Accounting Policies of Kids Medical Systems Ltd. Company

Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POUC1ES
a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India
(''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable.
The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial
Instruments which are measured at fair value.

b Use of Estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the
financial statements and reported amounts of income and expense during the year. Examples of such estimates include
provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable fixed assets and provision for
impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the
estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs Include all expenses
incurred to bring the asset to its present location and condition.

d Depreciation and amortization

Depreciation has not been provided on the Fixed Asset in accordance with the useful life of the Asset as prescribed under
Schedule II of the Companies Act, 2013.

e Investment

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than
temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising
investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

f Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash 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.

g Revenue recognition

Revenue Is recognised as soon as services are rendered to customers i.e on accural basis. Revenue Is reported net of discounts.
Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

b Taxation

income tax payable In India is determined in accordance with the provisions of the income Tan Act 1961.

Deferred tax evpense or benefit b recognised on timing deferences being the difference between taxable income and

accounting income that originate in one period and btiteiy to reverse in one or more subsequent periods. Deferred tax assets

and Habftttes are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance
sheet date.

The Company offsets deferred tax assets and deferred tax HabUfties if it has a legally enforceable right and these relate to taxes
on income ievied by the same governing taxation laws.

1 Earnings Per Shares

Sasic earning per share b comptfed by dividing the net prom or loss for the period attributable to equity shareholders by the
******* average number of equity shares outstanding during the period. Ofluted earrtng per share Is computed by taking into
account the weighted average number of equity shares outstanding during the period and the weighted average number of
equity shares which would be issued on conversion of all dilutive potential equity shares into equity sharesJS