Notes to Accounts of Colab Platforms Ltd.

Mar 31, 2025

iv. Provisions and contingent liabilities

A provision is recognised when the Company has a present obligation as a result of a past event and
it is probable that an outflow of resources will be required to settle the obligation, in respect of which
a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. The Company uses significant judgements to assess contingent liabilities.

v. expected credit losses on financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and
expected timing of collection.

2.4 Revenue Recognition:

The Company derives revenue from information technology services, maintenance of software/
hardware & related services. The company is also in esports and Information technology industry.
These include revenue earned from services rendered on ''time and material'' basis, time bound fixed
price engagements and fixed price development contracts. Revenue is recognized upon transfer of
control of products or services to customers in an amount that reflects the consideration the Company
expect to receive in exchange for those products or services. Revenue is measured based on
transaction price.

2.5 Income Tax:

i. Current Tax:

The tax rates and tax laws used to compute the current tax amount are those that are applicable for
the reporting period. Current tax is measured at the amount expected to be paid to / recovered from
the tax authorities, based on estimated tax liability computed after taking credit for allowances.
Income tax assets/liabilities are presented in the financial results under the respective notes.

ii. Deferred Tax:

Deferred tax liabilities are recognized for all taxable temporary differences and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.

2.6 Leases:

Identification of a lease requires significant judgement. The Company evaluates if an arrangement
qualifies to be a lease as per the requirements of Ind AS 116.

The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate the lease if the Company is reasonably certain
not to exercise that option. In assessing whether the Company is reasonably certain to exercise an
option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts
and circumstances that create an economic incentive for the Company.

2.7 Foreign Currency Transactions:

The Company was not involved in any transaction in foreign currency during the year under review.

2.8 Business Combinations:

Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is value of shares issued at par by the incorporated subsidiaries.
Acquisition related costs are generally recognized in the financial statements. During the year under
review the company subscribed shares of three subsidiary companies having different business
verticals.

2.9 Impairment of non-financial assets:

Property, plant and equipment:

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability
whenever there is any indication that their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of those from other assets.

2.10 Cash and Cash equivalents:

The Company considers all highly liquid financial instruments, which are readily convertible into
known amounts of cash and that are subject to an insignificant risk of change in value and having
original maturities of three months or less from the date of purchase, to be cash equivalents. Cash
and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

2.11 Investments, other financial assets and other financial liabilities:
i. Initial Recognition and measurement:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at fair value. All
financial assets are recognised initially at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset. Trade receivables that do not contain a significant financing component or for which
the Company has applied the practical expedient are measured at the transaction price determined
under Ind AS 115.

The Company''s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified
and measured at amortised cost are held within a business model with the objective to hold financial
assets in order to collect contractual cash flows while financial assets classified and measured at fair
value.

ii. Subsequent Measurement:

Financial assets carried at amortized cost:

A financial asset is subsequently measured at amortized cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income (FVOCI):

A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Further, in cases where the Company has made an irrevocable election based on its business model,
for its investments which are classified as equity instruments, the subsequent changes in fair value
are recognized in other comprehensive income.

Financial assets at fair value through profit or loss (FVTPL):

A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.

Financial liabilities:

Financial liabilities are subsequently carried at amortised cost using the effective interest rate method
or at FVTPL. For financial liabilities carried at amortised cost, the carrying amounts approximate fair
values due to the short-term maturities of these instruments. Financial liabilities are classified as at
FVTPL when the financial liability is either contingent consideration recognised in a business
combination, or it is designated as FVTPL. Financial liabilities at FVTPL are stated at fair value, with
any gains or losses arising on remeasurement recognised in the statement of profit and loss. The
Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected
to be infrequent.

The Company''s senior management determines change in the business model as a result of external
or internal changes which are significant to the Company''s operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively from the reclassification date following
the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

iii. Derecognition:

The Company derecognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company retains substantially all the risk and rewards
of transferred financial assets, the Company continues to recognize the financial asset and also
recognizes the borrowing for the proceeds received.

The Company derecognises financial liabilities only when the Company''s obligations are discharged,
cancelled or have expired.

iv. Impairment of financial assets (other than at fair value):

The Company assesses at each reporting date whether a financial asset or a group of financial assets
and contract assets (unbilled revenue) is impaired. The Company recognizes loss allowances, in
accordance with Ind AS 109, using the expected credit loss (ECL) model for the financial assets which
are not fair valued through profit or loss. For trade receivables and unbilled revenue, the Company
applies a simplified approach in calculating ECL. Therefore, the Company does not track changes in
credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The
amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the
reporting date is recognized as an impairment gain or loss in the statement of profit and loss.

v. Investments in subsidiaries:

The Company accounts for its investment in subsidiaries at cost, less impairment losses if any.

2.12 Interest and Dividend income:

Dividend income is recorded when the right to receive payment is established. Interest income is
recognised using the effective interest method.

2.13 Derivatives and hedging activities:

The company do not have any transaction during the year in foreign exchange. The provisions related
to derivatives or hedging activities are not applicable to the company.

2.14 Offsetting financial instruments:

Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle
on a net basis or realize the asset on a net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business.

2.15 Property, Plant and equipment:

i. Recognition and measurement:

Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses, if any. When parts of an item of property, plant and equipment have different useful lives,
they are accounted for as separate items (major components) of property, plant and equipment. Cost
includes expenditures directly attributable to the acquisition of the asset. All repairs and maintenance
costs are charged to the statement of profit and loss in the reporting period in which they occur.

ii. Depreciation:

Depreciation on fixed assets has been provided on the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act. The assets'' residual values, useful lives and methods
of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

2.16 Intangible Assets:

Intangible assets other than those acquired in a business combination are measured at cost at the
date of acquisition.

