Accounting Policies of HRH Next Services Ltd. Company

Mar 31, 2025

1 Summary of Significant Accounting Policies

1.1 Basis of preparation

The financial statements are prepared under the historic cost convention on accrual basis of accounting in accordance with generally accepted accounting principles ("GAAP") applicable in India. GAAP comprises mandatory accounting standards prescribed by the Companies (Accounting Standards) Rules, 2015 issued by the Central Government in exercise of the power conferred under sub-section (1)(a) of Section 642 and the relevant provisions of the Companies Act, 2013 and the pronouncement of the Institute of Chartered Accountants of India. 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. The management evaluates all recently issued or revised accounting standards on an ongoing basis

Financial statements are prepared on "going concern" basis.

1.2 Revenue recognition

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 recognised on the basis of the terms of the contracts executed with the customers and invoices for the services rendered are raised on the basis of the date of the billing cycle indicated in contracts and also includes income recognised relating to the reporting period for which though the services were rendered, the invoice could not be raised as the billing cycle was yet to be completed.

1.3 Income & Expenditure

The company maintains its accounts on accrual basis, except for the following which are recorded as soon as it ascertained

1. Expenditure on account of leave encashment, medical benefits and leave travel allowance.

2. Commission Income

3. Telephone, water and electricity expenses.

4. lnsurance and other claims are accounted for as and when received from the appropriate authorities.

5. Dividends are accounted for when received.

6. Indirect taxes and other payments covered by section 43B of the lncome Tax Act.

7. Employee service benefits including terminal benefits.

1.4 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 period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.5 Fixed Assets Tangible Fixed Assets

Fixed assets are stated at 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.

Intangible Fixed Assets

Intangible Assets are stated at cost less accumulates amortisation

1.6 Depreciation

The Company charges depreciation on Straight Line Method at rates prescribed in the Schedule ll of the Companies Act, 2013. Depreciation to addition to assets is provided on pro rata basis. Depreciation on assets acquired/disposed off during the year is provided on pro-rata basis with reference to the date of addition/disposal.

"Depreciation on lntangible Fixed Assets :

The Company charges depreciation on Straight Line Method at rates prescribed in the Schedule ll of the Companies Act, 2013. Depreciation to addition to assets is provided on pro rata basis."

1.7 Impairment

The carrying amounts of assets are 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 asset''s net selling price and value in use. The Company has not made any impairment provision during the current period.

1.8 Investments

Current investments are stated at lower of cost or fair market value. Long term investments are stated at cost after providing for diminution in value. Provision for diminution in value is made only when the decline is other than temporary in the opinion of the management.

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.

1.9 Sundry Debtors and Loans & Advances

Sundry Debtors and Loans & Advances are stated at their realisable value after providing for the bad debts as considered necessary by the management

1.10 Taxation

Tax expense comprises of current tax only. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, _1961._

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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 realized.

1.11 Foreign Currency transactions

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year end are recognized in the profit and loss account.

1.12 Employee Benefits

(a) Company''s contribution paid/payable during the year to provident fund is recogonised in the Statement of Profit and Loss.

(b) Provision for Gratuity has been made on the basis of actuarial valuation and charged to Statement of Profit & loss

"(c) The company does not have the policy of

extending leave encashment facilities to the employees "

1.13 Borrowing Costs

lnterest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Statement of Profit & Loss.

No borrowing costs have been capitalized during the year

1.14 Significant Accounting

(i) Segment accounting policies

Segment accounting policies are in line with the accounting policies of the Company. However, the following specific accounting policies have been followed for segment reporting:

(a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

(b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. The expenses, which relates to the Company as a whole and not allocable to segments, are included under other unallocable expenditure"".

(c) lncome that relates to the Company as a whole and not allocable to segments in included in ""unallocable corporate income.

(d) Segment assets and liabilities includes those directly identifiable with respective segments. Unallocable corporate assets and liabilities represents the assets and liabilities that relate to the Company as a whole and not allocable to any segment"

(ii) lnter-segment transfer pricing

Segment revenue resulting from transactions with other business segments is accounted on basis of transfer price agreed between the segments.

1.15 Research and Development

Expenditure on regular development & maintenance is charged to Statement of Profit & Loss in the year of incurrence except in case of development of new product/software undertaken where the same are deferred and expensed out over a reasonable period for which the benefit is received after commercial development of the products or capitalised and depreciated.

Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as other assets. Research and development expenditure of revenue nature are charged to Statement of Profit & Loss, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred.

Expenses in respect of major product development are, however, treated as deferred revenue expenditure for amortisation over a period of six years.

1.16 Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; 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. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.17 Contingent Liabilities

Contingent Liabilities are disclosed, unless the possibility of any outflow in settlement is remote, in the notes on Accounts. Contingent Assets are neither recognized nor disclosed.

