Accounting Policies of Spectrum Talent Management Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING:

The Financial Statements are prepared on accrual basis under
historical cost convention in accordance with the generally
accepted accounting principles in India, the Accounting
Standards prescribed in the Companies (Accounting
Standard) Rules, 2021 and provisions of the Companies Act,
2013. The financial statements are presented in Indian Rupees
("Rs.") and all amounts are rounded to the nearest millions,
except as stated otheriwse.

All assets and liabilities have been classified as current or non¬
current, wherever applicable, as per the normal operating
cycle of the company as set out in the Schedule III to the
Companies Act, 2013.

b) USE OF ESTIMATES

The preparation of financial statements in conformity with
generally accepted accounting principles requires estimates/
assumption to be made that affect the reported amount of
assets and liabilities on the date of financial statements and
the reported amount of revenues and expenses during the
reporting period. Difference between actual results and
estimates are recognised in the period in which the results
are known/ materialised.

PROPERTY PLANT & EQUIPMENT:

i) Tangible Assets are stated at cost of acquisition or
construction less accumulated depreciation. Cost
includes purchase price and all other attributable cost
of bringing the assets to working condition for intended
use.

ii) Intangible Assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment loss.

iii) Capital Work in Progress (CWIP) represents costs
incurred on assets under construction or development
that are not yet ready for their intended use. It is
carried at cost at balance sheet date and will not be
depreciated. Once the asset is ready for its intended use,
the accumulated costs are capitalized to the appropriate
category of Property, Plant and Equipment (PPE) and
depreciation commences from the date the asset is
available for use.

iv) Intangible Assets Under Development: Research
costs are expensed as incurred. Software product
development costs are expensed as incurred unless
technical and commercial feasibility of the project is
demonstrated, future economic benefits are probable,
the company has an intention and ability to complete and
use or sell the software and the costs can be measured
reliably. Once the criteria are met, such expenditure is
capitalized as Intangible Asset Under Development.
These costs are accumulated and presented separately
under intangible assets until the asset is completed.
Upon completion and when the asset is available for use,
the asset is transferred to the respective intangible asset
class and amortized over its estimated useful life on a
systematic basis. No amortization is charged during the
development phase.

DEPRECIATION AND AMORTIZATION

i) Depreciation on property plant and equipment is
calculated using straight line method to allocate their
cost, net of their residual values, over their estimated
useful lives. Depriciation on addition/sale is provided on
Pro-rata basis with reference to the month of addition/
sale. The useful lives estimated for the major class of
property, plant and equipments are as follows:

The useful life has been determined based on the
technical evalation done by the company, which in case
are different then the lives as specified by Schedule II of
the Companies Act, 2013.

NOTES TO THE ACCOUNTS

During the financial year 2023-24, company has changed
the method of depreciation from Written down value
method to Straight-line method and the changed
the useful life of Equipment and Facilities. The above
mentioned changes have been account for in the books
of accounts by the company as a changes in accounting
estimates.

(ii) Intangible assets are amortized over the period of useful
life of the assets as estimated by the management.

e) INVESTMENTS

Non Current investments are carried at acquisition cost and
investments intended to be held for less than one year are
classified as current investments and are carried at lower of
cost and market value. Non-Current Investments which have
attained the stage of permanent diminution in their value are
revalued at their current value.

f) INVENTORIES :

a) Traded Goods

At Lower of cost and Net realizable value. The cost
of inventories comprise all cost of purchase, cost of
commission apportioned on the basis of total purchase
and other cost incured in bringing the inventories to
their present location and condition.

b) Packaging Material

Packaging material is expensed off in Statement of Profit
and Loss as and when it incured.

g) REVENUE FROM OPERATION

i) Revenue in respect of the Manpower supply, recruitment

and related service provided is accounted on accrual
basis except where the receipt of income is uncertain.

ii) Sale (Export) of goods is recognised at the point of arrival
at the destination port and Sale (domestic) of goods is
recognised at the point of disptach to the buyer.

iii) Revenue in respect of export incentives is recognised on
accrual basis in the period in which related exports have
been made.

iv) Interest on Loan is recognized on a time proportion
basis taking into account the amount outstanding and
the applicable interest rate.

v) Other Income is accounted on accrual basis.

