Riddhi Corporate Services Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

Note Material accounting policies

This Note provides a list of the material accounting policies adopted by the Company in

- - preparation of these Financial Statements. These policies have been consistently applied to

all the years presented, unless otherwise stated.

a) Basis of preparation:

i) The Financial Statements comply in all material respects with Indian Accounting

- - Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read

with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant
provisions of the Act, as amended.

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

The Financial Statements have been prepared on accrual and going concern basis.

iii) _

iv The accounting policies are applied consistently to all the periods presented in the
) Financial Statements. All assets and liabilities have been classified as current or non¬
current as per the normal operating cycle of the Company and other criteria as set out in
the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products
and the time between acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12 months for the
purpose of current or non-current classification of assets and liabilities.

v) Recent accounting pronouncements :

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, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and
leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on its evaluation has determined that it
does not have any significant impact in its financial statements.

New and revised Ind ASs in issue but not yet effective

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the
existing standards. There is

no such notification which will be applicable from April 01, 2025.

vi) The financial statements are presented in Indian Rupees. Any discrepancy in any table
between totals and sums of the amounts listed is due to rounding off.

b) Foreign currency transactions:

i) Functional and presentation currency:

Items included in the Financial Statements of the Company are measured using the
currency of the primary economic environment in which the Company operates
(''functional currency''). The Financial Statements of the Company are presented in Indian
currency (Rs.), which is also the functional currency of the Company.

ii) Transactions and balances:

Foreign currency transactions are translated into the functional currency using the
exchange rates at the dates of the transactions. Foreign exchange gain | (loss) resulting
from the settlement of such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at year end exchange rates are generally

recognised in the Statement of Profit and Loss except that they are deferred in other equity

- if they relate to qualifying cash flow hedges. Foreign exchange differences regarded as an

adjustment to borrowing costs are presented in the Statement of Profit and Loss, within
finance costs. All other foreign exchange gain | (loss) presented in the Statement of Profit
and Loss are on a net basis within other expenses/ (income).

Non-monetary items that are measured at fair value that are denominated in a foreign
currency are translated using the exchange rates at the date when the fair value was
determined. Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain | (loss). Non-monetary items that are measured in
terms of historical cost in a foreign currency are reported using the exchange rate at the
date of the transcation not revalued.

c) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow

- to the company and the revenue can be reliably measured. The following specific

recognition criteria must also be met before revenue is recognized:

(i) Income from Job work/Services:

Revenue from job work / services is recognised on percentage of completion method
based on the physical proportion of the Job Work / services and is net of rate differences
& claims.

Revenue for fixed-price contracts is recognised using percentage-of-completion method.
The Company estimates the future cost-to-completion of the contracts which is used to
determine degree of completion of the performance obligation.

(ii) Interest:

Interest income is recognized on a time proportion basis taking into account the amount

— outstanding and the applicable rate of interest. Interest income is included under the head
"Other Income" in the statement of profit and loss.

Interest income from financial assets is recognised using the effective interest rate method.

— The effective interest rate is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the gross carrying amount of a financial
asset. 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) Taxes:

Tax expenses comprise current and deferred tax. Current Income tax is measured at the

- amount expected to be paid to the tax authorities in accordance with the Income Tax Act,
1961. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income
and accounting income originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured using the tax rates and the tax
laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets
are recognized for deductible timing differences only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are recognized only if there
is virtual certainty supported by convincing evidences that they can be realized against
future taxable profits. Deferred tax assets are reviewed at each reporting date.

Minimum Alternate Tax paid in a year is charged to the statement of profit and loss as

- current tax. The company recognizes MAT credit available as an asset only to the extent
that there is convincing evidence that the company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to be carried forward. In
the year in which the company recognizes MAT credit as an asset in accordance with the
guidance note on accounting for credit available in respect of minimum alternate tax
under the income tax act, 1961, the said asset is created by way of credit to the statement
of profit and loss and shown as "MAT Credit Entitlement." The company reviews the
"MAT credit entitlement" at each reporting date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets and liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities are offset where the
Company has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates

to items recognised in other comprehensive income or directly in equity. In this case, the

- tax is also recognised in other comprehensive income or directly in equity.

e) Government grants:

i) Government grants are recognised at their fair value where there is a reasonable
assurance that the grant will be received and the Company will comply with all attached
conditions.

