Accounting Policies of delaPlex Ltd. Company

Mar 31, 2025

1. Basis of accounting:

• The company prepares financial statements in accordance with the Accounting Standards
notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act,
2013.

• The financial statements have been prepared under the historical cost convention on an
accrual basis. The accounting policies are applied consistently to all the periods presented
in the standalone financial statements.

2. Use of Estimates:

The preparation of financial statements in conformity with Accounting Standards requires the
management to make judgments, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the management’s best knowledge of
current events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future
periods.

3. Revenue Recognition:

Expenses and Income considered payable and receivable respectively are accounted for on accrual
basis. Revenue is recognized to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured.

Revenue from fixed-price and fixed-time frame contracts, where there is no uncertainty as to
measurement or collectability of consideration, is recognized based upon the percentage of
completion or proportionate efforts method depending upon the circumstances. When there is
uncertainty as to measurement or ultimate collectability revenue recognition is postponed until
such uncertainty is resolved.

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

4. Property, Plant & Equipment:

Property, Plant & Equipment including intangible assets are stated at their original cost of
acquisition including taxes, freight and other incidental expenses related to acquisition and
installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

Assets costing INR 5,000 or less are fully depreciated in the year of purchase.

5. Depreciation:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
down Value (WDV) Method. Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.

The carrying amount of assets is reviewed at each balance sheet date if there is 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 assets, net selling price 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 risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.

6. Foreign currency Transactions:

Transactions arising in foreign currencies during the year are converted at the rates closely
approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign
currency are restated at the year-end exchange rates. All exchange rate differences arising from
conversion in terms of the above are included in the statement of profit and loss.

7. Investments:

Investments, which are readily realizable 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 classified as non-current investments.

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.

8. Inventories:

The Company is a service company, primarily involved in software and support services.
Accordingly, it does not hold any physical inventory.

9. Retirement Benefits:

The retirement benefits including Gratuity are accounted for as and when liability becomes due
for payment.

10. Taxes on Income:-

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, 1961. The deferred tax for timing
differences between the book and tax profits for the year is accounted for, using the tax rates and
laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising
from timing differences are recognized to the extent there is virtual certainty with convincing
evidence that these would be realized in future. At each Balance Sheet date, the carrying amount
of deferred tax is reviewed to reassure realization.

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Mar 31, 2024

A. Corporate Information Nature of Operations:

delaPlex Limited (Formerly known as Delaplex Private Limited) (the “Company” or “DPL”) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 (“the Act”). DPL is a global company specializing in software development services, supply chain consultancy services and technology innovation with its presence in India, Europe and North America.

B. Basis of Preparation and Significant Accounting Policies -1. Basis of accounting:-

The company prepares financial statements in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies are applied consistently to all the periods presented in the standalone financial statements

The standalone financial statements are presented in Indian Rupee (INR), the functional currency of the Company. Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ‘functional currency’). Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition: -

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from fixed-price and fixed-time frame contracts, where there is no uncertainty as to measurement or collectability of consideration, is recognized based upon the percentage of completion or proportionate efforts method depending upon the circumstances. When there is uncertainty as to measurement or ultimate collectability revenue recognition is postponed until such uncertainty is resolved.

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

4. Property, Plant & Equipment :

Property, Plant & Equipment including intangible assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

Assets costing INR 5,000 or less are fully depreciated in the year of purchase.

5. Depreciation :

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

The carrying amount of assets is reviewed at each balance sheet date if there is 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 assets, net selling price 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 risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

6. Foreign currency Transactions:

Transactions arising in foreign currencies during the year are converted at the rates closely approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign currency are restated at the year-end exchange rates. All exchange rate differences arising from conversion in terms of the above are included in the statement of profit and loss.

7. Investments :-

Investments, which are readily realizable 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 classified as non-current investments.

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.

8. Inventories

The Company is a service company, primarily involved in software and support services. Accordingly, it does not hold any physical inventory.

9. Retirement Benefits:-

The retirement benefits including Gratuity are accounted for as and when liability becomes due for payment.

10. Taxes on Income:-

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, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed to reassure realization.

11. Provisions, Contingent Liabilities and Contingent Assets:- (AS-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for:-

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

12. Earnings per share:

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during 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.

13. Material Events:

Material events occurring after Balance Sheet date are taken into cognizance for better presentation of financial statement and full disclosers.

14. General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

The assertions in the financial statements including the outstanding balances and closing balances for transactions may be reclassified for better presentation and disclosure purposes.