Accounting Policies of VSD Confin Ltd. Company

Mar 31, 2024

1. Significant Accounting Policies:

This note provides a list of the significant accounting policies adopted in the preparation of the financial statements.
These policies have been consistently applied to all the years presented unless otherwise stated.

Basis of Preparation of Financial Statements

(a) Statement of Compliance:

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (
referred to as "Ind AS") as prescribed under Section 133 of the Companies Act 2013 reads with the Companies
(Indian Accounting Standards) Rules, as amended from time to time.

(b) Basis of Measurement:

The financial statements have been prepared on the historical cost basis except for certain financial instruments that
are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability if market participants would consider those characteristics
when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes
in these financial statements is determined on such a basis and measurements that have some similarities to fair
value but are not fair value, such as net realizable value in Ind AS 2.

(c) Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The Managing Director of the Company has been identified as being the chief operating decision
maker. Based on the internal reporting to the Chief operating decision maker, the Company has identified that the
Company has only one segment (Real Estate) and accordingly there are no other reportable segments.

(d) Operating Cycle:

Based on the nature of activities of the Company and the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as 24 months for the purpose
of classification of its assets and liabilities as current and non-current.

(e) Functional and Presentation currency:

The Financial statements are presented in Indian Rupees, which is the functional currency of company and the
currency of the primary economic environment in which the company operates.

(f) Revenue Recognition:

• Revenue from Services:

> Timing of recognition: Revenue from Services is recognised in the accounting period in which the
services are rendered. For fixed price contracts, revenue is recognised based on the actual service
provided to the end of the reporting period as a proportion of the total services to be provided
(percentage of completion method).

> Measurement of revenue: Estimates of revenues, cost or extent of progress towards completion
are revised if circumstances change. Any resulting increases or decreases in estimated revenues or
costs are reflected in profit or loss in the period in which the circumstances that give rise to the
revision become known to the management.

Dividend and Interest Income:

a) Dividend income from investments is recognised when the shareholder''s right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the company and the amount of
income can be measured reliably).

b) Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to
the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net
carrying amount on initial recognition.

(g) Taxation:

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that it is probable that taxable profits will be available against
which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition (other than in a business combination) of
assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The carrying
amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred taxes are measured at the tax rates that are expected to apply in the period in which the liability is settled
or the asset is realized, based on the tax rates and the tax laws enacted or substantively enacted as at the reporting
date.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of
its assets and liabilities. Current and deferred tax are recognised in profit or loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income or directly in equity respectively.

(h) Impairment of assets:

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.

(i) Cash and cash equivalents:

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts (if any).

(j) Investments and other financial assets:

(i) Classification:

The Company classifies its financial assets in the following measurement categories:

(a) those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss),

(b) those measured at amortised cost and

(c) those measured at cost

The classification depends on the entity''s business model for managing the financial assets, the contractual terms
of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or
other comprehensive income. For investments in debt instruments, this will depend on the business model in
which the investment is held. For investments in equity instruments, this will depend on whether the Company
has made an irrevocable election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income. The Company reclassifies debt investments when and only when its
business model for managing those assets changes.

(ii) Measurement:

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in
profit or loss.

Debt instruments:

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset
and the cash flow characteristics of the asset. There are two measurement categories into which the Company
classifies its debt instruments:

(a) Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at amortised cost and is not part of a hedging
relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income
from these financial assets is included in other income using the effective interest rate method.

(b) Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or Fair value
through other comprehensive income are measured at fair value through profit or loss. A gain or loss on
a debt investment that is subsequently measured at fair value through profit or loss and is not part of a
hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss
within other income/ other expenses in the period in which it arises. Interest income from these
financial assets is included in other income.

Equity instruments:

The Company subsequently measures all equity investments other than investments forming part of interest in
associates and joint ventures at fair value. Where the Company’s management has elected to present fair value
gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification
of fair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as
other income when the Company’s right to receive payments is established. Changes in the fair value of financial
assets at fair value through profit or loss are recognised in other income/ other expense in the statement of
profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVOCI are not reported separately from other changes in fair value.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
cost and amortised cost. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

A financial asset is derecognised only when

(a) The Company has transferred the rights to receive cash flows from the financial asset or

(b) Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where
the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of
the financial asset. Where the Company retains control of the financial asset, the asset is continued to be
recognised to the extent of continuing involvement in the financial asset.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.

(k) Property Plant and Equipment:

All items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s
carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other
repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Transition to Ind AS:

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and
equipment recognised as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the
deemed cost of the property, plant and equipment.

(l) Depreciation and Amortisation methods, estimated useful lives and residual value:

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their
estimated useful lives which are generally in accordance with those specified in Schedule II to the Companies Act,
2013. The useful lives used for depreciation are as follows:

Assets Useful Life

Vehicle 6 Years