Accounting Policies of NMS Global Ltd. Company

Mar 31, 2025

1 Corporate information

The Company is a limited liability company, incorporated and domiciled in India.

There have been no significant changes in the nature of the principal activities of the Company during the financial year.

The Registered office of the Company is located at H. No. 48, Hasanpur, I.P. Extension New Delhi.

2 Basis of preparation and use of estimates

2.1 Basis of preparation of financial statements

The financial statements (FS) of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III),as applicable to the financial statements.

2.2 Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period/year. The difference between the actual result and estimates are recognize in the year in which the results are known/ materialize.

All Assets and liabilities have been classified as current and non-current as pet the Company''s normal operating cycle and other criteria set out in the schedule III to the Companies act 2013. Based on the nature of products and the time between the acquit ion of assets for processing and their realization cash and cash equivalent, the Company has as certained it operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

3 Significant accounting policies

3.1 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non- current classification. An asset as current when it is:

• Expected to be realized or intended to sold ox consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged of used to settle a liability for at least twelve months after the reporting period

• All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at

Least twelve months after the reporting period

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

3.2 Fair value measurement

Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use when pricing an asset or liability acting in their best economic interest. The fair value of plants and equipment as at transition date have been taken based on valuation performed by an independent technical expert. The Company used valuation techniques, which were appropriate in circumstances and for which sufficient data were available considering the expected loss/ profit in case of financial assets or liabilities.

3.3 Property, plant and equipment

On transition to IND AS, the Company has adopted optional exception under IND AS 16 to measure Property, Plant and Equipment at fair value. Consequently, the fair value has been assumed to be deemed cost of Property, Plant and Equipment on the date of transition Subsequently Property, Plant and Equipment are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is

probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Assets are depreciated to the residual values on a straight-line basis over the estimated useful lives based on technical estimates which is different from one specified in Schedule II of the Companies Act, 2013. Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are indicators for review of residual value and useful life. Free hold land is not depreciated.

• Computer, Printer & Office Equipment 3-5 Years

• Furniture, Fittings and Electric Installations 10 Years

• Plant and Machinery 15 Years

The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or retirement.

3.4 Research & Development cost

Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the company can demonstrate:

- The technical feasibility of completing the intangible assets so that the asset will be available for use or sale

- Its intention to complete and its ability and intention to use or sell the asset

- How the asset will generate future economic benefits

- The availability of resources to complete the asset

- The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognized in the statement of profit and loss.

3.5 Trade receivables

A receivable is classified as a ''trade receivable'' if it is in respect to the amount due from customers on account of goods sold or services rendered in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. For some trade receivables the Company may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the counter party is in default under the, terms of the agreement.

3.6 Investments in Subsidiaries

Subsidiaries are those entities (including special purpose entities) in which the Company has an interest of more than one half of the voting rights or otherwise has power to govern the financial and operating policies. Then existence and effect of potential voting rights that are presently exercisable or presently convertible are considered when assessing whether the company controls another entity. Investment in subsidiaries is shown at cost. Where the carrying amount of the investment is greater than its estimated recoverable amount it is written down immediately to its recoverable amount and the difference is transferred to the statement of profit and loss. On disposal of the investment, the difference between the net disposal proceeds and the carrying amounts is charge or credited to profit or loss.

3.7 Trade and other payables

A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortized cost using the effective interest method.

3.8 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand and at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that axe readily convertible to a known amount of cash and are subject to an in significant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the company''s cash management.

3.9 Provisions, Contingent Liabilities, Contingent Assets and Commitments I) General

Provisions are recognized when the Company has a present obligation legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

II) Contingencies

Contingent liabilities are disclosed when these is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the entity, Contingent assets are not recognized, but are disclosed in the notes. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

3.10 Share capital and share premium

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

Par value of the equity share is recorded as share capital and the amount received in excess of the par value is classified as share premium.