) EMPLOYEE BENEFITS

(i) Short Term Employee benefits

All employee benefits payable within twelve months
of rendering the service are classified as short term
employee benefits. Such short term employee benefits
are recognised at the undiscounted amounts due in
the period in which the employee renders the related
service.

(ii) Defined Contribution Plans

Under a defined contribution plan, the company only
obligation is to pay a fixed amount with no obligation
to pay further contributions if the fund does not hold
sufficient assets to pay all employee benefits. The
company makes specified monthly contributions
towards Employee Provident Fund and ESIC Fund to
Government administered Provident Fund Scheme
which is a defined contribution plan. The expenditure
for defined contribution plan is recognised as expense
during the period when the employee provides service.

(iii) Compensated Absences

The employees of the company are entitled to
compensated absences.The employees can carry forward
a portion of the unutilised accumulating compensated
absences and utilise it in future periods. The company
records an obligation for compensated absences in the
period in which the employee renders the services that
increases this entitlement. The obligation is determined
by actuarial valuation performed by an independent
actuary at each balance sheet date using projected unit
credit method.

Accumulated compensated absences, which are
expected to be availed or encashed within 12 months
from the end of the year end are treated as short term
employee benefits.

(iv) Defined Benefit Plans:

Provision for Gratuity is determined on the actuarial
valuation carried out at the balance sheet date in
accordance with the provisions of Accounting Standard
15. Actuarial gains and losses are recognised in the
Statement of Profit & Loss.

i) SHARE BASED PAYMENTS

Equity instruments granted to the employees of the Company
are measured by reference to the fair value of the instrument
at the date of grant. The expense is recognised in the
statement of profit and loss with a corresponding increase in
stock options outstanding account. The equity instruments
generally vest in a graded manner over the vesting period.
The fair value determined at the grant date is expensed off
over the vesting period of the respective tranches of such
grants. The stock compensation expense is determined
based on the Company''s estimate of equity instruments that
will eventually vest.

j) TAXES ON INCOME

a) Current Tax is determined as the amount of tax payable
in respect of taxable income for the year.

b) Deferred Tax is recognised, subject to consideration of
prudence, in respect of deferred tax Assets/Liabilities
arising on timing differences, being the difference
between taxable income and accounting income that
originate in one period and are capable of reversal in one
or more subsequent period.

k) EARNINGS PER SHARE

The Basic earnings per share ("EPS") is computed by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss
for the year attributable to equity shareholders and the
weighted average number of equity shares outstanding
during the year are adjusted for the effects of all dilutive
potential equity shares.

l) FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currency are recorded at the
exchange rate prevailing at the time of transaction. All
trade debtors and creditors related to foreign currency
transaction outstanding at the year end are translated at
exchange rates prevailing at the year end. The resultant
translation differences are recognised in the Profit & Loss
Account.

b) In respect of Forward Exchange Contracts, the difference
between the forward rate and the spot rate as on closing
date will be recognised as income or expense in the
Statement of Profit & Loss Account.

m) IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in
Accounting Standard -28 is recognised whenever carrying
value of such assets exceeds the market value or value in use,
whichever is higher.

n) GOVERNMENT GRANTS

Government Grants available to the company are recognised
in the books of accounts when:

i) there is reasonable assurance that the company will
comply with the conditions attached to them; and

ii) where such benefits have been earned by the company,
it is reasonably certain that the ultimate collection will
be made.

Government grants related to revenue are recognized on a
systematic basis in the statement of profit and loss and are
shown as net of expense incurred.

---

Mar 31, 2024

2) SIGNIFICANT ACCOUNTING POLICIES

(a) BASIS OF ACCOUNTING:

The Financial Statements are prepared on accrual basis under historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2021 and provisions of the Companies Act, 2013. The financial statements are presented in Indian Rupees ("Rs.") and all amounts are rounded to the nearest millions, except as stated otheriwse.

