iv. Provisions and contingent liabilities
A provision is recognised when the Company has a present obligation as a result of a past event and
it is probable that an outflow of resources will be required to settle the obligation, in respect of which
a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. The Company uses significant judgements to assess contingent liabilities.
v. expected credit losses on financial assets
The impairment provisions of financial assets are based on assumptions about risk of default and
expected timing of collection.
2.4 Revenue Recognition:
The Company derives revenue from information technology services, maintenance of software/
hardware & related services. The company is also in esports and Information technology industry.
These include revenue earned from services rendered on 'time and material' basis, time bound fixed
price engagements and fixed price development contracts. Revenue is recognized upon transfer of
control of products or services to customers in an amount that reflects the consideration the Company
expect to receive in exchange for those products or services. Revenue is measured based on
transaction price.
2.5 Income Tax:
i. Current Tax:
The tax rates and tax laws used to compute the current tax amount are those that are applicable for
the reporting period. Current tax is measured at the amount expected to be paid to / recovered from
the tax authorities, based on estimated tax liability computed after taking credit for allowances.
Income tax assets/liabilities are presented in the financial results under the respective notes.
ii. Deferred Tax:
Deferred tax liabilities are recognized for all taxable temporary differences and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.
2.6 Leases:
Identification of a lease requires significant judgement. The Company evaluates if an arrangement
qualifies to be a lease as per the requirements of Ind AS 116.
The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate the lease if the Company is reasonably certain
not to exercise that option. In assessing whether the Company is reasonably certain to exercise an
option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts
and circumstances that create an economic incentive for the Company.
2.7 Foreign Currency Transactions:
The Company was not involved in any transaction in foreign currency during the year under review.
2.8 Business Combinations:
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is value of shares issued at par by the incorporated subsidiaries.
Acquisition related costs are generally recognized in the financial statements. During the year under
review the company subscribed shares of three subsidiary companies having different business
verticals.
2.9 Impairment of non-financial assets:
Property, plant and equipment:
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability
whenever there is any indication that their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of those from other assets.
2.10 Cash and Cash equivalents:
The Company considers all highly liquid financial instruments, which are readily convertible into
known amounts of cash and that are subject to an insignificant risk of change in value and having
original maturities of three months or less from the date of purchase, to be cash equivalents. Cash
and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
2.11 Investments, other financial assets and other financial liabilities:
i. Initial Recognition and measurement:
Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at fair value. All
financial assets are recognised initially at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset. Trade receivables that do not contain a significant financing component or for which
the Company has applied the practical expedient are measured at the transaction price determined
under Ind AS 115.
The Company's business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified
and measured at amortised cost are held within a business model with the objective to hold financial
assets in order to collect contractual cash flows while financial assets classified and measured at fair
value.
ii. Subsequent Measurement:
Financial assets carried at amortized cost:
A financial asset is subsequently measured at amortized cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows 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.
Financial assets at fair value through other comprehensive income (FVOCI):
A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling 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.
Further, in cases where the Company has made an irrevocable election based on its business model,
for its investments which are classified as equity instruments, the subsequent changes in fair value
are recognized in other comprehensive income.
Financial assets at fair value through profit or loss (FVTPL):
A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.
Financial liabilities:
Financial liabilities are subsequently carried at amortised cost using the effective interest rate method
or at FVTPL. For financial liabilities carried at amortised cost, the carrying amounts approximate fair
values due to the short-term maturities of these instruments. Financial liabilities are classified as at
FVTPL when the financial liability is either contingent consideration recognised in a business
combination, or it is designated as FVTPL. Financial liabilities at FVTPL are stated at fair value, with
any gains or losses arising on remeasurement recognised in the statement of profit and loss. The
Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected
to be infrequent.
The Company's senior management determines change in the business model as a result of external
or internal changes which are significant to the Company's operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively from the reclassification date following
the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
iii. Derecognition:
The Company derecognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company retains substantially all the risk and rewards
of transferred financial assets, the Company continues to recognize the financial asset and also
recognizes the borrowing for the proceeds received.
