Accounting Policies of Plada Infotech Services Ltd. Company

Mar 31, 2025

2 MATERIAL ACCOUNTING POLICIES

a) Accounting Conventions

These financial statements have been prepared to Comply with the Generally Accepted Accounting Principles in india (Indian GAAP)
including the Accounting Standards notified under the relevant provisions of Companies Act, 2013.

The financial statement are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian
Rupees ( Lacs, ) rounded oft to the nearest rupee.

h) Basis of Accounting

The Company follows mercantile system of accounting in accordance with requirements of the Companies Act. 2013.

c) Basis of Preparation / Use of Estimates

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimate, and
assumptions that affect the reported amounts of income and expense, of the period, the reported balance, of assets and liabilities and the
disclosures relating to contingent liabilities as on the date of financial statements. Examples of such estimates include the useful Lives of
property, plant and equipment, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Difference
if any, between the actual results and estimates is recognised in the Period in which the results arc known.

d) Revenue Recognition

Revenue is recognized to the extent it is probable that economic benefits will flow to the Company and revenues can reliably lx measured.

Revenue from service income- is recognized when the services are rendered and milestones specified in the contract are achieved. This approach
ensures that income is recorded in alignment with the completion of significant performance obligations.

Revenues from Interest income is recognised on time proportionate basic. Interest on Income Tax refund «s accounted when tax refund is
received.

Other items of income are accounted as and when the right to receive arises,
c) Expense,

All expenses arc accounted for on accrual basis,

f) Property, Plant and Equipment

Property. plant and equipment are stated a. their original cost of acquisition including incidental expenses related to acquisition and installation
of the concerned assets. Property, plant and equipment are shown net of accumulated depreciation and amortisation. Historical cost composes
ot the acquisition price or construction price and all direct and indirect costs attributable to bring the asset to the working condition for
intended use. but excluding any Cenvat/Service Tax / Value Added Tax/ Goods and Service Tax credit available. Borrowing cost directly
attributable to acquisition/ construction of Property, plant and equipment which necessarily takes a substantial period of time to get ready for
their intended use are capitalised. ’

Property, plant and equipment arc eliminated from financial statement on disposal. Losses arising in the ease of retirement of property, plant
and equipment and gains or losses arising from disposal of property, plant and equipment are recognised in the Statement of Profit and Loss in
the year of occurrence

g) Depreciation / Amortisation

Pursuant to the enactment of Companies Act 2013, unamortised carrying value is being depreciated/ amortised over the revised / remaining
use full lives on written down value (WDV). The company has applied the estimated useful as agreed by the management.

the Management estimates useful life of Property. plant and equipment as follows:

a. Plant & Machinery - 15 years

b. Furniture and fixtures 10 years

c. Office Equipment - 5 years

d. Computers 3 years
c Vehicles - 6 years

f. Electrical Installation - 10 years
g Goodwill - 10 years

Based on the internal assessment, the Management believes that the useful lives of the assets as given above best represents the period over
which the Management expects to use these assets Hence, the useful life of the assets is different from the useful life as prescribed under Part C of Schedule II of the Companies Act, 2013

h) Impairment

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the
Company s property, plant and equipment If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is
recognized whenever the carrying amount of an asset exceeds it’s recoverable. The recoverable amount is the greater of the net selling price and
value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount
factor.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the
asset no longer exist or have decreased. However, the increase the carrying amount of an asset due to reversal of an impairment loss is recognized
to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been
recognized for the asset in prior period.

i) Income Tax

Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with Indian Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between carrying values of the assets
and liabilities and their respective tax basis. Deferred tax assets arc recognized subject to management''s judgment that realization is more likely
than not. Deferred l ax Assets or liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The effect on
deferred tax assets or liabilities of a change in tax rates is recognized in the period of enactment of the change

j) Employee Benefits

Employee benefits include provident fund, gratuity fund, compensated absences, post-employment benefits and long service awards.

a) Short -term employee benefits

All employee benefits payable wholly within twelve month, of rendering the service are classified as short term employee benefits. Benefits such
as salaries, wages performance incentives etc are recognised at actual amounts due in the period in which the employee renders the related
service.

b) post- employment benefits
Defined Benefits Plans

for defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit method, with
actuarial valuations being earned out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and loss in
the- period in which they occur Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is
amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the
Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair
value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and
reductions in future contributions to the schemes.

The eligible employees of the Company are entitled to receive benefits under the Provident fund wherein both employees and the Company

make monthly contributions at a specified percentage of the covered employee’s salary or specified amount as the ease may be. The

Contributions as specified under the law arc made to Regional Provident fund Commissioner and are recognised as an expense in the
Statement of Profit & Loss.

c) other Long- term employee benefits

the Company treats accumulated leave expected to be carried forward beyond 12 months, as long-term employee benefit for measurement
purposes.

Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end
Actuarial gams/losscs are immediately taken to the statement of profit and loss and are not deferred.

k) Foreign Currency Transaction and Translations

i) Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or
at rates that closely approximate the rale at the date of the transaction.

u) Measurement of foreign currency monetary items at the Balance Sheet date

foreign currency monetary .terns (other than derivative contracts) of the Company outstanding at the Balance Sheet date are restated at the year
end rates

in) Treatment of exchange differences

Exchange differences arising on settlement / restatement of short term foreign currency monetary assets and liabilities of the Company are
recognised as income or expense in the Statement of Profit and Loss.

I) Lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor arc recognised as operating
lease Lease rentals under operating leases are recognised on accrual basis in accordance with the respective lease agreement*.

Operating lease: Rentals are expensed out on a straight line basis with reference to the lease terms and other considerations.

