Accounting Policies of Tacent Projects Ltd. Company

Mar 31, 2024

(B). STATEMENT OF ACCOUNTING POLICIES

The accounting policies applied by the Company in the preparation of its financial statements are listed

below. Such accounting policies have been applied consistently to all the periods presented in these

financial statements.

(a) Statement of compliance

The Financial Statements have been prepared as a going concern in accordance with Indian
Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (“the Act)
including the rules notified under the relevant provisions of the Companies Act, 2013.

(b) Basis for preparation

The Financial Statements have been prepared under the historical cost convention. Assets and
Liabilities have been classified as Current/Non-Current as per the Companies normal operating
cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of
products/services and the time between the acquisition of assets for processing and their realization
in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for
the purpose of Current/Non-Current classification of assets and liabilities. The material accounting
policy information used in preparation of the audited financial statements have been discussed in
the respective notes.

(c) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognized for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs of disposal and value in use. Non-financial assets
that suffered an impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.

(d) Leases

In accordance with Ind AS 116, as lessee for lease with a term of more than 12 months, the
Company recognises a ‘right-of-use’ asset at cost for the lease term at the commencement date
and a lease liability representing its obligation to make future lease payments. The ‘Right-of-use’
asset is depreciated using the straight line method from the commencement date over the shorter
of lease term or useful life of ‘right-of-use’ asset. The lease payment is discounted using the
lessee’s incremental borrowing rate as there is no interest rate implicit in the lease. Short term
lease and lease of low value is treated as expense on straight line basis or other systematic basis
over the lease term.

(e) Financial Instruments

Financial Assets and Financial Liabilities are recognized when the Company becomes a party to
the contractual provisions of the relevant instrument. Since the transaction price does not differ
significantly from the fair value of the financial asset or financial liability, the transaction price is
assumed to be the fair value on initial recognition. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities are added to or deducted from
the fair value on initial recognition of financial assets or financial liabilities. Purchase and sale of
financial assets are recognized using trade date accounting.

i. Financial Assets

Financial assets include Trade Receivables, Advances, Cash and Cash Equivalents etc
which are classified for measurement at amortised cost.

Management determines the classification of an asset at initial recognition depending on
the purpose for which the assets were acquired. The subsequent measurement of financial
assets depends on such classification.

Impairment:

The Company assesses at each reporting date whether a financial asset (or a group of
financial assets) are tested for impairment based on available evidence or information.
Expected credit losses are assessed and loss allowances recognized if the credit quality of
the financial asset has deteriorated significantly since initial recognition.

De-recognition:

Financial assets are derecognized when the right to receive cash flow from the assets has
expired, or has been transferred and the company has transferred substantially all of the
risks and rewards of ownership.

Income recognition:

Interest income is recognized in the Statement of profit and loss using the effective interest
method. Dividend income is recognized in the Statement of Profit and Loss when the right
to receive the same is established.

ii. Financial Liabilities:

Borrowings, trade payables and other Financial Liabilities are initially recognized at the
value of the respective contractual obligations. They are subsequently measured at amortised
cost using the effective interest method, wherever applicable.

The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability.

For trade and other payables maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to short maturity of these instruments.

De-recognition:

Financial liabilities are derecognized when the liability is extinguished, that is, when the
contractual obligation is discharged, cancelled and on expiry.

(f) Inventories

Inventories are valued at lower of cost and net realizable value.

(g) Revenue

Revenue is recognized when the performance obligation is satisfied by transferring a promised
good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer
obtains control of that asset. Revenue is measured at the fair value of the consideration received
or receivable net of discounts, taking into account contractually defined terms and excluding
taxes and duties collected on behalf of the Government. Interest income is accrued on time
proportion basis, by reference to the principal outstanding and the effective interest rate applicable.
Rental income from investment properties is recognized on a straight line basis over the term of
the relevant leases. Income from services is accounted over the period of rendering of services.

(h) Foreign Currency Transactions

Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates (the functional currency).Foreign currency transactions
are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign currencies at year end
exchange rates are recognized in statement of profit and loss.

(i) Cash and cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash in hand, demand deposits with banks, short term balances (with an original maturity of three
months or less from date of acquisition).

