Accounting Policies of Benchmark Computer Solutions Ltd. Company

Mar 31, 2025

1 Company Overview

Benchmark Computer Solutions Limited ("the Company'') is a limited company incorporated m India on 31st October, 2002 having its registered
office at Unit No 2, 2nd Floor, jyoti Wire House, Plot No 23A, Shah Indl. Estate, Veera Desai Road, Andheri (W), Mumbai 400053. The Company’s
business consist of IT infrastructure solutions and technology consulting, the company harnesses the power of cognitive computing, automation,
cloud, analytics and emerging technologies to adapt to the digital world.

2 Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the
Generally Accepted Accounting Principles in India and in compliance with the Accounting Standards specified under section 133 of the Companies
Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014.

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
Schedule IH of the Companies Act, 2013.

Ministry of Corporate Affairs ("MCA*) through a notification dated March 24, 2021, amended Division I of Schedule HI of the Companies Act, 2013
and applicable for the reporting period beginning on or after April 1, 2021. The amendment encompasses certain additional disclosure requirements.
The Company has applied and incorporated the requirements of amended Division I of Schedule HI of die Companies Act, 2013, to the extent
applicable on it while preparing these financial statements.

3 Use of estimates

The preparation of financial statements in conformity with GAAP requires judgements, estimates and assumptions to be made that affect the
reported amount of assets and liabilities, disclosures of contingent liabilities on the date of financial statements and the reported amount of revenues
& expenses during the reporting period. Difference between die actual results and estimated are recognised in the period in which die results are
known/ materialized.

4 Revenue Recognition

Revenue is recognised to die extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable net of
discounts, returns and rebates taking into account contractually defined terms and excluding taxes or duties collected on behalf of the government,
i) Revenue from sale of goods is recognised when all the significant risks and rewards of ownership of the goods have been passed to the buyer and
no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods. Sales are recorded net of returns
and trade discount. The Company collects GST on behalf of the Government and, therefore, these are excluded from revenue.

. Income from Service rendered is recognised based on the terms of the agreements as and when services are rendered and are net of Goods and
^ Service Tax (GST)/Service Tax.

iii) Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Dividend income from investments is recognised when the shareholder’s rights to receive payment have been established.

5 Investment

Investments, which are readily realisable and 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 long term investments and classified as non current Investments. On initial recognition,
all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and
duties.Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are
carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the long term
investments, if any. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to
tlie statement of profit and loss.

6 Property, Plant & Equipments

(i) Tangible Assets

Property, Plant and Equipment are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.

(ii) Intangible Assets

Intangible assets comprises of costs relating to acquisition and development of computer software which are capitalised in accordance with the AS-
26 Intangible Assets’ as notified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014.

7 Depreciation and Amortization

Depreciation Sc Amortization on all assets of the Company is charged on written down value method over tlie useful life of assets at the rates and in
the manner provided in Schedule II of the Companies Act 2013 for the proportionate period of use during the year. Depreciation on assets
purchased /installed during the year is calculated on a pro-rata basis from the date of such purchase /installation.

8 Impairment of Tangible & Intangible Assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An
impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of
the asset''s net selling price and its value in use.

9 Inventories:

Inventories are valued at the lower of cost or net realizable value. Net realizable value refers to the estimated selling price in the normal course of
business, after deducting the estimated costs of completion and any costs necessary to make the sale. The cost is determined using the Specific
Identification method for each inventory item and includes expenses incurred to acquire the inventories and bring them to their current location and
c ondition.

10 Employee Benefits

(i) Provident Fund

The Company''s contribution as per Employee Provident Fund Law towards Provident Fund as provided for and payments thereof are made to the
relevant authorities on actual basis and relevant employer''s contribution are recognized as expenditure and are charged to the Statement of Profit Sc
Loss on accrual basis.

(ii) Gratuity

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the
end of each financial year. The liability so provided is represented substantially by creation of provision and is considered sufficient to meet the
liability as and when it accrues for payment in future.

11 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of the qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one hat necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are
charged to the statement of profit and loss.

12 Foreign Currency Transactions

Foreign-currency denominated monetary assets and liabilities are translated at exchange rate in effective at balance sheet date. The gains or losses
resulting from such transactions are included in the Statement of Profit Sc Loss. Non-monetary assets and non-monetary liabilities denominated in a
foreign currency are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and Non¬
monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of
transaction. Revenue, expense & cash flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of
the transaction. Transaction gains or losses realized upon settlement of foreign currency transaction are included in determining net profit for he
period in which he transaction is settled.

13 Taxes on income

i Current T ax:

Current income tax is measured at he amount expected to be paid to taxation authorities in accordance with he Income Tax Act, 1961 enacted in
India by using tax rates and he tax laws hat are enacted at he reporting date.

ii

Deferred Tax: Deferred income tax reflect he impact of timing differences between taxable income and accounting income originating during he
current year and reversal of timing differences for he earlier years. Deferred tax is measured using he tax rates and he tax laws hose are enacted
or substantively enacted at he reporting date.

Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax assets are recognised and carried forward only to he extent
hat here is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
Company has recognised Deferred tax asset on losses only to he extent of deferred tax liability brought forward from earlier years. Company has
not recognised Deferred Tax Asset on he basis of AS -22 as management does not have reasonable certainty of it getting netted off.

