Accounting Policies of Senthil Infotek Ltd. Company

Mar 31, 2024

1. Disclosure of Significant Accounting Policies:

a) Compliance with Indian Accounting Standards (Ind as)

The Standalone financial statements have been prepared in accordance with Indian Accounting
Standards (Ind as) as per the Companies (Indian Accounting Standards) Rules, 2015 notified
under section 133 of the Companies Act, 2013.

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

Accordingly, the Company has prepared these Standalone Financial Statements which
comprise the Balance Sheet as at 31st March, 2024, the Statement of Profit and Loss for the year
ended 31st March 2024, the Statement of Cash Flows for the year ended 31st March 2024 and
the Statement of Changes in Equity for the year ended as on that date, and accounting policies
and other explanatory information (together hereinafter referred to as ‘Standalone Financial
Statements’ or ‘financialstatements’).

The financial statements are approved by the Board of Directors on 29-05-2024.

b) Basis of Preparation of financial statements

The separate financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) under historical cost convention on accrual basis except the assets and
liabilities which have been measured at Fair Values.

• Financial instruments - measured at fairvalue;

• Assetsheldforsale-measuredatfairvaluelesscostofsale;

• Planassetsunderdefinedbenefitplans-measuredatfairvalue

• Employeeshare-basedpayments-measuredatfairvalue

• Biologicalassets-measuredatfairvalue

• In addition, the carrying values of recognized assets and liabilities, designated as hedged items
in fair value hedges that would otherwise be carried at cost, areadjustedto record changes in the
fair values attributable to the risks that are being hedged in effective hedgerelationship.

Current and Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification.

An asset is classified as current when it satisfies any of the following criteria:

• Expected to be realized, or is intended to be sold or consumed, the Company’s normal operating
cycle;

• Held primarily for the purpose of trading;

• It is expected to be realized within twelve months after the reporting date; or

• It is 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.

Aliability is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company’s normal operating cycle;

• It is held primarily for the purpose of being traded

• It is due to be settled within 12 months after the reporting date; or the Company does not have an
unconditional right to defer settlement of the liability for at least 12 months after the reporting
date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue
of equity instruments do not affect its classification

All other liabilities are classified as non-current liabilities.

c) Use of estimates and judgment

The preparation of the financial statements in conformity with Ind AS, management has made
judgments, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.

This note provides an overview of the areas where there is a higher degree of judgment or
complexity. Detailed information about each of these estimates and judgments is
includedinrelevantnotestogetherwithinformationaboutthebasisofcalculation.

d) Recent Accounting Pronouncements:

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting
Standards) (Amendment) Rules, 2023 on 31st March, 2023 amending:

a) Ind AS 1, ‘Presentation of Financial Statements'' - This amendment requires companies
to disclose their material accounting policies rather than their significant accounting
policies.

b) Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors'' - This
amendment has introduced a definition of ‘accounting estimates'' and includes
guidance to help distinguish changes in accounting policies from changes in
accounting estimates.

c) Ind AS 12 ‘Income Taxes'' - This amendment has narrowed the scope of the initial
recognition exemption so that it does not apply to transactions that give rise to equal
and offsetting temporary differences. The amendments clarify how companies account
for deferred tax on transactions such as leases

These are applicable from Financial Year beginning on or after 1st April 2023 (Thus for
us will be applicable from 1st April 2024).

Based on a preliminary evaluation, the Company does not expect any material impact
on the financial statements resulting from the implementation of these amendments

e) Functional and Presentation Currency:

The financial statements have been prepared and presented in Indian Rupees (?),
which is also the Company''s functional currency.

f) Rounding off:

All amounts in the financial statement and accompanying notes are presented in (?)
Lakhs and have been rounded-off to one decimal place unless stated otherwise.

g) Approval of financial statements:

The financial statements are approved by the Board of Directors on 29th May 2024.

1.1. Ind AS 105: Non-Current Assets held for Sale or Discontinued Operations:

This standard specifies accounting for assets held for sale, and the presentation and
disclosure for discontinued operations:

Assets that meet the criteria to be classified as held for sale to be measured at the lower
of carrying amount and fair value less cost to sell, and depreciation on such assets to
cease; and

(a) Assets that meet the criteria to be classified as held for sale to be presented separately
in the balance sheet and the results of discontinued operations to be presented
separately in the statement of profit and loss.

1.2. Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for evaluation of mineral
resources. In particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration and evaluation of
expenditures

b. Entities that recognize exploration and evaluation of assets to assess such assets for impairment
in accordance with this standard and measure any impairment.

Disclosures that identify and explain the amounts in the entity’s financial statements arising from
the exploration for the evaluation of mineral resources and help users of those financial
statements understand the amount, timing and certainty of future cash flows from any
exploration and evaluation of assets recognized.

This Ind AS 106 is not applicable, the company is in the business of Information and technology
services, Digital Services. Hence this Ind As does not have any financial impact on the financial
statements of the company.

1.3. Ind AS-16: Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any
directly attributable cost of bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of
materials and direct labor, any other costs directly attributable to bringing the item to working
condition for its intended use, and estimated costs of dismantling and removing the item and
restoring the site on which it is located.

Property, plant and equipment which are significant to the total cost of that item of Property Plant
and Equipment and having different useful life are accounted for as separately.

Impairment

Property Plant and Equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units).

1.4 Impairment Assets (Ind AS 36)

The Company’s non-financial assets, other than deferred tax assets, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped
together into cash-generating units (CGUs). Each CGU represents the smallest group of assets
that generates cash inflows that are largely independent of the cash inflows of other assets or
CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its
fair value less costs to sell. Value in use is based on the estimated future cash flows, 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 CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its
estimated recoverable amount. Impairment losses are recognized in the statement of profit and
loss. Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the
other assets of the CGU (or group of CGUs) on a pro rata basis.

The books of accounts of the company doesn’t carry any impairment of assets during the
reporting period, hence this accounting standard does not have financial impact on the financial
statements of the company.

1.5 Intangible assets (Ind AS 38):

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible
assets are amortized over their estimated useful life on straight line basis.

Subsequent costs are included in assets carrying amount or recognized or recognized as a
separate asset, as appropriate, only when it is probablethat future economic benefits associated
with the item will flow to the entity and the cost can be measured reliably.

The residual Values, useful lives and methods of depreciation of Property Plant and Equipment
are reviewed at each financial year end and adjusted prospectively, if appropriate.

Gains or losses arising from derecognition of Intangible assetare measured as the difference
between the net disposal proceeds and carrying amount of the asset is recognized in the
statement of profit or loss when the asset is derecognized.

1.6 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7, whereby profit/(loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available
information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short¬
term balances (with an original maturity of three months or less from the date of acquisition),
highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value

1.7 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months based on
the nature of products and the time between the acquisition of assets for processing
and their realization, for the purpose of current / non-current classification of assets
and liabilities.

1.8 Capital Work in Progress

Capital Work in Progress (CWIP) includes Civil Works in Progress,
Plant&Equipment under erection and Preoperative Expenditure pending allocation
on the assets to be acquired/commissioned, capitalized. It also includes payments
made towards technical know-how fee and for other General Administrative
Expenses incurred for bringing the asset into existence.

1.9 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are 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 non-current
investments.

Current investments are carried at lower of cost and fair value. Non-Current
Investments are carried at cost less provision for other than temporary diminution, if
any, in value of such investments.

1.10 Effects of changes in Foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates prevailing on the
dates when the relevant transactions took place. Exchange differences arising on
settled foreign currency transactions during the year and translation of assets and
liabilities at the year-end are recognized in the statement of profit and loss.

In respect of Forward contracts entered into to hedge risks associated with foreign
currency fluctuation on its assets and liabilities, the premium or discount at the
inception of the contract is amortized as income or expense over the period of
contract. Any profit or loss arising from the cancellation or renewal of forward
contracts is recognized as income or expense in the period in which such
cancellation or renewal is made.

The company has not entered into any foreign exchange transactions during the
reporting period, hence this accounting standard does not have financial impact on
the financial statements.

1.11 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific borrowings pending
their expenditure on qualifying assets is recognized in the statement of profit and
loss.

Discounts or premiums and expenses on the issue of debt securities are amortized
over the term of related securities are included within borrowing costs. Premiums
payable on early redemptions of debt securities, in lieu of future costs, are
recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in which it is
incurred.

1.12 Revenue Recognition(Ind AS 18):

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:

a) Sales Revenue is recognized on dispatch to customers as per the terms of the order.
Gross sales are net of returns and applicable trade discounts and excluding GST
billed to the customers.

b) Subsidy from Government is recognized when such subsidy has been earned by the
company and it is reasonably certain that the ultimate collection will be made.

c) Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the applicable interest rate. Interest income is included
under the head “other income” in the statement of profit and loss.

d) All other incomes are recognized based on the communications held with the parties
and based on the certainty of the incomes.

1.13 Accounting for Government Grants and Disclosure of Government
Assistance (Ind AS 20):

Government grants:

Government grants are not recognized until there is a reasonable assurance that the
Company will comply with the conditions attached to them and that the grants will be
received.

Government grants are recognized in the Statement of Profit and Loss on a
systematic basis over the years in which the Company recognizes as expenses the
related costs for which the grants are intended to compensate or when performance
obligations are me.

Government grants, whose primary condition is that the Company should
purchase, construct or otherwise acquire non-current assets and

nonmonetary grants are recognized and disclosed as ‘deferred income'' under non¬
current liability in the Balance Sheet and transferred to the Statement of Profit and
Loss on a systematic and rational basis over the useful lives of the relatedassets.

The benefit of a government loan at a below-market rate of interest and the effect of
this favorable interest is treated as a government grant. The loan or assistance is
initially recognized at fair value and the government grant is measured as the

difference between proceeds received and the fair value of the loan based on
prevailing market interest rates and recognizedto the income statement
immediately on fulfillment of the performance obligations. The loan is subsequently
measured as per the accounting policy applicable to financialliabilities.

1.14 Inventories (Ind AS 2):

Inventories are assets:

a. Held for sale in the ordinary course of business;

b. In the process of production for such sale;

c. In the form of materials or supplies to be consumed in the production process or in
the rendering of services

Net Realizable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs necessary to make
the sale.

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.

• Cost of Material excludes duties and taxes which are subsequently recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of
dispatch from Factories.

• Based on the information provided the difference between physical verification and
valuation of the inventories are charged to the profit and loss account.

1.15 Trade Receivables - Doubtful debts:

A Trade receivable represents the company''s right to an amount of consideration
that is unconditional.

Provision is made in the Accounts for Debts/Advances which is in the opinion of
Management Are Considered doubtful of Recovery.

1.16 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined contribution scheme.
The Company has no obligation other than contribution payable to the provident
fund. The Company recognizes contribution payable to the provident fund scheme
as expenditure, when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing the benefits
under this plan is determined on the basis of actuarial valuation at each year-end.
Actuarial valuation is carried out for this plan using the projected unit credit method.
Actuarial gains and losses for defined benefits plan is recognized in full in the period
in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12 months, is
treated as short term employee benefit. The Company measures the expected cost
of such absences as the additional amount that it expects to pay as a result of the
unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond
twelve months, as long-term employee benefit for measurement purposes. Such
long-term compensated absences are provided for based on the actuarial valuation
using the projected unit credit method at the year-end. Actuarial gains/losses are
immediately taken to the statement of profit and loss and are not deferred. The
Company presents leave as a current liability in the balance sheet, to the extent it
does not have an unconditional right to defer its settlement for 12 months after the
reporting date.

1.17 Ind AS 17- Leases

A Lease is classified as a Finance Lease if it transfers substantially all the risks and
rewards incidental to ownership. A lease is classified as an operating lease if it does
not transfer substantially all the risks and rewards incidental to ownership.

Finance charges in respect of finance lease obligations are recognized as finance
costs in the statement of profit and loss. In respect of operating leases for premises,
which are cancellable / renewable by mutual consent on agreed terms, the
aggregate lease rents payable is charged as rent in the Statement of Profit and Loss.

1.18 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be
admitted and to the extent that the amount recoverable can be measured reliably
and it is reasonable to expect ultimate collection.

1.19 Earnings per Share (Ind AS 33):

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. Partly paid equity shares are treated as a fraction of
an equity share to the extent that they are entitled to participate in dividends relative
to a fully paid equity share during the reporting period. The weighted average
number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the number of equity shares
outstanding, without a corresponding change in resources.

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.

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Mar 31, 2015

A. ACCOUNTING ASSUMPTIONS:

The financial statements of Senthil Infotek Limited have been prepared and presented in accordance with Indian Generally Accepted Accounting Principle(GAAP) under the historical cost convention on the accrual basis. GAAP comprises accounting Standards notified by the central Government of India under section 2 (2) of the companies Act, 2013, other pronouncements of Institute of Chartered Accountants of India, and the provisions of companies Act.

The Company has prepared these financial Statements as per the format prescribed by Revised Schedule VI to the companies Act 1956 issued by Ministry of Corporate Affairs.

Previous year figures have been regrouped, recast and reclassified wherever necessary to confirm with those of the current year.

b. FIXED ASSETS: Fixed Assets are accounted at cost of acquisition exclusive of CENVAT and

inclusive of freight inward, taxes, incidentals related to acquisition and financial cost till commencement of commercial production.

c. DEPRECIATION: Depreciation has not been provided for this year as the operations were negligible.

d. INCOME TAX EXPENSES:

Income tax expense comprises current tax and deferred tax charge or credit.

Current Tax

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred Tax - Not Applicable

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Mar 31, 2014

A) Financial Statements are prepared under the historical cost convention and in accordance with normally accepted accounting standards.

b) Fixed Assets are at cost.Depreciation has not been provided on fixed assets, since the company has not started commercial production on the floriculture project.

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Mar 31, 2013

A) Financial Statements are prepared under the historical cost convention and in accordance with normally accepted accounting standards.

b) Fixed assets are at cost. Depreciation has not been provided on fixed assets since the company has not yet started commercial production on the floriculture project.

c) Preliminary expenses will be amortized over a period of 10 years from the date of commencement of commercial production.

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Mar 31, 2012

A) Financial Statements are prepared under the historical cost convention and in accordance with normally accepted accounting standards.

b) Fixed assets are at cost. Depreciation has not been provided on fixed assets since the company has not yet started commercial production on the floriculture project.

c) Preliminary expenses will be amortized over a period of 10 years from the date of commencement of commercial production.

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Mar 31, 2010

1. Accounting Policies

a) Financial Statements are prepared under the historical cost convention and in accordance with normally accepted accounting standards.

b) Fixed assets are at cost. Depreciation has not been provided on fixed assets since the company has not yet started commercial production on the floriculture project.

c) Preliminary expenses will be amortized over a period of 10 years from the date of commencement of commercial production.

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Mar 31, 2009

1. Accounting Policies

a) Financial Statements are prepared under the historical cost convention and in accordance with normally accepted accounting standards.

b) Fixed assets are at cost. Depreciation has not been provided on fixed assets since the company has not yet started commercial production on the floriculture project.

c) Preliminary expenses will be amortized over a period of 10 years from the date of commencement of commercial production.

d) Transaction In foreign currencies are NIL.

e) Additional information pursuant to the provisions of Clause 3.4A, 4c and 4D of part II schedule VI of the Companies Act. 1956 are not given since the activities of the company are not started.

f) Figures have been rounded off to the nearest rupee.

g) Previous years figures are regrouped wherever necessary.

h) Confirmation of balances in respect of Loans & Advances and Creditors remain to be obtained.

I) The issue of shares amounting to Rs.5.05 Crores is subject to reconciliation,

j) During the year under 'review software activity was started. The expenditure Incurred on the floriculture project Is classified as pre- operative expenditure to be capitalized.

k) During the year the company sold 10 Acres of land along with the -developments made there on. The excess of sale proceeds over expenditure Incurred and proportionate cost of land Is transferred as capital reserve,