Accounting Policies of Vertexplus Technologies Ltd. Company

Mar 31, 2025

1. COMPANY INFORMATION

Our Company was originally incorporated on October 20, 2010 as "VertexPlus Technologies Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies, Rajasthan. Subsequently our Company was converted into Public Limited Company and name of company was changed from "VertexPlus Technologies Private Limited" to "VertexPlus Technologies Limited" vide fresh certificate of incorporation dated July 25, 2022 issued by the Registrar of Companies, Jaipur. The Corporate Identity Number of our Company is U72200RJ2010PLC033131

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Accounting Convention

The financial statement are prepared under the historical cost convention on the "Accrual Concept" and Going Concern assumption of accountancy in accordance with the accounting principles generally accepted in India and comply with the accounting standards as prescribed by Companies (Accounting Standard) Rules, 2006 and with the relevant provisions of the Companies Act, 2013 and rules made there under.

2.2 Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which results are known/materialized.

2.3 Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly attributable to the acquisition /construction are included in the cost of fixed assets. Adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

In case of new projects / expansion of existing projects, expenditure incurred during construction / preoperative period including interest and finance charge on specific / general purpose loans, prior to commencement of commercial production are capitalized. The same are allocated to the respective t on completion of construction / erection of the capital project / fixed assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future economic benefits from the existing asset beyond its previously assessed standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the Balance Sheet as "Capital Work in Progress."

Asset Name	Useful Lives (Years)
Electrical Installation	10
Plant & Machinery	15
Dies & Moulds	15
Furniture & Fixtures	10
Office Equipment''s	5
Computer Hardware	3
Computer Software	3
Testing Equipment''s	15
Assembly Fixtures	15
R&D Equipment''s	15
Vehicles	10

2.4 Intangible assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/ depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalised. Amortisation of Intangible assets is calculated on straight line method over the estimated useful life.

2.5 Impairment of Assets

At each balance sheet date, the Company reviews the carrying amount of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the assets.

2.6 Depreciation

All fixed assets, except capital work in progress, are depreciated on WDV Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to / deletions from fixed assets made during the period is provided on pro-rata basis from / up to the date of such addition /deletion as the case may be.

2.7 Investments

Investments are classified into current investments and non-current investments. Current investments i.e. investments that are readily realizable and intended to be held for not more than a year valued at cost. Any permanent reduction in the carrying amount or any reversals of such, reductions are charged or credited to the Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision for diminution in the value of these investments is made only if such decline is other than temporary, in the opinion of the management.

2.8 Inventories

The company is the business of providing Services, so that there are no inventories held during the reporting periods.

2.9 Revenue Recognition

Revenue from the operations is recognized on generally accepted accounting principal and when it is earned and no significant uncertainty exists as to its ultimate collection and includes taxes, wherever applicable.

The capital gain on sale of investments if any are recognized on completion of transaction. No notional profit/loss are recognized on such investments.

Interest income is recognized on time proportion basis, when it is accrued and due for payment.

Other income/revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and it can be reliably measured.

2.10 Borrowing Cost

Borrowing cost that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

2.11 Employee Benefits

Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the profit & loss account for the year in which the liabilities are crystallized.

2.12 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equities shares outstanding during the period is adjusted for events such as bonus issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.13 Taxes on Income

Income tax expenses for the year comprises of current tax and deferred tax. Current tax provision is determined on the basis of taxable income computed as per the provisions of the Income Tax Act. Deferred tax is recognized for all timing differences that are capable of reversal in one or more subsequent periods subject to conditions of prudence and by applying tax rates that have been substantively enacted by the balance sheet date.

2.14 Foreign Currency Translation

o Transaction denominated in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year-end are restated at closing rate.

o Any exchange difference on account of settlement of foreign currency

transaction and restatement of monetary assets and liabilities denominated in foreign currency is recognized in the statement of Profit & loss Account.

2.15 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

2.16 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

2.17 Related Party Transaction

Related parties as defined under Accounting Standard - 18 ''Related Party Disclosures'' have been identified based on representations made by management and information available with the Company. All transactions with related parties are in the ordinary course of business and on arms'' length basis.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

A. Accounting Convention: The financial statements are prepared under the historical cost convention
on the “Accrual Concept" and Going Concern assumption of accountancy in accordance with the
accounting principles generally accepted in India and comply with the accounting standards as
prescribed by Companies (Accounting Standard) Rules, 2006 and with the relevant provisions of the
Companies Act, 2013 and rules made there under.

B. Use of Estimates: The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities on the date of the financial
statement and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period in which results are
known/materialized.

C. Property, Plant and Equipment: Property, Plant and Equipment are stated at cost less
accumulated depreciation and impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing cost directly attributable to the
acquisition /construction are included in the cost of fixed assets. Adjustments arising from exchange
rate variations attributable to the fixed assets are capitalized.

In case of new projects / expansion of existing projects, expenditure incurred during construction /
preoperative period including interest and finance charge on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same are allocated to the respective t
on completion of construction / erection of the capital project / fixed assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they
increase the future economic benefits from the existing asset beyond its previously assessed
standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection /
installation are stated in the Balance Sheet as “Capital Work in Progress."

D. Impairment of Assets: At each balance sheet date, the Company reviews the carrying amount of its
fixed assets to determine whether there is any indication that those assets suffered an impairment
loss. If any such indication exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling
price and value in use. In assessing value in use, the estimated future cash flows expected from the
continuing use of the assets and from its disposal are discounted to their present value using a pre¬
tax discount rate that reflects the current market assessments of time value of money and the risks
specific to the assets.

E. Depreciation: All fixed assets, except capital work in progress, are depreciated on WDV Method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013. Depreciation on additions to / deletions from fixed assets made during the
period is provided on pro-rata basis from / up to the date of such addition /deletion as the case may
be.

F. Investments: Investments are classified into current investments and non-current investments.
Current investments i.e., investments that are readily realizable and intended to be held for not more
than a year valued at cost. Any permanent reduction in the carrying amount or any reversals of such,
reductions are charged or credited to the Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision for diminution in the value of these investments
is made only if such decline is other than temporary, in the opinion of the management.

G. Inventories: The companies is the business of providing Services, so that there are no inventories
held during the reporting periods.

H. Revenue Recognition: Revenue from the operations is recognized on generally accepted
accounting principal and when it is earned and no significant uncertainty exists as to its ultimate
collection and includes taxes, wherever applicable.

The capital gain on sale of investments if any are recognized on completion of transaction. No
notional profit/loss are recognized on such investments.

Interest income is recognized on time proportion basis, when it is accrued and due for payment.

I. Borrowing Cost: Borrowing cost that are attributable to the acquisition, construction or production
of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that
necessarily takes a substantial period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.

J. Employee Benefits: Short - term employee benefits are recognized as an expense at the
undiscounted amount in the profit & loss account of the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the profit &
loss account for the year in which the liabilities are crystallized.

K. Taxes on Income: Income tax expenses for the year comprises of current tax and deferred tax.
Current tax provision is determined on the basis of taxable income computed as per the provisions of
the Income Tax Act. Deferred tax is recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by applying tax rates that have
been substantively enacted by the balance sheet date.

L. Foreign Currency Translation: (a)Transaction denominated in foreign currencies are recorded
at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the year-end are restated at closing rate.