Accounting Policies of TeleCanor Global Ltd. Company

Mar 31, 2025

a) Basis for preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles (GAAP). The Company has prepared these financial statements
to comply in all material respects with the Indian Accounting Standards notified under section
133 of the Companies Act 2013. The financial statements have been prepared on accrual basis
and under the historical cost convention.

b) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost (Net of GST, wherever applicable) less
depreciation. Cost includes freight, duties and taxes and other expenses related to acquisition

c) Impairment

Impairment losses are provided to the extent the carrying amount exceeds their recoverable
amounts. Recoverable amount is the higher of an asset''s net selling price and its value in use.
Value in use is present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its useful life. Net selling price is
the amount obtainable from sale of the asset in an arm''s length transaction between

d) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction 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 us. All other borrowing costs are charged

e) Inventories

Finished Goods and Raw material are measured at lower of cost and net realisable value. Cost
comprises of purchase cost excluding taxes that are refundable.

f) Revenue Recognition

Revenue from sale of goods is recognized on despatch to customers and is recorded net of GST,
trade discounts and returns.

g) Depreciation & Amortization

Depreciation is charged in the accounts as under:

-Buildings are depreciatiated using Straight Line Method.

-Computers are depreciatiated using Straight Line Method. The assets are depreciated to the
maximum extent. The net value corresponds to the Residual value.

-Paddle wheel is depreciated using Written Down Value Method.

-Depreciation on additions/deletions is worked out on pra^ata-basis r

_ rT

N) Taxes on income

Deferred tax liabilities and deferred tax assets are recognized for the tax effect on the difference
between taxable income and accounting income which are not permanent in nature subject to
the consideration of prudence in the case of deferred tax assets.

i) Earnings per Share

Basic earnings per share is 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. The weighted average number of equity shares outstanding during the period are
adjusted for events of bonus issue and share split, if any. For the purpose of calculating diluted
earnings per share, the net profit for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of

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j) Related Party Transactions

Disclosure of nature of relationships, Related Party Transactions and balances is separately
disclosed in Note 29

k) Segment Reporting

The company has two reportable segments, viz., Information Technology services and
Aquaculture (Shrimps and Fish). Kindly refer Note 30 for relevant disclosures.

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Mar 31, 2024

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
a} Basis for preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles (GAAP). The Company has prepared these financial statements to comply in all
material respects with the Indian Accounting Standards notified under section 133 of the Companies Act

2013. The financial statements have been prepared on accrual basis and under the historical cost
convention.

b) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost (Net of GST, wherever applicable) less depreciation. Cost
includes freight, duties and taxes and other expenses related to acquisition and installation.

c) impairment

Impairment losses are provided to the extent the carrying amount exceeds their recoverable amounts,
t ecoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is present
vu.ue or estimated future cash flows expected to arise from the continuing use of the asset and from its
isposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an
^{drm s len£th tran}saction between knowledgeable, willing parties less cost of disposal.

d) Borrowing costs

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

e) Inventories

Mnisned Goods and Raw material are measured at lower of cost and net realisable value. Cost comprises of
purchase cost excluding taxes that are refundable.

f) Revenue Recognition

Revenue from sale of goods is recognized on despatch to customers and is recorded net of GST trade
discounts and returns. ''

g) Depredation & Amortization
Depreciation is charged in the accounts as under:

.. -Buildings are depreciated using Straight Line Method.

-Computers are depreciated using Straight Line Method. The assets are depreciated to the maximum
extent. The net value corresponds to the Residual value.

-Paddle wheel is depreciated using Written Down Vaiue Method.

