Accounting Policies of Marg Techno Projects Ltd. Company

Mar 31, 2024

NOTE: 2: MATERIAL ACCOUNTING POLICIES

1) Basis Accounting:

The financial statements of the Company have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. e financial statements have been prepared under the historical cost convention on an accrual basis and going concern basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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. The accounting policies adopted in the preparation of financial statements are consistent

with those used in the previous year.

2) Basis of Preparation:

The Financial statements have been prepared under the historical cost convention on the accrual basis except for certain Financial instruments and plan assets of defined benefit plans, which are measured at fair values at the end of each reporting period as explained in the accounting policies below. All amounts disclosed in t e financial statements and notes have been rounded off to the nearest INR (amount in Lakhs shown) in compliance with Schedule III of the Act, unless otherwise stated.

3) Use of Estimate: ..... ^

The presentation of financial statement in conformity with Indian Accounting

Standards, requires management to make estimates and assumption that affect t e reported amount of assets and liabilities and discourse of contingent liabilities at the date of the financial statements and the results of operations during the recoding period Although these estimates are based upon management’s best knowledge of current events and action, actual results could differ from these estimates. The most sighificant areas of estimation, uncertainty and critical judgments in applying

accounting policies that have most significant effect on the amounts recognized in the Financial Statements of the Company are as follows.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) This involves developing estimates and assumptions consistent with how market participants would price the instrument. In estimating the fair value of an asset liability, the Company uses market-observable data to the extent it is available.

Income taxes - Significant estimates are involved in determining the provision for income taxes, including amount expected to be paid / recovered for uncertain ax positions and also in respect of expected future profitability to assess deferred tax

asset.

impairment losses if any. Cost comprises the purchase price, including import nornrefundable purchasers, after deducting trade discounts and rebates, material cost and any attributable/incidental cost incurred by the Company for bringing the asset to its working condition for its intended use.

Based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence, the useful lives for these assets may different from the useful lives prescribed under Part C of Schedule II of the Companies Act 2013.

. Borrowing costs relating to acquisition of tangible assets which takes substankW oeriod of time to get ready for its intended use are also included to the extent they relate to the peiL till such assets are ready to be put to use^ Assets unde installation or under construction as at the Balance Sheet date are shown as Capital

. Fo“ teMdttaTto Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of April 1, 2016 CsitL date, measured as per the previous GAAP and use that carrying value as

its deemed cost as of the transition date

^bl SS^fare recognized when it is probable that the furniture economic 4p£^nefits that are attributable to the asset will flow to the enterprise and the cost o .?-r the assets can be measured reliably.

C) impairment of Assets: _{is reC}eived at each balance sheet date if

impairment loss is recogm greater of the assets net selling

recoverable amount. The recovera ^e ™ estimated future cash flows are

price and value in use. In assessing value in use, the cantedA

After impairment, depreciation is provided on the revised carry g assets over its remaining useful life.

d) Financial Assets

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_d0 not contain a significant financing o financial assets

“StnrSVIf Cognised immediately in the Statement of Profit and Loss.

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^aCC°^r,^d“^Cec™“p*y.s business model for managing the financial asset and {2! The contractual cash flow characteristics of the financial asset.

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are met:

• flo;s^C°"^^Spa^e™p^arincipaI and interest on the principal amount outstanding.

, a Hank balances trade receivables, loans and other

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fxJt/Cp'' allowance, if any.

B) Financial assets measured at FVTOCI

A financial asset is measured at FVTOCI (fair value through other comprehensive income) if both of the following conditions are met:

• The Company’s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial

assets and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal

amount outstanding.

All investments in equity instruments classified under financial assets are initially measured at Fair Value, the Company may, on initial recognition, irrevocably elect to measure the same either at FVTOCI or FVTPL (Fair value through profit or loss). The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument are recognized as other income in the Statement o Profit and Loss unless the Company has elected to measure such instrument at

FVTOCI.