ii) Government grants relating to the purchase of property, plant and equipment are
included in non-current liabilities as deferred income and are credited to profit or loss in
proportion to depreciation over the expected lives of the related assets and presented
within other income.

iii) Government grants relating to income are deferred and recognised in the Statement of
Profit and Loss over the period necessary to match them with the costs that they are
intended to compensate and presented within other income.

f) Leases:

As a lessee:

The Company assesses whether a contract is, or contains a lease, at inception of the

- 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 commencement date of the lease, the Company recognises a right-of-use asset and a
corresponding lease liability for all lease arrangements in which it is lessee, except for
short-term leases (leases with a term of twelve months or less), leases of low value assets
and, for contract where the lessee and lessor has right to terminate a lease without
permission from the other party with no more than an insignificant penalty. The lease
expense of such short-term leases, low value assets leases and cancellable leases, are
recognised as an operating expense on a straight-line basis over the term of the lease.

At commencement date, lease liability is measured at the present value of the lease

payments to be paid during non-cancellable period of the contract, discounted using the

- incremental borrowing rate. The right-of-use assets is initially recognised at the amount of
the initial measurement of the corresponding lease liability, lease payments made at or
before commencement date less any lease incentives received and any initial direct costs.

Subsequently the right-of-use asset is measured at cost less accumulated depreciation and
any impairment losses. Lease liability is subsequently measured by increasing the
carrying amount to reflect interest on the lease liability (using effective interest rate
method) and reducing the carrying amount to reflect the lease payments made. The right-
of-use asset and lease liability are also adjusted to reflect any lease modifications or
revised in-substance fixed lease payments.

g) Current / non-current
classification:

The Company presents assets and liabilities in the balance sheet based on current and

- non-current classification. An asset is treated as current when it is:

a) expected to be realised or intended to be sold or consumed in normal operating
cycle;

b) held primarily for the purpose of trading;

c) expected to be realised within twelve months after the reporting period; or

d) 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 treated as current when it is:

- a) expected to be settled in normal operating cycle;

b) held primarily for the purpose of trading;

c) due to be settled within twelve months after the reporting period; or

d) there is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

h) Property, plant and equipment:

All items of property, plant and equipment are stated at acquisition cost net of
accumulated depreciation and accumulated impairment losses, if any. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the carrying amount of asset 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.
All other repairs and maintenance expenses are charged to the Statement of Profit and
Loss during the period in which they are incurred. Gains or losses arising on retirement or
disposal of assets are recognised in the of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the date of
Balance Sheet are disclosed as ''Capital work-in-progress''.

Depreciation and amortisation methods, estimated useful lives and residual value:

Depreciation on fixed assets is determined based on the estimated useful life of the assets
using the written down value method as prescribed under the schedule II to the
Companies Act, 2013. Individual assets costing less than Rs. 5000.00 or less are
depreciated within a year of acquisition. Depreciation on assets purchased/sold during
the period is proportionately charged.

The carrying amount of an asset is written down immediately to its recoverable amount ,
if the carrying amount of the asset is greater than its estimated recoverable amount.

i) Investments Properties

Property that is held for long-term rental yields or for capital appreciation or both, and
that is not in use by the Company, is classified as investment property. Land held for a
currently undetermined future use is also classified as an investment property. Investment
property is measured at its acquisition cost, inculding related transaction costs and where
applicable, borrowing costs

i) Intangible assets:

Intangible assets acquired separately are measured, on initial recognition, at cost.
Following the initial recognition, intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses.

The amortisation expense on intangible assets is recognised in the statement of profit and
loss.

Intangible assets are derecognised either when they have been disposed of or when they

- - are permanently withdrawn from use and no future economic benefit is expected from

their disposal. The difference between the net disposal proceeds and the carrying amount
of the asset is recognised in profit or loss in the period of derecognition.

j) Impairment of non-financial assets:

The Company assesses, at each reporting date, whether there is any 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.

In assessing value in use, the estimated future cash flows are discounted to their present
- value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining fair value less costs of
disposal, recent market transactions are taken into account. If no such transactions can be
identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly traded companies or other available
fair value indicators. The Company bases its impairment calculation on detailed budgets
and forecast calculations.

Impairment losses are recognised in the statement of profit or loss.

