E Factor Experiences Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

Corporate Information

E-Factor Experiences Limited is a limited Company in India and incorporated under the Companies Act,
1956. It came into existence on 02 January 2003. The Company is engaged in the business of Event
manage ment in the name and style of E Factor in India.

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted
accounting principles in India (Indian GAAP), and mandatory accounting standards as prescribed under
section 133 of the Companies Act 2013 read with rule 7 of companies ( Accounts) Rules, 2014 issued by
the Ministry of Corporate Affairs. The company has complied in all material respects with the Accounting
Standards notified under the Companies Act 2013.The financial statements have been prepared on an
accrual & going concern basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of
previous years, except where a newly issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy with that to in use.

NOTES:1 SIGNIFICANT ACCOUNTING POLICIES

i) Uses of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the
Management to make estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of the financial statements
are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the periods in which the results are
known / materialise.

ⁱⁱ⁾ Revenue recoginition Revenue from Event

Management services is recognized when the services are rendered & performed, and when there
is reasonable certainty regarding the ultimate collection of the amount due. In the case of a
composite event management contract that involves multiple elements, revenue is generally
recognized upon the completion of the event, when the significant portion of services has been
rendered & delivered . However, if the services are rendered over a period of time and the outcome
can be reliably estimated, revenue may be recognized on a proportionate completion basis. The
company ensures that revenue is recognized only when there is no significant uncertainty regarding
its measurement and collection.

Interest Interest is recognized on time proportion basis, determined by amount outstanding and the
rate

applicable and where no significant uncertainity as to measurability or collectability exists.

ⁱⁱⁱ⁾ Tangible fixed assets

Fixed Assets are stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. The cost comprises purchase price, borrowing costs, if capitalization criteria are met
and directly attributable cost of bringing the asset to its working condition for the intended use. Any
subsidy/ reimbursement/ contribution received for installation and acquisition of any fixed assets is
shown as deduction in the year of receipt. Capital work- in progress is stated at cost.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it
increases the future benefits from the existing asset beyond its previously assessed standard
ofperformance. All other expenses on existing fixed assets, including day-to-day repairs and
maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and
Loss for the period during which such expenses are incurred.

iv) Depreciation & Amortization

Depreciation is provided on written down value method (WDV) on pro-rata basis as per the useful
life specified in Part "C" of Schedule II of the Companies Act,2013 and after retaining the residual
value of 5% of the original cost of the assets as specified in the said Schedule. Depreciation for
assets purchased / sold during a period is proportionately charged. Intangible assets are amortized
over their respective individual estimated useful lives on a written down value method, commencing
from the date the asset is available to the Company for its use. Further, the Schedule II to the
Companies Act, 2013 requires that useful life and depreciation for significant components of an
asset should be determined seperately. As certified by management, there is no component that
needs to be seperately accounted for. Individual low cost assets (acquired for less than Rs 5000/-)
are depreciated at 100% rates proportionately from the date of acquisition.

v) Foreign transaction transactions/translations

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of
transactions. Monetary items denominated in foreign currency are restated at exchange rate
prevailing at the year end and overall net gain/loss is adjusted to the Statement of Profit & Loss.
Non-Monetary items which are carried in terms of historical cost denominated in a foreign currency
are reported using the exchange rate at the date of transaction.The exchange differences arising
on the settlement of monetary items or on reporting these items at rates different from rates at
which these were initially recorded/reported in previous financial statement
are recognized as income/expense in the year in which they arise

vi) Taxes on Incomes

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

Deferred tax is recognised on timing differences, being the differences between the taxable income
and the accounting income that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted
orsubstantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing
differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses
are recognised only if there is virtual certainty that there will be sufficient future taxable income
available to realise such assets. Deferred tax assets are recognised for timing differences of other
items only to the extent that reasonable certainty exists that sufficient future taxable income will be
available against which these can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax laws and the Company has a
legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.

vii) Employee Benefit Expense

Expenses andLiabilities in respect of employee benefits are recorded in accordance with Revised

Accounting Standard 15 - Employees Benefits (Revised 2005) as issued by the Companies
(Accounting Standards) Rules,2006.

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the
statement of profit or loss of the year in which related service is rendered

ii) Payments to Defined Contribution Retirements Benefit Schemes are charged as an expenses they
fall due.

The company has defined contribution plans for the post employment benefits namely Provident
Fund and Employee State Insurance. The company''s contributions in the above plans are charged in
the statement of profit and loss.

iii) For Defined Benefit Schemes, the cost of providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains
and losses are recognized in full in the profit and loss account for the period in which they occur. Past
service cost is recognized immediately to the extent that the benefits are already vested, and
otherwise is amortized on a straight line basis over the average period until the benefit become
vested.

viii) Investment

Investments, which are readily realizable and intended to be held for not more than one year from the
date on which such investments are made, are classified as current investments. All other
investments are classified as long term investments. On initial recognition, all investments are
measured at cost. The cost comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.

ix) Earning per share

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

---

Mar 31, 2024

N0TES:1 SIGNIFICANT ACCOUNTING POLICIES

i) Uses of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

jj) Revenue recoginition

Revenues from event and management services are recognized on due basis, as and when the services are rendered, based on the agreements/arrangements with the concerned parties.The company collects GST on behalf of the government and, therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from Revenue.

Interest

Interest is recognized on time proportion basis, determined by amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists.

iii) Tangible fixed assets

Fixed Assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any subsidy/ reimbursement/ contribution received for installation and acquisition of any fixed assets is shown as deduction in the year of receipt. Capital work- in progress is stated at cost.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard ofperformance. All other expenses on existing fixed assets, including day-to-day repairs and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

iv) Depreciation & Amortization

Depreciation is provided on written down value method (WDV) on pro-rata basis as per the useful life specified in Part "C" of Schedule II of the Companies Act,2013 and after retaining the residual value of 5% of the original cost of the assets as specified in the said Schedule. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a written down value method, commencing from the date the asset is available to the Company for its use. Further, the Schedule II to the Companies Act, 2013 requires that useful life and depreciation for significant components of an asset should be determined seperately. As certified by management, there is no component that needs to be seperately accounted for. Individual low cost assets (acquired for less than Rs 5000/-) are depreciated at 100% rates proportionately from the date of acquisition.

v) Foreign transaction transactions/translations

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions.

Monetary items denominated in foreign currency are restated at exchange rate prevailing at the year end and overall net gain/loss is adjusted to the Statement of Profit & Loss. Non-Monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the The exchange differences arising on the settlement of monetary items or on reporting these items at rates different from rates at which these were initially recorded/reported in previous financial statement are recognized as income/expense in the year in which they arise

vi) Taxes on Incomes

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

vii) Employee Benefit Expense

Expenses and Liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employees Benefits (Revised 2005) as issued by the Companies (Accounting Standards) Rules,2006.

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit or loss of the year in which related service is rendered

ii) Payments to Defined Contribution Retirements Benefit Schemes are charged as an expenses they fall due.

The company has defined contribution plans for the post employment benefits namely Provident Fund and Employee State Insurance. The company''s contributions in the above plans are charged in the statement of profit and loss.

iii) For Defined Benefit Schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the profit and loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on a straight line basis over the average period until the benefit become vested.

viii) Investment

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

ix) Earning per share

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