C) Financial assets measured at FVTPL

A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI. This is a residual category applied to all other investments of the Company excluding investments in subsidiaries, joint ventures and associate companies, which are recorded at cost and tested for impairment in case of any such indication of impairment. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit an Loss. Dividend income on the investments in equity instruments are recognized as ‘other income’ in the Statement of Profit and Loss.

e) Financial Liabilities:

A) Initial recognition and measurement:

Financial liabilities are recognized when Company becomes a party to t e contractual provisions of the instrument. Financial liabilities are initially measured

at fair value.

B) Subsequent measurement:

Financial liabilities are subsequently measured at amortized cost using the effective interest rate method, except when the effect of applying it is immaterial. Financing liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

C) Foreign exchange gains and losses:

Financial liabilities that are denominated in a foreign currency and are measured a '' amortized cost at the end of each reporting period, the foreign exchange gains

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losses are determined based on the amortized cost of the instruments and are recognized in profit or loss. The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the closing rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognized in Statement of Profit and Loss.

D) Derecognition of financial liabilities:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the Derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial lial 11 y derecognized and the consideration paid is recognized in the Statement of Pro i an

Loss.

fl ^and Amortization: _ _iU„

Depreciation on the fixed assets is provided under straight-line mett°d as per *e rates prescribed at the Schedule II of the Companies Act, 2013 or at rates permissible under applicable local laws so as to charges off the cost of assets to the Statement of profit and loss over their estimated useful life, except on the following

categories of assets: . . .

_(i) Assets costing up Rs.5, 000/- are fully depreciation in the year of acquisiti .

(ii) Leasehold land and leasehold improvements if any, are amortized over e primary period of lease.

(iii) Intangible assets are amortized over their useful life.

el Investment: „

. investments, which are readily realizable and intended to be held for not

one year from the date on which such investments are made, are classified current investments. All other investments are classified as long-term investmen s.

. On initial recognition, all investments are measured at cost. The cost comprises the purchase price any directly attributable acquisition charges such as brokerage ees ^d duties If an investment is acquired, or partly acquired by the issue of shares or the other securities, the acquisition cost is the fair value of securities issued, an investment is acquired in exchange for another asset, the acquisition s determined by reference to the fair value of the assets given up or by reference to the fair value of the investment acquired, whichever is more clearly evi ent.

. Current investments are carried at the lower of cost and teir value determine on an individual investment basis. Long-term investments are earned at cost However, provision for diminution in value is made to recognize a decline other --than temporary in the value of the long term investments.

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. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to statement of profit and loss.

h) Employee Benefits;

I) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured on an undiscounted basis at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the

balance sheet.

II) Other long-term employee benefit obligations

Liabilities recognized in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the

reporting date.

A) Defined contribution plans

The Company recognizes contribution payable to the provident fund & Superannuation scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

B) Defined benefit plans

The Company pays gratuity to the employees who have completed five years of service with the Company at the time of resignation/superannuation/death.

Retirement benefits in the form of gratuity is defined benefit obligations and is provided for on the basis of an actuarial valuation, using projected unit credit method as at each balance sheet date.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in /#^

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through Profit & Loss Account in the period in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent periods.

The annual premium cost incurred on Key man Insurance Cover is debited as expense in the profit & Loss account.

I) Inventories:

As informed to us, generally the company do not held Stock on hand at the en o the year; hence Valuation of Stock is NOT APPLICABLE.

J) 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 assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest, exchange differences arising from foreign currency borrowing to the extent they are regarded as an adjustment to the interest cost and other costs that an entity incurs in connection with the borrowing funds.

K) Revenue Recognition:

Revenue from Operations

. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the- rate that exactly discounts estimated future cash receipts through the expected life o the financial asset to that asset''s net carrying amount on initial recognition.

. Gain/loss on sale of non-performing assets is recognised in line with the extant RBI guidelines.

. Other income is mainly accounted on accrual basis, except in case of significant uncertainties.

L) Taxation:

Current tax

. Tax expense comprises current and deferred tax. Current income tax expenses comprise taxes on income from operation in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax

• Deferred tax expense or benefit is recognized on timing difference being t e difference between taxable incomes and accounting income that originate m one period and are capable of reversal in one or more subsequent periods.

. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax relating to items recognized directly in equity is recognize in

equity and not in the statement of profit and loss. 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 the same governing taxation laws.

. Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized only to the extent that there is reasonable certainty tha sufficient future taxable income will be available against which such deferred tax assets can be realized. In situation where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax ^asset" if there is virtual certainty supported by convincing evidence that they can

realized against future taxable profits.

. At each balance sheet date, the company re-assesses recognized and unrecognized deferred tax assets. The company writes-down the carrying amount of a deferred tax assets to the extent that it is no longer reasonably certain or virtually certain as the case may be, that sufficient future taxable income will be available agains which the deferred tax assets can be realized. Any such write-down ,s reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available. The company recognizes uniTzed deferred tax assets tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient fu ur taxable income will be available against which such deferred tax assets can

realized.

. alterative tax IMATI creditjs recognized as an asset only when and

to the extent there is convincing evidence that the Company will ^ "onnal income tax during the specified period. In the year in which the ^{MAT Cre}^ becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartere Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the MAT Credit Entitlement at each balance sheet date and writes down the carrying amount of the MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the

specified period.

tosm"clrmngrp^''share are calculated by dividing the profit from continuing !pe ation"or^Bthe^Pperiod attributabie to equity shareholders by «£«¦*»£age

•XI equity shares.

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Mar 31, 2023

NOTE: 1: SIGNIFICANT ACCOUNTING POLICIES

1) Basis Accounting:

The finance statements of the Companv have been prepared in accordance with Incl AS notified under the Companies (Indian Accounting Standards) Rules, 2015 The financial statements have been prepared under the historical cost convention on an accrual basis and going concern basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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 ai the measurement date. The accounting policies adopted in the preparation of financial statements are consistent

with those used in the previous year.

2) Use of Estimate:

The presentation of financial statement in conformity with Indian Accounting Standards, requires management to make estimates and assumption that affect the reported amount of assets and liabilities and discourse of contingent liabilities at the date of the financial statements and the results of operations during the recoding period. Although these estimates are based upon management''s best knowledge of current events and action, actual results could differ from these estimates. The most significant areas ol estimation, uncertainty and critical judgments in applying accounting policies that have most significant effect on the amounts recognized in the Financial Statements of the Company are as follows:

Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extern it is available.

Income taxes - Significant estimates are involved in determining the provision for income taxes, including amount expected to be paid / recovered for uncertain tax positions and also in respect of expected future profitability to assess deferred tax

asset.

a) Useful Lifetime of the Property, Plant and Equipment;

Property. Plant and Equipment are staled at cost less accumulated depreciation and

impairment losses if any Cost comprises the purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, material cost and any attributable/incidental cost incurred by the Company for bringing the asset to its working condition for its intended use

The estimated useful lives of assets are as follows
Particulars	Useful life (Years)
Mobile	8 Years
Furniture 8c Fittings	10 Years
Computer	3 Years

Based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence, the useful lives for these assets may different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013

* Borrowing costs relating to acquisition of tangible assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Assets under installation or under construction as at the Balance Sheet date are shown as Capital Work in Progress.

• For transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of April 1, 2016 (transition date) measured as per live previous GAAP and use that carrying value as its deemed cost as of the transition date

b) Intangible Assets:

Intangible assets are recognized when it is probable thai the furniture economic benefits that are attributable to the asset will flow to the enterprise and the cost of the assets can be measured reliably.

c| Impairment of Assets:

The carrying amount of non-fmancial assets is received 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 tire discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the assets. Net selling price is the amount obtainable from the sale of assets in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

d) Depreciation and Amortization

Depreciation on the fixed assets is provided under straight-lint- method as per the rates prescribed at the Schedule II of the Companies Act, 2013 or at rates permissible under applicable local laws so as to charges off the cost of assets to the

Statement of profit and loss over their estimated useful life, except on the following categories of assets:

(i) Assets costing up Rs.5. 000/- are fully depreciation in the year of acquisition

(H> Leasehold land and leasehold improvements if any. are amortised over the primary period of lease.

(iii) Intangible assets are amortised over their useful life e| Investment:

• Investments, which are readily realizable and 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 arc classified as long-term investments.

