ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ PAN HR Solution Ltd.

Mar 31, 2024

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with the Generally Accepted
Accounting Principles in India (Indian GAAP), including the Accounting Standards notified
under the relevant provisions of the Companies Act, 2013. The financial statements are prepared
on accrual basis under the historical cost convention, except for certain Fixed Assets which are
carried at Costs. The financial statements are presented in Indian rupees.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgements,
estimates and assumptions to be made that affect the reported amount of assets and liabilities,
disclosure of contingent liabilities on the date of the financial statements 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 the results are known/materialised.

C. FIXED ASSETS

Property Plant & Equipments

Property Plant & Equipments are stated at cost net of recoverable taxes, trade discounts and
rebates and include amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing
cost and any cost directly attributable to bringing the asset to its working condition for its
intended use, net charges on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the assets.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if
they increase the future benefits from the existing asset beyond its previously assessed standard
of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital
Work-in-Progress.

Intangible Assets

No intangible assets have been recognized in the financial statements.

D DEPRECIATION, AMORTISATION AND DEPLETION
Property Plant & Equipments

Depreciation on Property , Plant & Equipments is provided to the extent of depreciable amount
on the Written Down Value Method, Depreciation is provided based on useful life of the assets
as prescribed in Schedule II to the Companies Act, 2013.

E. IMPAIRMENT

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An
impairment loss is charged to the Profit and Loss Statement in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.

F. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise.
Non Current investments are stated at cost. Provision for diminution in the value of Non Current
investments is made only if such a decline is other than temporary.

G. INVENTORIES :

Inventories of Raw material, stores, spares, work in progress and finished goods have been
valued physically verified and valued by management at lower of cost or net realizable value.
The method is consistent with the earlier years. However no such inventory is being held by the
company.

H. REVENUE RECOGNITION

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the
customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue
from operations includes sale of goods, services but does not include service tax.

Dividend income is recognized when the right to receive payment is established.

Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the interest rate applicable.

SERVICE TAX & GST

Service Tax & GST is accounted on the basis of provision made in respect of goods sold and
services provided.

I. BORROWING COSTS:

Borrowing costs include exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost. 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 substantial period of time to get ready for
its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the
period in which they are incurred.

J. INCOME TAXES

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount
expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax
reflect the current period timing differences between taxable income and accounting income for
the period and reversal of timing differences of earlier years/period. Deferred tax assets are
recognized only to the extent that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are unabsorbed depreciation or losses,
are recognized if there is virtual certainty that sufficient future taxable income will be available to

realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law
that have been enacted or substantively enacted by the Balance Sheet date.