "lower of cost or net realizable value" as certified by the
management.

e. Revenue Recognition

The Company''s revenue primarily comprises of retail selling of laptops, accessories, related
products and other networking components.

Revenue on sale of goods is recognized when property in the goods is transferred to the
buyer for a consideration, or when all significant risks and rewards of ownership have been
transferred to the buyer and no effective control is retained by the Company in respect of
the goods transferred, to a degree usually associated with ownership, and no significant
uncertainty exists regarding the amount of consideration that will be derived from the sale
of goods.

Revenue from interest and rent is recognized on a time proportion basis taking into account
the value outstanding, the period and rate applicable.

f. Retirement Benefits

- Defined contribution plans

The contribution paid/payable under provident fund scheme and ESI scheme is recognized
as expenditure in the period in which the employee renders the related service.

- Leave encashment is recorded in the books of the Company as and when the same arises
and becomes payable. The Company does not make any provisions in the books of account
for leave encashment becoming due or expected after the balance sheet date.

g. Borrowing Cost

Borrowing costs directly attributable to acquisition or construction of Property, Plant &
Equipment which necessarily take substantial period of time to get ready for their intended
use are capitalized. Other borrowing costs are charged to profit and loss account.

h. Tax Expense

The tax expenses for the period comprises of current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss.

- Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the Income Tax authorities, based on tax rates and laws that are enacted at the
Balance sheet date.

- Deferred Tax

Deferred tax is recognized 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 assets are recognized to the extent it is probable
that taxable profit will be available against which the deductible temporary differences, and
the carry forward of unused tax losses can be utilized. 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 realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of Deferred
tax liabilities and assets are reviewed at the end of each reporting period.

i. Earnings Per Share

The basic and diluted earnings per share (EPS) is computed by dividing the net profit/loss
after tax for the year by weighted average number of equity shares outstanding during the
year.

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Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES

a. System of Accounting

These financial statements are prepared in conformity with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual basis.
GAAP comprises mandatory Accounting Standards as prescribed under Section 133 of the
Companies Act, 2013(''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014,
provision of the Act (to the extent notified). Accounting policies have been consistently
applied except where a newly-issued accounting standard is initially adopted or a revision to
an existing accounting standard requires a change in the accounting policy hitherto in use.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at the date
of the financial statements and the results of operations during the reporting year end.
Although, these estimates are based upon management''s best knowledge of current events
and actions, actual results could differ from these estimates.

c. Property, Plant and Equipment

- Items of Property, Plant and Equipment are measured at cost, which includes capitalized
borrowing costs, less accumulated depreciation, goods and service tax (to the extent not
availed as input credit) and accumulated impairment loss, if any. Cost includes duties,
freight and other incidental expenses directly related to acquisition and installation of the
assets. Any trade discounts, and rebates are deducted in arriving at the purchase price.

- An item of Property, Plant and Equipment is eliminated from the financial statements on
disposal or when no further benefit is expected from its use and disposal. Gains / losses
arising from disposal are recognized in the Statement of Profit and Loss.

- Depreciation is provided on Written down Value Method over the useful life of the assets at
the rates and in the manner prescribed under part "C" of Schedule II of the Companies Act,
2013. Depreciation for assets purchased/ sold during a period is proportionately charged.

d. Inventories

Inventories include only traded finished goods and are valued on the principle laid down by
AS 2 "Inventories" on the basis of "lower of cost or net realizable value" as certified by the
management.

e. Revenue Recognition

The Company''s revenue primarily comprises of retail selling of laptops, accessories, related
products and other networking components.

Revenue on sale of goods is recognized when property in the goods is transferred to the
buyer for a consideration, or when all significant risks and rewards of ownership have been
transferred to the buyer and no effective control is retained by the Company in respect of
the goods transferred, to a degree usually associated with ownership, and no significant
uncertainty exists regarding the amount of consideration that will be derived from the sale
of goods.

Revenue from interest and rent is recognized on a time proportion basis taking into account
the value outstanding, the period and rate applicable.

f. Retirement Benefits

- Defined contribution plans

The contribution paid/payable under provident fund scheme and ESI scheme is recognized
as expenditure in the period in which the employee renders the related service.

- Leave encashment is recorded in the books of the Company as and when the same arises
and becomes payable. The Company does not make any provisions in the books of account
for leave encashment becoming due or expected after the balance sheet date.

g. Borrowing Cost

Borrowing costs directly attributable to acquisition or construction of Property, Plant &
Equipment which necessarily take substantial period of time to get ready for their intended
use are capitalized. Other borrowing costs are charged to profit and loss account.

h. Tax Expense

The tax expenses for the period comprises of current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss.

- Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the Income Tax authorities, based on tax rates and laws that are enacted at the
Balance sheet date.

- Deferred Tax

Deferred tax is recognized 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 assets are recognized to the extent it is probable
that taxable profit will be available against which the deductible temporary differences, and
the carry forward of unused tax losses can be utilized. 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 realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of Deferred
tax liabilities and assets are reviewed at the end of each reporting period.

i. Earnings Per Share

The basic and diluted earnings per share (EPS) is computed by dividing the net profit/loss
after tax for the year by weighted average number of equity shares outstanding during the
year.