2. Significant accounting policies

2.1 Basis of preparation

2.1.1 The standalone financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and
other relevant provisions of the Companies Act, 2013 (‘the Act'. )

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
thousand rupee, as per the requirement of schedule III, unless otherwise specified.

Capital Restructuring and Share swap Transactions: On 30 April 2021 Trijal Industries Limited a
company Listed on BSE was acquired by the current acquirers and promoters (a group of five
individuals). Subsequent to the acquisition, the name of the company was changed to ABATE AS
INDUSTRIES LIMITED

At the time of acquisition the company had initial share capital of Rs 501.61 Lakhs. As of 31 March
2024 the accumulated losses stood at Rs 591.82 Lakhs resulting in a negative equity balance of Rs
90.21 lakhs. To enhance the financial flexibility and support the future growth and investment plan
the board of directors proposed an increase in the authorised share capital of the company from
Rs. 15 Crores to Rs. 95 Crores. The proposal was approved by the shareholders at the general
meeting held on 11 September 2023 and the capital increase was effected on Nov-23

During the reporting period, the Company undertook a preferential allotment of equity shares by
way of share swap, in accordance with the provisions of section 62(1)(c) of the Companies Act,
2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Details of The Preferential Allotment

Type of Allotment : Preferential Issue (Private Placement)

Mode of Consideration: Share Swap
Date of Allotment: 25 February 2026
Number of equity shares allotted: 73,787,128.00

Issue price: Rs. 22.28 per share (comprising face value of Rs. 10.00 and share premium of Rs 12.28)

The equity shares were issued in exchange for the shareholding of the following entities

• Salamath Import and Export Private Limited

• Prudential Management services Private Limited

• Sky international Trading WLL Bahrain

• SAIA Educational Support Services WLL Baharain

• Salamath Import and Export Private Limited, Sky International Trading WLL and Prudential
Management Services Private Limited became Subsidiaries of our company

• SAIA Educational Support Services WLL became Associate of our Company

This transaction is part of the company's boarder strategic restructuring and International
expansion Plan

During the Reporting Period , the company approved an increase in its authorized share capital
from ?95 crore to ?158 crore to facilitate the issuance of bonus shares, subject to the approval of
shareholders and the necessary amendment to the company's Memorandum of Association. The
Board of Directors approved this proposal on 17 June 2025. On the same date, the company also
approved a 1:1 bonus issue, under which shareholders were entitled to receive one bonus share
for every one existing equity share held. The record date and ex-bonus date for determining
shareholders' eligibility were fixed as 31 July 2025. The increase in authorized share capital ensured
that the company had sufficient share capital available to implement the bonus issue.

During the Reporting Period, The Authorized Share Capital of the Company was increased from
? 1,58,00,00,000 divided into 15,80,00,000 Equity Shares of ?10 each to ?2,00,00,00,000 divided into
20,00,00,000 Equity Shares of ?10 each during the year.

2.1.2 These financial statements have been prepared on a historical cost basis, except for certain assets
and liabilities that are measured at fair values at the end of each reporting period, as explained in
the accounting policies below:

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, (regardless of whether
that price is directly observable or estimated using another valuation technique). In estimating the
fair value of an asset or a liability, the Company takes into account the characteristics of the asset
or liability, if market participants would take those characteristics into account when pricing the
asset or liability, at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,
2 or 3 based on the degree to which inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurement in its entirety, which are described as
follows:

i. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;

ii. Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable
for the asset or liability, either directly or indirectly; and

iii. Level 3 inputs are unobservable inputs for the asset or liability.

Fair value for measurement and/or disclosure purposes in these financial statements is determined
on such a basis, except for leasing transactions that are within the scope of Ind AS 116, and
measurements that have some similarities to fair value but are not fair value, such as net realizable
value in Ind AS 2 or value in use in Ind AS 36.

2.1.3 Foreign Currency Transactions and Translation: Transactions in foreign currencies are initially
recorded by the company at the functional currency spot rates at the date the transaction first
qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are
translated at the closing rate on the reporting date. Exchange differences arising on settlement or
translation of monetary items are recognized in the settlement of profit and loss. Non monitory items
are translated using the exchange rate at the date of transaction. Non monetary items measured at
fair value are translated at the exchange rates at the date when the fair value was determined.

2.2 Current / non-current

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification. An asset is treated as current when it is,

i. Expected to be realized or intended to be sold or consumed in normal operating cycle

ii. Held primarily for the purpose of trading

iii. Expected to be realized within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle

ii. It is held primarily for the purpose of trading

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.3 Revenue

2.3.1 Revenue from operations is recognised to the extent that it is probable that economic benefit will
flow to the Company and the revenue can be reliably measured regardless of when the payment
is being made as per IND AS 115. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government.

