Accounting Policies of Finelistings Technologies Ltd. Company

Mar 31, 2024

Note: - 1 Significant accounting policies:

1.0 Corporate Information

Company was originally incorporated under the name “Finelistings Technologies Private
Limited” under the provisions of the Companies Act, 2013 vide Certificate of Incorporation dated
March 23, 2018 issued by the Central Registration Centre for and on behalf of the jurisdictional
Registrar of Companies. Subsequently, the status of the Company was changed to public limited
and the name of our Company was changed to “Finelistings Technologies Limited” vide Special
Resolution passed by the Shareholders at the Extra Ordinary General Meeting of our Company
held on July 06, 2023. The fresh certificate of incorporation consequent to conversion was issued
on August 22, 2023 by the Registrar of Companies, Delhi. The Corporate Identification Number
of our Company is U74999DL2018PLC331504 having registered office at G-07, Ground Floor,
Ambience Mall, Nelson Mandela Road,Vasant Kunj, New Delhi South West Delhi DL 110070 India.
The Company is engaged in the business for listing of Sale of used Luxury Car and Lite Motor Car.
The Company Provides Platform to users to list their pre-owned cars to sell as well as company
is engaging in the business of IT software and website development & maintenance, IT
Consultancy & Support Services.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with
Generally Accepted Accounting Principles in India (“Indian GAAP”]. Indian GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 (“the Act”] read with the Rule 7 of the Companies (Accounts] Rules,
2014. The financial statements have been prepared on an accrual basis and under the
Historical Cost Convention. and the Companies (Accounting Standards] Amendment Rules
2016 and the relevant provisions of the Companies Act, 2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This financial
statement is presented in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to lakhs the
nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated.

Due to rounding off, the numbers presented throughout the document may not add up
precisely to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires
the Management to make estimates, judgments, and assumptions. These estimates,
judgments and assumptions affects the application of accounting policies and the
reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of financial statement and reported amounts of revenue and
expenses during the period. Accounting estimates could change form period to period.
Actual result could differ from those estimates. As soon as the Management is aware of
the changes, appropriate changes in estimates are made. The effect of such changes are
reflected in the period in which such changes are made and, if material, their effect are
disclosed in the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions
to accounting estimates are recognised in the period in which the estimate is revised and
in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the
Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of
reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the
liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as Non - Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the
Company has ascertained its operating cycle as twelve months. This is based on the nature
of services and the time between the acquisition of the assets or liabilities for processing
and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparation

a) Property, Plant & Equipment and Intangible Assets:-

i. The company has adopted Cost Model to measure the gross carrying amount of
Property Plant & Equipment.

ii. Tangible Property Plant & Equipment are stated at cost of acquisition less accumulated
depreciation. Cost includes the purchase price and all other attributable costs incurred
for bringing the asset to its working condition for intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and customization
thereof less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as
Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed
as Intangible Assets under Development.

b) Depreciation / Amortisation : -

Depreciation has been provided under Straight Line Method at the rates prescribed under
schedule III of the Companies Act, 2013 on single shift and Pro Rata Basis to result in a
more appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided
at the rates prescribed under Schedule II.

Intangible assets being Software are amortized over a period of its useful life on a straight
line basis, commencing from date the assets is available to the company for its use.

c) Impairment of Assets:-

An asset is treated as impaired when the carrying cost of an 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 period
is reversed if there has been a change in the estimate of the recoverable amount.

d) Investments :-

• Investments that are readily realizable and intended to be held for not more than a year
from the date on which such investments are made are classified as current investments.
All other investments are classified as long-term 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. If
an investment is acquired, or partly acquired, by the issue of shares or other securities,
the acquisition cost is the fair value of the securities issued. If an investment is acquired
in exchange for another asset, the acquisition is determined by reference to the fair value
of the asset given up or by reference to the fair value of the investment acquired,
whichever is more clearly evident. There are no investment made by Company.

• 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 of long term investments is made to recognize a decline,
other than temporary, on an individual investment basis.

• Current investments are carried in the financial statements at lower of cost and market
value determined on an individual investment basis. Long-term investments are carried
at cost. However, provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.

• Long term investments which are expected to be realized within twelve months from the
balance sheet date are presented under ''current investments'' as ''current portion of long
term investments'' in accordance with the current / noncurrent classification of
investments as per Schedule III Division I of the Companies Act, 2013.

• The cost of investments comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties.

• Investment transactions are accounted for on a trade date basis. In determining the
holding cost of investments and the gain or loss on sale of investments, the ''weighted
average cost'' method is followed.

e) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government authorities or any
other authorities in respect of manufacturing or other facilities are dealt as follows:

• Grants in the nature of subsidies which are non - refundable are credited to the
respective accounts to which the grants relate, on accrual basis, where there is
reasonable assurance that the Company will comply with all the necessary conditions
attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as Liabilities in the
Balance Sheet at the Reporting date.

f) Retirement Benefits:-

i) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are
classified as short term benefits. Such benefits include salaries, wages, bonus, short
term compensated absences, awards, ex-gratia, performance pay etc. and the same
are recognised in the period in which the employee renders the related service.

ii) Employment Benefits:

a) Provident Fund/ESIC :

The company has not exceed minimum criteria for eligibility to contribute into
Defined Contribution Plans & Defined Contribution Plans for post-employment
benefit in the form.