-Depreciation on additions/deletions is worked out on pro-rata basis

h) Taxes on income

t?xl^ebLln^{aX liabili}f^{S 3nd defened t3X 3SSetS are reCognized for the} tax effect on the difference between
* °^m® ^{3nd accountln}e income which are not permanent in nature subject to the consideration of

prudence in the case of deferred tax assets. cons.derat.cn of

i) Earnings per Share

^TehoTrsTth''³" " r''^C:^{lated bV dMdinS the net Pr0fit} °^{r bSS f0r the pedod} ««»>«**. to equity
weiht!d ! ^V T⁸ < ^aVera8e "^Umber °^{f eqUitY Shares 0Utsta}"^di"S ^d''-"ing the period. TTte

i^sue no .^{6qUitV ShareS} °^{UtStanding dUrin§ the period are} adjusted for events of bonus

..sue and share spirt, if any. ror the purpose of calculating diluted earnings per share, the net profit for the

£ 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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Sep 30, 2014

A) Basis for Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles, Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 and the relevant provisions thereof. During the year, Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The Company has reclassified the previous year figures in accordance with the requirements in the current year.

b) Revenue Recognition

(i) Revenue from sale of goods is recognised net of rebates and discounts on transfer of significant risks and rewards of ownership to the buyer.

(ii) Revenue from services rendered is recognised on prorata basis in proportion to the stage of completion of the related transaction.

c) Tangible Assets

Tangible assets are stated at cost less accumulated depreciation and net of impairment, if any.

d) Intangible Assets

Intangible assets are stated at cost less accumulated amortisation and net of impairment, if any. An intangible asset is recognised if it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company and its cost can be measured reliably. Intangible assets having finite useful lives are amortised on a straight line basis over there estimated useful lives.

e) Depreciation and Amortisation

Depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956 except the following where the management has decided to put the following fixed assets held for sale

f) Impairment

Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognised in the Statement of Profit and Loss if the carrying amount of an asset exceeds its recoverable amount.

g) Foreign Currency Transactions

Transactions in foreign exchange currencies are recorded at ruling rate on the date of the transaction. Monetary items of assets and liabilities are translated on reporting date. Exchange differences are recognized, if any material, in the statement of profit and loss for the period. However there are no such items to be recognized.

h) Inventories

Inventories are valued at cost or net realizable value whichever is lower. However there are no inventories as on the end of reporting period.

i) Deferred Tax

Deferred tax is accounted for by computing the tax effect of timing differences which arise during the year and reverse in subsequent periods. However deferred tax was not provided during the year as the company has incurred loss during the year.

j) Loans and Advances

During the period ended 30th September 2014 the company has not paid instalments regularly with respect to the Term Loan and the loan is overdue. The OD interest is also not paid and the same has became overdue for non-payment of interest.

k) Exceptional Items

Depreciation not provided for assets which the management has put for sale and the list of assets are as mentioned below:

l) Earnings per share

The earnings considered in ascertaining the company’s Earnings per Share (EPS) comprise of the net profit after tax less dividend (including dividend distribution tax) on preference shares. The number of shares used for computing the basis EPS is the weighted average number of shares outstanding during the year. During the period under review the company has incurred cash loss.

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Sep 30, 2013

A) Basis for Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles, Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 and the relevant provisions thereof. During the year, Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The Company has reclassified the previous year figures in accordance with the requirements in the current year.

b) Revenue Recognition

(i) Revenue from sale of goods is recognized net of rebates and discounts on transfer of significant risks and rewards of ownership to the buyer.

(ii) Revenue from services rendered is recognized on prorate basis in proportion to the stage of completion of the related transaction.

c) Tangible Assets

Tangible assets are stated at cost less accumulated depreciation and net of impairment, if any.

d) Intangible Assets

Intangible assets are stated at cost less accumulated amortization and net of impairment, if any. An intangible asset is recognized if it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company and its cost can be measured reliably. Intangible assets having finite useful lives are amortized on a straight line basis over there estimated useful lives.

e) Depreciation and Amortization

Depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956 except the following GIS-GPS software depreciated at 20% IVR PG software depreciated at 20% Cobweb software depreciated at 20%

f) Impairment

Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized in the Statement of Profit and Loss if the carrying amount of an asset exceeds its recoverable amount.

