EMA Partners India Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2 STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES:

a) Accounting Assumptions

The financial statements are prepared to comply
in all material aspects with the applicable
Generally Accepted Accounting Principles
(GAAP) in India and to comply in all material
respects with the applicable, Accounting
Standards prescribed under section 133 of the
Companies Act, 2013 ("Act") read with relevant
rules and other relevant provisions of the Act.

These financial statements have been prepared
on the basis of historical cost convention
using accrual basis and under going concern
assumption. The accounting policies have been
applied consistently except for changes due to
adoption of newly issued accounting standards
or where a revision is made to an existing
accounting standard that requires a change in
the accounting policy adhere to in use.

All assets and liabilities have been classified as
current or non-current as per the Company''s
normal operating cycle and other criteria
set out in the Schedule III to the Companies
Act, 2013. Based on the nature of services
provided by the company and their realisation
in cash and cash equivalents, the Company
has determined its operating cycle as twelve
months for the purpose of current and non¬
current classification of assets and liabilities.

b) Use of estimates

The preparation of financial statements
in conformity with the GAAP requires the
management of the Company to make estimates
and assumptions that affect the reported
amounts of assets and liabilities and disclosure
of contingent liabilities as of the date of the

financial statements and the reported amounts
of income and expenses during the year. Actual
results could differ from those estimates and
the differences between these actual results
and estimates are recognised in the year in
which these results materialise are known.

c) Property, Plant and Equipment

("PPE”), Intangibles and Depreciation/
Amortization:

PPE are stated at historical cost less
accumulated depreciation/amortization and
impairment losses, if any. Cost includes
borrowing cost, inward freight, duties, taxes
and incidental expenses related to the
acquisition and installation of the assets
incurred to bring the assets to their working
condition for their intended use. Capital work
in progress comprises the cost of fixed assets
that are not yet ready for their intended use at
the reporting date.

Intangible Assets, mainly comprising computer
software, are recorded at the consideration
paid for acquisition of such assets and are
stated at cost less accumulated amortization
and impairment.

Leasehold improvements are depreciated over
the primary period of lease.

Depreciation on PPE is provided on the straight¬
line method over the useful lives of assets,
prescribed under Schedule II to the Companies
Act, 2013, from the date the asset is put to
effective use. Intangible Assets, comprising
of computer software, is amortized over their
respective individual estimated useful lives on
straight line basis, commencing from the date
the asset is available to the Company for its use.
The useful lives estimated by the management
for the assets are as under:

d) Revenue Recognition

Revenue is recognized when the amount of
revenue can be reliably measured, and, it is
probable that future economic benefits will
flow to the entity. Revenue from provision
of services is recognized on accrual basis in

terms of underlying contract or agreement
and upon completion of the services. No
revenue is recognized to the extent of
significant uncertainties regarding recovery
of the amount billed due to dispute, if any,
by any client regarding agreed terms.
Mutual Fund dividend income is recognized on
accrual basis when declared.

e) Impairment

The Company assesses at each balance sheet
date whether there is any indication that an
asset may be impaired. If any such indication
exists, the Company estimates the recoverable
amount of assets. If such recoverable amount
of the asset or the recoverable amount
of the cash generating unit to which the
asset belongs to is lesser than its carrying
amount, the carrying amount is reduced to its
recoverable amount. The deduction is treated
as an impairment loss and is recognized in the
Statement of Profit & Loss. If at the balance
sheet date there is an indication that the
previously assessed impairment loss no longer
exists, the recoverable amount is re-assessed,
and the asset is reflected at the recoverable
amount subject to a maximum depreciated
historical cost.

f) Investment

Long term investments included under Non¬
Current Investments are valued at cost, with
an appropriate provision for diminution in
value other than temporary, in which case,
the carrying value is reduced to recognize the
decline. The portion of long-term investment as
which is expected to be realized within twelve
months from the Balance Sheet date is shown
as Current investment in the Balance Sheet.
Short term investments are valued at lower of
cost and fair value, and the resultant decline if
any, is charged to revenue.

g) Lease

Assets acquired on Leases where a significant
portion of the risks and rewards of the
ownership are retained by the lessor are
classified as Operating Leases. The rental and
all other expenses of leased assets are treated
as revenue expenditure.

h) Employee Benefits

For defined benefit plans representing Gratuity,
the cost of providing benefits is determined
using the Projected Unit Credit Method, with
actuarial valuations being carried out at each

balance sheet date. Actuarial gains and losses
are recognized in full in the Statement of Profit
and Loss for the year for which they are incurred.
The retirement benefit obligation recognized in
the balance sheet represents the present value
of defined benefit obligation as reduced by the
fair value of the plan assets, if any.

