Accounting Policies of Veranda Learning Solutions Ltd. Company

Mar 31, 2025

3 MATERIAL ACCOUNTING POLICIES

a) 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:

i) Expected to be realised or intended to be
sold or consumed in normal operating
cycle:

ii) Held primarily for the purpose of trading:

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

iv) 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 liability is current when:

i) It is expected to be settled in normal
operating cycle:

ii) It is held primarily for the purpose of
trading:

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

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

All other liabilities are classified as non-current.

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

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 12 months as its
operating cycle.

b) Revenue recognition

i) Operating revenue:

Revenue is recognised on accrual basis
and when no significant uncertainty exists
as to its realisation or collection. Revenue
is recognized and measured at the
transaction price.

Revenue from sale of services are
recognised based on satisfaction of
performance obligations as below:

i) Revenue from cross charge of common
expenses and Studio expenses: Income
from recovery of common expenses &
studio expenses is recognised on cost
plus basis, considering the net eligible
costs incurred/identified towards such
revenue contracts.

ii) Royalty Income : The Company receives
royalty income from its subsidiaries in
connection with the use of the name of
the Company and the brand ''Veranda''
and is recognised at a point in time.

iii) Revenue from Technical Know-how:
The Company derives revenues
primarily from management and
knowledge services rendered to its

subsidiaries in accordance with the
terms of the agreements with them
and is recognised over the period of
rendering such services.

iv) Revenue from courses are recognised
based on actual classes conducted
by the educators. The Company does
not assume any post-performance
obligation after completion of the
classes. Revenue received from
classes to be conducted subsequent
to the year-end is considered as
deferred Revenue which is included in
other current liabilities.

v) Revenue from sale of license (source
code) to educational institutions is
recognised in accordance with the
agreements with those customers.

vi) Revenue from tech implementation
services : Income from implementation
of technology for educational
organisations is recognised in
accordance with the agreements
with the customers as the underlying
are rendered and implementation is
completed.

Note: The Company recognises the
above revenues towards satisfaction of
a performance obligation is measured at
the amount of transaction price (net of
variable consideration) allocated to that
performance obligation. The transaction
price of goods sold and services rendered
is net of variable consideration on account
of various discounts and schemes offered
by the Company as part of the contract.

ii) Guarantee commission income:

Guarantee commission revenue is
recognised on an accrual basis in
accordance with the substance of the
relevant agreement, provided that it is
probable that the economic benefits shall
flow and the amount can be measured
reliably.

c) Interest income

I nterest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments

IRQ

or receipts over the expected life of the
financial instrument or a shorter period, where
appropriate, to the gross carrying amount of
the financial asset or to the amortised cost
of a financial liability. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument
(for example, prepayment, extension, call and
similar options) but does not consider the
expected credit losses.

d) Property, plant and equipment (ppe)

Presentation

Property, plant and equipment are stated at
cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such
cost includes the cost of replacing part of the
plant and equipment and borrowing costs of
a qualifying asset, if the recognition criteria
are met. When significant parts of plant and
equipment are required to be replaced at
intervals, the Company depreciates them
separately based on their specific useful lives.
All other repair and maintenance costs are
recognised in profit or loss as incurred.

Advances paid towards the acquisition of
tangible assets outstanding at each balance
sheet date, are disclosed as capital advances
under long term loans and advances and the
cost of the tangible assets not ready for their
intended use before such date, are disclosed as
capital work-in-progress.

Derecognition

Gains or losses arising from derecognition of
property, plant and equipment are measured
as the difference between the net disposal
proceeds and the carrying amount of the asset
and are recognized in the statement of profit
and loss when the asset is derecognized.

Depreciation on property, plant and equipment

Depreciation is the systematic allocation of the
depreciable amount of an asset over its useful
life.

The useful life is as per Schedule II of the
companies Act, 2013.

The useful life of the leasehold improvement is
according to the lease agreement terms.

