Accounting Policies of Kontor Space Ltd. Company

Mar 31, 2024

Note 1 - Notes to Financial Statement

1. Company Information

Kontor Space Limited was incorporated as ''Kontor Space Private Limited'' on January 17, 2018 as a Private Limited Company under the Companies Act, 2013 with the Registrar of Companies, Mumbai, Maharashtra. Pursuant to a special resolution passed by our shareholders in the Extra-Ordinary General Meeting held on June 27, 2023, our Company was converted from a Private Limited Company to Public Limited Company and consequently, the name of our Company was changed to ''Kontor Space Limited'', and a fresh certificate of incorporation dated July 19, 2023 was issued to our Company by the Registrar of Companies, Mumbai, Maharashtra. The corporate identification number of our Company is U70109MH2018PLC304258. We provide "Co working space service" by renting and managing commercial spaces. With our technological expertise, we aim to foster a culture of collaboration and productivity by offering flexibility, convenience, and astounding quality at a significantly competitive price to our clients ranging from small-scale startups to large conglomerates.

2. Significant Accounting policies :

A Accounting Convention

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value

B Use of Estimates

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

C Property, Plant and Equipment

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

In case of new projects / expansion of existing projects, expenditure incurred during construction / preoperative period including interest and finance charge on specific / general purpose loans, prior to commencement of commercial production are

capitalized. The same are allocated to the respective on completion of construction / erection of the capital project / fixed assets

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future economic benefits from the existing asset beyond its previously assessed standard of performance. Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the Balance Sheet as "Capital Work in Progress".

D. Impairment of Assets

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

E. Depreciation

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

F. Employee Benefit

(i) Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the services have been rendered.

(ii) Long Term Employee Benefits a) Defined Contribution Plan: -

(i) Provident Fund - Employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan.

(ii) Gratuity - The Company provides for gratuity obligations through a defined retirement plan (''the Gratuity Plan'') covering all eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment based on respective employee salary and years of employment with the

Company. The Company provides for the Gratuity Plan based on projection valuations in accordance with Accounting Standard 15 (Revised),"Employee Benefits"

G. Revenue Recognition

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

The capital gain on sale of investments if any are recognized on completion of transaction. No notional profit/loss are recognized on such investments. Interest income is recognized on time proportion basis, when it is accrued and due for payment.

H. Borrowing Cost

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

I. Basis of Accounting:

The Financial Accounts have been prepared under the Historical Cost Covention in accordance with generally Accepted Accouting Principles and as per the provisions of the Companies Act, 2013 as adopted consistently by the Company. The same has been prepared on going concern basis.

J. Taxes on Income

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

K. Foreign Currency Translation

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

Any exchange difference on account of settlement of foreign currency transaction and restatement of monetary assets and liabilities denominated in foreign currency is recognized in the statement of Profit & loss Account.

L. Provision, Contingent Liabilities and Contingent Assets

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