Accounting Policies of Richa Info Systems Ltd. Company

Mar 31, 2025

Note: -1 Significant accounting policies:

1.0 Corporate Information

RICHA INFOSYSTEMS LIMITED is a Limited Company, incorporated under the provisions of Companies Act, 2013
and having CIN: L30007GJ2010PLC062521. The Company is engaged in assembling of innovative products and
systems Integrator of multifaceted solutions of products like Interactive Flat Panel, Interactive Board, Digital
Podium, Digital Kiosk, CCTV Cameras in sectors like Government, PSUs, Education, etc. The registered office
address of the Company is 101, Shalin Complex, Opp. President hotel, Sector-11, Gandhinagar, Gujarat, India.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally Accepted
Accounting Principles in India ("Indian GAAP"). Indian GAAP comprises mandatory accounting standards as
prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with the Rule 7 of the Companies
(Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the
Historical Cost Convention, and the Companies (Accounting Standards) Amendment Rules 2016 and the
relevant provisions of the Companies Act, 2013.

b. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the Management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions affects the
application of accounting policies and the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of financial statement and reported amounts of revenue and
expenses during the period. Accounting estimates could change form period to period. Actual result could differ
from those estimates. As soon as the Management is aware of the changes, appropriate changes in estimates
are made. The effect of such changes are reflected in the period in which such changes are made and, if
material, their effect are disclosed in the notes to financial statement.

c. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s Normal
Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve
months after the reporting date.

All other assets and liabilities are classified as non-Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has ascertained
its operating cycle as twelve months. This is based on the nature of services and the time between the
acquisition of the assets or liabilities for processing and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparation

a) Presentation and Disclosure of Standalone Financial Statements

These standalone financial statements have been prepared as per "Schedule - III" notified under the Companies
Act, 2013. The Company has also reclassified / regrouped / restated the previous year figures in accordance
with the requirements applicable in the current year.

b) Property, Plant & Equipment and Intangible Assets: -

i. The company has adopted Cost Model to measure the gross carrying amount of fixed assets.

ii. Tangible Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost includes the
purchase price and all other attributable costs incurred for bringing the asset to its working condition for
intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and customization thereof less
accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed as Intangible Assets
under Development.

c) Depreciation / Amortization: -

Depreciation has been provided under Written Down Value Method at the rates prescribed under schedule II of
the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more appropriate preparation or
presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided at the rates prescribed
under Schedule II.

Intangible assets being Software are amortized over a period of its useful life on a straight line basis,
commencing from date the assets is available to the company for its use.

d) Impairment of Assets: -

An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value. An impairment
loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The
impairment loss recognised in prior period is reversed if there has been a change in the estimate of the
recoverable amount.

e) Investments:-

• Long term investments are stated at cost. Provision for diminution in the value of long term
investment is made only if such decline is other than temporary.

• Current investments are stated at lower of cost or market value. The determination of carrying
amount of such investment is done on the basis of spedfic identification.

dJRetirement Benefits:-

a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are classified as short
term benefits. Such benefits include salaries, wages, bonus, short term compensated absences,
awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the
employee renders the related service.

b) Employment Benefits:

i) Defined Contribution Plans:

The company has Defined Contribution Plans for post-employment benefit in the form of Provident
Fund which are administered by the Regional Provident Fund Commissioner. Provident Fund are
classified as defined contribution plans as the company has no further obligation beyond making
contributions. The company''s contributions to defined contribution plans are charged to the
Statement of Profit and Loss as and when incurred.

ii) Defined Benefit Plans:

a) Provident Fund :

Provident fund is a defined contribution scheme as the company pays fixed contribution at pre¬
determined rates. The obligation of the company is limited to such fixed contribution. The
contributions are charged to Profit & Loss A/c.

b) Gratuity:

The Management has decided to apply pay-as-you-go method of gratuity provision. So gratuity will
be accounted in the Profit & Loss A/c in the financial year in which the employee retires and
provision will not be made on yearly basis and charged to the profit and loss accounts on the basis of
actual payment.

c) Leave Encashment:

The Management has decided to apply pay-as-you-go method for payment of leave encashment. So
amount of leave encashment will be accounted in the Profit & Loss A/c in the financial year in which
the employee retires and provision will not be made on yearly basis and charged to the profit and loss
account on the basis of actual payment.

g) Revenue Recognition:-

Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the
Company in ordinary course of its activities and the amount of revenue can be measured reliably, regardless of
when the payment is being made. Revenue is measured at the fair value of consideration received or
receivable, taking into the account contractually defined terms of payments, net of its returns, trade discounts
and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received and
receivable by the Company, on its own account. Amount collected on behalf of third parties such as sales tax,
value added tax and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat,
GST and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the
rate applicable i.e. on the basis of matching concept. Other items of Income are accounted as and when the
right to receive arises.

h) Borrowing Cost

Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of ancillary costs
incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying property, plants
and equipment''s are capitalized as a part of cost of that property, plants and equipment''s. The amount of
borrowing costs eligible for capitalization is determined in accordance with the Accounting Standards - 16
"Borrowing Costs". Other Borrowing Costs are recognized as expenses in the period in which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from foreign currency
borrowings to the extent that they are regarded as adjustments to interest costs are recognized as Borrowing
Costs, and are capitalized as a part of cost of such property, plants and equipment''s if they are directly
attributable to their acquisition or charged to the Standalone Statement or Profit and Loss.

i) Related Party Disclosure

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the
Accounting Standard are given in notes of accounts.

j) Accounting for Leases :•

A lease is classified at the inception date as finance lease or an operating lease. A lease that transfers
substantially all the risk and rewards incidental to the ownership to the Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged to the Standalone Statement of
Profit and Loss on a Straight line basis over the term of the relevant lease.

b) Finance Lease:- Finance lease are capitalized at the commencement of the lease, at the lower of the fair
value of the property or the present value of the minimum lease payments. The corresponding liability to the
lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between
finance charges and the reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged directly against the income over the period of
the lease.

The Company has not provided any of its assets on the basis of operating lease or finance lease to others.

k) Cashflow:-

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals of past or future cash receipts and payments. The cash
flows from regular operating, investing and financing activities of the company are segregated.

l) Earnings Per Share :-

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard
20, "Earnings per Share". Basic EPS is computed by dividing the Net Profit or Loss attributable to the Equity
Shareholders for the year by the weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year
by the weighted average number of Equity Shares outstanding during the year as adjusted for the effects of all
potential Equity Shares, except where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for events such a
Bonus Issue, Bonus elements in right issue, share splits, and reverse share split (consolidation of shares) that
have changed the number of Equity Shares outstanding, without a corresponding change in resources.

m) Taxes on Income :-

1. Current Tax:-

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the
Income Tax Act, 1961.

2. Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet
date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary differences to theextent that it is
probable that taxable profit will be available in the future against which this items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the
period when the assets is realized or the liability is settled, based on tax rates ( and The tax) that have
been enacted or enacted subsequent to the balance sheet date.

n) Discontinuing Operations

During the year the company has not discontinued any of its operations.

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Mar 31, 2024

Note: -1 Significant accounting policies:

1.0 Corporate Information

RICHA INFOSYSTEMS LIMITED is a Limited Company, incorporated under the provisions of Companies Act, 2013
and having CIN: L30007GJ2010PLC062521. The Company is engaged in assembling of innovative products and
systems Integrator of multifaceted solutions of products like Interactive Flat Panel, Interactive Board, Digital
Podium, Digital Kiosk, CCTV Cameras in sectors like Government, PSUs, Education, etc. The registered office
address of the Company is 101, Shalin Complex, Opp. President hotel, Sector-11, Gandhinagar, Gujarat, India.

1.1 Basis of preparation of financial statements

a. Accounting Convention: •

These financial statements of the Company have been prepared in accordance with Generally Accepted
Accounting Principles in India ("Indian GAAP"). Indian GAAP comprises mandatory accounting standards as
prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with the Rule 7 of the Companies
(Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the
Historical Cost Convention, and the Companies (Accounting Standards) Amendment Rules 2016 and the
relevant provisions of the Companies Act, 2013.

b. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the Management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions affects the
application of accounting policies and the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of financial statement and reported amounts of revenue and
expenses during the period. Accounting estimates could change form period to period. Actual result could differ
from those estimates. As soon as the Management is aware of the changes, appropriate changes in estimates
are made. The effect of such changes are reflected in the period in which such changes are made and, if
material, their effect are disclosed in the notes to financial statement.

c. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s Normal
Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve
months after the reporting date.

All other assets and liabilities are dassified as non-Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has ascertained
its operating cycle as twelve months. This is based on the nature of services and the time between the
acquisition of the assets or liabilities for processing and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparation

a) Presentation and Disclosure of Standalone Financial Statements

These standalone financial statements have been prepared as per "Schedule - III" notified under the Companies
Act, 2013. The Company has also reclassified / regrouped / restated the previous year figures in accordance
with the requirements applicable in the current year.

b) Property, Plant & Equipment and Intangible Assets: -

i. The company has adopted Cost Model to measure the gross carrying amount of fixed assets.

ii. Tangible Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost includes the
purchase price and all other attributable costs incurred for bringing the asset to its working condition for
intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and customization thereof less
accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed as Intangible Assets
under Development.

c) Depreciation / Amortization: -

Depreciation has been provided under Written Down Value Method at the rates prescribed under schedule II of
the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more appropriate preparation or
presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided at the rates prescribed
under Schedule II.