3.11 Revenue recognition Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue is recognized at the fair value of consideration received or receivable and represents the net invoice value of goods supplied to third parties after deducting discounts, volume rebates and outgoing sales tax and are recognized either on delivery or on transfer of significant risk and rewards of ownership of the goods. Revenue is inclusive of excise duty.

Sale of Services

Revenue recognition of services depends as the service is performed. This is further divided into two ways:

(a) Proportionate Completion Method: This method of accounting recognizes revenue in the statement of profit & loss proportionately with the degree of completion of each service.

Here the service completion consists of the execution of more than one act. Revenue is recognized with the completion of each such act.

(b) Completed Service Contract Method: This method of accounting recognizes revenue in the statement of profit & loss only when the rendering of services under a contract is completed or substantially completed.

Generally we follow proportionate completion method for recognition. Interest income

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

3.12 Employee benefits

Short term employee benefits:

Short - term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably

Long-term employee benefits:

The Company''s net obligation in respect of long team employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Re-measurement is recognized in Statement of Profit and Loss in the period in which they arise.

Post-employment benefits-Defined contribution plans:

The Company''s contributions to defined contribution plans are charged to the income statement in the period to which they relate. Once the contributions have been paid, the Company has no further payment obligations. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of an employee''s employment as a result of either:

(a) An entity''s decision to terminate an employee''s employment before the normal retirement date; or

(b) An employee''s decision to accept an offer of benefits in exchange for the termination of employment.

3.13 Taxes

Income tax expense comprises current and deferred tax. It is recognized in statement of profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current tax assets and liabilities are offset only if, the Company:

• has a legally enforceable right to set off the recognized amounts; and

• Intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

The company has opted for taxation under section 115BAC of the Income Tax Act, 1961, as introduced by the Finance Act, 2020, with effect from the assessment year 2024-25. Accordingly, the company has recognized the provision for income tax and deferred tax assets and liabilities based on the rates prescribed in the said section. The company has also disclosed the impact of this option on its current and deferred tax expenses and its earnings per share in the notes to accounts. The option under section 115BAC is irrevocable and the company will continue to be taxed at the rates specified in this section unless it withdraws from the option in a future year.

3.14 Earning per Share

As per Ind AS 33 "Earning Per Share", Basic earnings per share are computed by to the shareholders'' and weighted average number of shares outstanding during the year. The weighted average numbers of shares also includes fixed number of equity shares that are issuable on conversion of compulsorily convertible preference shares, debentures or any other instrument, from the date consideration is receivable (generally the date of their issue) of such instruments. Diluted earnings per share is computed using the net profit for the year attributable to the shareholder'' and weighted average number of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result would be antidilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

4. Critical accounting estimates, assumptions and judgments

a. Property, plant and equipment

The Company regularly reviews the estimated useful lives of property, plant and equipment based on factors such business plan and strategies, expected level of usage and future technological development. Future results of operations could be materially affected by changes in these estimates brought about by changes in the factors mentioned above. A reduction of estimated lives of property, plant and equipment would increase the recorded depreciation and decrease the value of property, plant and equipment.

b. Intangibles

Internal technical or user team assesses the remaining useful lives of Intangible assets. Management believes that assigned useful lives are reasonable.

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Mar 31, 2024

3 Significant accounting policies

3.1 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet
based on current/ non- current classification. An asset as current
when it is:

• Expected to be realized or intended to sold ox consumed in
normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the
reporting period, or

• Cash or cash equivalent unless restricted from being
exchanged of used to settle a liability for at least twelve
months after the reporting period

• All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period,
or

• There is no unconditional right to defer the settlement of the liability
for at

Least twelve months after the reporting period

The Company classifies all other liabilities as non-current. Deferred tax
assets and liabilities are classified as non-current assets and liabilities.

