Accounting Policies of Jaro Institute of Technology Management and Research Ltd. Company

Mar 31, 2025

2 Material Accounting Policies

2.1 Statement of compliance and basis of Preparation

The Standalone Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013 (the "Act") read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

Theses Standalone Financial Statements of the Company are presented in Indian Rupees (INR), which is its functional currency and all values are rounded to
the nearest Lakhs (INR 00,000), except when otherwise indicated.

The Company has prepared the Financial statements on the basis that it will continue to operate as going concern.

The Standalone Financial Statements provide comparative information in respect of the previous period.

The Standalone Financial Statements were authorised for issue by the Board of Directors of the Company at their meeting held on 21 August 2025.

The Company had no subsidiaries as on 31 March 2024 and thereafter. Therefore the Company is not required to prepare consolidated Financial statements
for the year ended 31 March 2025.

2.2 Summary of material accounting policies

(a) Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the operating cycle and other criteria set out in the Schedule III to the
Companies Act, 2013. Based on the nature of products and services and their realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

(b) Historical cost convention

These Standalone Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the
accrual basis, except for the following:

- certain financial assets and liabilities which are measured at fair value or amortised cost;

- defined benefit plans;

- share- based payments

(c) Use of Estimates

The preparation of the Standalone Financial Statements requires management to make judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates
are revised and in any future periods affected.

Critical accounting estimates:

a) Expected credit losses on trade receivables

The impairment provision of trade receivables is based on assumptions about risk of default and expected timing of collection. The Company uses judgment in
making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, customer''s creditworthiness, existing
market conditions as well as forward looking estimates at the end of each reporting period.

b) Defined benefit plans and compensated absences

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligation are based on actuarial valuation using
the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These
include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

c) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.Identification of a lease requires significant judgment.
The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

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 to exercise the option to extend the
lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate.

d) Revenue Recognition

Revenue is measured based on the transaction price, which is the consideration, adjusted for refund of fees due to admission cancellations. Refund of fees on
account of admission cancellations is considered as variable consideration. The variable consideration is estimated at contract inception and constrained until
it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with
the variable consideration is subsequently resolved. Any cancellation of admissions which occurs after the admissions process is completed is considered as a
variable consideration. A refund liability is recognised for expected cancellations (i.e., the amount not included in the transaction price) based on the past
trend of cancellations.

2.3 Revenue from contract with customer

The Company derives revenue primarily from rendering of student enrolments and program management services.

The Company has assessed the universities and institutes as their customers. The Company enters into contract with customers wherein they only provide
enrolment services (i.e. enrolling students into courses conducted by universities/institutes) or enrolment services along LMS (Learning Management
System)/Program Management services. The consideration for rendering services is percentage based fees (i.e. the percentage of fees that university or
institute collects from its students).

Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to
receive in exchange for those services.

• Revenue from student enrolment services is recognised at the point in time when the university or the institute confirms the admission of the student for
the relevant course.

• Revenue related to program management services contracts are recognised over the tenure of the certification courses.

The Company evaluates whether each service promised to a customer is capable of being distinct, and is distinct in the context of the contract, if not, the
promised service is combined and accounted as a single performance obligation. Where the contracts include multiple performance obligations, the
transaction price is allocated to each performance obligation based on the standalone selling prices. When these are not directly observable, they are
estimated based on expected cost-plus margin.

Revenue is measured based on the transaction price, which is the consideration, adjusted for refund of fees due to admission cancellations. Refund of fees on
account of admission cancellations is considered as variable consideration. The variable consideration is estimated at contract inception and constrained until
it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with
the variable consideration is subsequently resolved. Any cancellation of admissions which occurs after the admissions process is completed is considered as a
variable consideration. A refund liability is recognised for expected cancellations (i.e., the amount not included in the transaction price) based on the past
trend of cancellations.

Revenue also excludes taxes collected from customers.

With respect to contracts where Company provides student enrolment services for multi-term/multi-year courses, the Company''s performance obligation is
complete when the student takes admission in the 1st year/1st term, however part of the consideration becomes contractually due, only when the student
commences the second term/second year course. The Company has assessed that this does represent a significant financing component as the payment terms
are structured in this manner for reasons other than financing.

Contract assets are recognised when there is excess of revenue earned over billings on contracts and are classified as “unbilled revenue” (only act of invoicing
is pending).

Contract liability (“deferred revenue”) is recognized when there are billings in excess of revenues.

2.4 Property, plant & Equipment

(i) Recognition and measurement :

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment loss, if any. Cost includes expenditures
directly attributable to the acquisition of the asset. 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.

Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these
will flow to the Company and the cost of the item can be measured reliably.

The carrying amount of any component accounted for as a separate asset is derecognised when discarded/scrapped. All other repairs and maintenance costs
are charged to profit and loss in the reporting period in which they occur.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

(ii) Depreciation:

Depreciation is provided, under the Written down value (WDV) basis, pro-rata to the period of use, based on useful lives specified in Schedule II to the
Companies Act, 2013.

The useful lives of the property, plant and equipment are as follows:

a) Computers - 3 years

b) Furniture and fixtures - 10 years

c) Office Equipments - 5 years

d) Vehicles - 8 years

e) Leasehold improvements - lower of lease period or estimated useful life

2.5 Leases

The Company leases most of its office facilities under operating lease agreements that are renewable on a periodic basis at the option of the lessor and the
lessee. The lease agreements contain rent escalation clauses.

The Company assesses whether a contract contains a lease at the inception of the contract. A contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the
use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset, (ii) the Company has the right to obtain
substantially all of the economic benefits from the use of the asset through the period of the lease, and (iii) the Company has the right to direct the use of
the asset.

