Accounting Policies of Transpact Enterprises Ltd. Company

Mar 31, 2025

2.1 Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial
statements.

A. Current & Non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

• it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal
operating cycle;

• it is held primarily for the purpose of being traded;

• it is expected to be realised within 12 months after the reporting period; or

• it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability

for at least 12 months after the reporting period.

Current assets include the current portion of non-current financial assets. All other assets are classified as
non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

• it is expected to be settled in the Company''s normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is due to be settled within 12 months after the reporting period; or

• the Company does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting period. Terms of a liability that could, at the option of the counterparty,
result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are
classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained its operating
cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and
non- current.

B. Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises:

• Its purchase price, including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates; and

• Any costs directly attributable cost to bringing the asset to the location and condition necessary for it to
be capable of operating in the manner intended by management.

ii. Subsequent expenditure

Subsequent costs are included in the asset''s carrying amount or recognised as separate assets, as
appropriate, only when it is probable that the future economic benefits associated with expenditure will
flow to the Company and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to Statement of Profit and Loss at the time of incurrence.

iii. Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated
residual values and is charged to the Statement of Profit and Loss. Depreciation on fixed assets are
calculated on a WDV basis of the useful life as prescribed in Schedule II of the Companies Act, 2013.

The estimated useful lives of items of property, plant and equipment are as follows:

The useful lives in order to reflect the technological obsolescence and actual usage of the asset have
been determined based on internal evaluation done by management. The management believes that
these estimated useful lives reflect fair approximation of the period over which the assets are likely to
be used.

Depreciation is calculated on a pro rata basis for assets purchased/sold during the year.

The residual values, useful lives and methods of depreciation of property plant and equipment are
reviewed by management at each reporting date and adjusted prospectively, as appropriate.

C. Intangible assets

i. Recognition and measurement

Intangible assets that are acquired are recognised only if it is probable that the expected future
economic benefits that are attributable to the asset will flow to the Company and the cost of assets can
be measured reliably. The intangible assets are recorded at cost of acquisition including incidental costs
related to acquisition and are carried at cost less accumulated amortisation and impairment losses, if
any.

D. Impairment of non-financial assets

The Company''s non-financial assets are reviewed at each reporting date to determine whether there is
any indication of impairment. If any such indication exists, then the asset''s recoverable amount is
estimated.

E. Employee benefits

Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be settled
wholly within twelve months after the end of the reporting period in which the employees render the
related service are recognised in respect of employees'' services up to the end of the reporting period
and are measured at an undiscounted amount expected to be paid when the liabilities are settled.
However all employee engagement are contractual basis.

F. Revenue

Revenue from rendering of services

Revenue is recognised upon transfer of control of promised products or services to customers in an
amount that reflects the consideration which the Company expects to receive in exchange for those
products or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts,
price concessions, etc. if any, as specified in the contract with the customer. Revenue also excludes
taxes collected from customers.

A liability is recognised where payments are received from customers before providing services to the
customer.

Interest Income

Interest income on financial assets (including deposits with banks) is recognized using the effective
interest rate method on a time proportionate basis. The effective interest rate approximates the
contracted interest rate.

G. Income tax

Tax expense comprises of current tax and deferred tax. It is recognised in the Statement of Profit and
Loss except to the extent that it relates to items recognised in other comprehensive income or directly
in equity.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any relating to income taxes. It is measured using tax rates enacted for the relevant
reporting period.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the corresponding amounts used for taxation
purposes,

H. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker is considered to be the Board of
Directors who makes strategic decisions and is responsible for allocating resources and assessing
performance of the operating segments. During the year, Company are wholly and exclusively Dealing in
investment portfolio, Investment advisory, Corporate funding, Market consulting,

I. Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is
calculated by dividing the profit attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting
profit attributable to equity shareholders and the weighted average number of equity shares
outstanding, for the effects of all dilutive potential equity shares.

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Mar 31, 2024

2.1 Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements.

A. Current & Non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

• it is expected to be realised in, or is intended for sale or consumption in, the Company''s
normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is expected to be realised within 12 months after the reporting period; or

• it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a

liability for at least 12 months after the reporting period.