An assessment is made at each reporting date to determine whether there is an indication
that previously recognised impairment losses on assets no longer exist or have decreased.
If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount.
A previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset''s recoverable amount since the last impairment
loss was recognised. The reversal is limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in
prior years. Such reversal is recognised in the statement of profit or loss.

k) Trade receivables:

Trade receivables are recognised when the right to consideration becomes unconditional.
These assets are held at amortised cost, using the effective interest rate (EIR) method
where applicable, less provision for impairment based on expected credit loss.

(Refer Note No. 42)

l) Trade and other payables:

These amounts represent liabilities for goods and services provided to the Company prior
to the end of financial year which are unpaid. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months from the reporting date.
They are recognised initially at their fair value and subsequently measured at amortised
cost using the EIR method.

m) Inventories:

Inventories are stated at lower of cost and Net Realisable value. Cost is calculated on

specific identification basis except colour, chemicals, fuel , consumable stores & spare and

- trading goods being sublimation paper on FIFO basis. Finished goods and Semi Finished
goods include raw materials and other costs incurred in bringing the inventories to their
present location.

Net realizable value represents the estimated selling price for inventories less all estimated

- costs of completion and costs necessary to make the sale.

The company does not hold any inventories during the reporting period. Accordingly, the
accounting policy for inventories is not applicable

n) Cash and Cash Equivalents:

For the purpose of presentation in statement of cash flows, cash and cash equivalents

- include cash on hand, deposits held at call with Banks / Financial institutions, with
original maturities of 3 months or less that are readily convertible to known amount of
cash and which are subject to an insignificant risk of change in value.

o) Investments and other financial assets:

Classification:

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

- i) Those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss)

ii) Those measured at amortised cost

Debt instruments:

Initial recognition and measurement:

Financial asset is recognised when the Company becomes a party to the contractual

- provisions of the instrument. Financial asset is recognised initially at fair value plus, in the
case of financial asset not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset. Transaction costs of financial
asset carried at fair value through profit or loss are expensed in the Statement of Profit
and Loss.

Subsequent measurement:

Subsequent measurement of debt instruments depends on the business model of the

- Company for managing the asset and the cash flow characteristics of the asset. There are
three measurement categories into which the Company classifies its debt instruments:

Measured at amortised cost:

Financial assets that are held within a business model whose objective is to hold financial

- assets in order to collect contractual cash flows that are solely payments of principal and
interest, are subsequently measured at amortised cost using the EIR method less
impairment, if any, the amortisation of EIR and loss arising from impairment, if any is
recognised in the Statement of Profit and Loss.

Measured at fair value through other comprehensive income (FVOCI):

Financial assets that are held within a business model whose objective is achieved by both,

- selling financial assets and collecting contractual cash flows that are solely payments of
principal and interest, are subsequently measured at fair value through other
comprehensive income. Fair value movements are recognised in the OCI. Interest income
measured using the EIR method and impairment losses, if any are recognised in the
Statement of Profit and Loss. On derecognition, cumulative gain | (loss) previously
recognised in OCI is reclassified from the equity to other income in the Statement of Profit
and Loss.

Measured at fair value through profit or loss (FVPL):

A financial asset not classified as either amortised cost or FVOCI, is classified as FVPL.

- Such financial assets are measured at fair value with all changes in fair value, including
interest income and dividend income if any, recognised as other income in the Statement
of Profit and Loss.

Equity instruments:

The Company subsequently measures all investments in equity instruments other than

- subsidiary companies, associate company and joint venture company at fair value. The
Company has elected to present fair value gains and losses on such equity investments in
other comprehensive income and there is no subsequent reclassification of these fair value
gains and losses to the Statement of Profit and Loss. Dividends from such investments
continue to be recognised in profit or loss as other income when the right to receive
payment is established.

Changes in the fair value of financial assets at fair value through profit or loss are

- recognised 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.

Investments in subsidiary companies, associate companies and joint venture company:

Investments in subsidiary companies, associate companies and joint venture company are
- - carried at cost less accumulated impairment losses, if any. Where an indication of

impairment exists, the carrying amount of the investment is assessed and written down

immediately to its recoverable amount. On disposal of investments in subsidiary
companies, associate companies and joint venture company, the difference between net
disposal proceeds and the carrying amounts are recognised in the Statement of Profit and
Loss.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated
with its financial assets carried at amortised cost and FVOCI debt instruments. The
impairment methodology applied depends on whether there has been a significant
increase in credit risk. Note no. 42details how the Company determines whether there has
been a significant increase in credit risk.