I) Inventories

Inventories are valued at cost or net realizable value whichever is lower. However there are no inventories as on the end of reporting period.

J) Deferred Tax

Deferred tax is accounted for by computing the tax effect of timing differences which arise during the year and reverse in subsequent periods. However deferred tax was not provided during the year as the company has incurred loss during the year.

K) Loans and Advances

During the period ended 30th September 2013 the company has not paid instilments regularly with respect to the Term Loan and the loan is overdue. The OD interest is also not paid and the same has became overdue for nonpayment of interest.

L) Exceptional Items

During the period under review fixed assets worth(Gross value) Rs. 26,80,882/- was sold for Rs. 14,62,768/- as there was default in payment of instilments

M) Earnings per share

The earnings considered in ascertaining the company''s Earnings Per Share(EPS) comprise of the net profit after tax less dividend(including dividend distribution tax) on preference shares. The number of shares used for computing the basic EPS is the weighted average number of shares outstanding during the year. During the period under review the company has incurred cash loss.

N) Contingencies and events occurring after the balance sheet date

O) Employee Benefits

Based on the past experience and the position as on the reporting date, no provision is made for the retirement benefits as none of the present employees are entitled for the same.

P) Segment Reporting

The Company has identified three reportable segments, viz Construction, Information Technology and Aquaculture in terms of requirements of Accounting Standard 17. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment.

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Mar 31, 2010

1. Method of Accounting

a. The financial statements are prepared on a going concern basis with historical costs in accordance with the accounting standards prescribed in Sec 211 (3C) of the Companies Act, 1956.

b. The financial statements are prepared following the accrual method of accounting excepting incomes with significant uncertainties.

2. Income Recognition

a. In respect of income from IT operations, on the basis of stage of contractual entitlements.

b. In respect of aquaculture operations, at the point of sale.

c. In respect of construction operations, Cost of land comprises land acquired on outright sale, as agreement holder, or as holder of development right at acquisition cost.

3. FixedAssets

The fixed assets are accounted at acquisition cost, which includes costs incidental to such acquisition and revenue costs, if any, incurred during the construction period. The fixed assets are depreciated at straight line rates prescribed in Schedule XIV of the Companies Act, 1956 excepting proprietary software and GIS-GPS being depreciated at 20% over 5 years on prorata basis.

4. Inventories

Finished goods are valued at cost or net realizable value which ever is lower.

5. Gratuity:

The provision for gratuity liability is not made as it is not applicable. As the terms of employment of Managing Director is of contractual nature and does not provide for payment of gratuity, no provision has been made.

6 Taxes on income

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.- Provisions for Deferred taxes is made in accordance with Accounting standard 22 of the Institute of Chartered Accountants of India for the timing difference between tax on profit under Income Tax Act and the Companies Act resulting in deferred tax liability of Rs. 87,96,170/-.

7. Accounting for Foreign Exchange Transactions: Transactions in foreign exchange currencies are recorded at the rate ruling on date of the transaction. Monetary items of assets and liabilities are translated on reporting date. Exchange differences are recognized, if any material, in the profit and loss account for the period. However there are no such items to be recognized.

8. Contingencies and Events occurring after Balance Sheet date:

a. Estimated amount of contracts remaining to be executed for capital account and not provided for is Rs.82,25,450/- (Previous year Nil)

b. The company at its EGM dated 25" June 2010, pursuant to allotment of Equity Shares to ShareWarrant Holders, has resolved to forfeit the balance of share warrant amounts received for non receipt of consent for allotment/or incomplete amount from the applicants.

c. The company was sanctioned a Term Loan of Rs.329,00,000/- and a working capital limit of Rs. 100,00,000/- by Dhanalaxmi Bank Ltd against the security of Plant & Machinery as proposed and Book Debts as Primary Security and Companys land of 26.8 acres as Equitable Mortgage towards collateral security and 700,000/- Equity Shares of the company belonging to the promoter group.