Depreciation for PPE on additions is
calculated on pro-rata basis from the date
of such additions. For deletion/ disposals, the
depreciation is calculated on pro-rata basis
up to the date on which such assets have
been discarded/ sold. Depreciation is also
accelerated on assets, based on their condition,
usability, etc. as per the technical estimates
of the management wherever necessary.
Additions to fixed assets, costing '' 5,000 each or
less are fully depreciated retaining its residual
value.

The residual values, estimated useful lives and
methods of depreciation of property, plant and
equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.

e) Intangible assets

Internally generated intangible asset are
measured on initial recognition at cost. The
cost comprises of all directly attributable costs
necessary to create, produce, and prepare the
asset to be capable of operating in the manner
intended by management.

Subsequent to initial recognition, internally-
generated intangible assets are reported
at cost less accumulated amortisation and
accumulated impairment losses, on the same
basis as intangible assets that are acquired
separately.

Useful life and amortisation of intangible
assets

The useful lives of intangible assets are
assessed as either finite or indefinite. Intangible
assets with finite lives are amortised over
the useful economic life. Amortisation is
also accelerated on assets, based on their
condition, usability, etc. as per the technical
estimates of the management wherever
necessary. Further, the Company has assessed
for impairment whenever there is an indication
that the intangible asset may be impaired.
The amortisation period and the amortisation
method for an intangible asset with a finite
useful life are reviewed at least at the end of
each reporting period.

The amortisation expense on intangible assets
with finite lives is recognised in the statement
of profit and loss unless such expenditure forms
part of carrying value of another asset.

Intangible under development

Costs incurred during research phase are
charged to statement of profit and loss in the
year in which they are incurred. Development
phase expenses are initially recognized as
intangible assets under development until the
development phase is complete, upon which
the amount is capitalized as intangible asset.

f) Loans and borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount
is recognised in profit or loss over the period
of the borrowings using the effective interest
method.

Borrowings are classified as current liabilities
unless the Company has an unconditional right
to defer settlement of the liability for at least 12
months after the reporting period. Where there
is a breach of a material provision of a long¬
term loan arrangement on or before the end
of the reporting period with the effect that the
liability becomes payable on demand on the
reporting date, the Company does not classify
the liability as current, if the lender agreed, after
the reporting period and before the approval
of the financial statements for issue, not to
demand payment as a consequence of the
breach.

Derecognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expired. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit or loss.

g) Borrowing costs

Borrowing cost include interest computed using
effective interest rate method, amortisation
of ancillary costs incurred and exchange
differences arising from foreign currency
borrowings to the extent they are regarded as
an adjustment to the interest cost.

Borrowing costs that are directly attributable
to the acquisition, construction and production
of a qualifying asset are capitalised as part of
the cost of that asset which takes substantial
period of time to get ready for its intended use.
All other borrowings costs are expensed in the
period in which they occur.

h) Taxes

Current income tax

Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date
in the countries where the Company operates
and generates taxable income.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised
in correlation to the underlying transaction
either in OCI or directly in equity. Management
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

Deferred tax is provided using the liability
method 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 liabilities are recognised for all
taxable temporary differences.

Deferred tax assets are recognised 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 utilised. Where there is deferred tax assets

arising from carry forward of unused tax losses
and unused tax created, they are recognised to
the extent of deferred tax liability.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Deferred tax items are recognised
in correlation to the underlying transaction
either in OCI or directly in equity.

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 taxes relate to the
same taxable entity and the same taxation
authority.

i) Retirement and other employee benefits

Provident fund

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than the
contribution payable to the provident fund.
The Company recognizes contribution payable
to the provident fund scheme as expenditure,
when an employee renders the related service.

Gratuity

Gratuity is a defined benefit plan. The costs
of providing benefits under this plan are
determined on the basis of actuarial valuation
at each year-end. Separate actuarial valuation
is carried out for the plan using the projected
unit credit method. Actuarial gains and losses
for the plan is recognized in full in the period in
which they occur in the statement of profit and
loss.