b) Gratuity :

The Payment of Gratuity Act, 1972 is not applicable to the Company during the
period January 17, 2018 to February , 2024 as the number of employees are less
than ten during the period. However the liability has been determined on the basis
of Management estimation as at 29^th February 2024

a) Revenue Recognition :-

Revenue is recognized when it is probable that economic benefit associated with the
transaction flows to the Company in ordinary course of its activities and the amount of
revenue can be measured reliably, regardless of when the payment is being made.
Revenue is measured at the fair value of consideration received or receivable, taking into
the account contractually defined terms of payments, net of its returns, trade discounts
and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty,
received and receivable by the Company, on its own account. Amount collected on behalf
of third parties such as sales tax, tax collect at sources (TCS] and goods and service tax
(GST] are excluded from the Revenue.

Revenue from sale of Goods Sale of used cars Revenue is recognised when all the
significant risks and rewards of ownership of the vehicle have been passed to the buyer.

Sale of service is recognized at the point Performance consists of the execution of a
single act. Alternatively, services are performed in more than a single act, and the services
yet to be performed are so significant in relation to the transaction taken as a whole that
performance cannot be deemed to have been completed until the execution of those acts.
The completed service contract method is relevant to these patterns of performance and
accordingly revenue is recognized when the sole or final act takes place and the service
becomes chargeable and when contract is with more than single act then charged based
on percentage of completion method.

Interest Income is Recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable i.e. on the basis of matching concept..

Revenue from Commission on sale of car is recognized at the point in time when control
of the asset is transferred to the customer, generally on delivery of the goods / point of
dispatch.

Dividend from investments in shares / units is recognized when the company.

Other items of Income are accounted as and when the right to receive arises.

b) Accounting for effects of changes in foreign exchange rates :-

Transactions denominated in foreign currencies are normally recorded at the exchange
rate prevailing at the time of the transactions.

Any income or expenses on account of exchange difference either on settlement or on
Balance sheet Valuation is recognized in the profit and loss account except in cases where
they relate to acquisition of fixed assets in which case they are adjusted to the carrying
cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts.

c) Borrowing Cost :-

Borrowing Cost includes the interest, commitments charges on bank borrowings,
amortization of ancillary costs incurred in connection with the arrangement of
borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of
qualifying property, plants and equipments are capitalized as a part of cost of that
property, plants and equipments. The amount of borrowing costs eligible for
capitalization is determined in accordance with the Accounting Standards - 16

“Borrowing Costs”. Other Borrowing Costs are recognized as expenses in the period in
which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from
foreign currency borrowings to the extent that they are regarded as adjustments to
interest costs are recognized as Borrowing Costs and are capitalized as a part of cost of
such property, plants and equipments if they are directly attributable to their acquisition
or charged to the Standalone Statement or Profit and Loss.

d) Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the related parties
as defined in the Accounting Standard are given in notes of accounts.

e) Accounting for Leases :-

A lease is classified at the inception date as finance lease or an operating lease. A lease
that transfers substantially all the risk and rewards incidental to the ownership to the
Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged to the
Standalone Statement of Profit and Loss on a Straight line basis over the term of the
relevant lease. During the year company has taken one showroom & Car parking arear on
operating lease and lease payment on the same shall be charged to profit and loss account
over period of lease term.

b) Finance Lease:- Finance lease are capitalized at the commencement of the lease, at
the lower of the fair value of the property or the present value of the minimum lease
payments. The corresponding liability to the lessor is included in the Balance Sheet as a
finance lease obligation. Lease payments are apportioned between finance charges and
the reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged directly against the
income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or finance
lease to others.

f) Cash flow:-

Cash flows are reported using the indirect method, whereby net profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals of past or
future cash receipts and payments. The cash flows from regular operating, investing and
financing activities of the company are segregated.

g) Earnings Per Share :-

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with
Accounting Standard 20, “Earnings per Share”. Basic EPS is computed by dividing the Net
Profit or Loss attributable to the Equity Shareholders for the year by the weighted
average number of equity shares outstanding during the year. Diluted EPS is computed
by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year by
the weighted average number of Equity Shares outstanding during the year as adjusted
for the effects of all potential Equity Shares, except where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted
for events such a Bonus Issue, Bonus elements in right issue, share splits, and reverse
share split (consolidation of shares) that have changed the number of Equity Shares
outstanding, without a corresponding change in resources.

h) Taxes on Income :-

• Current Tax: -

Provision for current tax is made after taken into consideration benefits admissible
under the provisions of the Income Tax Act, 1961.

• Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary
difference at the balance sheet date between the tax basis of assets and liabilities and
their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary differences to
the extent that it is probable that taxable profit will be available in the future
against which this items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are
expected to apply to the period when the assets is realized or the liability is
settled, based on tax rates ( rates and the tax] that have been enacted or
enacted subsequent to the balance sheet date.

i) Discontinuing Operations :-

During the year the company has not discontinued any of its operations.

j) Virtual Currency :-

Virtual Currency transactions are accounted as per prevailing rates of exchange on the
date of transactions. Virtual currency are restated at the prevailing rates of exchange at
the balance sheet date. All Gains and Losses arising out of fluctuating in exchange rates
on settlement or restatement are accounted for in the statement of Profit and loss.