Current assets include the current portion of non-current financial assets. All other assets are
classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

• it is expected to be settled in the Company''s normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is due to be settled within 12 months after the reporting period; or

• The Company does not have an unconditional right to defer settlement of the liability for at
least 12 months after the reporting period. Terms of a liability that could, at the option of
the counterparty, result in its settlement by the issue of equity instruments do not affect
its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities
are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents. Based on the nature of operations and the time between
the acquisition of assets for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle being a period of 12 months for the purpose of
classification of assets and liabilities as current and non- current.

B. Property, plant and equipment

/. Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation
and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises:

• Its purchase price, including import duties and non-refundable purchase taxes, after deducting
trade discounts and rebates; and

• Any costs directly attributable cost to bringing the asset to the location and condition necessary
for it to be capable of operating in the manner intended by management.

//. Subsequent expenditure

Subsequent costs are included in the asset''s carrying amount or recognised as separate assets,
as appropriate, only when it is probable that the future economic benefits associated with
expenditure will flow to the Company and the cost of the item can be measured reliably. All
other repairs and maintenance are charged to Statement of Profit and Loss at the time of
incurrence.

///. Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their
estimated residual values and is charged to the Statement of Profit and Loss. Depreciation on
fixed assets are calculated on a WDV basis of the useful life as prescribed in Schedule II of the
Companies Act, 2013.

The useful lives in order to reflect the technological obsolescence and actual usage of the asset
have been determined based on internal evaluation done by management. The management
believes that these estimated useful lives reflect fair approximation of the period over which the
assets are likely to be used.

Depreciation is calculated on a pro rata basis for assets purchased/sold during the year.

The residual values, useful lives and methods of depreciation of property plant and equipment
are reviewed by management at each reporting date and adjusted prospectively, as
appropriate.

C. Intangible assets

/. Recognition and measurement

Intangible assets that are acquired are recognised only if it is probable that the expected future
economic benefits that are attributable to the asset will flow to the Company and the cost of
assets can be measured reliably. The intangible assets are recorded at cost of acquisition
including incidental costs related to acquisition and are carried at cost less accumulated
amortisation and impairment losses, if any.

D. Impairment of non-financial assets

The Company''s non-financial assets are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists, then the asset''s recoverable
amount is estimated.

E. Employee benefits

Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be
settled wholly within twelve months after the end of the reporting period in which the
employees render the related service are recognised in respect of employees'' services up to the
end of the reporting period and are measured at an undiscounted amount expected to be paid
when the liabilities are settled. However all employee engagement are contractual basis.

F. Revenue

Revenue from rendering of services

Revenue is recognised upon transfer of control of promised products or services to customers in
an amount that reflects the consideration which the Company expects to receive in exchange
for those products or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for
discounts, price concessions, etc. If any, as specified in the contract with the customer. Revenue
also excludes taxes collected from customers.

A liability is recognised where payments are received from customers before providing services
to the customer.

Interest Income

Interest income on financial assets (including deposits with banks) is recognized using the
effective interest rate method on a time proportionate basis. The effective interest rate
approximates the contracted interest rate.

G. Income tax

Tax expense comprises of current tax and deferred tax. It is recognised in the Statement of
Profit and Loss except to the extent that it relates to items recognised in other comprehensive
income or directly in equity.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for
the year and any adjustment to the tax payable or receivable in respect of previous years. The
amount of current tax reflects the best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any relating to income taxes. It is measured using
tax rates enacted for the relevant reporting period.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes,

H. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The chief operating decision maker is considered to be the
Board of Directors who makes strategic decisions and is responsible for allocating resources and
assessing performance of the operating segments. During the year, Company are wholly and
exclusively Dealing in investment portfolio, Investment advisory, Corporate funding, Market
consulting,

I. Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares.
Basic EPS is calculated by dividing the profit attributable to equity shareholders of the Company
by the weighted average number of equity shares outstanding during the period. Diluted EPS is
determined by adjusting profit attributable to equity shareholders and the weighted average
number of equity shares outstanding, for the effects of all dilutive potential equity shares.