3.2 Fair value measurement

Fair value is the price that would be received to sell an asset or settle a
liability in an ordinary transaction between market participants at the
measurement date. The fair value of an asset or a liability is measured
using the assumption that market participants would use when
pricing an asset or liability acting in their best economic interest. The
fair value of plants and equipment as at transition date have been
taken based on valuation performed by an independent technical
expert. The Company used valuation techniques, which were
appropriate in circumstances and for which sufficient data were
available considering the expected loss/ profit in case of financial
assets or liabilities.

3.3 Property, plant and equipment

On transition to IND AS, the Company has adopted optional
exception under IND AS 16 to measure Property, Plant and
Equipment at fair value. Consequently, the fair value has been
assumed to be deemed cost of Property, Plant and Equipment on the
date of transition Subsequently Property, Plant and Equipment are
carried at cost less accumulated depreciation and accumulated
impairment losses, if any. Cost includes expenditure that is directly
attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or
recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognized.
All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.

Assets are depreciated to the residual values on a straight-line basis
over the estimated useful lives based on technical estimates which is
different from one specified in Schedule II of the Companies Act,
2013. Assets residual values and useful lives are reviewed at each
financial year end considering the physical condition of the assets and
benchmarking analysis or whenever there are indicators for review of
residual value and useful life. Free hold land is not depreciated.

• Computer, Printer & Office Equipment 3-5 Years

• Furniture, Fittings and Electric Installations 10 Years

• Plant and Machinery 15 Years

The gain or loss arising on the disposal or retirement of an item of
property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and
is recognised in the Statement of Profit and Loss on the date of
disposal or retirement.

3.4 Research & Development cost

Research costs are expensed as incurred. Development expenditures on
an individual project are recognized as an intangible asset when the
company can demonstrate:

- The technical feasibility of completing the intangible assets so that the
asset will be available for use or sale

- Its intention to complete and its ability and intention to use or sell the
asset

- How the asset will generate future economic benefits

- The availability of resources to complete the asset

- The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an
asset, the asset is carried at cost less any accumulated amortization
and accumulated impairment losses. Amortisation of the asset begins
when development is complete and the asset is available for use. It is
amortised over the period of expected future benefit. Amortisation
expense is recognized in the statement of profit and loss.

3.5 Trade receivables

A receivable is classified as a ''trade receivable'' if it is in respect to the
amount due from customers on account of goods sold or services
rendered in the ordinary course of business. Trade receivables are
recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method, less provision for
impairment. For some trade receivables the Company may obtain
security in the form of guarantee, security deposit or letter of credit
which can be called upon if the counter party is in default under the,
terms of the agreement.

3.6 Investments in Subsidiaries

Subsidiaries are those entities (including special purpose entities) in
which the Company has an interest of more than one half of the
voting rights or otherwise has power to govern the financial and
operating policies. Then existence and effect of potential voting rights
that are presently exercisable or presently convertible are considered
when assessing whether the company controls another entity.
Investment in subsidiaries is shown at cost. Where the carrying
amount of the investment is greater than its estimated recoverable
amount it is written down immediately to its recoverable amount and
the difference is transferred to the statement of profit and loss. On
disposal of the investment, the difference between the net disposal
proceeds and the carrying amounts is charge or credited to profit or
loss.

3.7 Trade and other payables

A payable is classified as ''trade payable'' if it is in respect of the
amount due on account of goods purchased or services received in the
normal course of business. These amounts represent liabilities for
goods and services provided to the Company prior to the end of
financial year which are unpaid. Trade and other payables are
presented as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised initially at
their fair value and subsequently measured at amortized cost using
the effective interest method.

3.8 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand
and at bank, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less that
axe readily convertible to a known amount of cash and are subject to an
in significant risk of changes in value and are held for the purpose of
meeting short-term cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents
consist of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the
company''s cash management.

