Notes to Accounts of Seshaasai Technologies Ltd.

Mar 31, 2024

1.9 Provisions, contingent liabilities and contingent assets
Provisions

Provisions are recognised 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. The expense relating to a provision is presented in the statement of profit and loss.
Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond
the control of the Company or a present obligation that is not recognised because it is not probable
that an outflow of resources will be required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be recognised because it cannot be
measured reliably. The Company does not recognise a contingent liability but discloses its existence
in the financial statements.

Contingent Assets

Contingent Assets are disclosed, where an inflow of economic benefits is probable.

1.10 Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and at bank (in current accounts) and term
deposits maturing within 3 months from the date of deposit. Term deposits maturing beyond 3
months, earmarked balances with banks and deposits held as margin money or security against
Bank guarantees, LC, borrowings etc. have not been considered as Cash and Cash Equivalents.

1.11 Statement of Cash Flows

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, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

1.12 Revenue Recognition
Revenue from Operations

The Company derives revenues primarily from Sale of Products and services including manufacturing
and trading.

Revenue is measured based on the consideration that is specified in a contract with a customer
or is expected to be received in exchange for the products or services and excludes amounts
collected on behalf of third parties. Revenue is recognized upon transfer of control of promised
products or services to customers. To recognize revenues, the Company applies the following five
step approach:

(1) Identify the contract with a customer,

(2) Identify the performance obligations in the contract,

(3) Determine the transaction price,

(4) Allocate the transaction price to the performance obligations in the contract, and

(5) Recognize revenues when a performance obligation is satisfied.

The revenue is recognised when (or as) the performance obligation is satisfied, which typically
occurs when (or as) control over the products or services is transferred to a customer.

Contract modifications are accounted for when additions, deletions or changes are approved either
to the contract scope or contract price. The accounting for modifications of contracts involves

assessing whether the products/services added to an existing contract are distinct and whether
the pricing is at the standalone selling price. Products/Services added that are not distinct are
accounted for on a cumulative catch-up basis, while those that are distinct are accounted for
prospectively, either as a separate contract, if the additional products/services are priced at the
standalone selling price, or as a termination of the existing contract and creation of a new contract
if not priced at the standalone selling price.

Revenue is recognized upon transfer of control of promised products or services to customers
in an amount that reflects the consideration the Company expect to receive in exchange for those
products or services. Revenue is disclosed net of Goods and Service Tax in the statement of profit
and loss.

The Company accounts for rebates/discounts to customers as a reduction of revenue based on
the underlying performance obligation that corresponds to the progress by the customer towards
earning the rebate/discount. The company accounts for the liability based on its estimates of future
timely receipts of the billed and unbilled revenue. If it is probable that the criteria for rebate/discount
will not be met , or if the amount thereof cannot be estimated reliably , then rebate/discount in not
recognised until the payment is probable and amount can be estimated reliably. Such rebates/
discounts are accounted as the reduction from the revenue.

Interest Income

Interest Income from a financial asset is recognized using the effective interest method. Interest on
refund of Income Tax is accounted in the year of receipt.

Other Income

Lease income is recognised in the manner mentioned in sub note1.4 above.

Difference in Exchange rates recognised as income, in the manner mentioned in sub note 1.13 below.
Bad debts recovered considered as income, in the year, the same is being recovered. Claims received
is accounted in the year of receipt.

Dividend Income is recognized when the Company''s right to receive the payment has been established.
Government grants and subsidies are accounted when there is reasonable assurance that the
Company will comply with the conditions attached to them and it is reasonably certain that the ultimate
collection will be made. Capital grants relating to specific fixed assets are reduced from the gross value
of the respective fixed assets. Revenue grants are recognised in the Statement of Profit and Loss. Export
benefits available under prevalent schemes are accrued in the year in which the goods are exported
and there is no uncertainty in receiving the same.

1.13 Foreign Exchange Transactions

Transactions in foreign currencies are translated into the functional currency of the Group at
exchange rates at the date of transactions or an average rate if the average rate approximates the
actual rate at the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date. Foreign Exchange gains and losses
resulting from the settlement of such transactions and from the translation of monetary-assets
and liabilities denominated in foreign currency at year / period end exchange rate are generally
recognised in profit or loss.

Non-monetary assets and liabilities that are measured at fair value in a foreign currency are

translated into the functional currency at the exchange rate when the fair value was determined.
Non-monetary assets and liabilities that are measured based on historical cost in foreign currency
are translated at the exchange rate at the date of transaction. Exchange differences are recognised
in the profit or loss, except exchange differences arising from the translation of qualifying cash flow
hedges to the extent hedges are effective which are recognised in Other Comprehensive Income
(OCI)

1.14 Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign
currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred
in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or
construction of an asset which necessarily take a substantial period of time to get ready for their
intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised
as an expense in the period in which they are incurred.

(i) Commencement of capitalization

Capitalisation of borrowing cost as part of the cost of a qualifying asset shall begin on the
commencement date. The commencement date for capitalisation is the date when the entity
first meets all of the following conditions:

a. it incurs expenditures for the asset;

b. it incurs borrowing costs; and

c. it undertakes activities that are necessary to prepare the asset for its intended use or sale.

(ii) Cessation of capitalisation

Cessation of capitalisation shall happen when substantially all the activities necessary to
prepare the qualifying asset for its intended use or sale are complete.

Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.15 Share Capital and Share Premium, Dividend Distribution to Equity Shareholders:

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.

The Company recognizes a liability to make cash distributions to equity holders when the
distribution is authorized and the distribution is no longer at the discretion of the Company. A
distribution is authorized when it is approved by the shareholders. A corresponding amount is
recognized directly in other equity along with any tax thereon.

1.16 Earnings per share

Basic earnings per equity share is calculated by dividing the net profit or loss after tax (before
considering other comprehensive income) for the year attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year.

Diluted earnings per equity share, if any, is computed by dividing the net profit or loss for the year
as adjusted for dividend, interest and other charges to expense or income relating to the dilutive
potential equity shares, by the weighted average number of equity shares and dilutive potential
equity share outstanding during the period except when the results would be anti-dilutive.

1.17 Regrouping of Previous Year''s figures

The Company has adopted the policy of regrouping certain figures for the purpose of better
presentation and/or to comply with the amended Indian Accounting Standards and Schedule III, if
any, both for the current and comparative period.

1.18 Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year
ended March 31, 2024, MCA has not notified any new standards or amendments to the existing
standards applicable to the Company.