Accounting Policies of Trident Techlabs Ltd. Company

Mar 31, 2025

ii. Summary of Significant Accounting policies

a. Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India under the historical cost convention on accrual basis. These
financial statements have been prepared to comply in all material aspects with the accounting
standards notified under Section 133 of the Companies Act, 2013 (‘the Acfi) read with Rule 7 of the
Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

All assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
Based on the nature of products 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 financial statements have been “rounded off’ to the nearest lacs considering on the basis of
“Total Income” criteria.

b. Use of Estimates

The preparation of financial statements requires estimates and assumptions 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. Management believes that
the estimates used in the preparation of financial statements are prudent and reasonable. Actual
results could differ from these estimates. Any revision to the accounting estimates is recognized
prospectively in the current and future periods.

c. Property, Plant & Equipment and Intangible Assets

i. Property, Plant & Equipment:

Property, Plant & Equipment are stated at acquisition cost, net of accumulated depreciation and
accumulated impairment losses, if any.

ii. Intangible Assets:

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible assets are amortized on straight line method basis over 5
years in pursuance of provisions of AS-26.

The amortization period and the amortization method are reviewed at least at each financial year
end.

d. Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or

production of qualifying assets, which are assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to the cost of those assets, until such time
as the assets are substantially ready for their intended use or sale. All other borrowing costs are
recognized in Statement of Profit and Loss in the period in which they are incurred.

e. Depreciation

Depreciation on fixed assets has been provided as per the rates specified in Part C of schedule II
to the Companies Act, 2013.

f. Inventories

Inventories are stated at lower of cost and net realizable value. Cost is determined using the first-
in, first-out (FIFO) method. Net realizable value is the estimated selling price in the ordinary course
of business, less the estimated costs of completion and the estimated costs necessary to make the
sale.

g. Employee Benefits

Employee benefit includes provident fund, payment of gratuity, and encashment of earned leave.

i. Payment of Gratuity

In accordance with the Payment of Gratuity Act, 1972, the Company provides for
gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) covering eligible
employees. The Gratuity Plan provides a lump-sum payment to vested employees at

Retirement, death, incapacitation or termination of employment, of an amount based
on the respective employee’s salary and tenure of employment with the company.

The company contributes to the Trident Techlabs Limited Employees Group Gratuity
Trust (the Trust) of the Life Insurance Corporation of India as at the end of every
financial year on lumpsum basis. Trustees administer contributions made to the
Trust and contributions are invested in specified investment permitted by the law.

ii. Encashment of earned leave

The company is making provisions for encashment of earned leave for those
employees who are eligible for such benefits under the Factories Act, 1948. The
company is making provisions for encashment of earned leave on actual eligibility
and undiscounted present value of benefit basis. No actuarial valuation is made for
such liabilities as required by AS-15.

iii. Provident Fund

Eligible employees receive benefits from a provident fund, which is a defined benefit
plan. Both the employee and the company make monthly contributions to the provident
fund plan equal to a specified percentage of the covered employee’s salary. The company

contributes a part of the contribution to the government administered pension fund.

iv. Employee’s State Insurance

Eligible employees receive benefits under the Employee’s State Insurance Scheme, which
is a defined benefit plan. Both the eligible employee and the Company make monthly
contributions to the ESI Scheme equal to a specified percentage of the covered employee’s
salary. The company contributes its contribution to the government administered
Employee’s State Insurance Scheme.

h. Revenue Recognition

Sale of goods

Sales are recognized when the substantial risks and rewards of ownership in the goods are
transferred to the buyer as per the terms of the contract and are recognized net of trade
discounts, rebates, sales taxes and excise duties.

Sale of services

Revenue from services is recognized, when services have been performed as per terms of
contract, amount can be measured and there is no significant uncertainty as to collection.

Other Income

Interest

Interest Income on fixed deposit is recognized on time proportion basis.

Other

Other items of revenue are recognized in accordance with the Accounting Standards (AS-
9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there
is uncertainty in the ascertainment/realization of income, the same is not accounted
for. However regarding the expenditure, it is recognized even if there is a fair amount of
probability of this happening. Deviations if any are disclosed wherever applicable.

i. Foreign currency Transaction

Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the
foreign currency amount the exchange rate between the reporting currency and the foreign
currency at the date of the transaction.

Subsequent Recognition

As at the reporting date, foreign currency non-monetary items are reported using historical
cost denominated in a foreign currency reported using the exchange rate at the date of
the transaction. All non-monetary items which are carried at fair value or other similar
valuation denominated in a foreign currency are reported using the exchange rates that
existed when the values were determined.

All monetary assets and liabilities in foreign currency are restated at the end of accounting
period.

