Toss the Coin Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Provisions, Contingent Liabilities and Contingent Assets

Provisions : Provisions are recognized in accordance with AS 29 -Provisions, Contingent Liabilities and Contingent
Assets when the Company has a present legal or constructive obligation as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate
of the expenditure required to settle the present obligation at the Balance Sheet date, taking into account the risks
and uncertainties surrounding the obligation. Provisions are discounted to their present value if the effect of the
time value of money is material, using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
Examples of situations requiring provisions include litigations, warranties on services (if any contractual obligation
for rework or penalties), and other claims where the conditions ofAS 29 are met.

When some or all of the expenditure required to settle a provision is expected to be reimbursed by another party
(for example, under an insurance contract or a subcontractor''s responsibility), the reimbursement is recognized as
a separate asset only when it is virtually certain that reimbursement will be received if the Company settles the
obligation. In the Statement of Profit and Loss, the expense relating to a provision may be presented net of the
reimbursement.

If the Company has an onerous contract (where the unavoidable costs of meeting the obligations underthe contract
exceed the economic benefits expected to be received), a provision is recognized for the lower of the cost of
fulfilling the contract and any compensation or penalties arising from failure to fulfill it.

Contingent Liabilities: A contingent liability is a possible obligation that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company; or it is a present obligation that arises from past events but is not recognized
because (a) it is not probable that an outflow of resources will be required to settle the obligation, or (b) the amount
of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized in the
accounts, but are disclosed by way of a note to the financial statements, unless the possibility of an outflow of
resources is remote. The disclosure includes an estimate of the financial effect, uncertainties relating to the amount
or timing, and the possibility of any reimbursement. Common examples of contingent liabilities for the Company
might include pending legal disputes or claims, guarantees given to third parties, etc., which are disclosed unless
the chance of loss is remote.

Contingent Assets: Contingent assets (possible assets that arise from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the
Company) are not recognized in the financial statements, since this may result in the recognition of income that
may never be realized.

However, when the realization of income is virtually certain (for instance, a favorablejudgment in a lawsuit where
the time for appeal has lapsed and the counterparty has the ability to pay), the related asset is not considered
contingent and is recognized as an asset. Until then, contingent assets are disclosed in the financial statements
where an inflow of economic benefits is probable, but not virtually certain.

Earnings Per Share (EPS)

The Company reports basic and diluted earnings per share in accordance with AS 20 -Earnings Per Share for each
period forwhich a Statement of Profit and Loss is presented.

• Basic Earnings Per Share: Basic EPS is calculated by dividing the net profit or loss for the period
attributable to equity shareholders (after deducting any dividends on preference shares, if any for
the period) by the weighted average number of equity shares outstanding during the period. The
weighted average number of shares is calculated taking into account the timing of any new share
issues (including the shares issued in the IPO) or buybacks during the period, weighted by the portion
of the period they were outstanding. Basic EPS reflects the actual equity structure in terms of issued
shares during the period.

oo Diluted Earnings Per Share: Diluted EPS adjusts the figures used in the determination of basic EPS to

take into account: (a) the after-tax effect of any interest or other financing costs associated with
dilutive potential equity shares, and (b) the weighted average number of additional equity shares
that would have been outstanding assuming the conversion of all dilutive potential equity shares.
Dilutive potential equity shares could include convertible debentures, stock options, warrants, etc. (if
any are outstanding). For the purpose of calculating diluted EPS, the net profit for the period
attributable to equity shareholders and the weighted average number of shares are adjusted for the
effects of all dilutive potential equity shares. If there are no dilutive instruments outstanding (as is
the case for the Company in the reporting period), the diluted EPS is the same as basic EPS. All EPS
figures are rounded to the nearest two decimal places as required by the Schedule III norms.

Cash Flow Statement

The Cash Flow Statement has been prepared pursuant to the provisions of the Companies Act and in accordance
with AS 3 -Cash Flow Statements. The Company has used the indirect method to present cash flows from operating
activities, whereby profit before tax is adjusted for the effects of non-cash transactions, any deferrals or accruals of
past or future operating cash receipts or payments, and items of income or expense associated with investing or
financing cash flows. Cash flows are segregated into Operating, Investing, and Financing activities for presentation.
Cash and cash equivalents (for the purpose of the Cash Flow Statement) comprise cash on hand, balances in current
accounts with banks, and other short-term highly liquid investments (such as bank deposits or money market
instruments) with original maturities of three months or less, that are readily convertible into known amounts of
cash and subject to insignificant risk of change in value.

Segment Reporting

The Company operates in a single business segment -providing technical design and documentation support
services -and primarily caters to clients in overseas markets. In the context of AS 17 (Segment Reporting), the
Company''s business and geographical operations are considered as one reportable segment, as the risks and
returns are predominantly similar. Hence, no separate segment information is provided in the financial statements.
The Company''s Chief Operating Decision Maker (CODM) reviews the financial results at an overall company level,
and therefore, for management reporting purposes, the Company is considered to be engaged in one segment. If
in the future the Company diversifies into multiple lines of business or significantly different geographic regions, it
will present segment information accordingly in the financial statements.

Share Capital and IPO-related Costs

Share Capital: Equity share capital is recorded at the face value of shares issued. Any premium received over the
face value (issue price minus face value) on issuance of equity shares is recorded in the Securities Premium Account.
Retained earnings represent accumulated profits and are shown under shareholders'' equity.

Share Issue Expenses: Expenses incurred in connection with the issue of new equity shares (such as IPO-related
expenses including underwriting fees, merchant banker fees, legal and compliance costs, listing fees attributable to
the new issuance, printing and advertisement expenses for the issue, etc.) are accounted as share issue expenses.
In accordance with Section 52 of the Companies Act, 2013, share issue expenses are adjusted against the Securities
Premium Account (utilized from the premium collected on the IPO) to the extent of available balance. Such
adjustment is made net of any tax benefits (if applicable). This accounting treatment is permitted as these costs are
considered directly attributable to the equity transaction (issuance of new shares).

Listing and Other IPO Costs: Not all costs associated with an IPO are directly attributable to share issuance. Costs
that are primarily related to listing the existing shares or regulatory compliance (for example, general listing fees
for the stock exchange, post-listing compliance costs, roadshow and marketing costs which promote the Company
rather than the issuance, etc.) are expensed to the Statement of Profit and Loss as "IPO / Listing Expenses" in the
year they are incurred. This distinction is made because share issue costs benefit the equity holders and are a
deduction from equity, whereas other IPO-related costs are period expenses.

The Company has provided detailed disclosures of the total IPO proceeds, utilization of proceeds, and a break-up
of expenses incurred on the IPO (indicating how much was adjusted against securities premium and how much
charged to P&L) in the notes to accounts.

Related PartyTransactions

Disclosure of related party relationships and transactions is made in the notes to accounts as per the requirements
ofAS 18 -Related Party Disclosures. The Company''s related parties include its directors, key managerial personnel,
entities over which the above persons have significant influence, etc. However, since disclosure of related party
transactions is not an accounting policy but rather a factual note, the details are presented separately in the financial
statements and not repeated here in the summary of significant accounting policies.

Previous Year Figures

The financial statements (including these policies and accompanying notes) present figures for the current year (FY
2025-26) and comparative figures for the previous year (FY 2024-25). Previous year figures have been re-grouped
or re-classified wherever necessary to conform to the current year''s presentation. All amounts are represented in
Indian Rupees unless otherwise indicated. Any material regrouping has been disclosed in the notes.

c) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event
of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their shareholding.

d) Details of Bonus Shares issued during last 5 Financial years

The Company has issued bonus shares in the proportion of 10:1, i.e. 10(ten) bonus equity share of
Rs.10/- each for 1(one) fully paid up equity shares which was allotted on 18/06/2024 on approval
being received in the shareholder''s meeting held on 14/06/2024.

Additional Disclosure:

During the previous year, the Company completed its Initial Public Offer (IPO) and got listed on
the SME Platform of Bombay Stock Exchange on 17 December 2024. The expenses incurred in
connection with the public issue amounting to Rs.127.33 Lakhs have been adjusted against the
Securities Premium Account in accordance with Section 52(2)(c) ofthe Companies Act 2013.
These expenses primarily comprise merchant banker fees, registrar fees, legal fees, advertising
and marketing expenses, and other incidental costs directly related to the issue.