14 Earnings per share

Basic earnings per share are computed by dividing he profit / (loss) after tax by he weighted average number of equity shares outstanding hiring
he year. The weighted average number of equity shares outstanding during he year is adjusted for he events for bonus issue, bonus element in a
rights issue to existing shareholders, share split and reverse share split (consolidation of shares) to he extent applicable. Diluted earnings per share
is computed by dividing he profit / (loss) after tax as adjusted for dividend, interest and oher charges to expense or income (net off any
attributable taxes) relating to he dilutive potential equity shares, by he weighted average number of equity shares considered for deriving basic
earnings per share and he weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity

15 Leases

i Operating Lease :

A. Where Co is lessee

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

B. Where Co is lessor

Leases in which he Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.
Rental income from operating lease is recognised on a straight line basis over he term of he relevant lease.

ii Finance Lease :

A finance lease is a long-term lease agreement where he lessee effectively finances he purchase of an asset over its useful life. While legal
ownership remains wih he lessor, he lessee assumes most of he risks and rewards associated with ownership.

16 Research and Development

Revenue expenditure on research is expensed under respective heads of account in the penod in which it is incurred. Capital expenditure is shown
as addition to Property, Plant & Equipment and Intangible Assets.

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Mar 31, 2024

1 Company Overview

Benchmark Computer Solutions Limited ("the Company”) is incorporated in India on 31st October, 2002 having its registered office at Unit No 2, 2nd Floor, Jyoti Wire House, Plot No 23A, Shah Indl. Estate, Veera Desai Road, Andheri (W), Mumbai 400053. The Company''s business consist of IT infrastructure solutions and technology consulting, the companyharnesses the power of cognitive computing, automation, cloud, analytics and emerging technologies to adapt to the digital world.

2 Basis of Preparation

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and in compliance with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014.

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 Schedule III of the Companies Act, 2013.

Ministry of Corporate Affairs ("MCA") through a notification dated March 24, 2021, amended Division I of Schedule III of the Companies Act, 2013 and applicable for the reporting period beginning on or after April 1, 2021. The amendment encompasses certain additional disclosure requirements. The Company has applied and incorporated the requirements of amended Division I of Schedule III of the Companies Act, 2013, to the extent applicable on it while preparing these financial statements.

3 Use of estimates

The preparation of financial statements in conformity with GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosures of contingent liabilities on the date of financial statements and the reported amount of revenues & expenses during the reporting period. Difference between the actual results and estimated are recognised in the period in which the results are known/ materialized.

4 Revenue Recognition

i) Revenue from sale of goods is recognised when all the significant risks and rewards of ownership of the goods have been passed to the buyer and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods. Sales are recorded net of returns and trade discount. The Company collects GST on behalf of the Government and, therefore, these are excluded from revenue.

ii) Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

iii) Claims are recognised when there exists reasonable certainty with regard to the amounts to be realised and the ultimate collection thereof.

iv) Service charges are recognised as and when it becomes due as per the terms of contract.

5 Investment

Investments, which are readily realisable and 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 long term investments and classified as non current Investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the long term investments, if any. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

6 Property, Plant & Equipments (i) Tangible Assets

Property, Plant and Equipment are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

(ii) Intangible Assets

Intangible assets comprises of costs relating to acquisition and development of computer software which are capitalised in accordance with the AS-26 ‘Intangible Assets’ as notified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014.

7 Depreciation and amortization

Depreciation on all assets of the Company is charged on written down value method over the useful life of assets at the rates and in the manner provided in Schedule II of the Companies Act 2013 for the proportionate period of use during the year. Depreciation on assets purchased /installed during the year is calculated on a pro-rata basis from the date of such purchase /installation.

8 Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9 Inventories:

Inventories are valued as Lower of Cost or Net Realisable Value

10 Employee Benefits

(i) Provident Fund

The Company''s contribution as per Employee Provident Fund Law towards Provident Fund as provided for and payments thereof are made to the relevant authorities on actual basis and relevant employer’s contribution are recognized as expenditure and are charged to the Statement of Profit & Loss on accrual basis.

(ii) Gratuity

Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

11 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of the qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the statement of profit and loss.

12 Foreign Currency Transactions

Foreign-currency denominated monetary assets and liabilities are translated at exchange rate in effective at balance sheet date. The gains or losses resulting from such transactions are included in the Statement of Profit & Loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and Non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Revenue, expense & cash flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transaction are included in determining net profit for the period in which the transaction is settled.

13 Taxes on income i Current Tax:

Current income tax is measured at the amount expected to be paid to taxation authorities in accordance with the Income Tax Act, 1961 enacted in India by using tax rates and the tax laws that are enacted at the reporting date.

ii Deferred Tax: Deferred income tax reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws those are enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax assets are recognised and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Company has recognised Deferred tax asset on losses only to the extent of deferred tax liability brought forward from earlier years. Company has not recognised Deferred Tax Asset on the basis of AS -22 as management does not have reasonable certainty of it getting netted off.

14 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.

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 are adjusted for the effect of all potentially dilutive equity shares.

15 Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense & Operating lease receipts are recognized as an income in the Statement of Profit and Loss on a straight-line basis over the lease term over the non cancellable period.

16 Provisions and Contingent Liabilities

(i) Provisions

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

(ii) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.