The Company follows ''simplified approach'' for recognition of impairment loss allowance
on trade receivables. The application of simplified approach does not require the
Company to track changes in credit risk. Rather, it recognises impairment loss allowance
based on lifetime Expected Credit Loss at each reporting date, right from its initial
recognition.

Derecognition:

A financial asset is derecognised only when the Company has transferred the rights to
receive cash flows from the financial asset, the asset expires or 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 Company 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 through the Statement of Profit and Loss or other
comprehensive income as applicable. Where the Company has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is
not derecognised.

Where the Company has neither transferred a financial asset nor retained 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.

Financial liabilities:

i) _Classification_as_debt_or_equity:

Financial liabilities and equity instruments issued by the Company are classified
according to the substance of the contractual arrangements entered into and the
definitions of a financial liability and an equity instrument.

ii) _Initial_recognition_and_measurement:

Financial liabilities are recognised when the Company becomes a party to the contractual

^_ provisions of the instrument. Financial liabilities are initially measured at the fair value.

iii) _Subsequent_measurement:

Financial liabilities are subsequently measured at amortised cost using the effective

^_ interest rate method. Financial liabilities carried at fair value through profit or loss are
measured at fair value with all changes in fair value recognised in the Statement of Profit
and Loss.

^_ iv)_Derecognition:

A financial liability is derecognised when the obligation specified in the contract is
discharged, cancelled or expires.

p) 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 assets and settle the liabilities
simultaneously.

q) 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. Fees paid on
the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case,
the fee is deferred until the draw down occurs.

Borrowings are removed from the Balance Sheet when the obligation specified in the
contract is discharged, cancelled or expired. The difference between the carrying amount
of a financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income | (expense).

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.

r) Borrowings Costs:

Borrowing costs that are directly attributable to the acquisition, construction or
- production of a qualifying asset are capitalised during the period of time that is required
to complete and prepare the asset for its intended use or sale. Qualifying assets are assets
that necessarily take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation. Other borrowing costs are expensed in the period in which they are
incurred.

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Mar 31, 2024

1. Significant Accounting Policies:

1) Basis of Preparation of Financial Statements:-

(i) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on an accrual basis and under the historical cost convention except certain financial assets and liabilities are measured at fair value (refer accounting policy regarding financial instruments).

(iii) Classification of assets and liabilities

The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.

2) Summary of Significant Accounting Policies:

a) Property, Plant and Equipment:

All items of Property, plant and equipment except land are shown at cost, less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment comprises its cost of acquisition inclusive of inward freight, import duties, and other nonrefundable taxes or levies and any cost directly attributable to the acquisition / construction of those items; any trade discounts and rebates are deducted in arriving at the cost of acquisition.

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 group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to statement of profit or loss during the reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are recognised in profit or loss.

Transition to Ind AS

On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognized as at April 01, 2018 measured as per the previous GAAP (Indian GAAP) and use that carrying value as the deemed cost of property, plant and equipment.

(b) Depreciation and amortisation:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. The residual values are not more than 5% of the original cost of the asset.

(c) Impairment of assets

At the date of balance sheet, if there are indications of impairment and the carrying amount of the cash generating unit exceeds its recoverable amount (i.e. the higher of the fair value less costs of disposal and value in use), an impairment loss is recognised. The carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss in the profit or loss. The impairment loss recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.

(d) Inventories:

The cost of various categories of inventory is determined as follows:

1. Raw material and Packing Materials : At Cost including local taxes (Net of setoff) or Net realisable value, whichever is lower.

2. Stock in Process : At Cost or Net realisable value, whichever is lower.

3. Stock of Finished Goods : At Cost or Net realisable value, whichever is lower.

4. Consumable Stores & Spares : At Cost or Net realisable value, whichever is lower.

5. Scrap : At Net realisable value

Cost of raw material and packing materials are determined using first in first out (FIFO) method. Costs of finished goods and stock in process include cost of raw material and packing materials, cost of conversion and other costs incurred in bringing the inventories to the present location and condition.