• On initial recognition, all investments are measured at cost. The cost comprises the purchase price any directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired by the issue of shares or the other securities, the acquisition cost is the fair value of securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the assets given up or by reference to the fair value of the investment acquired, whichever is more dearly evident.

• Current investments are carried at the lower of cost and fair value determined on an individual investment basis. 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 long term investments.

• On disposal of an investment, the d.fference between its carrying amount and net disposal proceeds is charged or credited to statement of profit and loss.

f) Employee Benefits:

Employee benefits include provident fund, employee state insurance seheme. gratuity fund and Compensated absences.

g) Inventories:

As informed to us. generally the company do not held Stock on hand at the end of tne year; hence Valuation of Stock is NOT APPLICABLE

h| Borrowing Costs:

Borrowing costs directly attributable to the acquisition, constructs or production of an asset, that necessarily take, a substantial period of time to get ready for it, in ended use or sale are capitalised as pan of the cost of the respective assets AU other borrow,ng costs are expensed in the period they occur. Borrowing costs “ ^ofchange differences arising from foreign currency bar ret, ng to

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hf i an entity incurs in connection with the borrowing funds.

¹) Revenue Recognition:

Revenue from Operations

• Interest income from a financial assei is recognised when i. is probable that ,hc economic benefit, will flow to the Company andri-g^m oMnlome ell t

measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset s net carrying amount on initial recognition.

* Gain/loss on sale of non-performing assets is recognised in Line with the extant

RBI guidelines.

. Other income is mainly accounted on accrual basis, except in case of significant uncertainties.

j) Taxation:

Current tax

• Tax expense comprises current and deferred tax. Current income tax expenses comprise taxes on income from operation in India, Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961,

Deferred tax

• Deferred tax expense or benefit is recognized on timing difference being ihe difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss. 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 delerred tax assets and deterred tax liabilities relate to the taxes on income levied by the same governing taxation laws.

. Deferred tax liabilities are recognized for all taxable timing differences. 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 situation where the company has unabsorbed depreciation or cany 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.

• At each balance sheet dale, the company re assesses recognized and unrecognized deferred tax assets. The company writes-down the carrying amount of a deferred tax assets to the extent that it is no longer reasonably certain or virtually certain. as the case may be. that sufficient future taxable income will be available against which the deferred tax assets can be realized. Any such write-down is reversed to the extent that it becumes reasonably certain or virtually certain, as the case may be. that sufficient future taxable income will be available. The company recognizes unrecognized deferred tax assets tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be. that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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* Minimimi alternative tax {MAT) credit is recognized as an asset only when and

to the extent There is convincing evidence that the Company will pay normal

income tax during the specified period. In the year in which the MAT Credit

becomes eligible to be recognized as an asset in accordance with the

recommendations contained in guidance note issued by the Institute of Chartered

Accountants of India, the said asset is created by way of a credit to the statement

of profit and loss and shown as MAT Credit Entitlement. The Company reviews the

MAT Credit Entitlement at each balance sheet date and writes down the carrying

amount of the MAT Credit Entitlement to the extent there is no longer convincing

evidence to the effect that Company will pay normal income tax during the specified period.

k| Earnings per share:

Fiasic earnings per share are calculated by dividing the profit from continuing

operation for the period attributable to equity shareholders 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 shareholder and the weighted average number of shares

outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

l) Provision:

A provision is recognized when there exists a present obligation as a result of past

events and it is probable that an ouiflow of resources embodving economic benefits

will be required to settle the obligation, and a reliable estimate can be made of the

amount of the obligation. Provision are discounted, if material to present value and

are determined based on best estimates required to settle the obligation at the

reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

m) Contingent Liabilities:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obhgat.on. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably; the Company does not recognize a contingent liability but discloses its existence in the financial statements. A contingent assel is neither recognised nor disclosed in the financial statements

n) Financial instruments

Financial assets and financial liabilities are recognised when company becomes a party to the contractual provisions of the instruments Financial assets and financial liabilities are initially measured at lair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss] are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition, Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

o) Cash and cash equivalent:

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term deposits with bank with an original maturity of

three months or less.