Compensated absences

Short term compensated absences are
provided for based on estimates. Long term
compensated balances are provided for based
on actuarial valuation. The actuarial valuation
is done as per projected unit credit method.
Leave encashment liability of an employee, who
leaves the Company before the close of the
year and which is remaining unpaid, is provided
for on actual computation basis.

j) Share based payments

Select employees of the Company receive
remuneration in the form of equity settled
instruments or cash settled instruments, for
rendering services over a defined vesting
period and for Company''s performance-
based stock options over the defined period.
The cost of equity-settled transactions is
determined by the fair value of the options
which are estimated using the Black-Scholes
method of valuation for time and non-market
performance-based options. In cases, where
equity instruments are granted at a nominal
exercise price, the intrinsic value on the date of
grant approximates the fair value. The expense
is recognized in the statement of income with
a corresponding increase to the share-based
payment reserve, a component of equity. The
equity instruments or cash settled instruments
generally vest in a graded manner over the
vesting period. The fair value determined at
the grant date is expensed over the vesting
period of the respective tranches of such
grants (accelerated amortization). The stock
compensation expense is determined based on
the Company''s estimate of equity instruments
or cash settled instruments that will eventually
vest. Cash Settled instruments granted are re¬
measured by reference to the fair value at the
end of each reporting period and at the time
of vesting. The expense is recognized in the
statement of income with a corresponding
increase to financial liability or Share-based
payment reserve, when the liability is settled
through allotment of shares of another entity.

k) Impairment of non financial assets

The Company assesses, at each reporting date,
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset''s

recoverable amount. An asset''s recoverable
amount is the higher of an asset''s or cash¬
generating unit''s (CGU) fair value less costs
of disposal and its value in use. Recoverable
amount is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of those
from other assets or groups of assets. When the
carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount.

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Mar 31, 2024

1 CORPORATE INFORMATION

Veranda Learning Solutions Limited (the "Company" or "VLS") was incorporated on November 20, 2018 under the provisions of the Companies Act, 2013, with its registered office at G.R. Complex, First Floor, No. 807-808, Anna Salai, Nandanam, Chennai - 600035, Tamil Nadu. VLS is developing & managing an integrated Online to Offline (O2O) EdTech platform which offers wide range of learning programs for learners preparing for competitive, professional exams and tech upskilling programs with highly curated learning contents, books & Q&A in their repository.

The Company was listed on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") with effect from April 11, 2022.

2A RECENT ACCOUNTING PRONOUNCEMENTS

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below :

Ind AS 1, Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements.

Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and there is no impact on its financial statements. Ind AS 12, Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective

date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and there is no impact on its financial statements."

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

2B BASIS OF PREPARATION OF STANDALONE FINANCIAL STATEMENTS

i) Basis of preparation and presentation

Historical cost convention

The Standalone financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

Measurement of fair values

Certain accounting policies and disclosures of the Company require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values and regularly reviews significant unobservable inputs and valuation adjustments.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market

data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Functional and presentation currency

These financial statements are presented in Indian Rupees (inr), which is the Company''s functional currency. All financial information presented in INR has been rounded to the nearest lakhs (up to two decimals).

3 MATERIAL ACCOUNTING POLICIES

a) 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:

i) Expected to be realised or intended to be sold or consumed in normal operating cycle:

ii) Held primarily for the purpose of trading:

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

iv) 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 liability is current when:

i) It is expected to be settled in normal operating cycle:

ii) It is held primarily for the purpose of trading:

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

iv) There is no unconditional right to defer the settlement of the liability for at

least twelve months after the reporting period

All other liabilities are classified as noncurrent.

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

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 12 months as its operating cycle.

b) Revenue recognition

Revenue is recognised on accrual basis and when no significant uncertainty exists as to its realisation or collection. Revenue is recognised and measured at the transaction price.

Revenue from sale of services are recognised based on satisfaction of performance obligations as below:

i) Revenue from courses are recognised based on actual classes conducted by the educators. The Company does not assume any post-performance obligation after completion of the classes. Revenue received from classes to be conducted subsequent to the year-end is considered as deferred Revenue which is included in other current liabilities.

ii) Revenue from hosting service is recognised over the period of license of access provided to the learners at an amount that reflects the consideration entitled as per the contract / understanding in exchange for such services.

iii) Revenue from sale of online content is recognised upon access being provided for the uploaded content to the customers.

iv) Revenue from Technical Know-how: The Company derives revenues primarily from management and knowledge services rendered to its

subsidiaries in accordance with the terms of the agreements with them and is recognised over the period of rendering such services.

v) Revenue from cross charge of common expenses and Studio expenses: Income from recovery of common expenses & studio expenses is recognised on cost plus basis, considering the net eligible costs incurred/identified towards such revenue contracts.

vi) Royalty Income : The Company receives royalty income from its subsidiaries in connection with the use of the name of the Company and the brand ''Veranda'' and is recognised at a point in time.

vii) Revenue from tech implementation services : Income from implementation of technology for educational organisations is recognised in accordance with the agreements with the customers as the underlying are rendered and implementation is completed.

viii) Revenue from sale of license (source code) to educational institutions is recognised in accordance with the agreements with those customers."

c) Property, plant and equipment (ppe)

Presentation

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs of a qualifying asset, if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred.

Advances paid towards the acquisition of tangible assets outstanding at each balance sheet date, are disclosed as capital advances under long term loans

and advances and the cost of the tangible assets not ready for their intended use before such date, are disclosed as capital work in progress.

Derecognition

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

Depreciation on property, plant and equipment

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Assets Category	Estimated useful
	life (in years)
Office Equipment	5
Furniture and Fixtures	10
Computers	3

The useful life is as per Schedule II of the companies Act, 2013.

The useful life of the leasehold improvement is according to the lease agreement terms.

Depreciation for PPE on additions is calculated on pro-rata basis from the date of such additions. For deletion/ disposals, the depreciation is calculated on pro-rata basis up to the date on which such assets have been discarded/ sold. Additions to fixed assets, costing '' 5,000 each or less are fully depreciated retaining its residual value.

The residual values, estimated useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

d) Intangible assets

Internally generated intangible asset are measured on initial recognition at cost. The cost comprises of all directly attributable costs necessary to create, produce,

and prepare the asset to be capable of operating in the manner intended by management.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

Useful life and amortisation of intangible assets

The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Assets Category Estimated useful

life (in years)

Software 1 to 3

Intangible under development

Costs incurred during research phase are charged to statement of profit and loss in the year in which they are incurred. Development phase expenses are initially recognised as intangible assets under development until the development phase is complete, upon which the amount is capitalised as intangible asset.

e) Loans and borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the Company does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

f) Borrowing costs

Borrowing cost include interest computed using Effective Interest Rate method, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs that are directly attributable to the acquisition, construction and production of a qualifying asset are capitalised as part of the cost of that asset which takes substantial period of time to get ready for its intended use. All other borrowings costs are expensed in the period in which they occur.

g) Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to

be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction eitherinOCIordirectlyinequity.Management 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

Deferred tax is provided using the liability method 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 liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised 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 utilised. Where there is deferred tax assets arising from carry forward of unused tax losses and unused tax created, they are recognised to the extent of deferred tax liability.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

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 taxes relate to the same taxable entity and the same taxation authority.

h) Retirement and other employee benefits

Provident fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as expenditure, when an employee renders the related service.

Gratuity

Gratuity is a defined benefit plan. The costs of providing benefits under this plan are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for the plan using the projected unit credit method. Actuarial gains and losses for the plan is recognised in full in the period in which they occur in the statement of profit and loss.

Compensated absences

Short term compensated absences are provided for based on estimates. Long term compensated balances are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method. Leave encashment liability of an employee, who leaves the Company

before the close of the year and which is remaining unpaid, is provided for on actual computation basis.

i) Share Based Payments

Select employees of the Company receive remuneration in the form of equity settled instruments or cash settled instruments, for rendering services over a defined vesting period and for Company''s performance-based stock options over the defined period. The cost of equity-settled transactions is determined by the fair value of the options which are estimated using the Black-Scholes method of valuation for time and non-market performance-based options. In cases, where equity instruments are granted at a nominal exercise price, the intrinsic value on the date of grant approximates the fair value. The expense is recognised in the statement of income with a corresponding increase to the share-based payment reserve, a component of equity. The equity instruments or cash settled instruments generally vest in a graded manner over the vesting period. The fair value determined at the grant date is expensed over the vesting period of the respective tranches of such grants (accelerated amortisation). The stock compensation expense is determined based on the Company''s estimate of equity instruments or cash settled instruments that will eventually vest. Cash Settled instruments granted are re-measured by reference to the fair value at the end of each reporting period and at the time of vesting. The expense is recognised in the statement of income with a corresponding increase to financial liability or Share-based payment reserve, when the liability is settled through allotment of shares of another entity.

j) Impairment of non financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s

(CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

k) Provisions, contingent liabilities and contingent asset

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects the risks specific to the liability. When discounting is used, an increase in the provisions due to the passage of time is recognised as finance cost. These provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

l) Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for evaluation of contingent liabilities only when converted into demand.

m) Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect. Contingent assets are disclosed but not recognised in the financial statements.

n) Share issue expenses

The transaction costs of an equity transaction are accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transaction.

o) Cash and cash equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances with original maturity of less than 3 months, highly liquid investments that are readily convertible into cash, which are subject to insignificant risk of changes in value.

p) Cash flow statement

Cash flows are presented using indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are repayable on demand form an integral part of an entity''s cash management, bank overdrafts are included as a component of cash and cash equivalents for the purpose of cash flow statement.

q) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders

and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

r) Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee and for leases with a term of twelve months or less (shortterm leases), except for low value leases. For these low value leases, the Company recognises the lease payments as an operating expense on a straightline basis over the term of the lease. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straightline basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) 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.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease.

s) Segment reporting

Based on internal reporting provided to the Chief operating decision maker, the Company''s operations predominantly relate to providing Comprehensive Learning Programs and, accordingly, this is the only

operating segment. The management committee reviews and monitors the operating results of the business segment for the purpose of making decisions about resource allocation and performance assessment using profit or loss and return on capital employed.

t) Financial instruments

Investments and Financial assets

(i) Financial assets

(i) Initial recognition and

measurement:

All financial assets are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition of financial assets , which are not at fair value through profit or loss, are added to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

(ii) Subsequent measurement:

- Financial assets carried at amortised cost (AC)

A financial asset is subsequently measured at amortised cost if it is 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 asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

- Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and 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.

- Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are fair valued through profit or loss.

Unbilled revenues are classified as financial assets as right to consideration is unconditional and is due only after passage of time. Unbilled revenues will be classified as other current financial assets where the right to consideration is dependent on completion of contractual milestones."

(iii) Impairment of financial assets

In accordance with Ind AS 109, the Company use ''Expected Credit Loss'' (ECL) model, for evaluating impairment assessment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to:

a) The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

b) Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument

For trade receivables Company applies ''simplified approach''

which requires expected

lifetime losses to be recognised from initial recognition of the receivable. Further the Company uses historical default rates to determine impairment loss on the portfolio of the trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed. For other assets, the Company uses 12 months ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(ii) Investment

(i) Equity instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments, the entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The entity makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

Financial liabilities

(i) Initial recognition and measurement:

All financial liabilities are recognised initially at fair value and in case of loans net of directly attributable cost. Fees of recurring nature are directly recognised in profit or loss as finance cost.

(ii) Subsequent measurement:

Financial liabilities are carried at amortised 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.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognised in OCI. These gains/ losses are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.