Exchange differences on restatement of short term foreign currency monetary items are
transferred to the Statement of Profit and Loss.

j. Taxes on income

Provision for current tax is determined on the income for the year chargeable to tax as per the
provisions of Income Tax Act, 1961.

Provision for deferred tax is recognized on timing differences arising between the taxable
incomes and accounting income for the year and quantified using the tax rates and law
enacted or substantially enacted as on the reporting Date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are
recognized for all timing differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets
can be realized. In situations where the company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized 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 that 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.

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 the same taxable entity and the same taxation authority.

---

Mar 31, 2024

1. Significant Accounting Policies

i. General Information

The Company is a limited company incorporated in India on 09^th May 2000 and is engaged in the business of trading of software''s and consultancy services. The company is selling goods all over India and is also providing power sector consultancy in India. The registered office of the company is situated at New Delhi and company is also having marketing and liasioning offices in Bangalore, Pune, Hyderabad, Chennai and Kolkata.

ii. Summary of significant Accounting policies

a. Basis of preparation of financial statements

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products 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 financial statements have been “rounded off” to the nearest lacs considering on the basis of “Total Income” criteria.

b. Use of Estimates

The preparation of financial statements requires estimates and assumptions 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. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized prospectively in the current and future periods.

c. Property, Plant & Equipment and Intangible Assets

i. Property, Plant & Equipment:

Property, Plant & Equipments are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses, if any.

ii. Intangible Assets:

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on straight line method basis over 5 years in pursuance of provisions of AS-26.

The amortization period and the amortization method are reviewed at least at each financial year end.

d. Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred.

e. Depreciation

Depreciation on fixed assets has been provided as per the rates specified in Part C of schedule II to the Companies Act, 2013.

Asset	Useful Life	Method of Depreciation
Building	60 Years	Written Down Value
Computer	3 Years	Written Down Value
Office Equipment	5 Years	Written Down Value
Furniture & Fixtures	10 Years	Written Down Value
Motor Vehicles	8 Years	Written Down Value
Intangible Assets	5 Years	Straight Line Method
Electrical Installation	10 Years	Written Down Value
Plant & Machinery	15 Years	Written Down Value
Motor Cycles	10 Years	Written Down Value

f. Inventories

Inventories are stated at lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

g. Employee Benefits

Employee benefit includes provident fund, payment of gratuity, encashment of earned leave.

i. Payment of Gratuity

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit retirement plan (''the Gratuity Plan'') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at

retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment with the company.

The company contributes to the Trident Techlabs Limited Employees Group Gratuity Trust (the Trust) of the Life Insurance Corporation of India as at the end of every financial year on lumpsum basis. Trustees administer contributions made to the Trust and contributions are invested in specified investment permitted by the law.

ii. Encashment of earned leave

The company is making provisions for encashment of earned leave for those employees who are eligible for such benefits under the Factories Act, 1948. The company is making provisions for encashment of earned leave on actual eligibility and undiscounted present value of benefit basis. No actuarial valuation is made for such liabilities as required by AS-15.

iii. Provident Fund

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary. The company contributes a part of the contribution to the government administered pension fund.

iv. Employee''s State Insurance

Eligible employees receive benefits under the Employee''s State Insurance Scheme, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the ESI Scheme equal to a specified percentage of the covered employee''s salary. The company contributes its contribution to the government administered Employee''s State Insurance Scheme.

h. Revenue Recognition Sale of goods

Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract and are recognized net of trade discounts, rebates, sales taxes and excise duties.

Sale of services

Revenue from services is recognized, when services have been performed as per terms of contract, amount can be measured and there is no significant uncertainty as to collection.

Other Income

Interest

Interest Income on fixed deposit is recognized on time proportion basis.

Other

Other items of revenue are recognized in accordance with the Accounting Standards (AS-9) issued by the Institute of Chartered Accountants of India. Accordingly, wherever there is uncertainty in the ascertainment/realization of income, the same is not accounted for. However regarding the expenditure, it is recognized even if there is a fair amount of probability of this happening. Deviations if any are disclosed wherever applicable.

i. Foreign currency Transaction Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Subsequent Recognition

As at the reporting date, foreign currency non-monetary items are reported using historical cost denominated in a foreign currency reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

All monetary assets and liabilities in foreign currency are restated at the end of accounting period.

Exchange differences on restatement of short term foreign currency monetary items are transferred to the Statement of Profit and Loss.

j. Taxes on income

Provision for current tax is determined on the income for the year chargeable to tax as per the provisions of Income Tax Act, 1961.

Provision for deferred tax is recognized on timing differences arising between the taxable incomes and accounting income for the year and quantified using the tax rates and law enacted or substantially enacted as on the reporting Date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for all timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized 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 that 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.

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 the same taxable entity and the same taxation authority.