All eligible employees of the Company are
entitled to receive benefits under the Provident
Fund through a Defined Contribution Plan in
which both the employee and the Company
contribute monthly at specified percentage of
employees'' basic salary. These contributions
are made to a Government Provident Fund.
Contributions to the said governed Provident
Fund Scheme is under a Defined Contribution
Plan. The contribution paid/payable under the
scheme is recognized during the year in which
the employee renders the related service.

The Company does not have a policy of
encashment of leave.

i) Share based Compensation

Equity instruments granted to the employees
of the Company are measured by reference
to the intrinsic value of the instrument at the
date of grant. The expense is recognised in the
statement of profit and loss with a corresponding
increase in equity (employees stock options
outstanding reserve). The equity instruments
will vest in a graded manner over the vesting
period. The intrinsic value determined at the
grant date is expensed over the vesting period
of the respective tranches of such grants. The
stock compensation expense is determined
based on the Company''s estimate of equity
instruments that will eventually vest.

Company has approved the allotment
of Employee Stock Option Plan (ESOP)
to its employees. In addition, certain
employees of our subsidiaries have also
been included in the ESOP allocation.
The subsidiaries will reimburse the Company
for the cost associated with the ESOP granted
to their respective employees.

j) Borrowing Costs

Borrowing costs that are directly attributable
to purchase, acquisition and construction of
qualifying assets are capitalized as a part of
the cost of respective qualifying asset up to
the date when such asset is ready to use for its
intended. Other borrowing costs are charged to
the Statement of Profit and Loss.

k) Tax on income:

Provision for Income tax is made on the basis
of estimated taxable income for the current
accounting year and in accordance with the
provisions as per the Income Tax Act, 1961.

Deferred Tax resulting from timing differences
between accounting income and taxable
income for the year is accounted for using the
tax rates and laws that have been enacted or
substantially enacted as at the balance sheet
date. The deferred tax asset is recognized and
carried forward only to the extent that there
is reasonable certainty that sufficient future
taxable income will be available against which
such deferred tax asset can be realized.

l) Foreign currency Translation

Transactions in foreign exchange are accounted
for at the exchange rates prevailing on the
date of transaction. Gains and losses arising
out of subsequent fluctuations are accounted
for on actual payment/realization. Outstanding
amounts payable/receivable in foreign currency
are restated at the year end rates. Exchange
gains/losses arising on restatement/settlement
are charged to the Statement of Profit and Loss.

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Mar 31, 2024

1 CORPORATE INFORMATION

EMA Partners India Private Limited (''the Company'') was incorporated on 9 September 2003. The Company is primarily involved in providing services for executive search, management consulting, staffing solutions and controlling companies in related fields within the group. The Company is a private limited company incorporated and domiciled in India. The registered office of the Company is located at 204, The Summit Business Bay, Western Express Highway, Mumbai, Vile Parle East, Maharashtra, India, 400 057.

2 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:

a) Accounting Assumption

The financial statements are prepared to comply in all material aspects with the applicable Generally Accepted Accounting Principles (GAAP) in India and to comply in all material respects with the applicable, Accounting Standards prescribed under section 133 of the Companies Act, 2013 ("Act") read with relevant rules and other relevant provisions of the Act.

These financial statements have been prepared on the basis of historical cost convention using accrual basis and under the going concern assumption. The accounting policies have been applied consistently except for changes due to adoption of newly issued accounting standards or where a revision is made to an existing accounting standard that requires a change in the accounting policy adhere to in use.