The Company derecognises financial liabilities only when the Company's obligations are discharged,
cancelled or have expired.
iv. Impairment of financial assets (other than at fair value):
The Company assesses at each reporting date whether a financial asset or a group of financial assets
and contract assets (unbilled revenue) is impaired. The Company recognizes loss allowances, in
accordance with Ind AS 109, using the expected credit loss (ECL) model for the financial assets which
are not fair valued through profit or loss. For trade receivables and unbilled revenue, the Company
applies a simplified approach in calculating ECL. Therefore, the Company does not track changes in
credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The
amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the
reporting date is recognized as an impairment gain or loss in the statement of profit and loss.
v. Investments in subsidiaries:
The Company accounts for its investment in subsidiaries at cost, less impairment losses if any.
2.12 Interest and Dividend income:
Dividend income is recorded when the right to receive payment is established. Interest income is
recognised using the effective interest method.
2.13 Derivatives and hedging activities:
The company do not have any transaction during the year in foreign exchange. The provisions related
to derivatives or hedging activities are not applicable to the company.
2.14 Offsetting financial instruments:
Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle
on a net basis or realize the asset on a net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business.
2.15 Property, Plant and equipment:
i. Recognition and measurement:
Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses, if any. When parts of an item of property, plant and equipment have different useful lives,
they are accounted for as separate items (major components) of property, plant and equipment. Cost
includes expenditures directly attributable to the acquisition of the asset. All repairs and maintenance
costs are charged to the statement of profit and loss in the reporting period in which they occur.
ii. Depreciation:
Depreciation on fixed assets has been provided on the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act. The assets' residual values, useful lives and methods
of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.
2.16 Intangible Assets:
Intangible assets other than those acquired in a business combination are measured at cost at the
date of acquisition.
2.17 Provisions and contingent liabilities:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are
disclosed when there is a possible obligation arising from past events, the existence of which 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 a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor
disclosed in the financial statements.
2.18 Employee benefits:
The accounting of Employee benefits, having nature of defined benefit is based on assumptions.
Contribution to defined benefits is recognised as expense when employees have rendered services
entitling them to avail such benefits. Short-term employee benefit obligations are measured on an
undiscounted basis and are recorded as expense in the statement of profit and loss as the related
services are provided.
2.19 Dividends:
Dividend on share is recorded as liability on the date of approval by the shareholders in case of final
dividend or by the board of directors in case of interim dividend. A corresponding amount is
recognized directly in equity.
2.20 Fair Value Measurement:
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 fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
2.21 Operating Segments
The Company operates in single segment. The Board of Directors evaluates the Company's
performance and allocates resources based on an analysis of various performance indicators defined
in Ind AS 108.
2.22 Government grants:
Government grants are recognised where there is reasonable assurance that the grant will be received,
and all attached conditions will be complied with. There is no government grants provided to the
Company.
2.23 Earning Per Share
The basic earnings per share is computed by dividing the net profit for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
The number of shares used in computing diluted earnings per share comprises the weighted average
shares considered for deriving basic earnings per share and also the weighted average number of
equity shares which would have been issued on the conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted as of the beginning of the period unless they
have been issued at a later date.
The notes referred to above form an integral part of financial statements
As per our report of even date attached
For M/ s. Rawka & Associates For Colab Platforms Limited
Chartered Accountants (formerly known as Colab Cloud Platforms Limited)
Firm Reg. No.: 021606C
Sd/- Sd/- Sd/-
Venus Rawka Mukesh Jadhav Puneet Singh Chandhok
Partner Chairman & NED MD
M. No.: 429040 DIN: 09539015 DIN: 01546843
UDIN: 25429040BMGSSI1180
Date: 29th May 2025 Sd/- Sd/-
Place: Indore Chetan Shah Ritu Jhamb
CFO CS
Date: 29th May 2025 Place: New Delhi
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