2.3.2 Rendering of other services: Revenue is recognised upon rendering of services, provided
persuasive evidence of an arrangement exist, tariff/rates are fixed or are determinable and
collectability is reasonably certain.

2.3.3 Interest income : Interest income is accrued on time basis, by reference to the principal
outstanding and at the effective interest rate applicable.

2.4 Property, plant and equipment and intangible assets

2.4.1 Property, plant and equipment: Property, Plant and Equipment are stated at cost less
accumulated depreciation or amortization and accumulated impairment losses. Cost comprises
of all cost of purchase, construction and other related costs incurred in bringing the assets to their
present location and condition.

When significant parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognized in the carrying amount of the plant and equipment
as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs
are recognized in profit or loss as incurred. The present value of the expected cost for the
decommissioning of an asset after its use is included in the cost of the respective asset if the
recognition criteria for a provision are met.

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
statement of profit and loss when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each financial year end and adjusted prospectively, if appropriate.

Advances paid towards the acquisition of property, plant and equipment outstanding at each
balance sheet date are classified as capital advances under other non-current assets and the
cost of assets not put to use before such date are disclosed under ‘Capital work-in-progress'.

2.4.2 Impairment losses: At the end of each reporting period, the Company reviews the carrying
amounts of the assets to determine whether there is any indication that those assets have suffered
an impairment loss. If any such indication of impairment loss exists, the recoverable amount, (i.e.
higher of fair value less costs of disposal and value in use) of the asset is estimated, or, when it is
not possible to estimate the recoverable amount of an individual asset, the recoverable amount
of the cash-generating unit to which the asset belongs is estimated. If the recoverable amount of
an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount and an
impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognized for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

2.4.3 Depreciation/amortization: Depreciation/amortization is recognized on a written down value basis
over the estimated useful lives of respective assets as under:

Useful life of assets different from prescribed in Schedule II has been estimated by management
supported by technical assessment. The change of notes from straight line basis to written down
value basis is not a policy change but a correction mistake in the notes.

The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period and the effect of any changes in estimate is accounted for prospectively.

2.5 Financial instruments
Classification:

The Company classifies its financial assets in the following measurement categories: - Those to be
measured subsequently at fair value (either through other comprehensive income, or through the
Statement of Profit and Loss), and those measured at amortized cost. The classification depends on
the Company's business model for managing the financial assets and the contractual terms of the
cash flows. For assets measured at fair value, gains and losses will either be recorded in the
Statement of Profit and Loss or other comprehensive income. For investments in debt instruments,
this will depend on the business model in which the investment is held. For investments in equity
instruments, this will depend on whether the Company has made an irrevocable election at the
time of initial recognition to account for the equity investment at fair value through other
comprehensive income. The Company reclassifies debt investments when and only when its
business model for managing those assets changes.

Initial recognition and measurement

At initial recognition, the Company measures a financial asset at its fair value, in the case of a
financial asset not at fair value through the Statement of Profit and Loss, transaction costs that are
directly attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through the Statement of Profit and Loss are expensed in the Statement of
Profit and Loss. Financial assets with embedded derivatives are considered in their entirety when
determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement of non-derivative financial instruments

i. 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.

ii. Financial assets at fair value through other comprehensive income

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. The Company has made an irrevocable election for its investments which
are classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model. 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.

iii. Financial assets at fair value through profit and loss

A financial asset which is not classified in any of the above categories are subsequently fair
valued through profit and loss.

iv. Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method.
For trade and other payables maturing within one year from the Balance Sheet date, the
carrying amounts approximate fair value due to the short maturity of these instruments.

Derecognition of financial instruments

The company derecognizes a financial asset when the contractual right to receive the cash flows
from the financial asset expire or it transfers the financial asset.

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or
expired.

Impairment of financial assets

The company assesses on a forward-looking basis the expected credit losses associated with its
assets carried at amortized cost . The impairment methodology applied depends on whether there
has been a significant increase in credit risk.

2.6 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Current and

deferred tax are recognized in profit or loss.

2.6.1 Current tax: The tax currently payable is based on the estimated taxable profit for the year and is
calculated using applicable tax rates and tax laws that have been enacted or substantively
enacted.

2.6.2 Deferred tax: Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent
that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilized,
except when the deferred tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be utilized. Unrecognized deferred tax assets are re-assessed at
each reporting date and are recognized to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered. Deferred tax liabilities and assets
are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted. Deferred tax assets and deferred tax liabilities are offset if a legally
enforceable right exists to set off current tax assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognized in
correlation to the underlying transaction either in OCI or directly in equity.