Ail assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services provided by the company and their realisation in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

b) Use of Estimates

The preparation of financial statements in conformity with the GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported period. Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Actual results could differ from the estimates and the differences between these actual results and estimates are recognised in the year in which these results are known.

c) Property Plant and Equipment ("PPE"). Intangibles and Depreciation/Amortisation:

PPE are stated at historical cost less accumulated depreciation/amortization and impairment losses, if any. Cost includes borrowing cost, inward freight, duties, taxes and incidental expenses related to the acquisition and installation of the assets incurred to bring the assets to their working condition for their intended use. Capital work in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

Intangible Assets, mainly comprising computer software, are recorded at the consideration paid for acquisition of such assets and are stated at cost less accumulated amortization and impairment.

Leasehold improvements are depreciated over the primary period of lease.

Depreciation on PPE other than lease hold improvements is provided on the straight-line method over the useful lives of assets, prescribed under Schedule II to the Companies Act, 2013, from the date the

asset is put to effective use. Intangible Assets, comprising of computer software, is amortized over their respective individual estimated useful lives on straight line basis, commencing from the date the asset is available to the Company for its use. The useful lives estimated by the management for the assets are as under:

Office Premises 30 years

Furniture and fixtures 10 years

MotorCar 8 years

Office Equipment 5 years

Computer Equipment 3 years

Computer Software 3 years

d) Revenue Recognition

Revenue is recognized when the amount of revenue can be reliably measured, and, it is probable that future economic benefits will flow to the entity. Revenue from provision of services is recognized on accrual basis in terms of underlying contract or agreement and upon completion of the services. No revenue is recognized to the extent of significant uncertainties regarding recovery of the amount billed due to dispute, if any, by any client regarding agreed terms.

Mutual Fund dividend income is recognized on accrual basis when declared.

e) Investments

Long term investments included under Non-Current Investments are valued at cost, with an appropriate provision for diminution in value other than temporary, in which case, the carrying value is reduced to recognize the decline. The portion of long-term investment as which is expected to be realized within twelve months from the Balance Sheet date is shown as Current investment in the Balance Sheet. Short term investments are valued at lower of cost and fair value, and the resultant decline if any, is charged to revenue.

f) Employee Benefits

For defined benefit plans representing Gratuity, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss for the period for which they are incurred. The retirement benefit obligation recognized in the balance sheet represents the present value of defined benefit obligation as reduced by the fair value of the plan assets, if any.

All eligible employees of the Company are entitled to receive benefits under the Provident Fund through a Defined Contribution Plan in which both the employee and the Company contribute monthly at specified percentage of employees'' basic salary. These contributions are made to a Government Provident Fund. Contributions to the said State governed Provident Fund Scheme is under a Defined Contribution Plan. The contribution paid/payable under the scheme is recognized during the period in which the employee render the related service.

The Company does not have a policy of encashment of leave.

g) Foreign currency Translation

Transactions in foreign exchange are accounted for at the exchange rates prevailing on the date of transaction. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment/realization. Outstanding amounts payable/receivable in foreign currency are restated at the

year-end rates. Exchange gains/losses arising on restatement/settlement are charged to the Statement of Profit and Loss.

h) Borrowing Costs

Borrowing costs that are directly attributable to purchase, acquisition and construction of qualifying assets are capitalized as a part of the cost of respective qualifying asset up to the date when such asset is ready to use for its intended. Other borrowing costs are charged to the Statement of Profit and Loss.

i) Lease

Assets acquired on Leases where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure.

j) Impairment

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of assets. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is lesser than its carrying amount, the carrying amount is reduced to its recoverable amount. The deduction is treated as an impairment loss and is recognized in the Statement of Profit & Loss. If at the balance sheet date there is an indication that the previously assessed impairment loss no longer exists, the recoverable amount is re-assessed, and the asset is reflected at the recoverable amount subject to a maximum depreciated historical cost.

k) Taxes on Income

Provision for Income tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.

Deferred Tax resulting from timing differences between accounting income and taxable income for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

l) Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

m) Cash and cash equivalents

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.

n) Earnings Per Share

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. The weighted average number of shares outstanding during the period are adjusted for event of bonus issue; bonus element in a rights issue to existing shareholders; share split and reverse share split.

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