Accounting Policies of UVS Hospitality and Services Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies - (IND AS Compliant).

a) Basis of Preparation of Financial Statements:

Statement of compliance: The financial statements of the Company have been prepared in
accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division II
of Schedule III to the Companies Act, 2013. The financial statements have been prepared on a
going concern basis using historical cost convention, except for certain financial assets and
liabilities which are measured at fair value.

Functional and presentation currency: These financial statements are presented in Indian
Rupees (INR), which is also the Company’s functional currency. All amounts have been
rounded-off to the nearest Lakhs, unless otherwise indicated.

Current versus non-current classification: The Company presents assets and liabilities in the
balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A Liabilities is treated as current when it is:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating Cycle: The operating cycle is the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents. The Company has identified twelve
months as its operating cycle.

b) Use of Estimates and Judgements:

The preparation of financial statements requires management to make judgments, estimates, and
assumptions that affect the reported amounts of assets, liabilities, income, and expenses.
Significant areas involving a higher degree of judgment include:

• Useful lives and residual values of property, plant, and equipment

• Classification and measurement of leases

• Evaluation of expected credit losses on receivables

• Inventory valuation and obsolescence

• Determination of revenue recognition timing and classification

c) Property, Plant and Equipment (PPE):

PPE is carried at cost less accumulated depreciation and impairment losses. Cost includes
purchase price, installation charges, and any directly attributable expenses for bringing the asset
to its intended use. Major renovations and improvements are capitalized, while routine
maintenance and repairs are expensed. Depreciation is charged on a written down value method
over the estimated useful lives as per Schedule II of the Companies Act, 2013 or management''s
estimate, whichever is lower.

d) Intangible Assets:

Intangible assets consist primarily of software and franchise fees, which are capitalized and
amortized over their estimated useful lives, generally 3 to 5 years, using the straight-line method.
However the small value of intangible assets are expensed out fully.

e) Impairment of Assets:

Impairment of Non-flnancial assets:

Property, plant and equipment and intangible assets Property, plant and equipment and intangible
assets with finite life are evaluated for recoverability whenever there is any indication that their
carrying amounts may not be recoverable. If any such indication exists, the recoverable amount
(i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for the cash generating
unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is
estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is
reduced to its recoverable amount. An impairment loss is recognized in the Statement of Profit
and Loss.

Impairment of financial assets:

The Company recognises loss allowances for expected credit losses on:

- Financial assets measured at amortised cost; and
-Trade receivables

At each reporting date, the Company assesses whether financial assets carried at amortised cost
impaired. A financial asset is ‘credit- impaired’ when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred.

Loss allowances for trade receivables are always measured at an amount equal to lifetime
expected credit losses. Lifetime expected credit losses are the expected credit losses that result
from all possible default events over the expected life of a financial instrument. 12-month
expected credit losses are the portion of expected credit losses that result from default events that
are possible within 12 months after the reporting date (or a shorter period if the expected life of
the instrument is less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the
maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating expected credit losses, the Company considers
reasonable and supportable information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative information and analysis, based on the
Company''s historical experience and informed credit assessment and including forward- looking
information. The Company assumes that the credit risk on a financial asset has increased
significantly if it is more than 30 days past due.

Measurement of expected credit losses: Expected credit losses are a probability-weighted
estimate of credit losses. Credit losses are measured at the present value of all cash shortfalls (i.e.
the difference between the cash flows due to the Company in accordance with the contract and
the cash flows that the Company expects to receive). Presentation of allowance for expected
credit losses in the balance sheet, loss allowances for financial assets measured at amortised cost
are deducted from the gross carrying amount of the assets.

Write-off: The gross carrying amount of a financial asset is written off (either partially or in full)
to the extent that there is no realistic prospect of recovery. This is generally the case when the
Company determines that the debtor does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts subject to the write-off.

However, financial assets that are written off could still be subject to enforcement activities in
order to comply with the Company''s procedures for recovery of amounts due.

f) Leases (Ind AS 116)

The Company assesses whether a contract is or contains a lease at the inception of the contract.
Right-of-use (ROU) assets and corresponding lease liabilities are recognized at the
commencement date. Lease liabilities are measured at the present value of lease payments,
discounted using the incremental borrowing rate. ROU assets are measured at cost and
depreciated over the lease term or useful life, whichever is shorter. Lease payments for short¬
term leases and leases of low-value assets are recognized as an expense on a straight-line basis.

g) Revenue Recognition (Ind AS 115)

Revenue from sale of goods and Services: Revenue is recognized when control of the goods or
services is transferred to the customer. In the context of the restaurant business, revenue is
primarily recognized at the point of sale when food and beverages are delivered to the customer.
Revenue from online orders, dine-in, and Catering services are recognized similarly. Discounts,
loyalty programs, and GST & other taxes are accounted for as reductions in revenue.

Interest income: Interest income is included in the other income in the statement of Profit and
Loss. Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate when there is a reasonable certainty as to realization.