At the date of commencement of the lease, the Company recognises a ROU asset and a corresponding lease liability for all lease arrangements under which it
is a lessee, except for short-term leases and low value leases. ROU assets represent the Company''s right to use an underlying asset for the lease term and
lease liabilities represent the Company''s obligation to make lease payments arising from the lease. The Company has elected not to apply the requirements of
Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The
lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

The lease arrangements include options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these
options when it is reasonably certain that they will be exercised.

The ROU assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to
the commencement date of the lease plus any initial direct costs. They are subsequently measured at cost less accumulated depreciation and accumulated
impairment losses.

ROU assets are depreciated from the date of commencement of the lease on a straight-line basis over the shorter of the lease term and the useful life of the
underlying asset.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The Company uses its incremental borrowing rate
(as the interest rate implicit in the lease is not readily determinable) based on the information available at the date of commencement of the lease in
determining the present value of lease payments. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the
lease liability, reducing the carrying amount to reflect the lease payments made. Lease liabilities are remeasured with a corresponding adjustment to the
related ROU asset if the Company changes its assessment as to whether it will exercise an extension or a termination option.

2.6 Financial Instruments
(i) Financial assets:

(a) Classification

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value through profit and loss, and

- those measured at amortised cost

The classification depends on the entity''s business model for managing the financial assets and the contractual cash flow characteristics.

(b) Initial recognition

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. However trade receivables that do not contain a significant financing component are measured
at transaction price.

(c) Measurement

Subsequent to initial recognition, financial assets are measured as described below:

Cash and cash equivalents:

The Company''s cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks (three months or less from the date of
acquisition). For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks (three
months or less from the date of acquisition), net of outstanding cash credits that are repayable on demand and are considered part of the Company''s cash
management system. In the balance sheet, cash credits are presented under borrowings within current liabilities.

Financial assets carried at amortised cost:

A financial asset is subsequently measured at amortised 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 does not meet the amortized cost or FVTOCI criteria is measured as FVTPL. Financial assets at FVTPL are measured at fair value at the
end of each reporting period, with any gains or losses on re-measurement recognized in statement of profit or loss. The gain or loss on disposal and interest
income earned on FVTPL is recognized.

(d) Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a Group of financial assets are impaired. Ind AS 109 requires expected credit
losses to be measured through a loss/impairment allowance.

In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance
for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking
information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix. The application
of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.

For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses on a forward looking basis.
However, if the credit risk on the financial instruments has increased significantly since the initial recognition, then the Company measures lifetime ECL.

The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment (gain)/loss under “ Other
Expenses ” in the Statement of Profit and Loss.

(e) Derecognition of financial assets

The Company derecognises a financial asset when

- the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under
IND AS 109.

- the Company retains contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or
more recipients.

When the entity has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial asset, the financial
asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is
continued to be recognised to extent of continuing involvement in the financial asset.

(ii) Financial liabilities:

(a) Initial recognition and measurement

Financial liabilities are classified as financial liabilities at amortised cost. All financial liabilities are recognized initially at fair value, except in the case of
borrowings which are recognised at fair value, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other
payables, cash credits, borrowings and lease liabilities.

(b) Subsequent measurement

After initial recognition, financial liabilities are subsequently measured at amortised cost using the effective interest method. For trade and other payables,
the carrying amounts approximate fair value due to the short-term maturity of these instruments.

(c) Derecognition

Financial liabilities are derecognised when the contractual obligations are discharged, cancelled or expired. The Company also derecognises financial
liabilities when their terms are modified and the cash flows of the modified liabilities are substantially different, in which case new financial liabilities based
on the modified terms are recognized at fair value.

2.7 Employee benefits

Company''s Employee benefit obligations include short-term obligations, compensated absences and Post-employment obligations which includes gratuity plan
and contributions to provident fund.

(a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service which are recognised in respect of employees services up to the end of the reporting period and are measured
at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance
sheet.

(b) Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to
certain limits, for future encashment. The liability is provided based on number of days of unutilized leave at each balance sheet date based on an estimated
basis for the period end and on an independent actuarial valuation under Projected Unit Credit method at the year end.

(c) Defined benefit plan

Employees are entitled to a defined benefit retirement plan (i.e. Gratuity) covering eligible employees of the Company. The plan provides for a lump-sum
payment to eligible employees, at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employees''
salary and tenure of employment. Vesting occurs upon completion of five years of service.

Gratuity liabilities are determined by actuarial valuation, performed by an independent actuary, at each reporting date using the projected unit credit
method. The Company recognises the obligation of a defined benefit plan in its balance sheet as a liability in accordance with Ind AS 19 - “Employee
Benefits.” The discount rate is based on the government securities yield. Re-measurements, comprising actuarial gains and losses are recorded in other
comprehensive income in the period in which they arise. Re-measurements recognised in other comprehensive income is reflected immediately in retained
earnings and is not reclassified to profit or loss. Past service cost is recognised in Statement of Profit and Loss in the period of plan amendment.

Costs comprising service cost (including current and past service cost and gains and losses on curtailments and settlements) and net interest expense or
income is recognised in profit or loss.

(d) Defined contribution plans

The defined contribution plan is a post-employment benefit plan under which the Company contributes fixed contribution to a Government Administered Fund
and will have no obligation to pay further contribution. The Company''s defined contribution plan comprises of Provident Fund and Labour Welfare Fund. The
Company''s contribution to defined contribution plans are recognised in the Statement of Profit and Loss in the period in which the employee renders the
related service.

2.8 Share-based payments

Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value determined at
the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company''s estimate of
equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of
the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the
cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.