1. The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Asset) since the
Company has adopted cost model as its accounting policyto an entire class of Property, Plant and Equipment.

2. During the current financial year, there are no capital work in progress which is overdue for completion or
exceeded its cost compared to its original plan.

3. The company does not hold any immovable property under its name in the form of land or building.

4. As at the balance sheet date, the Company has intangible assets with amortisation period of 5 years.

Additional Note: Since the company is in service sector, it does not have any purchase of goods and hence total of

expenses directly relatable tothe services provided have been considered.

Explanations to variances above 25%:

1 Return on Equity, Return on Investment & Return on Capital Employed - 43%, 117% & 92% increase respectively
is on account of fresh public issue of 504000 shares during December 2024, thereby previous year figures were
substantially lower.

2 Net Capital Turnover Ratio - 72% increase is due to increase in turnover of about 70%, thereby resulting in
increase during 2025-26.

39 Additional statutory information

a) There are no proceedings initiated or are pending against the company for holding any benami property
underthe Benami Transactions (Prohibition) Act, 1988 (45 of1988) and rules madethereunder.

b) The Company has not revalued its property, plant and equipment (including the right of use assets) and
intangible assets.

c) The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956 except the following:

d) The Company has no borrowings from banks or financial institutions.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

f) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017 for the year under consideration.

g) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013 during the year.

h) "The company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on
behalfofthe Ultimate Beneficiaries.

The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding

Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or

indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate

Beneficiaries."

i) The Company do not have any transaction which are not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments underthe Income Tax Act, 1961 during any of the
years.

j) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

40 Corporate Social Responsibility ("CSR")

The Company has not met the criteria for CSR in the preceding financial years. Therefore, there was no
amount as per section 135 of the Act which was required to be spent on such activities in the current financial
year by the Company.

41 The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post
employment benefits received Presidential assent in September 2020. The Code has been published in the
Gazette of India. However, the date on which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in
the period the Code becomes effective.

42 Pursuant to amendment in Schedule III to the Companies Act, 2013 by Ministry of Corporate Affairs vide its
notification dated March 24, 2021 the comparative figures as disclosed in these results have been
rearouDed/reclassified. wherever necessarv. to make them comparable to current vear fiaures.

c) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

d) Details of Bonus Shares issued during last 5 Financial years

The Company has issued bonus shares in the proportion of 10:1, i.e. 10(ten) bonus equity share of Rs.10/- each for 1(one) fully paid up equity shares which was allotted on 18/06/2024 on approval being received in the shareholder’s meeting held on 14/06/2024.

Additional Disclosure:

During the year, the Company completed its Initial Public Offer (IPO) and got listed on the SME Platform of Bombay Stock Exchange on 17 December 2024. The expenses incurred in connection with the public issue amounting to Rs.127.33 Lakhs have been adjusted against the Securities Premium Account in accordance with Section 52(2)(c) of the Companies Act 2013. These expenses primarily comprise merchant banker fees, registrar fees, legal fees, advertising and marketing expenses, and other incidental costs directly related to the issue.

1. The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Asset) since the Company has adopted cost model as its accounting policy to an entire class of Property, Plant and Equipment.

2. As at the balance sheet date, the Company has intangible assets under development provided as a separate note.

39 Additional statutory information

a) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

b) The Company has not revalued its property, plant and equipment (including the right of use assets) and intangible assets.

c) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560

of Companies Act, 1956 except the following:

d) The Company has borrowings from banks or financial institutions that are secured against current assets and has filed required information with the lender on regular basis.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

f) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies

(Restriction on number of Layers) Rules, 2017 for the year under consideration.

g) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

h) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

i) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

j) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

40 Corporate Social Responsibility ("CSR")

The Company has not met the criteria for CSR in the preceding financial years. Therefore, there was no amount as per section 135 of the Act which was required to be spent on such activities in the current financial year by the Company.

41 The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

42 Pursuant to amendment in Schedule III to the Companies Act, 2013 by Ministry of Corporate Affairs vide its notification dated March 24, 2021 the comparative figures as disclosed in these results have been regrouped/reclassified, wherever necessary, to make them comparable to current year figures.