All assets and liabilities have been classified as current or non-current, wherever applicable, as per the normal operating cycle of the company as set out in the Schedule III to the Companies Act, 2013.

(b) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates/ assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount

of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

(c) PROPERTY PLANT & EQUIPMENT

i) Property, Plant & Equipment are stated at cost of acquisition or construction less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

ii) Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment loss.

(d) DEPRECIATION AND AMORTIZATION

i) Depriciation on property plant and equipment is calculated using straight line method to allocate their cost, net of their residual values, over their estimated useful lives. Depriciation on addition/sale is provided on Pro-rata basis with reference to the month of addition/sale. The useful lives estimated for the major class of property, plant and equipments are as follows:

The useful life has been determined on the based on technical evalation done by the company, which in case are different then the lives as specified by Schedule II of the Companies Act, 2013.

During the financial year 2023-24, company has changed the method of depriciation from Written down value method to Straight-line method and the changed the useful life of Equipment and Facilities. The above mentioned changes have been account for in the books of accounts by the company as a changes in accounting estimates.

(ii) Intangible assets are amortized over the period of useful life of the assets as estimated by the management.

(e) INVESTMENTS

Non Current investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Non-Current Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

(f) INVENTORIES :

a) Traded Goods

At Lower of cost and Net realizable value. The cost of inventories comprise all cost of purchase, cost of commission apportioned on the basis of total purchase and other cost incured in bringing the inventories to their present location and condition.

b) Packaging Material

Packaging material is expensed off in Statement of Profit and Loss as and when it incured.

(g) REVENUE FROM OPERATION

i) Revenue in respect of the Manpower supply, recruitment and and related service provided is accounted on accrual basis except where the receipt of income is uncertain.

ii) Sale (Export) of goods is recognised at the point of arrival at the destination port and Sale (domestic) of goods is recognised at the point of disptach to the buyer.

iii) Revenue in respect of export incentives is recognised on accrual basis in the period in which related exports have been made.

iv) Interest on Loan is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

v) Other Income is accounted on accrual basis.

(h) EMPLOYEE BENEFITS

i) Short Term Employee benefits

All employee benefits payable within twelve months of rendering the service are classified as short term employee benefits. Such short term employee benefits are recognised at the undiscounted amounts due in the period in which the employee renders the related service.

ii) Post Employee benefits Defined Contribution Plans:

Payments made to defined contribution plans such as

Provident and Other Funds are charged as an expense as they fall due.

Defined Benefit Plans:

Provision for Gratuity and Leave pay is determined on the actuarial valuation carried out at the balance sheet date in accordance with the provisions of Accounting Standard 15. Actuarial gains and losses are recognised in the Statement of Profit & Loss.

(i) TAXES ON INCOME

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

(j) EARNINGS PER SHARE

The Basic earnings per share ("EPS") is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(k) FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. All trade debtors and creditors related to foreign currency transaction outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognised in the Profit & Loss Account.

b In respect of Forward Exchange Contracts, the difference between the forward rate and the spot rate as on closing date will be recognised as income or expense in the Statement of Profit & Loss Account.

(i) IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in Accounting Standard -28 is recognised whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.

(m) GOVERNMENT GRANTS

Government Grants available to the company are recognised in the books of accounts when:

i) there is reasonable assurance that the company will comply with the conditions attached to them; and

ii) where such benefits have been earned by the company, it is reasonably certain that the ultimate collection will be made.

Government grants related to revenue are recognized on a systematic basis in the statement of profit and loss and are shown as net of expense incurred.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES AND OTHER NOTES TO THE ACCOUNTS :

1) CORPORATE INFORMATION

Spectrum Talent Management Limited (formerly known as "Spectrum Talent Management Private Limited") was originaly incorporated as a private limited company on May 09th, 2012 with Company Identification No.: U51100DL2012PTC235573 and converted into a public company on January 04th, 2023 with Company Identification No.: U51100DL2012PLC235573.

The company is engaged in the business of "Manpower supply, Recruitment and related services" and " Trading of Electronic Goods". The company has its registered office at B-46, Retreat Apartments, 20 I P Extension, Delhi 110092 IN and Head office at C-142, Sector-63, Noida 201301 IN.

The Company has completed Initial Public Offering (IPO) of its Equity Shares and its equity shares got listed on SME platform of NSE Limited ("NSE Emerge") on 22nd June, 2023.

2) SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING:

The Financial Statements are prepared on accrual basis under historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2021 and provisions of the Companies Act, 2013. The financial statements are presented in Indian Rupees ("''") and all amounts are rounded to the nearest millions, except as stated otheriwse.

All assets and liabilities have been classified as current or non-current, wherever applicable, as per the normal operating cycle of the company as set out in the Schedule III to the Companies Act, 2013.

b) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates/ assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

c) PROPERTY PLANT & EQUIPMENT:

i) Property, Plant & Equipment are stated at cost of acquisition or construction less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

ii) Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment loss.

d) DEPRECIATION AND AMORTIZATION

(i) Depreciation on Property, Plant and Equipment is accounted on Written Down Value at the rates determined based on the basis of the useful life of the assets perscribed in Schedule II of the Companies Act, 2013.

(ii) Intangible assets are amortized over the period of useful life of the assets as estimated by the management.

e) INVESTMENTS

Non Current investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Non-Current Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

f) INVENTORIES :

a)	Traded Goods	At Lower of cost and Net realizable value. The cost of inventories comprise all cost of purchase, cost of conversion and other cost incured in bringing the inventories to their present location and condition.
b)	Packaging Material	Packaging material is expensed off in Statement of Profit and Loss as and when it has been purchased.

g) REVENUE FROM OPERATION

i) Revenue in respect of the Manpower supply, recruitment and related service provided is accounted on accrual basis except where the receipt of income is uncertain.

ii) Sale (Export) of goods is recognised at the point of arrival at the destination port and Sale (domestic) of goods is recognised at the point of disptach to the buyer.

iii) Revenue in respect of export incentives is recognised on accrual basis in the period in which related exports have been made.

iv) Interest on Loan is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

v) Other Income is accounted on accrual basis.

h) EMPLOYEE BENEFITS

(i) Short Term Employee benefits

All employee benefits payable within twelve months of rendering the service are classified as short term employee benefits. Such short term employee benefits are recognised at the undiscounted amounts due in the period in which the employee renders the related service.

(ii) Post Employee benefits

Defined Contribution Plans:

Payments made to defined contribution plans such as Provident and Other Funds are charged as an expense as they fall due.

Defined Benefit Plans:

Provision for Gratuity and Leave Pay is determined on the actuarial valuation carried out at the balance sheet date in accordance with the provisions of Accounting Standard 15. Actuarial gains and losses are recognised in the Statement of Profit & Loss.

i) TAXES ON INCOME

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) EARNINGS PER SHARE

The Basic earnings per share ("EPS") is computed by

dividing the net profit or loss for the year attributable

to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

k) FOREIGN CURRENCY TRANSACTIONS

a) Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. All trade debtors and creditors related to foreign currency transaction outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognised in the Profit & Loss Account.

b) In respect of Forward Exchange Contracts, the difference between the forward rate and the spot rate as on closing date will be recognised as income or expense in the Statement of Profit & Loss Account.

l) IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in Accounting Standard -28 is recognised whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.

m) GOVERNMENT GRANTS

Government Grants available to the company are recognised in the books of accounts when:

i) there is reasonable assurance that the company will comply with the conditions attached to them; and

ii) where such benefits have been earned by the company, it is reasonably certain that the ultimate collection will be made.

Government grants related to revenue are recognized on a systematic basis in the statement of profit and loss and are shown as net of expense incurred.

n) PROVISIONS AND CONTINGENT LIABILITIES :

A provision is recognised when the company has a present obligation as a result of past results and it is probable that an outflow of resourcecs embodying economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

o) Borrowing cost are recognised as an expense in the Statement of Profit and Loss.