3A CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY :

In the application of the Company''s accounting policies, which are described in note 3, the Directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors

that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if revision affects both current and future periods. The following are the significant areas of estimation, uncertainty and critical judgements in applying accounting policies:

• Useful lives of property, plant and equipment

• Fair value of financial assets and financial liabilities

• Provision for employee benefits - Actuarial Assumptions

• Going Concern Assessment

• Leases - Ind AS 116

• Allowance for credit impaired trade

receivables

• Impairment of investments and non-current assets

• Useful lives of intangible assets

• Provision for Tax

• Provision for employee share based payments

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Mar 31, 2023

Significant accounting policies

(a) 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:

(i) Expected to be realised or intended
to be sold or consumed in normal
operating cycle:

(ii) Held primarily for the purpose of trading:

(iii) Expected to be realised within twelve
months after the reporting period, or

(iv) 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 liability is current when:

(i) It is expected to be settled in normal
operating cycle:

(ii) It is held primarily for the purpose
of trading:

(iii) It is due to be settled within twelve months
after the reporting period, or

(iv) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

All other liabilities are classified as non-current.

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

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 12 months as its
operating cycle.

(b) Revenue recognition

Revenue is recognised on accrual basis and
when no significant uncertainty exists as to its
realisation or collection. Revenue is measured
at the fair value of the consideration received
or receivable. The Company derives revenues
primarily from management and knowledge
services rendered to its subsidiaries in
accordance with the terms of the agreements
with them and Income from Fees and Income
from Technical Know-how.

Income from recovery of common expenses
& studio expenses is recognised on cost
plus basis, considering the net eligible
costs incurred/identified towards such
revenue contracts.

(c) Property, plant and equipment (PPE)
Presentation

Property, plant and equipment are stated at
cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such
cost includes the cost of replacing part of the
plant and equipment and borrowing costs of
a qualifying asset, if the recognition criteria
are met. When significant parts of plant and
equipment are required to be replaced at
intervals, the Company depreciates them
separately based on their specific useful lives.
All other repair and maintenance costs are
recognised in profit or loss as incurred.

Advances paid towards the acquisition of
tangible assets outstanding at each balance
sheet date, are disclosed as capital advances
under long term loans and advances and the
cost of the tangible assets not ready for their
intended use before such date, are disclosed
as capital work in progress.

Derecognition

Gains or losses arising from derecognition of
property, plant and equipment are measured
as the difference between the net disposal
proceeds and the carrying amount of the asset
and are recognised in the statement of profit
and loss when the asset is derecognised.

Depreciation on property, plant and
equipment

Depreciation is the systematic allocation of
the depreciable amount of an asset over its
useful life.

The Useful life is as per Schedule III of the
companies Act, 2013.

Depreciation for PPE on additions is
calculated on pro-rata basis from the date
of such additions. For deletion/ disposals,
the depreciation is calculated on pro-rata
basis up to the date on which such assets
have been discarded/ sold. Additions to fixed
assets, costing I 5,000 each or less are fully
depreciated retaining its residual value.

The residual values, estimated useful lives and
methods of depreciation of property, plant and
equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.

(d) Intangible assets

Internally generated intangible asset are
measured on initial recognition at cost. The
cost comprises of all directly attributable costs
necessary to create, produce, and prepare the
asset to be capable of operating in the manner
intended by management.

Subsequent to initial recognition, internally-
generated intangible assets are reported
at cost less accumulated amortisation and
accumulated impairment losses, on the
same basis as intangible assets that are
acquired separately.

Useful life and amortisation of intangible
assets

The useful lives of intangible assets are
assessed as either finite or indefinite. Intangible
assets with finite lives are amortised over
the useful economic life and assessed for
impairment whenever there is an indication
that the intangible asset may be impaired.

The amortisation period and the amortisation
method for an intangible asset with a finite
useful life are reviewed at least at the end of
each reporting period.

The amortisation expense on intangible assets
with finite lives is recognised in the statement
of profit and loss unless such expenditure forms
part of carrying value of another asset.

(e) Loans and borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortised
cost. Any difference between the proceeds
(net of transaction costs) and the redemption
amount is recognised in profit or loss over the
period of the borrowings using the effective
interest method.

Borrowings are classified as current liabilities
unless the Company has an unconditional right
to defer settlement of the liability for at least 12
months after the reporting period. Where there
is a breach of a material provision of a long¬
term loan arrangement on or before the end
of the reporting period with the effect that the
liability becomes payable on demand on the
reporting date, the Company does not classify
the liability as current, if the lender agreed,
after the reporting period and before the
approval of the financial statements for issue,
not to demand payment as a consequence of
the breach.

Derecognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expired. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognised in the statement of
profit or loss.

(f) Borrowing costs

Borrowing cost include interest computed
using Effective Interest Rate method,
amortisation of ancillary costs incurred and
exchange differences arising from foreign
currency borrowings to the extent they are
regarded as an adjustment to the interest cost.

Borrowing costs that are directly attributable
to the acquisition, construction and production
of a qualifying asset are capitalised as part of
the cost of that asset which takes substantial
period of time to get ready for its intended use.
All other borrowings costs are expensed in the
period in which they occur.

(g) Taxes

Current income tax

Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used
to compute the amount are those that
are enacted or substantively enacted, at
the reporting date in the countries where
the Company operates and generates
taxable income.

Current income tax relating to items
recognised outside profit or loss is recognised
outside profit or loss (either in other
comprehensive income or in equity). Current
tax items are recognised in correlation to the
underlying transaction either in OCI or directly
in equity. Management 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

Deferred tax is provided using the liability
method 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 liabilities are recognised for all
taxable temporary differences.

Deferred tax assets are recognised 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 utilised. Where there is deferred tax assets
arising from carry forward of unused tax losses
and unused tax created, they are recognised to
the extent of deferred tax liability.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply
in the year when the asset is realised or the
liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognised
outside profit or loss is recognised outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in equity.

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 taxes relate
to the same taxable entity and the same
taxation authority.

(h) Retirement and other employee benefits
Provident fund

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than the
contribution payable to the provident fund. The
Company recognises contribution payable
to the provident fund scheme as expenditure,
when an employee renders the related service.

Gratuity

Gratuity is a defined benefit plan. The costs
of providing benefits under this plan are
determined on the basis of actuarial valuation
at each year-end. Separate actuarial valuation
is carried out for the plan using the projected
unit credit method. Actuarial gains and losses
for the plan is recognised in full in the period
in which they occur in the statement of profit
and loss.

Compensated absences

Short term compensated absences are
provided for based on estimates. Long term
compensated balances are provided for based
on actuarial valuation. The actuarial valuation
is done as per projected unit credit method.
Leave encashment liability of an employee,
who leaves the Company before the close of
the year and which is remaining unpaid, is
provided for on actual computation basis.

(i) Share Based Payments

Selected employees of the Company receive
remuneration in the form of equity settled
instruments or cash settled instruments, for
rendering services over a defined vesting
period and for Company''s performance-
based stock options over the defined period.
Equity instruments granted are measured by
reference to the fair value of the instrument
at the date of grant. In cases, where equity
instruments are granted at a nominal exercise
price, the intrinsic value on the date of grant
approximates the fair value. The expense is
recognised in the statement of income with a
corresponding increase to the share-based
payment reserve, a component of equity. The
equity instruments or cash settled instruments
generally vest in a graded manner over the
vesting period. The fair value determined at
the grant date is expensed over the vesting
period of the respective tranches of such
grants (accelerated amortisation). The
stock compensation expense is determined
based on the Company''s estimate of equity
instruments or cash settled instruments that
will eventually vest. Cash Settled instruments
granted are re-measured by reference to the
fair value at the end of each reporting period
and at the time of vesting. The expense is
recognised in the statement of income with
a corresponding increase to financial liability
or Share-based payment reserve, when the
liability is settled through allotment of shares of
another entity.

(j) Impairment of non financial assets

The Company assesses, at each reporting
date, whether there is an indication that an
asset may be impaired. If any indication exists,
or when annual impairment testing for an asset
is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable
amount is the higher of an asset''s or cash-

generating unit''s (CGU) fair value less costs
of disposal and its value in use. Recoverable
amount is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of those
from other assets or groups of assets. When
the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.