1.18 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature , any deferals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash fllows from operating , investing and financing activities are disclosed properly.

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Mar 31, 2024

1 Summary of Significant Accounting Policies

1.1 Basis of preparation

The financial statements are prepared under the historic cost convention on accrual basis of accounting in accordance with generally accepted accounting principles (“GAAP”) applicable in India. GAAP comprises mandatory accounting standards prescribed by the Companies (Accounting Standards) Rules, 2015 issued by the Central Government in exercise of the power conferred under sub-section (1)(a) of Section 642 and the relevant provisions of the Companies Act, 2013 and the pronouncement of the Institute of Chartered Accountants of India. 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. The management evaluates all recently issued or revised accounting standards on an ongoing basis

Financial statements are prepared on “going concern” basis.

1.2 Revenue recognition

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 recognised on the basis of the terms of the contracts executed with the customers and invoices for the services rendered are raised on the basis of the date of the billing cycle indicated in contracts and also includes income recognised relating to the reporting period for which though the services were rendered, the invoice could not be raised as the billing cycle was yet to be completed.

1.3 Income & Expenditure

The company maintains its accounts on accrual basis, except for the following which are recorded as soon as it ascertained

1. Expenditure on account of leave encashment, medical benefits and leave travel allowance.

2. Commission Income

3. Telephone, water and electricity expenses.

4. lnsurance and other claims are accounted for as and when received from the appropriate authorities.

5. Dividends are accounted for when received.

6. Indirect taxes and other payments covered by section 43B of the lncome Tax Act.

7. Employee service benefits including terminal benefits.

1.4 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 period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.5 Fixed Assets

Tangible Fixed Assets

Fixed assets are stated at 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.

Intangible Fixed Assets

Intangible Assets are stated at cost less accumulates amortisation

1.6 Depreciation

The Company charges depreciation on Straight Line Method at rates prescribed in the Schedule ll of the Companies Act, 2013. Depreciation to addition to assets is provided on pro rata basis. Depreciation on assets acquired/disposed off during the year is provided on pro-rata basis with reference to the date of addition/disposal.

Depreciation on lntangible Fixed Assets :

The Company charges depreciation on Straight Line Method at rates prescribed in the Schedule ll of the Companies Act, 2013. Depreciation to addition to assets is provided on pro rata basis."

1.7 Impairment

The carrying amounts of assets are 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 asset''s net selling price and value in use. The Company has not made any impairment provision during the current period.

1.8 Investments

Current investments are stated at lower of cost or fair market value. Long term investments are stated at cost after providing for diminution in value. Provision for diminution in value is made only when the decline is other than temporary in the opinion of the management.

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.

1.9 Sundry Debtors and Loans & Advances

Sundry Debtors and Loans & Advances are stated at their realisable value after providing for the bad debts as considered necessary by the management

1.10 Taxation

Tax expense comprises of current tax only. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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 realized.

1.11 Foreign Currency transactions

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year end are recognized in the profit and loss account.

1.12 Employee Benefits

(a) Company''s contribution paid/payable during the year to provident fund is recogonised in the Statement of Profit and Loss.

(b) Provision for Gratuity has been made on the basis of actuarial valuation and charged to Statement of Profit & loss

(c) The company does not have the policy of extending leave encashment facilities to the employees

1.13 Borrowing Costs

lnterest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Statement of Profit & Loss.

No borrowing costs have been capitalized during the year

1.14 Significant Accounting

(i) Segment accounting policies

Segment accounting policies are in line with the accounting policies of the Company. However, the following specific accounting policies have been followed for segment reporting:

(a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

(b) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. The expenses, which relates to the Company as a whole and not allocable to segments, are included under ""other unallocable expenditure"".

(c) lncome that relates to the Company as a whole and not allocable to segments in included in ""unallocable corporate income"".

(d) Segment assets and liabilities includes those directly identifiable with respective segments. Unallocable corporate assets and liabilities represents the assets and liabilities that relate to the Company as a whole and not allocable to any segment"

(ii) lnter-segment transfer pricing

Segment revenue resulting from transactions with other business segments is accounted on basis of transfer price agreed between the segments."

1.15 Research and Development

Expenditure on regular development & maintenance is charged to Statement of Profit & Loss in the year of incurrence except in case of development of new product/software undertaken where the same are deferred and expensed out over a reasonable period for which the benefit is received after commercial development of the products or capitalised and depreciated.

Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as other assets.

Research and development expenditure of revenue nature are charged to Statement of Profit & Loss, while capital expenditure are added to the cost of fixed assets in the year in which these are incurred.

Expenses in respect of major product development are, however, treated as deferred revenue expenditure for amortisation over a period of six years."