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Mar 31, 2014

1. ACCOUNTING POLICIES

i) Basis for preparation of financial statements

The financial statements are prepared under the historical cost conventions on accrual basis in accordance with generally accepted accounting principles and Accounting standards referred to in section 211(3C) of the Companies Act, 1956. The company has not provided for the deferred tax assets, as the company does not expect to make sufficient profit for set off the brought forward losses and unabsorbed depreciation.

ii) Inventories

There is no closing stock as on 31.03.2014.

iii) Items Accounted For on Cash Basis: ROC filling fee

iv) Fixed Assets

The valuation put on fixed assets includes cost of acquisition, installation charges & all cost incidental thereto. Depreciation on fixed assets is provided on W.D.V. method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

v) Foreign currency transactions

The foreign currency transactions are accounted on the basis of exchange rates prevailing on the date of respective transactions. Difference, if any, as realization are treated as gain/loss on exchange.

vi) Retirement Benefits:

Gratuity is not provided in the accounts, as none of the employees are eligible for payment of gratuity under the Gratuity Act, 1972.

Leave encashment paid is charged to Profit & Loss Account and the accrued liability is not provided since the same is negligible.

vii) Contingent Liabilities not provided for: Nil

viii) Related Party Disclosure

The company has not granted any unsecured loans to the related parties:

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Mar 31, 2012

1. ACCOUNTING POLICIES

i) Basis for preparation of financial statements

The financial statements are prepared under the historical cost conventions on accrual basis in accordance with generally accepted accounting principles and Accounting standards referred to in section 211(3C) of the Companies Act, 1956. The company has not provided for the deferred tax assets, as the company does not expect to make sufficient profit for set off the brought forward losses and unabsorbed depreciation.

ii) Inventories

There is no closing stock as on 31.03.2012.

iii) Items Accounted For on Cash Basis: -

ROC filling fee

iv) Fixed Assets

The valuation put on fixed assets includes cost of acquisition, installation charges & all cost incidental thereto. Depreciation on fixed assets is provided on W.D.V. method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

v) Foreign currency transactions

The foreign currency transactions are accounted on the basis of exchange rates prevailing on the date of respective transactions. Difference, if any, as realization are treated as gain/loss on exchange.

vi) Retirement Benefits:

Gratuity is not provided in the accounts, as none of the employees are eligible for payment of gratuity under the Gratuity Act, 1972.

Leave encashment paid is charged to Profit & Loss Account and the accrued liability is not provided since the same is negligible.

vii) Contingent Liabilities not provided for:

Nil

viii) Related Party Disclosure

(a) The company has not granted any unsecured loans to the related parties:

(b) The company has taken unsecured loans form the following related parties:

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Mar 31, 2010

I) Basis for preparation of financial statements

The financial statements are prepared under the historical cost conventions on accrual basis in accordance with generally accepted accounting principles and Accounting standards referred to in section 211(3C) of the Companies Act, 1956. The company has not provided for the deferred tax assets, as the company does not expect to make sufficient profit for set off the brought forward losses and unabsorbed depreciation.

ii) Inventories

There is no closing stock as on 31.03.2010.

iii) Items Accounted For on Cash Basis:-

ROC filling fee

iv) Fixed Assets

The valuation put on fixed assets includes cost of acquisition, installation charges & all cost incidental thereto.

Depreciation on fixed assets is provided on W.D.V. method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

v) Foreign currency transactions

The foreign currency transactions are accounted on the basis of exchange rates prevailing on the date of respective transactions. Difference, if any, as realization are treated as gain/loss on exchange. However, there is no such transaction during the year.

vi) Retirement Benefits:

Gratuity is not provided in the accounts, as none of the employees are eligible for payment of gratuity under the Gratuity Act, 1972.

Leave encashment paid is charged to Profit & Loss Account and the accrued liability is not provided since the same is negligible.

vii) Contingent Liabilities not provided for:

The Company has not provided for bank interest following the accounting practice adopted by the company in preceding years on packing credit Loan account of the bank, in view of counter claim suit filed by the company for monetary compensation from the bank before the DRT, New Delhi.

viii) Related Party Disclosure

(a) The company has not granted any unsecured loans to the related parties: