Accounting Policies of Synoptics Technologies Ltd. Company

Mar 31, 2025

1 Corporate Information

Synoptics Technologies Limited is Public unlisted Company. The Company was listed in NSE -SME segment on 13th July
2023. The Company is in business of trading in IT products and of providing information & Telecom Technology (IT)
networking solutions by way of LAN/WAN/Wireless/RF/OFC/VPN & Managed Services and installation services along with
providing end to end business support service solutions and data interation, business process workflows, business applications,
messaging, networking, communication development services, business process outsourcing services, IT enabled services to its
customers across the globe.

2 Significant Accounting Policies

i) Basis for Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, on accrual basis, in accordance with the provisions of
the Companies Act, 2013 and the accounting principles generally accepted in India and comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 to the extent
applicable .

ii) Basis of Accounting

The Books of accounts are maintained on accrual basis. The Financial statements are prepared under the historical cost
convention, on the basis of a going concern and as per applicable accounting standards. Company follows mercantile system of
accounting .

iii) Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires
Management to make estimates and assumptions to be made that affect the reported amounts of revenues and expenses during
the reporting period, the reported amount of assets and liabilities and the disclosures relating to the contingent liabilities on the
date of the financial statements. Examples of such estimates include useful lives of PPE''s, provision for doubtful debts /
advances, deferred tax etc. Actual results could differ from those estimates. Such difference is recognised in the period(s) in
which the results are known / materialised.

iv) Tangible Fixed Assets

All the PPE''s are capitalised at cost of acquisition which includes taxes, duties (net of tax credits as applicable) and other
identifiable direct expenses. Interest on borrowed funds attributable to the qualifying assets up to the date such assets are put to
use, is included in the cost.

v) Impairment of Assets

If internal / external indications suggest that an asset of the Company may be impaired, the recoverable amount of asset / cash
generating unit is determined on the date of Balance Sheet and if it is less than its carrying amount, the carrying amount of asset
/ cash generating unit is reduced to the said recoverable amount. Subsequently, if there is a change in the indication, since the
last impairment was recognised, so that recoverable amount of an asset exceeds its carrying amount, an impairment recognised
for an asset in prior accounting period is reversed. The recoverable amount is measured as the higher of the net selling price and
value in use of such assets/cash generating unit, which is determined by the present value of the estimated future cash flows.An
impairment of intangible assets is conducted annually or more often if there is an indication of any decrease in value. The
impairment loss, if any, is charged to the Statement of Profit and Loss.

vi) Intangible Fixed Assets & Amortisation

Intangible assets are stated at cost of acquisition or construction less accumulated amortisation and impairment losses if any.

vii) Depreciation / Amortisation

The Company has provided depreciation on Straight Line Method over the useful lives and residual value of assets as prescribed
under Part C of Schedule II of the the Companies Act, 2013. Depreciation in respect of addition to / deletion from the Fixed
Assets, provided on the pro-rata basis with reference to the date of additions to / deletion from the assets.

Intangible assets are amortised over their estimated useful economic lives and validity.

viii) Inventories

Inventories are valued at cost or net realisable value, whichever is lower. Materials in transit are valued at cost to date. Cost
comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to its present location and
conditions. The cost formulae used for determination of costs are either “First in First Out”. Due allowance is estimated and
made for defective and obsolete items, wherever considered necessary.

ix) Employee Benefits : -

(A) Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the services have been rendered.

(B) Long Term Employee Benefits

(i) Defined Contribution Plan: Provident Fund and Group Insurance Scheme: Employees of the Company are entitled to receive
benefits under the Provident Fund, which is a defined contribution plan

(ii) Defined Benefit Plan:

Gratuity: The Company provides for gratuity obligations through a defined retirement plan (‘the Gratuity Plan’) covering all
eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of
employment based on respective employee salary and years of employment with the Company.

The Company provides for the Gratuity Plan based on projection valuations in accordance with Accounting Standard 15
(Revised), “Employee Benefits.

ix) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured.Revenue from Sale of goods is recognised when the property in goods is transferred to the buyer along with
all significant risk and the rewards of ownership. Sales are net of vat/service tax.

Revenue from rendering services are recognised to the extent the services are actually rendered to the buyer and are net of
service tax.Site survey expenses are charged to profit and loss account over a period of contract, proportionately to revenue
reorganisation i.e. on reorganisation of One time Installation charges and for the period of recurring maintenance contracts.
Interest revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

x) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset up to the
date when such asset is ready for its intended use. Other borrowing costs are charged as an expense in the period in which the
same are incurred.

xi) Accounting for Taxes on Income

Tax expense comprises current and deferred taxes. Current Income-tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of
current year timing difference between the taxable income and accounting income for the year and reversal of timing difference
of earlier year Deferred tax is measured based on the tax rates and the tax laws enacted or subsidiary enacted at the balance sheet
date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to taxes on income levied by same
governing taxation law. In situation where the company has unabsorbed depreciation or carried forward tax losses, all deferred
tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realized against
future taxable profits. At each balance sheet date, the Company re-assesses unrecognized deferred tax assets. It recognizes
unrecognized deferred tax assets to the extent it has become reasonably certain or virtually certain, as the case may be that
sufficient future taxable income will be available against which such deferred tax assets can be realized.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes
on income levied by the same governing taxation laws. Provision for current income-tax is computed as per ‘Total Income’
returnable under the Income-tax Act, 1961 taking into account available deductions and exemptions.

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Mar 31, 2024

		(	Rupees In Lakhs. )
29	Contingent liabilities and commitments (to the extent not provided for)	As at 31st March, 2024	As at 31st March, 2023
29.1	Contingent liabilities
	Claims against the company not acknowledged as debt	-	-
	Guarantees	133.44	153.12
	Other money for which the company is contingently liable
29.2	Commitments
	Estimated amount of contracts remaining to be executed on capital account and not provided for;	-	-
	Uncalled liability on shares and other investments partly paid	-	-
	Other commitments (specify nature).	-	-

30 Since the Company doesn''t hold and Immovable Property, hence the clause in relation to "Title deeds of Immovable Property not held in name of the Company" is Not Applicable

31 The Company has not revalued its Property, Plant and Equipment, during the year.

32 The Company has no Relationship with Struck off Companies.

34 The Company doesn''t hold any Benami Property. Consequently no proceedings have been initiated or pending against the company for holding any such benami property

35 Company has not been declared as a Wilful defaulter by any Bank or Financial Institution or other lender

37 Utilisation of Borrowed funds have been done for the purpose they were borrowed for as per the terms of the Bank Sanction.

38 The Company has no undisclosed income

39 The Company have not traded or invested in Crypto currency or Virtual currency during the year

40 In the opinion of the board of directors the current assets, loan & advances are realisable in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

41 The company has not received information from vendor and service provider regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

44 The Consumption of Materials clause is not applicable to the Company

45 No employee is in receipt of remuneration exceeding in aggregate of Rs. 1,02,00,000/- if employed throughout the year or Rs. 8,50,000/- per month if employed for a part of the year.

46 Net Profit after tax for the year has been used as the numerator and number of shares has been used as denominator for calculating the basic and diluted earnings per shares

47 The Directors have waived off their right to claim the sitting fees for the Board Meeting attended by them.

48 There are no indications of impairment on any individual cash generating assets or on cash generating units in the opinion of management and therefore no test of impairment is carried out.

49 Details of loans given, investments made and security provided covered under section 186(4) of the Companies Act, 2013:-

50 All the known income and expenditure and assets and liabilities have been taken into account and that all the expenditure debited to the profit and loss account have been exclusively incurred for the purpose of the company’s business.

51 Balance in the accounts of debtors, creditors and advances are subject to confirmation/ reconciliation/adjustment from the respective parties.

52 The loans and advances made by company are unsecured and treated as current assets and not prejudicial to the interest of the company.

53 Disclosure as per AS 15 for Gratuity Liability:-

Defined Benefits plan and short term Employee benefits Gratuity (Defined Benefits Plan)

The Company has a defined benefit gratuity plan. Every Employee who has completed Five years of service get a gratutiy on death or resignation or retirement at 15 days of salary (last drawn salary) for each completed year of service. The Gratuity has been provided on the basis of valuation provided by the actuary based on Projected Unit Credit Method

54

Previous''s Year Figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

55 Corporate Social Responsibility

Average Net Profit of the Company as per Section 135(5) of the Companies Act, 2013 is Rs 5,95,68,397/- and Two percent of average net profit of the company as per Section 135(5) of the Companies Act, 2013 is Rs 11,91,368/- and Rs 12,00,000/- has been spent towards the same.

56 The company has obtained the declaration from Directors stating therein that the amount so advanced to the company has not been given out of the funds borrowed/acquired from others by them.

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Mar 31, 2023

2 Significant Accounting Policies

i) Basis for Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, on accrual basis, in accordance with the provisions of the Companies Act, 2013 and the accounting principles generally accepted in India and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 to the extent applicable except Accounting Standards AS-15 regarding provision of Retirement Benefits amount of which is

ii) Basis of Accounting

The Books of accounts are maintained on accrual basis. The Financial statements are prepared under the historical cost convention, on the basis of a going concern and as per applicable accounting standards. Company follows mercantile system of accounting except gratuity and recognises income and expenditure on accrual basis.

iii) Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions to be made that affect the reported amounts of revenues and expenses during the reporting period, the reported amount of assets and liabilities and the disclosures relating to the contingent liabilities on the date of the financial statements. Examples of such estimates include useful lives of Fixed Assets, provision for doubtful debts / advances, deferred tax etc. Actual results could differ from those estimates. Such difference is recognised in the period(s) in

iv) Tangible Fixed Assets

All the Fixed Assets are capitalised at cost of acquisition which includes taxes, duties (net of tax credits as applicable) and other identifiable direct expenses. Interest on borrowed funds attributable to the qualifying assets up to the date such assets are put to use, is included in the cost.

v) Impairment of Assets

If internal / external indications suggest that an asset of the Company may be impaired, the recoverable amount of asset / cash generating unit is determined on the date of Balance Sheet and if it is less than its carrying amount, the carrying amount of asset / cash generating unit is reduced to the said recoverable amount. Subsequently, if there is a change in the indication, since the last impairment was recognised, so that recoverable amount of an asset exceeds its carrying amount, an impairment recognised for an asset in prior accounting period is reversed. The recoverable amount is measured as the higher of the net selling price and value in use of such assets/cash generating unit, which is determined by the present value of the estimated future cash flows.

An impairment of intangible assets is conducted annually or more often if there is an indication of any decrease in value. The impairment loss, if any, is charged to the Statement of Profit and Loss.

vi) Intangible Fixed Assets & Amortisation

Intangible assets are stated at cost of acquisition or construction less accumulated amortisation and impairment losses if any.

vii) Depreciation / Amortisation

The Company has provided depreciation on Straight Line Method over the useful lives and residual value of assets as prescribed under Part C of Schedule II of the the Companies Act, 2013. Depreciation in respect of addition to / deletion from the Fixed Assets, provided on the pro-rata basis with reference to the date of additions to / deletion from the assets.

Intangible assets are amortised over their estimated useful economic lives and validity.

viii) Inventories

Inventories are valued at cost and net realisable value, whichever is lower. Materials in transit are valued at cost to date. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to its present location and conditions. The cost formulae used for determination of costs are either “First in First Out”. Due allowance is estimated and made for defective and obsolete items, wherever considered necessary.

ix) Revenue Recognition

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

Revenue from Sale of goods is recognised when the property in goods is transferred to the buyer along with all significant risk and the rewards of ownership. Sales are net of vat/service tax.

Revenue from rendering services are recognised to the extent the services are actually rendered to the buyer and are net of service tax.

Site survey expenses are charged to profit and loss account over a period of contract, proportionately to revenue reorganisation i.e. on reorganisation of One time Installation charges and for the period of recurring maintenance contracts.

Interest revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

x) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged as an expense in the period in which the same are incurred.

xi) Accounting for Taxes on Income

Tax expense comprises current and deferred taxes. Current Income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing difference between the taxable income and accounting income for the year and reversal of timing difference of earlier year

Deferred tax is measured based on the tax rates and the tax laws enacted or subsidiary enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to taxes on income levied by same governing taxation law. In situation where the company has unabsorbed depreciation or carried forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

Provision for current income-tax is computed as per ‘Total Income’ returnable under the Income-tax Act 1 96 1 taking into