(j) Taxes on income

Income tax expense represents the sum of the current tax and deferred tax.

Current tax charge is based on taxable profit for the year. Taxable profit differs from profit as
reported in the Statement of profit and loss because Some items of income or expense are taxable
or deductible in different years or may never be taxable or deductible. The company’s liability for
current tax is calculated using Indian tax rates and laws that have been enacted by the reporting
date.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by the
same taxation authority.

The company periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

Deferred tax is the tax expected to be payable or recoverable in the future arising from temporary
differences between the carrying amounts of assets and liabilities in the balance sheet and the
corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognized for all taxable temporary differences and deferred tax assets are recognized
to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilized. Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the asset realized, based on tax rates that
have been enacted or substantively enacted by the reporting date.

Deferred income tax assets and liabilities are off set against each other and the resultant net
amount is presented in the balance sheet if and only when the company currently has a legally
enforceable right to set off the current income tax assets and liabilities.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items
recognized in other comprehensive income or directly in equity. In this case the tax is also
recognized in other comprehensive income or directly in equity respectively.

(k) Earnings Per Share

Basic earnings per share is calculated by dividing the profit for the period attributable to the
owners of company by the weighted average number of equity shares outstanding during the
period. The weighted average number of equity shares outstanding during the period and for all
periods presented is adjusted for events, such as bonus shares, other than the conversion of
potential equity shares that have changed the number of equity shares outstanding without a
corresponding change in resources. For the purposes of calculating diluted earnings per share
the profit for the period attributable to the owners of the company and the weighted average
number of shares outstanding during the period is adjusted for the effects of all dilutive potential
equity shares.

(l) Exceptional items

When items of income or expense are of such nature, size and incidence that their disclosure is
necessary to explain the performance of the company for the year, the company makes a disclosure
of the nature and amount of such items separately under the head “exceptional items.”

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Mar 31, 2014

The Company has issued one class of Equity Shares having a par value of Rs. 10/- each . Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing General Meeting.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist curently.The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

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Mar 31, 2013

I) The financial statements are prepared under the historical cost convention, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounting Standards), Rules, 2006 and the relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non current as per the company''s normal operating cycle and the criteria set out in Revised Schedule VI to the Companies Act, 1956. The Company has ascertained its operating cycle as 12 months for the purpose of current/ noncurrent classification of assets and liabilities.

ii) FIXED ASSETS

All fixed assets are stated at cost of acquisition less accumulated depreciation. Cost includes taxes, duties, freight and other identifiable direct cost incurred to bring the assets to their working condition for intended use. Interest on borrowed funds attributable to the qualifying assets up to the period such assets are put to use is included in the cost of fixed assets.

iii) DEPRECIATION

Depreciation on fixed assets is provided on Written Down Value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on pro rata basis from the date of put to use. In respect of assets sold, discarded etc. during the year, depreciation is provided up to date of sale/discard. Assets costing up to Rs.5000/- each are depreciated fully in the year of purchase.

iv) REVENUE RECOGNITION

Sales are shown net of returns and excluding sales tax wherever applicable.

v) INVENTORIES

Inventories are shown at lower of cost or net realizable value.

vi) INVESTMENTS

Long-term investments are valued at cost with an appropriate provision for permanent diminution in value.

vii) TAXATION

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

Deferred tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one of more subsequent periods. Deferred tax assets are recognized only to the extent there is virtual certainty and convincing evidence that there will be sufficient future taxable income available to realize such assets.

viii) IMPAIRMENT OF ASSETS

The carrying values of assets/cash generating units at each balance sheet date are reviewed for impairment of assets. If any such indication exists, impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts. In case there is any indication that an impairment loss recognized for an asset in prior accounting periods no longer exists or may have decreased, the recoverable value is reassessed and the reversal of impairment loss is recognized as income in the profit & loss account.

ix) PROVISIONS/CONTINGENT LIABILITIES

A provision is recognized when the company has a present obligation as a result of a past event and it is probable that an outflow of resources would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are reviewed at each balance sheet date and are adjusted to effect the current best estimation.

A contingent Liability is disclosed after a careful evaluation of the facts and legal aspects of the matter involved where the possibility of an outflow of resources embodying the economic benefits is remote.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.