1 General information
Tracxn Technologies Limited (the "Company") was incorporated as a private limited Company on 11 August 2012 under the provisions of the Companies Act 1956. The Company converted from a Private Limited Company to a Public Limited Company, pursuant to a special resolution passed in the extraordinary general meeting of the shareholders of the Company held on 7 July 2021 and consequently the name of the Company has been changed to "Tracxn Technologies Limited" pursuant to a fresh certificate of incorporation dated 28 July 2021 issued by the Registrar of Companies.
The Company offers a market intelligence platform 'Tracxn' on a subscription basis to global customer base; to provide comprehensive private company data for deal sourcing, M&A opportunities, deal diligence, private market analysis and tracking emerging themes."
2 Basis of preparationi) Compliance with indian accounting standards (Ind AS)
The financial statements comply in all material aspects with Indian Accounting Standards (hereinafter referred to as the 'Ind AS') as notified under Section 133 of the Companies Act, 2013 (‘the Act’) [Companies (Indian Accounting standards) Rules, 2015, as amended] and other related provisions of the Act.
ii) Historical cost convention
The Financial Statements have been prepared on a historical cost basis, except for the following:
(a) certain financial assets and liabilities that are measured at fair value; and
(b) Employee share based payments
iii) New and amended standards adopted
The Ministry of Corporate Affairs has vide notification dated 31 March 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 (the ‘Rules’) which amended certain accounting standards, (see below) and are effective 1 April 2023:
(i) Disclosure of accounting policies -amendments to Ind AS 1
(ii) Definition of accounting estimates -amendments to Ind AS 8
(iii) Deferred tax related to assets and liabilities arising from a single transaction -amendments to Ind AS 12
The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications.
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. Specifically, no changes would be necessary as a consequence of amendments made to Ind AS 12 as the company’s accounting policy already complies with the now mandatory treatment."
iv) New and amended standards issued but not yet effective
MCA notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards as applicable to the Company.
v) Operating cycle
Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classificatlon of its assets and liabilities as current and non-current.
3 Critical estimates and judgements
The preparation of these financial statements requires the use of accounting estimates which could differ from the actual results. Management also needs to exercise judgement in applying the Company's accounting policies. This note provides an overview of the areas that involved higher degree of judgement or complexity and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information
about each of these estimates and judgements is included in the relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact
on the Company and that are believed to be reasonable under the circumstances.
The areas involving critical estimates and judgments are:
i) Defined benefit obligations - Refer Note 12
ii) Recognition and measurement of deferred tax - Refer Note 8
iii) Impairment of trade receivables -Refer Note 23A
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