Intangible assets being Software are amortized over a period of its useful life on a straight line basis,
commencing from date the assets is available to the company for its use.

d) Impairment of Assets: -

An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value. An impairment
loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The
impairment loss recognised in prior period is reversed if there has been a change in the estimate of the
recoverable amount.

e) Investments:-

• Long term investments are stated at cost. Provision for diminution in the value of long term
investment is made only if such decline is other than temporary.

• Current investments are stated at lower of cost or market value. The determination of carrying
amount of such investment is done on the basis of sperific identification.

f) Retirement Benefits:-

a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are classified as short
term benefits. Such benefits include salaries, wages, bonus, short term compensated absences,
awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the
employee renders the related service.

b) Employment Benefits:

i) Defined Contribution Plans:

The company has Defined Contribution Plans for post-employment benefit in the form of Provident
Fund which are administered by the Regional Provident Fund Commissioner. Provident Fund are
classified as defined contribution plans as the company has no further obligation beyond making
contributions. The company''s contributions to defined contribution plans are charged to the
Statement of Profit and Loss as and when incurred.

ii) Defined Benefit Plans:

a) Provident Fund:

Provident fund is a defined contribution scheme as the company pays fixed contribution at pre¬
determined rates. The obligation of the company is limited to such fixed contribution. The
contributions are charged to Profit & Loss A/c.

b) Gratuity:

The Management has decided to apply pay-as-you-go method of gratuity provision. So gratuity will
be accounted in the Profit & Loss A/c in the financial year in which the employee retires and
provision will not be made on yearly basis and charged to the profit and loss accounts on the basis of
actual payment.

c) Leave Encashment:

The Management has decided to apply pay-as-you-go method for payment of leave encashment. So
amount of leave encashment will be accounted in the Profit & Loss A/c in the financial year in which
the employee retires and provision will not be made on yearly basis and charged to the profit and loss
account on the basis of actual payment.

g) Revenue Recognition:-

Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the
Company in ordinary course of its activities and the amount of revenue can be measured reliably, regardless of
when the payment is being made. Revenue is measured at the fair value of consideration received or
receivable, taking into the account contractually defined terms of payments, net of its returns, trade discounts
and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received and
receivable by the Company, on its own account. Amount collected on behalf of third parties such as sales tax,
value added tax and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat,
GST and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the
rate applicable i.e. on the basis of matching concept. Other items of Income are accounted as and when the
right to receive arises.

h) Borrowing Cost

Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of ancillary costs
incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying property, plants
and equipment''s are capitalized as a part of cost of that property, plants and equipment''s. The amount of
borrowing costs eligible for capitalization is determined in accordance with the Accounting Standards - 16
"Borrowing Costs". Other Borrowing Costs are recognized as expenses in the period in which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from foreign currency
borrowings to the extent that they are regarded as adjustments to interest costs are recognized as Borrowing
Costs, and are capitalized as a part of cost of such property, plants and equipment''s if they are directly
attributable to their acquisition or charged to the Standalone Statement or Profit and Loss.

i) Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the
Accounting Standard are given in notes of accounts.

j) Accounting for Leases

A lease is classified at the inception date as finance lease or an operating lease. A lease that transfers
substantially all the risk and rewards incidental to the ownership to the Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged to the Standalone Statement of
Profit and Loss on a Straight line basis over the term of the relevant lease.

b) Finance Lease:- Finance lease are capitalized at the commencement of the lease, at the lower of the fair
value of the property or the present value of the minimum lease payments. The corresponding liability to the
lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between
finance charges and the reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged directly against the income over the period of
the lease.

The Company has not provided any of its assets on the basis of operating lease or finance lease to others.

k) Cashflow:-

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals of past or future cash receipts and payments. The cash
flows from regular operating, investing and financing activities of the company are segregated.

l) Earnings Per Share :-

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard
20, "Earnings per Share". Basic EPS is computed by dividing the Net Profit or Loss attributable to the Equity
Shareholders for the year by the weighted average number of equity shares outstanding during the year.
Diluted EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year
by the weighted average number of Equity Shares outstanding during the year as adjusted for the effects of all
potential Equity Shares, except where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for events such a
Bonus Issue, Bonus elements in right issue, share splits, and reverse share split (consolidation of shares) that
have changed the number of Equity Shares outstanding, without a corresponding change in resources.

m) Taxes on Income :-

1. Current Tax:-

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the
Income Tax Act, 1961.

2. Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet
date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary differences to theextent that it is
probable that taxable profit will be available in the future against which this items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the
period when the assets is realized or the liability is settled, based on tax rates ( and The tax) that have
been enacted or enacted subsequent to the balance sheet date.

n) Discontinuing Operations

During the year the company has not discontinued any of its operations.