1. Corporate information

Akiko Global Services Limited (Previously known as Akiko Global Services Private Limited) (the Company) was incorporated in India on 13 June 2018 under the provisions of Companies Act, 2013. TheCompany is engaged in the business of DSA of Credit Card sales & other financial services which providesservices in field of banking & other financial auxiliary services.

Summary of Material accounting policies

i. Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles In India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended), specified under Section 133 and other relevant provislonsof the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current as per the Company’s operating cycleand other criteria set out in the Schedule III (Division I) to the Companies Act, 2013. Based on the nature ofproducts and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

ii. Use of estimates

In preparing the Company’s financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting periods. Actual results could differ from thoseestimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

Iii. Property, plant and equipment (PPE)

Tangible assets

Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses, if any.Cost comprises of the purchase price including import duties and non-refundable taxes, and directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capableof being operated in the manner intended by management. Capital expenditure incurred on rented properties is classified as ‘Leasehold improvements’ under property, plant and equipment.

Subsequent costs related to an item of Property, Plant and Equipment are recognised in the carrying amountof the item if the recognition criteria are met. Items of Property, Plant and Equipment that have been retiredfrom active use and are held for disposal are stated at the lower of their net carrying amount and net realisable value and are shown separately in the financial statements under the head ‘Other current assets’.Any write-down in this regard is recognised immediately in the Statement of Profit and Loss. An item of Property, Plant and Equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on derecognition is recognised in the Statement ofProfit and Loss.

Depreciation on tangible asset is recognised on a straight-line basis based on a useful life of the assets prescribed in Schedule II to the Act. / \

iv. Intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortised on a straight-line basis over their estimated useful lives. Gainsor losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expensein the Statement of Profit and Loss.

v. 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 the asset. If suchrecoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and thereduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss account. Ifat the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists,the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

vi. Current and Deferred Tax

Tax expense for the period, comprising current tax and deferred tax, are included in the determination ofthe net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respectof deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there isa reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rates and tax laws thathave been enacted or substantively enacted by the Balance Sheet date. In situations, where the Company has unabsorbed depreciation or carry forward losses under tax laws, all deferred tax assets are recognised only to the extent that there is virtual certainty supported by convincing evidence that they can he realized againstfuture taxable

profits. At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate totaxes on income levied by the same governing taxation laws.

Minimum Alternate Tax (“MAT’) credit is recognised 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 ycarin which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of a credit to the Statement of Profit andLoss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date andwrites down the carrying amount of MAT credit entitlement to the extent it is not reasonably certain thatthe Company will pay \ & normal income tax during the specified period.

vii. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Companyand the revenue can be reliably measured.

DSA of Credit Card sales & other financial services

Revenue in respect of service rendered is recognised, on accrual basis net of Goods and Service 1 ax and discounts, as and when the service are performed as per the contractual terms agreed with the customer and when it is reasonably certain that the ultimate collection will be made.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate

applicable

viii. Employee benefits

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are defined contribution plans and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contributionpayable

to the respective funds.

Short-term employee benefits: All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and are recognised in the Statement of Profit and Los sin the period in which the employee renders the related service.

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognisedin the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balancesheet date. The defined benefit obligation is calculated at the balance sheet date by an independent actuaryusing the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions arc charged to the Statement of Profit and Loss in the year in which such gains or losses are determined.

ix. Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturides of three months or less

x. Foreign currency transactions Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carriedin terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values weredetermined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on restatement of the Company's monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which theyarise other

than of the capitalization of exchange differences which is referred to in PPE above.

xi. Earnings/(loss) per share

Basic earnings/(loss) per share is calculated by dividing the net profit or loss for the period attributable to equity⁷ shareholders by the weighted average number of equities shares outstanding duting the period.

For the purpose of calculating diluted earnings/(loss) per share, the net profit or loss for tire period attributable to equity shareholders and the weighted average number of shares outstanding during the periodare adjusted for the effects of all dilutive potential equity shares.

xii. Contingent liabilities and provisions

A contingent liability is a possible obligation that arises from past events whose existence will be confmnedby 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 recognised because it is not probable that an outflow of resources will be required to setde the obligation. A contingent liability also arises in extremely rare caseswhere there is a liability that cannot be recognised because it cannot be measured reliably.

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrencc of one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits willbe required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognised when the Company has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to setde the obligationand a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to their 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 arc adjusted to reflect the current best estimates.