Dividend Income: Dividends are recognized when the Company’s right to receive the payment
is established, it is probable that the economic benefits associated with the dividend will flow to
the Company and the amount of dividend can be measured reliably.

h) Inventories

Inventories consist of food and beverage items and are valued at the lower of cost and net
realizable value. Cost is determined on a FIFO basis and includes all costs of purchase and other
costs incurred in bringing the inventories to their present location and condition. Obsolete and
slow-moving items are periodically reviewed and written down as necessary.

i) Financial Instruments

• Initial recognition: Financial assets and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the instruments. Financial assets and financial
liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair
value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized immediately in profit or loss.

• Subsequent measurement: Based on the business model and cash flow characteristics, financial
assets are classified as amortized cost, FVOCI, or FVTPL.

Financial liabilities: Classification, subsequent measurement and gains and losses:

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as held- for trading, or it is a derivative or it is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value
and net gains and losses, including any interest expense, are recognised in profit or loss. Other
financial liabilities are subsequently measured at amortised cost using the effective interest
method. Interest expense and foreign exchange gains and losses are recognised in profit or loss.
Any gain or loss on derecognition is also recognised in profit or loss.

• Impairment: The expected credit loss (ECL) model is applied for financial assets measured at
amortized cost, such as trade receivables and investment in subsidiaries.

j) Employee Benefits

• Short-term employee benefits: Recognized as an expense as services are rendered.

• Defined contribution plans: Contributions to provident and other statutory funds are recognized
as an expense.

• Defined benefit plans: Gratuity obligations are measured using actuarial techniques and
recognized based on projected unit credit method.

• Leave encashment: Liability for earned leave is provided on the basis of actuarial valuation.

k) Income Taxes

Current tax is measured on the basis of taxable income for the year in accordance with the
provisions of the Income Tax Act, 1961. Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities in the financial statements and the
corresponding tax bases.

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Mar 31, 2024

A. SIGNIFICANT ACCOUNTING POLICIES

I. Corporate Information: Thirdwave Financial Intermediaries Limited (The Company) is a public limited company domiciled in India, incorporated under the provisions of the Companies Act, 1956 and is listed at Bombay Stock Exchange. The company was incorporated and operated as a Non-Banking Financial Company till June 2018. Subsequently, it has ventured into the food and beverage processing industry and other allied services. The company plans to become a leader in the F&B industry in coming years.

II. Basis of Preparation and Presentation: The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. (as amended) The financial statements have been prepared in accordance with the accounting policies, set out below and were consistently applied to all years presented unless otherwise stated.

III. Basis of Measurement: These financial statements have been prepared on a historical cost basis, Historical cost is generally based on the fair value of the consideration given in exchange for the goods and services.

IV. Use of Estimates and Judgment: The preparation of financial statements in conformity with Ind AS requires Management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Future and actual results could differ due to changes in these estimates. Appropriate revision is made in these estimates considering the change in the surrounding circumstances known to management. Any revision to accounting estimates is recognized in the period in which revision takes places. All financial information is presented in Indian rupees (?).

V. Revenue Recognition: Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for trade discounts, rebates and other similar allowances Revenue exclude sales tax, value added tax, any other indirect taxes or amounts collected on behalf of third parties. Revenue is recognized when the amount of revenue can be reliably measured; it is probable that the future economic benefits will flow to the Company.

i. Revenue from sale of goods:

Revenue from sale of goods is recognized when the Company transfers all significant risks and rewards of ownership to the buyer while the Company retains neither continuing managerial involvement nor effective control over the goods sold.

ii. Interest income:

Interest income is included in the other income in the statement of Profit and Loss. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate when there is a reasonable certainty as to realization.

iii. Dividend Income:

Dividends are recognized when the Company’s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of dividend can be measured reliably.

VI. Plant Property and Equipment: Property plant and equipment are stated at historical cost less depreciation and impairment losses, if any. Freehold land is not depreciated. Historical Cost includes the acquisition cost or the cost of construction, including duties and taxes (other than those refundable), expenses directly related to the acquisition of assets and making them operational. Depreciation is provided prorate basis on written down value method at the rates determined based on estimated useful lives of tangible assets where applicable, specified in Schedule II to the Act. Intangible Assets are depreciated over the useful life of the asset without any residual value.

VII. Intangible Asset: Intangible assets purchased are measured at cost as of the date of acquisition less accumulated

amortization and accumulated impairment, if any Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

VIII. Foreign Currency Transactions and Translations:

Functional Currency: The functional currency of the Company is Indian Rupee (?). These financial statements are presented in Indian Rupee (?).

Transactions and translations: Foreign-Currency-denominated monetary assets and liabilities are translated into relevant functional currency at exchange rates in effect at the Balance Sheet Date. The gains or losses resulting from such translations are included in net profit in the Statement of Profit and Loss, transaction gains or losses realized upon settlement of foreign currency transaction are included in determining net profit for the period in which the transaction is settled. Revenue, expenses and cash-flow statement items denominated in foreign currency are translated into the relevant functional currencies using the exchange are in effect on the date of the transaction

IX. Inventories:

i. Shares: Shares are valued at cost including all associated cost of purchase including brokers cost, tax, duty and other levies or net realizable value, whichever is lower.

ii. Other Goods: Inventories are valued at cost or net realizable value, whichever is lower, cost being worked out on weighted average basis. Cost includes all charges for bringing the goods to their present location and condition, including octroi and other levies, transit insurance and receiving charges. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale

X. Taxes on Income:

i. Current Income Tax: Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961.

ii. Deferred Tax: Deferred Tax is provided using the Balance Sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The tax rates and tax laws used to compute the tax are those that are enacted or substantively enacted at the reporting date. Current income tax/deferred tax relating to items recognized directly in equity is recognized in equity and not in the Statement of Profit and Loss.

XI. Provision and Contingencies:

i. Provisions: Provisions are recognized when there is a present obligation (legal or constructive) as a result of past event, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii. Contingencies: Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote

XII. Financial Instruments: Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Non-derivative financial instruments:

i. Cash and cash equivalents: The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

ii. Financial assets carried at amortized cost: Financial assets are measured at amortized cost if these are held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii. Financial assets at fair value through other comprehensive income: Financial assets are measured at fair value through other comprehensive income (OCI) if it is held within a business model whose objective is achieved by both collecting contractual cash flows and by selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iv. Financial assets at fair value through profit or loss: Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at the fair value through other comprehensive income.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

v. Investments in subsidiaries, joint ventures and associates: Investment in subsidiaries, joint ventures and associates are carried at cost in the financial statements.

vi. Financial liabilities: Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

vii. Equity instrument: An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments recognized by the Company are recognized at the proceeds received net off direct issue cost.

XIII. Impairment of Non-financial assets: Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the Statement of Profit and Loss

XIV. Operating Cycle: A portion of the Company‘s activities (primarily long-term project activities) has an operating cycle that exceeds one year. Accordingly, assets and liabilities related to these long-term contracts, which will not be realized / paid within one year, have been classified as current. For all other activities, the operating cycle is twelve months

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Mar 31, 2014

A) Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

b) Depreciation

Depreciation on Fixed Assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

c) Investments

Investments are stated at cost of acquisition less provision for demunition in value as certified by management and/or on the basis of sale proceeds after balance sheet date.

d) Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/collection.

e) Profit of Sale of Investments

Profit on sale of investment is accounted reckoning the average cost of the investments.

f) Stock in Trade

The valuation of stock in trade has been made at cost price.

g) Deferred Tax Assets/Liability

The Company has not accounted for deferred tax assets accrued due to carried forward losses.

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Mar 31, 2013

A) Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

b) Depreciation

Depreciation on Fixed Assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

c) Investments

Investments are stated at cost of acquisition less provision for demunition in value as certified by management and/or on the basis of sale proceeds after balance sheet date.

d) Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/collection.

e) Profit of Sale of Investments

Profit on sale of investment is accounted reckoning the average cost of the investments.

f) Stock in Trade

The valuation of stock in trade has been made at cost price..

g) Deferred Tax Assets/Liability

The Company has not accounted for deferred tax assets accrued due to carried forward losses.

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Mar 31, 2012

A) Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

b) Depreciation

Depreciation on Fixed Assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

c) Investments

Investments are stated at cost of acquisition less provision for diminution in value as certified by management and/or on the basis of sale proceeds after balance sheet date.

d) Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/collection.

e) Profit of Sale of Investments

Profit on sale of investment is accounted reckoning the average cost of the investments.

f) Stock in Trade

The valuation of stock in trade has been made at cost price..

g) Deferred Tax Assets/Liability

The Company has not accounted for deferred tax assets accrued to it for carried forward losses.

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Mar 31, 2011

A) Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

b) Depreciation

Depreciation on Fixed Assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

c) Investments

Investments are stated at cost of acquisition less provision for demunition in value as certified by management and/or on the basis of sale proceeds after balance sheet date.

d) Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/collection.

e) Profit of Sale of Investments

Profit on sale of investment is accounted reckoning the average cost of the investments.

f) Stock in Trade

The valuation of stock in trade has been made at cost price..

g) Deferred Tax Assets/Liability

The Company has not accounted for deferred tax assets accrued to it for carried forward losses.

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Mar 31, 2010

A) Investments

Investments are stated at cost of acquisition less provision for demunition in value as certified by management and/or on the basis of sale proceeds after balance sheet date.

b) Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/collection.

c) Profit of Sale of Investments

Profit on sale of investment is accounted reckoning the average cost of the investments.

d) Stock in Trade

The valuation of stock in trade lias been made at cost or market price whichever is lower.

e) Deferred Tax Assets/Liability

The Company has not accounted for deferred tax assets accrued to it for carried forward losses.

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Mar 31, 2009

A) Fixed Assets

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

b) Depreciation

Depreciation on Fixed Assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956 as per rates specified in Schedule XIV to the Companies Act, 1956.

c) Investments

Investments are stated at cost of acquisition less provision for demunition in value as certfied by management and/or on the basis of sale proceeds after balance sheet date.

d) Revenue Recognition

Revenue is recognised when there is reasonable certainty of its ultimate realisation/collection.

e) Profit of Sale of Investments

Profit on sale of investment is accounted reckoning the average cost of the investments.

f) Stock in Trade

The valuation of stock in trade has been made at cost or market price whichever is lower.