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Mar 31, 2024

2 MATRIAL ACCOUNTING POLICIES

a) Accounting Conventions

These financial statements have been prepared to comply with the Generally Accepted Accounting
Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions

of Companies Act, 2013.

The financial statements are prepared on acciual basis under the historical cost convention. The financial
statements are presented ,n Indian Rupees ("Lacs") rounded off to the nearest rupee.

b) Basis of Accounting

The Company follows mercantile system of accounting in accordance with requirements of the Companies
Act, 2013.

c) Basis of Prepration / Use of Estimates

The preparation of financial statements in conformity with GAAP requires that the management of the
Company makes estimate:, and assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the disclosures relating to contingent
liabilities as on the date of financial statements. Examples of such estimates include the useful lives of
property, plant and equipment, provision for doubtful debts/advances, future obligations in respect of
retirement benefit plans, etc. Difference, if any, between the actual results and estimates is recognised in
the period in which the results are known.

d) Revenue Recognition

Revenue is recognized to the extent it is probable that economic benefits will flow to the Company and
revenues can reliably be measured.

Revenue from service income is recognized when the services are rendered and milestones specified in the
contract are achieved. This approach ensures that income is recorded in alignment with the completion of
significant performance obligations.

Revenues from Interest income is recognised on time proportionate basis. Interest on Income Tax refund is

accounted when tax refund is received.

Other item of income are accounted as and when the right to receive arises.

e) Expenses

All expenses are accounted for on accrual basis.

f) Property, Plant and Equipment

Property, plant and equipment are stated at their original cost of acquisition including incidental expenses
related to acquisition and installation of the concerned assets. Property, plant and equipment are shown
net of accumulated depreciation and amortisation. Historical cost comprises of the acquisition price or
construction price and all direct and indirect costs attributable to bring the asset to the working condition
for intended use, but excluding any Cenvat/Seivice Tax / Value Added Tax/ Goods and Service Tax credit
available. Borrowing cost directly attributable to acquisition/ construction of Property, plant and
equipment which necessarily takes a substantial period of time to get ready for their intended use are
capitalised.

Property, plant and equipment are eliminated from financial statement on disposal. Losses arising in the
case of retirement of property, plant and equipment and gains or losses arising from disposal of property,
plant and equipment are recognised in the Statement of Profit and Loss in the year of occurrence.

g) Depreciation / Amortisation

Pursuant to the enactment of Companies Act 2013, unamortised carrying value is being depreciated/
amortised over the revised / remaining useful lives on written down value (WDV). The company has
applied the estimated useful as agreed by the management.

The Management estimates useful life of Property, plant and equipment as follows:

a. Plant & Machinery -15 years

b. Furniture and fixtures - JO years

c. Office Equipment - 5 ye^rs

d. Computers - 3 years

e. Vehicles - 6 years

f. Electrical Installation -10 years

g. Goodwill -10 years

Based on the internal assessment, the Management believes that the useful lives of the assets as given
above best represents the period over which the Management expects to use these assets. Hence, the
useful life of the assets is different from the useful life as prescribed under Part C of Schedule II of the
Companies Act, 2013.

h) Impairment

Consideration is given at each balance sheet date to determine whether there is any indication of
impairment of the carrying amount of the Company''s property, plant and equipment. If any indication
exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying
amount of an asset exceeos it''s recoverable. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value based on an appropi iate discount factor.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the
impairment losses recognized for the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not
exceed the carrying amount that would have been determined (net of depreciation) had no impairment

loss been recognized for the asset in prior period.

i) Income Tax

Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance
with Indian Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences
between carrying values of the assets and liabilities and their respective tax basis. Deferred tax assets are
recognized subject to management''s judgment that realization is more likely than not. Deferred Tax Assets
or Liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The effect on
deferred tax assets or liabilities of a change in tax rates is recognized in the period of enactment of the
change.

i) Employee Benefits

Employee benefits induce provident fund, gratuity fund, compensated absences, post-employment
benefits and long service awards.

a) Short -term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short
term employee benefits. Benefits such as salaries, wages performance incentives etc. are recognised at
actual amounts due in the period in which the employee renders the related service.

b) Post- employment benefits
Defined Benefits Plans

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the
Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date.
Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they
occur. Past service cost is recognised immediately to the extent that the benefits are already vested and
otherwise is amortised or. a straight-line basis over the average period until the benefits become vested.
The retirement benefit obligation recognised in the Balance Sheet represents the present value of the
defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of
scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present
value of available refunds and reductions in future contributions to the schemes.

The eligible employees of the Company are entitled to receive benefits under the Provident Fund wherein
both employees and the Company make monthly contributions at a specified percentage of the covered
employee''s salary or specified amount as the case may be. The Contributions as specified under the law

are made to Regional Pro\ .dent Fund Commissioner and are recognised as an expense in the Statement of
Profit & Loss.

c) Other Long- term employee benefits

The Company treats accumulated leave expected to be carried forward beyond 12 months, as long-term
employee benefit for measurement purposes.

Such long-term compensated absences are provided for based on the actuarial valuation using the
projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred.

k) Foreign Currency Transaction and Translations

i) Initial Recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the

transaction.

ii) Measurement of foreign c urrency monetary items at the Balance Sheet date

Foreign currency moneta;y items (other than derivative contracts) of the Company outstanding at the
Balance Sheet date are restated at the year-end rates.

iii) Treatment of exchange differences

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets
and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

I) Lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with
the lessor are recognised as operating leases. Lease rentals under operating leases are recognised on
accrual basis in accordance with the respective lease agreements.

Operating lease: Rentals are expensed out on a straight line basis with reference to the lease terms and
other considerations.