Accounting Policies of BITS Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES AS AT MARCH 31, 2025

1. BASIS OF PREPARATION:

i) COMPLIANCE WITH IND AS:

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), [Companies (Indian Accounting Standards) Rules, 2015] As amended from time to time and other relevant provisions of the Act.

ii) HISTORICAL COST CONVENTION:

The Financial Statements have been prepared on accrual, going Concern basis and historical cost basis.

IND AS 01: PRESENTATION OF FINANCIAL STATEMENTS

IND AS 01 has been applied in preparing and presenting, General purpose Financial Statements. Appending notes contain information in addition to that, presented in Balance Sheet, Statement of Profit & Loss, Statement of Change in Equity and Statement of Cash Flows. Notes to financial statements provide narrative description or disaggregation of items presented in these Financial Statements and information about the items that do not qualify for recognition in Financial Statements.

Other Comprehensive Income comprises items of income and expenses that are not recognised in profit and loss, as required or permitted by other IND AS. Financial Statements have been prepared on going concern assumption.

IND AS 02: INVENTORIES

The Company does not deal in inventory hence IND AS 2 is not applicable.

IND AS 07: STATEMENT OF CASH FLOWS

Statement of Cash Flows has been prepared in accordance with requirements of IND AS 07 & is presented as an integral part of Financial Statements for each period for which reporting is required.

This statement reports cash flows during the period classified by Operating, Investing & Financial activities. Cash flows from operating activities is reported using the indirect method.

Cash & Cash Equivalents comprises of cash in hand demand deposit with bank and short-term balance with maturity of three months or less and highly liquid funds that are convertible into known amount of cash and which are subject to insignificant risk of change in value.

The income tax expenses or credit for the period is the tax payable on taxable income of current period based on applicable income tax rates adjusted by changes in deferred tax assets and liabilities attributable to temporary difference and unused tax losses.

The current income tax charges are calculated on the basis of tax laws enacted or substantively enacted at the end of reported period. The management periodically evaluates position taken in tax returns with respect to situation in which applicable tax regulation is subject to interpretation. It establishes provision where appropriate, on the basis of amount expected to be paid to tax authorities.

Deferred tax asset is recognised for all deductible temporary differences and unused tax losses only if it is probable that future tax amount will be available to utilize those temporary differences and losses. Current and deferred tax is recognised in profit and losses, except to the extent that it relates to items recognised in Other Comprehensive Income.

IND AS 16: PROPERTY, PLANT AND EQUIPMENTS

Free hold land is carried at historical cost.

All other items of Property, Plant and Equipments 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 items.

Subsequent expenses are included in the carrying amount of assets 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 repair and maintenance 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 statement of profit and loss.

DEPRECIATION METHODS, ESTIMATED USEFUL LIVES AND RESIDUAL VALUE:

Depreciation is provided on the written down value method (except premises on which Straight Line Method is followed) to allocate the cost of assets, net of the residual values, over their estimated useful lives. Depreciation is calculated on pro-rata basis, both, from the date of acquisition in the year of acquisition and till the date of disposal/retirement, in the year of disposal/retirement.

Assets	Useful Life
Air Conditioner	5 Years
Computer & Accessories	3 Years
Electrical Installation	5 Years
Furniture & Fixtures	10 Years
Bikes	10 Years
Motor Vehicle	8 Years
Premises	60 Y ears

IND AS 24: RELATED PARTY DISCLOSURES

Disclosures of related party relationships, transactions and outstanding balances including commitments in the financial statements have been given, where ever required. Items of similar nature have been disclosed in aggregate except when separate disclosure is required for understanding the effects of the same on financial statements of entity.

Basic and diluted earnings per share for profit or loss from continuing operations attributable to the ordinary equity holders of the entity for each class of ordinary shares, have been disclosed as per the requirements of IND AS 33.

IND AS 37: PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

IND AS 37 has been applied in accounting for provisions, contingent liabilities & contingent assets.

A Provision shall be recognized only when:

i. An entity has a present obligation due to past events;

ii. It is probable that an outflow of resources embodying economic benefits will be an outflow of resources embodying economic benefits will be required to settle the obligation, and

iii. A reliable estimate can be made of the amount of obligation. If these conditions are not met, no provision shall be recognized.

A contingent liability is disclosed, as required by paragraph 86, unless the possibility of an outflow of resources embounding economic benefit is remote.

IND AS 109: FINANCIAL INSTRUMENTS

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

The classification depends on the business model of the entity for managing financial assets and 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.