2.17 Provisions and contingent liabilities:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.

The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are
disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor
disclosed in the financial statements.

2.18 Employee benefits:

The accounting of Employee benefits, having nature of defined benefit is based on assumptions.
Contribution to defined benefits is recognised as expense when employees have rendered services
entitling them to avail such benefits. Short-term employee benefit obligations are measured on an
undiscounted basis and are recorded as expense in the statement of profit and loss as the related
services are provided.

2.19 Dividends:

Dividend on share is recorded as liability on the date of approval by the shareholders in case of final
dividend or by the board of directors in case of interim dividend. A corresponding amount is
recognized directly in equity.

2.20 Fair Value Measurement:

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. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

2.21 Operating Segments

The Company operates in single segment. The Board of Directors evaluates the Company''s
performance and allocates resources based on an analysis of various performance indicators defined
in Ind AS 108.

2.22 Government grants:

Government grants are recognised where there is reasonable assurance that the grant will be received,
and all attached conditions will be complied with. There is no government grants provided to the
Company.

2.23 Earning Per Share

The basic earnings per share is computed by dividing the net profit for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
The number of shares used in computing diluted earnings per share comprises the weighted average
shares considered for deriving basic earnings per share and also the weighted average number of
equity shares which would have been issued on the conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted as of the beginning of the period unless they
have been issued at a later date.

The notes referred to above form an integral part of financial statements
As per our report of even date attached

For M/ s. Rawka & Associates For Colab Platforms Limited

Chartered Accountants (formerly known as Colab Cloud Platforms Limited)

Firm Reg. No.: 021606C

Sd/- Sd/- Sd/-

Venus Rawka Mukesh Jadhav Puneet Singh Chandhok

Partner Chairman & NED MD

M. No.: 429040 DIN: 09539015 DIN: 01546843

UDIN: 25429040BMGSSI1180

Date: 29^th May 2025 Sd/- Sd/-

Place: Indore Chetan Shah Ritu Jhamb

CFO CS

Date: 29^th May 2025 Place: New Delhi

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Mar 31, 2024

i) Provisions and Contingent Liabilities:

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past events, it is probable that an outflow of resources will be required to settle the obligations. These estimates are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

j) Employee Benefits:

The accounting of employee benefits in the nature of defined benefit requires the Company to use assumptions. Liabilities for wages and salaries, including non-monetary benefits are expected to be settled within 12 (Twelve) months after the end of the period in which the employees render the related services.

k) Lease:

Identification of a lease requires significant judgement. The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company.

l) Inventories:

The Company''s business/ operations do not carry any inventory, hence reporting is not applicable for the for the 2023-24.

m) Trade Receivable:

Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified by the management periodically and on the basis of such verification management determines whether the said outstanding balance are good, bad or doubtful and accordingly same are written off or provided for.

Receivables that are expected in one year or less, are classified as current assets, if not they are presented as non-current assets.

n) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand and Balances with Banks.

o) Cash and cash equivalents:

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value are unrestricted for withdrawal and usage.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

p) Investments:

The investments are valued at fair market value and are therefore reported as per relevant Ind AS-113 and Comprehensive Income consequent to the effect has been reported in Financial Statements.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value.

q) Share Capital:

Ordinary shares are classified as equity.

During the year the company made allotment of 5,10,00,000 (Five Crores Ten Lakhs) equity shares as fully paid-up Bonus Equity Shares having face value of Rs. 02/- (Rupees Two only) each in the ratio of 1:1 i.e. 01 (One) equity share for every 01 (One) existing equity share held by the eligible shareholders. The allotment was made on 20^th March 2024.

r) Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the number of shares that are outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

s) Borrowings:

Borrowings are initially recognised at fair value, net of transaction costs incurred. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in statement of profit or loss over the period of the borrowings.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

t) Borrowings Cost:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

The Company ceases capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

u) Trade payables:

These amounts represent liabilities for goods that have been acquired in the ordinary course of business from suppliers. Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

v) Employee Benefits:

The accounting of Employee benefits, having nature of defined benefit is based on assumptions. Contribution to defined benefits is recognised as expense when employees have rendered services entitling them to avail such benefits.

w) Financial Instruments and Risk Review:

The Company''s principal Financial Assets include investments, trade receivables, cash and cash equivalents, other bank balances and loan. The Company''s financial liabilities comprise of borrowings and trade payables.

x) Fair Value Hierarchy:

The Fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities,

Level 2 - Inputs are other than quoted prices included within Level-1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on the assumptions that are neither supported by prices from observable current market transactions in the instrument nor are they based on available market data. The following table summarises carrying amounts of financial instruments by their categories and their values in fair value hierarchy for each year presented.

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Mar 31, 2023

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).

(*) The fair value of these investment in equity shares are calculated based on discounted cash flow approach for un-quoted market instruments which are classified as level III fair value hierarchy.

(^A) The carrying value of these accounts are considered to be the same as their fair value, due to their short-term nature. Accordingly, these are classified as level 3 of fair value hierarchy.

Reason for change in ratios by more than 25%:
Name of Ratio	Reason for change
Current Ratio	The Current Ratio has increased by 9% which is better as higher the ratio, company has better position to more easily repay its current debt payments / current liabilities.
Return on Equity	The Return on Equity has increased by 18% which is better as higher the ROE, the better a company is at converting its equity financing into profits.
Net Capital Turnover Ratio	The Net Capital Turnover Ratio has increased by 39% which is better as higher the ratio, the better is the utilization of capital employed in the business.
Return on Capital Employed (Pre-Tax)	The Return on Capital Employed (Pre-Tax) has increased by 25% which is better as higher the Return on Capital Employed, the better a company is at converting its capital employed into profits.