Accounting Policies of Popular Foundations Ltd. Company

Mar 31, 2025

a. Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention on an accrual
basis, in accordance with the generally accepted accounting principles in India and the
accounting standards as notified under the Companies (Accounting Standards) Rules, 2015.

b. 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 revenue and expenses for the year, reported balances of
assets and liabilities and disclosures relating to contingent assets and liabilities as at the date
of the financial statements. Actual results could differ from those estimates. Any revision to
accounting estimates is recognized prospectively in current and future years.

c. Revenue recognition

Contract income other income is recognized on an accrual basis.

d. Fixed Assets:

Tangible Fixed Assets are stated at cost, net of tax / duty credits availed, less
accumulated depreciation / impairment losses, if any. Cost includes original cost of
acquisition, including incidental expenses related to such acquisition and installation.

e. Depreciation / Amortization:

Depreciation on fixed assets has been provided as per Schedule II of the
Companies Act, 2013.

Impairment of Assets:

At each balance sheet date, the Company assesses whether there is any indication that
an asset may be impaired, based on internal or external factors. If any such indication exists,
the Company estimates the recoverable amount of the asset or the cash generating unit. If
such recoverable amount of the asset or cash generating unit to which the asset belongs is
less than its carrying amount, the carrying amount is reduced to its recoverable amount.
The reduction is treated as an impairment loss and is recognised in the Profit and Loss
Account. If, at the balance sheet date there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is
reflected at the reassessed recoverable amount. Impairment losses previously recognized
are accordingly reversed.

f. Inventories

are valued at cost or net realizable value, whichever is lower.

g. Earnings per share

Basic earnings per share are computed using the weighted average number of equity-
shares outstanding during the year. Diluted earnings per share are computed using
the weighted average number of equity and dilutive potential equity shares outstanding
during the year.

h. Taxation

Income-tax expense comprises current tax (i.e. amount of tax for the year
determined in accordance with the income-tax laws) and deferred tax charge or credit
(reflecting the tax effects of timing differences between accounting income and taxable
income for the year). The deferred tax charge or credit and the corresponding
deferred tax liabilities and or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred tax assets are
recognized only to the extent there is reasonable certainty that such assets can be realized
in future, however, where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization
of such assets.