SUBSEQUENT MEASUREMENT:

After initial recognition, financial assets are measured at:

i. Fair value (either through other Comprehensive Income (FVOCI) or through profit or loss (FVPL) or,

ii. Amortised cost

The company subsequently measures all investment in equity instruments at fair value. The management of the company has elected to present fair value gains or losses on such equity investment in Profit and loss. Dividends from such investments are recognized, as and when right to receive is established. Impairment losses (and reversal of impairment losses) on equity instruments measured at FVTPL (Fair Value through Profit and Loss) are not reported separately from other changes in fair value.

The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell or to transfer the liability would take place between market participants at the measurement date under current market conditions. A fair value measurement requires an entity to determine all the following:

a) The particular asset or liability that is the subject of the measurement (consistently with its unit of account)

b) For a non-financial asset, the valuation premise that is appropriate for the measurement (consistently with its highest and best use).

c) The principal (or most advantageous) market for the asset or liability.

d) The valuation technique (s) appropriate for the measurement, considering the availability of data to develop input that represent the assumptions that market participants would use when pricing the asset or liability and the level of the fair value hierarchy within which the inputs are categorised.

This IND AS defines fair value as 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.

REVENUE RECOGNITION

Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contribution from equity participants.

Revenue is recognized only when it is probable the economic benefits associated with the transaction will flow to the entity. Interest income is recognized on a time proportion basis using the effective interest rate method. Rental Income/ Licence fees are recognized on accrual basis as per terms of agreements for letting of spaces. Capital gain is recognized at the time of sale of Investment.

Exclusion from the definition of revenue are:

• Amount collected on behalf of third parties, viz, sales tax, goods and services tax: These are not economic benefits that will flow to the entity and do not result in equity.

• In agency relationship, amounts collected on behalf of principal.

Entity recognizes revenue on accrual basis, except for dividend which is recognized as and when right to receive payment is established.

OTHER ADDITIONAL INFORMATION AS AT MARCH 31, 2025

1. CONTINGENT LIABILITIES:

i) Claims against the company not acknowledged as debts Nil, Previous Year Nil.

ii) Guarantees to Bank and Financial Institutions against credit facilities extended to third parties Nil, Previous Year Nil.

iii) Other money for which the company is contingently liable Nil, Previous Year Nil.

2. COMMITMENTS ON CAPITAL ACCOUNTS:

i) Uncalled liability on partly paid-up shares - Nil, Previous Year Nil.

ii) Estimated amount of contracts remaining to be executed on capital accounts - Nil, Previous year Nil.

iii) Other Commitments Nil, Previous year Nil.

3. In the opinion of the Board and to the best of its knowledge, the value on realization of Current Assets, Loans and Advances, in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES AS AT MARCH 31, 2024 1. BASIS OF PREPARATION:

i) COMPLIANCE WITH IND AS:

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), [Companies (Indian Accounting Standards) Rules, 2015] As amended from time to time and other relevant provisions of the Act.

ii) HISTORICAL COST CONVENTION:

The Financial Statements have been prepared on accrual, going Concern basis and historical cost basis.

IND AS 01: PRESENTATION OF FINANCIAL STATEMENTS

IND AS 01 has been applied in preparing and presenting, General purpose Financial Statements. Appending notes contain information in addition to that, presented in Balance Sheet, Statement of Profit & Loss, Statement of Change in Equity and Statement of Cash Flows. Notes to financial statements provide narrative description or disaggregation of items presented in these Financial Statements and information about the items that do not qualify for recognition in Financial Statements.

Other Comprehensive Income comprises items of income and expenses that are not recognised in profit and loss, as required or permitted by other IND AS. Financial Statements have been prepared on going concern assumption.

IND AS 02: INVENTORIES

The Company does not deal in inventory hence IND AS 2 is not applicable.

IND AS 07: STATEMENT OF CASH FLOWS

Statement of Cash Flows has been prepared in accordance with requirements of IND AS 07 & is presented as an integral part of Financial Statements for each period for which reporting is required.

This statement reports cash flows during the period classified by Operating, Investing & Financial activities. Cash flows from operating activities is reported using the indirect method.

Cash & Cash Equivalents comprises of cash in hand demand deposit with bank and short-term balance with maturity of three months or less and highly liquid funds that are convertible into known amount of cash and which are subject to insignificant risk of change in value.

The income tax expenses or credit for the period is the tax payable on taxable income of current period based on applicable income tax rates adjusted by changes in deferred tax assets and liabilities attributable to temporary difference and unused tax losses.

The current income tax charges are calculated on the basis of tax laws enacted or substantively enacted at the end of reported period. The management periodically evaluates position taken in tax returns with respect to situation in which applicable tax regulation is subject to interpretation. It establishes provision where appropriate, on the basis of amount expected to be paid to tax authorities.

Deferred tax asset is recognised for all deductible temporary differences and unused tax losses only if it is probable that future tax amount will be available to utilize those temporary differences and losses. Current and deferred tax is recognised in profit and losses, except to the extent that it relates to items recognised in Other Comprehensive Income.