(e) Revenue recognition:

In Contact Centre Activity, revenue is recognized as the related services are performed, based on actual utilization or minimum utilization level, as appropriate, specified in the agreements.

In Claim Processing Activity, revenue is recognized based on number of claims processed, at contractual rates and terms as specified in the agreements.

In respect of other services, revenue for services rendered is recognized as per the terms of specific contracts.

Interest income is accounted on accrual basis and dividend income is accounted on right to receipt basis.

In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis.

(f) Fair value measurement:

The Company measures financial instruments at fair value at each balance sheet date. 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.

All assets and liabilities for which fair value is measured or disclosed in the financial statement are categorized within the fair value hierarchy.

(g) Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. All the financial assets and liabilities are measured initially at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial asset and financial liabilities (other than financial assets and liabilities carried at fair value through profit or loss) are added or deducted from the fair value measured on initial recognition of financial asset or financial liability.

(h) Financial assets Classification and Measurement

All the financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial asset (other than financial assets carried at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset.

Subsequent measurement of a financial assets depends on its classification i.e., financial assets carried at amortised cost or fair value (either through other comprehensive income or through profit or loss). Such classification is determined on the basis of Company''s business model for managing the financial assets and the contractual terms of the cash flows.

The Company''s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to employees and security deposits etc. which are classified as financial assets carried at amortised cost.

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 financial assets that is subsequently measured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is recognised using the effective interest rate method.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the Company provides for lifetime expected credit losses recognized from initial recognition of the receivables.

De-recognition of financial assets

A financial asset is de-recognised only when

- The Company has transferred the rights to receive cash flows from the financial asset or

- 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.

(i) Income recognition Interest income:

Interest income is recognised at contracted rate of interest.

Dividends

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

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Mar 31, 2023

1. Significant Accounting Policies:

1) Basis of Preparation of Financial Statements:-

(i) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on an accrual basis and under the historical cost convention except certain financial assets and liabilities are measured at fair value (refer accounting policy regarding financial instruments).

(iii) Classification of assets and liabilities

The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.

2) Summary of Significant Accounting Policies:

a) Property, Plant and Equipment:

All items of Property, plant and equipment except land are shown at cost, lessaccumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment comprisesits cost of acquisition inclusive of inward freight, import duties, and other nonrefundable taxes or levies and anycost directly attributable to the acquisition / construction of those items; any trade discounts and rebates arededucted in arriving at the cost of acquisition.

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 group and the costof the item can be measured reliably. All other repairs and maintenance are charged to statement of profit or lossduring the reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are recognised in profit or loss.

Transition to Ind AS

On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant andequipment recognized as at April 01, 2018 measured as per the previous GAAP (Indian GAAP) and use thatcarrying value as the deemed cost of property, plant and equipment.

(b) Depreciation and amortisation:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of theCompanies Act, 2013. The residual values are not more than 5% of the original cost of the asset.

(c) Impairment of assets

At the date of balance sheet, if there are indications of impairment and the carrying amount of the cash generatingunit exceeds its recoverable amount (i.e. the higher of the fair value less costs of disposal and value in use), animpairment loss is recognised. The carrying amount is reduced to the recoverable amount and the reduction isrecognised as an impairment loss in the profit or loss. The impairment loss recognised in the prior accountingperiod is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciationis provided on the revised carrying value of the impaired asset over its remaining useful life.

(d) Inventories:

The cost of various categories of inventory is determined as follows:

1. Raw material and Packing Materials : At Cost including local taxes (Net of setoff) or Net realisablevalue, whichever is lower.

2. Stock in Process : At Cost or Net realisable value, whichever is lower.

3. Stock of Finished Goods : At Cost or Net realisable value, whichever is lower.

4. Consumable Stores &Spares : At Cost or Net realisable value, whichever is lower.

5.Scrap : At Net realisable value

Cost of raw material and packing materials are determined using first in first out (FIFO) method. Costs of finishedgoods and stock in process include cost of raw material and packing materials, cost of conversion and other costsincurred in bringing the inventories to the present location and condition.

(e) Revenue recognition:

In Contact Centre Activity, revenue is recognized as the related services are performed, based on actual utilization or minimum utilization level, as appropriate, specified in the agreements.

In Claim Processing Activity, revenue is recognized based on number of claims processed, at contractual rates and terms as specified in the agreements.

In respect of other services, revenue for services rendered is recognized as per the terms of specific contracts.

Interest income is accounted on accrual basis and dividend income is accounted on right to receipt basis.

In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis.

(f) Fair value measurement:

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price thatwould be received to sell an asset or paid to transfer a liability in an orderly transaction between marketparticipants at the measurement date.

All assets and liabilities for which fair value is measured or disclosed in the financial statement are categorized within the fair value hierarchy.

(g) Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisionsof the instruments. All the financial assets and liabilities are measured initially at fair value. Transaction coststhat are directly attributable to the acquisition or issue of financial asset and financial liabilities (other thanfinancial assets and liabilities carried at fair value through profit or loss) are added or deducted from the fair valuemeasured on initial recognition of financial asset or financial liability.

(h) Financial assets

Classification and Measurement

All the financial assets are initially measured at fair value. Transaction costs that are directly attributable to theacquisition of financial asset (other than financial assets carried at fair value through profit or loss) are added toor deducted from the fair value measured on initial recognition of financial asset.

Subsequent measurement of a financial assets depends on its classification i.e., financial assets carried atamortised cost or fair value (either through other comprehensive income or through profit or loss). Suchclassification is determined on the basis of Company''s business model for managing the financial assets and thecontractual terms of the cash flows.

The Company''s financial assets primarily consists of cash and cash equivalents, trade receivables, loans toemployees and security deposits etc. which are classified as financial assets carried at amortised cost.

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely paymentsof principal and interest are measured at amortised cost. A gain or loss on a financial assets that is subsequentlymeasured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interestincome from these financial assets is recognised using the effective interest rate method.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carriedat amortised cost. For trade receivables, the Company provides for lifetime expected credit losses recognized from initial recognition of the receivables.

De-recognition of financial assets A financial asset is de-recognised only when

- The Company has transferred the rights to receive cash flows from the financial asset or

- 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.

(i) Income recognition Interest income

Interest income is recognised at contracted rate of interest.

Dividends

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probablethat the economic benefits associated with the dividend will flow to the Company, and the amount of the dividendcan be measured reliably.

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Mar 31, 2018

(A) Significant Accounting Policies:

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in all material respects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements have been prepared under the historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

In Contact Centre Activity, revenue is recognized as the related services are performed, based on actual utilization or minimum utilization level, as appropriate, specified in the agreements.

In Claim Processing Activity, revenue is recognized based on number of claims processed, at contractual rates and terms as specified in the agreements.

In respect of other services, revenue for services rendered is recognized as per the terms of specific contracts.

Interest income is accounted on accrual basis and dividend income is accounted on right to receipt basis.

In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis.

4) Fixed Assets:-

Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Borrowing costs related to the acquisition or construction of the qualifying assets for the period up to the completion of their acquisition or construction is capitalized. Subsequent expenditures related to an item of tangible assets are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance.

5) Depreciation/Amortization:-

Pursuant to the enactment of the Companies Act 2013 (the Act), the company has, effective from 1 April, 2014, reassessed the useful life of its fixed assets and has computed depreciation with reference to the useful life of assets as recommended in schedule II to the Act.

6) Investments:-

Investments that are readily realizable and are intended to be held for not more than a year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

7) Provision, Contingent Liabilities and Contingent Assets:-

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Contingent liabilities are disclosed by way of Notes to Accounts.

Contingent assets are not recognized in the financial statements.

8) Taxation:-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 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 tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

9) Segment reporting:-Identification of segments:

The Company’s operating businesses are organized and managed according to the nature of service and predominant source of the risk for the Company is business service, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

10) Earnings per share:-

Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number of equity shares outstanding during the period.

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, if any.

11) Impairment:-

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the assets’ net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

12) Borrowing costs:-

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

13) Leases:-

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as Operating Leases. Operating Lease payments are recognized as an expense in the Profit & Loss Account on a straight line basis over the lease period.

14) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribution scheme and the payments are charged to the Profit and Loss Account of the year when the payments to the respective funds are due. There are no obligations other than contribution payable to Provident Fund Authorities.

15) Foreign Currency Translations:-

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. 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 the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on settlement of monetary items or on reporting Company’s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

Forward exchange contracts not intended for trading or speculation purposes

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

16) Other Accounting Policies:-

These are consistent with the generally accepted accounting practices.