IND AS 16: PROPERTY, PLANT AND EQUIPMENTS

Free hold land is carried at historical cost.

All other items of Property, Plant and Equipments 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 items.

Subsequent expenses are included in the carrying amount of assets 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 repair and maintenance 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 statement of profit and loss.

DEPRECIATION METHODS, ESTIMATED USEFUL LIVES AND RESIDUAL VALUE:

Depreciation is provided on the written down value method (except premises on which Straight Line Method is followed) to allocate the cost of assets, net of the residual values, over their estimated useful lives. Depreciation is calculated on pro-rata basis, both, from the date of acquisition in the year of acquisition and till the date of disposal/retirement, in the year of disposal/retirement.

Disclosures of related party relationships, transactions and outstanding balances including commitments in the financial statements have been given, where ever required. Items of similar nature have been disclosed in aggregate except when separate disclosure is required for understanding the effects of the same on financial statements of entity.

IND AS 33: EARNING PER SHARE

Basic and diluted earnings per share for profit or loss from continuing operations attributable to the ordinary equity holders of the entity for each class of ordinary shares, have been disclosed as per the requirements of IND AS 33.

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Mar 31, 2015

1. Basis of preparation of Financial Statements

The financial statement has been prepared on historical cost convention and in accordance with normally accepted accounting principles and applicable accounting standards.

2. Revenue Recognition and other policies

a) The company follows mercantile system of accounting.

b) Revenue / Income and cost /expenses are generally accounted for on accrual basis as they are earned or incurred.

c) Income from Information Technology and Computer Education is accounted and credited to income in the period of invoices raised to the students.

d) Technical know-how fees from new franchisee centers are accounted for in the year in which agreement is entered into.

e) Franchisee centers operational expenses are accounted in proportion to the bills raised.

f) Sales of educational Course Materials are recognised on the basis of requisitions.

3. Fixed Assets

Fixed assets are stated at cost less depreciation. The cost of assets comprises of purchase price and any direct cost attributable to its acquisition or bringing the assets to working condition or intended use.

4. Depreciation

Depreciation is charged on a pro-rata basis on the Straight Line Method as per the rates and in the manner prescribed under the Schedule II to the Companies Act, 2013.

Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rates upto the date on which such assets are sold, discarded or demolished.

5. Inventories

Closing stock of Educational Course material & Books is valued at cost of acquisition. The company is in information technology business and is holding stock of courseware material and computer hardware & software's and it is considered to realize at least the value at which they are stated in the books.

6. Investments

Investments are Non Current in nature and are stated at cost & any decline other than temporary in the value of such investments is charged to the profit & loss account.

7. Miscellaneous Expenditure

The Company does not have any miscellaneous expenditure.

8. Employee Benefits

Contributions to Provident Fund are accounted on actual liabilities basis. At present there is no employee in the company who has completed 5 years or more, so the requirements of Accounting Standard-15 are not applicable. According to the management, the compensation & benefits payable to employees who have left the service were settled at the time they have left.

9. Taxation

Provision for tax is made for both current and deferred taxes. Current tax is provided on the basis of taxable income computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax Assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

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Mar 31, 2014

1. Basis of preparation of Financial Statements

The financial statement has been prepared on historical cost convention and in accordance with normally accepted accounting principles and applicable accounting standards.

2. Revenue Recognition and other policies

a) The company follows mercantile system of accounting.

b) Revenue / Income and cost /expenses are generally accounted for on accrual basis as they are earned or incurred.

c) Income from Information Technology and Computer Education is accounted and credited to income in the period of invoices raised to the students.

d) Technical know-how fees from new franchisee centers are accounted for in the year in which agreement is entered into.

e) Franchisee centers operational expenses are accounted in proportion to the bills raised.

f) Sales of educational Course Materials are recognised on the basis of requisitions.

3. Fixed Assets

Fixed assets are stated at cost less depreciation. The cost of assets comprises of purchase price and any direct cost attributable to its acquisition or bringing the assets to working condition or intended use.

4. Depreciation

Depreciation is provided on straight-line method at the rate specified in Schedule - XIV of the Companies Act, 1956. In respect of additions to fixed assets, depreciation is being calculated on a pro-rata basis from the date of such addition.

Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rates upto the date on which such assets are sold, discarded or demolished.

5. Inventories

Closing stock of Educational Course material & Books is valued at cost of acquisition. The company is in information technology business and is holding stock of courseware material and computer hardware & software''s and it is considered to realize at least the value at which they are stated in the books.

6. Investments

Investments are Non Current in nature and are stated at cost & any decline other than temporary in the value of such investments is charged to the profit & loss account.

7. Miscellaneous Expenditure

The Company does not have any miscellaneous expenditure.

8. Employee Benefits

Contributions to Provident Fund are accounted on actual liabilities basis. At present there is no employee in the company who has completed 5 years or more, so the requirements of Accounting Standard-15 are not applicable. According to the management, the compensation & benefits payable to employees who have left the service were settled at the time they have left.

9. Taxation

Provision for tax is made for both current and deferred taxes. Current tax is provided on the basis of taxable income computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax Assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

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Mar 31, 2011

1. Basis of preparation of Financial Statements

The financial statement has been prepared on historical cost convention and in accordance with normally accepted accounting principles and applicable accounting standards except as stated otherwise elsewhere.

2. Revenue Recognition and other policies

a) The company follows mercantile system of accounting except otherwise stated.

b) Revenue / Income and cost /expenses are generally accounted for on accrual basis as they are earned or incurred, except as stated otherwise elsewhere.

c) Income from Information Technology and Computer Education is accounted and credited to income in the period of invoices raised to the students.

d) Technical know-how fees from new franchisee centers are accounted for in the year in which agreement is entered into.

e) Franchisee centers operational expenses are accounted in proportion to the bills raised.

f) Sales of educational Course Materials are recognised on the basis of requisitions.

3. Fixed Assets

Fixed assets are stated at cost less depreciation. The cost of assets comprises of purchase price and any direct cost attributable to its acquisition or bringing the assets to working condition or intended use.

4. Depreciation

Depreciation is provided on straight-line method at the rate specified in Schedule - XIV of the Companies Act, 1956. In respect of additions to fixed assets, depreciation is being calculated on a pro-rata basis from the date of such addition.

Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rates up to the date on which such assets are sold, discarded or demolished.

5. Inventories

Closing stock of Educational Course material & Books is valued at cost of acquisition. The company is in information technology business and is holding stock of courseware material and computer hardware & software's and it is considered to realize at least the value at which they are stated in the books.

6. Investments

Investments are Long Term in nature and are stated at cost & any decline other than temporary in the value of such investments is charged to the profit & loss account.

7. Miscellaneous Expenditure

The Company does not have any miscellaneous expenditure.

8, Employee Benefits

Contributions to Provident Fund are accounted on actual liabilities basis. At present there is no employee in the company who has completed 5 years or more, so the requirements of Accounting Standard-15 are not applicable. According to the management, the compensation & benefits payable to employees who have left the service were settled at the time they have left.

9. Taxation

Provision for tax is made for both current and deferred taxes. Current tax is provided on the basis of taxable income computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax Assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.

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Mar 31, 2010

1. Basis of preparation of Financial Statements

The financial statement has been prepared on historical cost convention and in accordance with normally accepted accounting principles and applicable accounting standards except as stated otherwise elsewhere.

2. Revenue Recognition and other policies

a) The company follows mercantile system of accounting except otherwise stated.

b) Revenue / Income and cost /expenses are generally accounted for on accrual basis as they are earned or incurred, except as stated otherwise elsewhere.

c) Income from Information Technology and Computer Education is accounted and credited to income in the period of invoices raised to the students.

d) Technical know-how fees from new franchisee centers are accounted for in the year in which agreement is entered into.

e) Franchisee centers operational expenses are accounted in proportion to the bills raised.

f) Sales of educational Course Materials are recognised on the basis of requisitions.

3. Fixed Assets.

Fixed assets are stated at cost less depreciation. The cost of assets comprises of purchase price , and any direct cost attributable to its acquisition or bringing the assets to working condition or intended use.

4. Depreciation ... .

Depreciation is provided on straight-line method at the rate specified in Schedule - XIV of the Companies Act, 1956. In respect of additions to fixed assets, depreciation is being calculated on a pro-rata basis from the date of such addition.

Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rates upto the date on which such assets are sold, discarded or demolished.

5. Inventories

Closing stock of Educational Course material & Books is valued at cost of acquisition. The company is in information technology business and is holding stock of courseware material and computer hardware & softwares and it is considered to realize at least the value at which they are stated in the books.

6. Investments

Investments are Long Term in nature and are stated at cost & any decline other than temporary in the value of such .investments is charged to the profit & loss account.

7. Miscellaneous Expenditure

The Company doesvhot have any miscellaneous expenditure. -; , ¦,

8. Employee Benefits

Contributions to Provident Fund are accounted on actual liabilities basis. At present there is no employee in the company who has completed 5 years or more, so the requirements of Accounting Standard-15 are not applicable. According to the management, the compensation & benefits payable to employees who have left the service were settled at the time they have left

9. Taxation

Provision for tax is made for both current and deferred taxes. Current tax is provided on the basis of taxable income computed in accordance with the provisions of Income Tax Act, 1961. Deferred tax Assets and liabilities arising on account of timing differences and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted.