2. Significant Accounting Policies:

This note provides a list of the significant accounting
policies adopted in the preparation of these financial
statements. These policies have been consistently applied
to all the years presented, unless otherwise stated.

2.1 Basis of Preparation and Compliance:

a. Preparation of Financial Statements:

The financial statements, for the financial year
31 March 2025 were prepared based on the
accounting standards under IND AS framework.

b. Statement of Compliance:

The Financial Statements have been prepared and
presented in accordance with Indian Accounting
Standards ("Ind AS") notified under the Companies
(Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter and
presentation requirements of division II of schedule
III to the companies Act 2013, (Ind As compliant
schedule III)

c. Functional and Presentation Currency:

Items included in the financial statements of the
company are measured using the currency of the
primary economic environment in which the entity
operates ("functional currency"). The financial
statements are presented in Indian Rupees (INR),
which is Company functional and presentation
currency.

d. Basis of Measurement:

The financial statements have been prepared on a
historical cost convention and on accrual basis of
accounting except for (i) certain financial assets and
financial liabilities that are measured at fair values
at the end of each reporting period, (ii) Defined
benefit plans- plan assets measured at fair value
as stated in the accounting policies set out below.
The financial statements are prepared on a going
concern basis using the accrual concept except for
the cash flow information. The accounting policies
have been applied consistently over all the periods
presented in these financial statements. The said

accounts has been approved by the Board of
Directors at their meeting held on May 21, 2025.
Historical cost is generally based on fair value of
the consideration given in exchange for goods
and services. 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 in to account the characteristics
of the assets or liability if market participants would
take those characteristics into the account when
pricing the asset or liability at the measurement
date.

e. Use of Estimates, Judgements and
Assumptions:

The preparation of financial statements in
conformity with Ind AS requires management to
make judgements, estimates and assumptions that
affect the application of accounting policies and the
reported amounts of assets, liabilities, income and
expenses. The actual results may differ from these
estimates. Estimates and underlying assumptions
are reviewed on a periodic basis. Revisions to
accounting estimates are recognized in the period
in which the estimates are revised and in any future
periods affected. Information about significant
areas of estimation, assumptions, uncertainty,
and critical judgements in applying accounting
policies that have the most significant effect on the
amounts recognized in the financial statements are
included in relevant notes.

f. Going Concern Assumption:

The management has given the significant
uncertainties arising out of the various situations, as
explained in the note below, assessed the cash flow
projections (based on orders on hand and business
forecast) and available liquidity (credit facilities
sanctioned by bankers) for a period of at least 12
months from the date of this financial statements.
Based on this evaluation, management believes
that the company will be able to continue as a
going concern in the foreseeable future from the
date of these financial statements. Accordingly, the
financial statements do not include any adjustments
regarding the recoverability and classification of
the carrying amount of assets and classification of
liabilities that might result, should the company be
unable to continue as a going concern.

g. Current and Non-current classification of
assets and liabilities:

All assets and liabilities have been classified and
disclosed as current and non-current as per the
companies' normal operating cycle and other
criteria set out in Schedule -III to the Companies
Act, 2013. Based on the nature of products and
the time between the acquisition of assets for
processing and their realization into cash and
cash equivalents, the company has ascertained its
operating cycle as 12 months for the purpose of
classification of assets and liabilities.

h. Reclassification:

No such material reclassification done during the
year.

i. Property, Plant and Equipment:

Recognition and Measurement:

The Company has elected to continue with the
carrying value of Property, Plant and Equipment
('PPE') recognized as of transition date measured as
per the Previous GAAP and use that carrying value
as its deemed cost of the PPE as on the transition
date.

Property, plant and equipment are stated at
historical cost less accumulated depreciation and
accumulated impairment losses. Cost includes
purchase price (after deducting trade discount /
rebate), non-refundable import duties and taxes,
cost of replacing the component parts, borrowing
costs and other directly attributable cost to bringing
the asset to the location and condition necessary
for it to be capable of operating in the manner
intended by management.

Spare parts procured along with the Plant and
Equipment or subsequently which meets the
recognition criteria of PPE are capitalized and added
to the carrying amount of such items. The carrying
amount of those spare parts that are replaced are
derecognized when no future economic benefits
are expected from their use or upon disposal. If
the cost of the replaced part is not available, the
estimated cost of similar new parts is used as an
indication of what the cost of the existing part was
when the item was acquired.

An item of PPE is de recognized on disposal or when
no future economic benefits are expected from
use. Any profit or loss arising on the derecognition
of an item of property, plant and equipment is
determined as the difference between the net
disposal proceeds and the carrying amount of the

asset and is recognized in Statement of Profit and
Loss.

Subsequent Costs:

The cost of replacing a part of an item of property,
plant and equipment is recognized in the carrying
amount of the item if it is probable that the future
economic benefits embodied within the part will
flow to the Company and its cost can be measured
reliably. The carrying amount of the replaced part is
derecognized. The cost of the day-to-day servicing
the property, plant and equipment are recognized
in the statement of profit and loss as incurred.

Disposal:

An item of property, plant and equipment is
derecognized upon the disposal or when no future
benefits are expected from its use or disposal. Gains
and losses on disposal of an item of property, plant
and equipment are determined by comparing the
proceeds from disposal with the carrying amount of
property, plant and equipment, and are recognised
net within other income / expenses in the statement
of profit and loss.

j. Depreciation:

Depreciation on Property, Plant & Equipment is
provided on written down value basis over the
estimated economic useful life of the assets as
prescribed in Schedule II of the Companies Act, 2013
or as determined based on a technical evaluation
by the company periodically. The depreciable
amount of an asset is determined after deducting
its residual value. Where the residual value of an
asset increases to an amount equal to or greater
than the asset's carrying amount, no depreciation
charge is recognised till the asset's residual value
decreases below the asset's carrying amount.
Depreciation of an asset begins when it is available
for use, i.e., when it is in the location and condition
necessary for it to be capable of operating in the
intended manner. Depreciation of an asset ceases
at the earlier of the date that the asset is classified
as held for sale in accordance with IND AS 105 and
the date that the asset is derecognized. Individual
assets costing Rs.5000 or less are depreciated in
full, in the year of purchase

k. Impairment of Assets:

Assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss
is recognized for the amount by which the assets
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an assets

fair value less costs of disposal and value in use.
For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there
are separately identifiable cash inflows which are
largely independent of the cash inflows from other
assets (cash generating units). Non-financial assets
other than goodwill that suffered an impairment
are reviewed for possible reversal of the impairment
at the end of each reporting period.

l. Intangible Assets:

Recognition and measurement:

Intangible assets are recognised when the asset is
identifiable, is within the control of the Company,
it is probable that the future economic benefits
that are attributable to the asset will flow to the
Company and cost of the asset can be reliably
measured.

Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their
fair value at the date of acquisition. Intangible
assets acquired by the Company that have finite
useful lives are measured at cost less accumulated
amortisation and any accumulated impairment
losses. Intangible assets with indefinite useful lives
are not amortised, but are tested for impairment
annually, either individually, either individually or at
the cash-generating unit level.

Expenditure on Research activities is recognised
in the statement of Profit and Loss as incurred.
Development expenditure is capitalised only if the
expenditure can be measured reliably, the product
or process is technically and commercially feasible,
future economic benefits are probable, and the
Company intends to complete development and to
use or sell the asset.

Intangible assets which comprise of the
development expenditure incurred on new product
and expenditure incurred on acquisition of user
licenses for computer software are recorded at
their acquisition price. Subscriptions to software are
treated as revenue expenses as the economic life of
such software does not exceed one year.

Subsequent measurement:

Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in
the specific asset to which it relates.

Amortisation:

Amortisation method, useful lives and residual
values are reviewed at the end of each financial

year and adjusted if appropriate. Intangible assets
are assessed for impairment whenever there is
an indication that the intangible asset may be
impaired.

Disposal:

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised in
the statement of profit and loss when the asset is
derecognized.

m. Investments and other Financial Assets:

Fair Value Assessment:

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 asset and
liability if market participants would take those into
consideration. Fair value for measurement and / or
disclosure purposes in these Financial Statements is
determined on such basis except for transactions
in the scope of Ind AS 2, 17 and 36. Normally at
initial recognition, the transaction price is the best
evidence of fair value.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques those are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All financial assets and financial liabilities for which
fair value is measured or disclosed in the Financial
Statements are categorized within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole.

Subsequent Measurement:

For purposes of subsequent measurement financial
assets are classified in three categories:

• Financial assets measured at amortized cost

• Financial assets at fair value through OCI

• Financial assets at fair value through profit or
loss

Financial assets measured at amortized cost:

Financial assets are measured at amortized cost if
the financials asset is held within a business model
whose objective is to hold financial assets 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. These financials assets are amortized
using the effective interest rate ('EIR') method,
less impairment. Amortized cost is calculated by
taking into account any discount or premium on
acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included in
finance income in the Statement of Profit and Loss.
The losses arising from impairment are recognized
in the Statement of Profit and Loss.

Financial assets at fair value through OCI
('FVTOCI'):

Financial assets are measured at fair value through
other comprehensive income if the financial asset
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.
At initial recognition, an irrevocable election is
made (on an instrument-by-instrument basis) to
designate investments in equity instruments other
than held for trading purpose at FVTOCI. Fair value
changes are recognized in the other comprehensive
income ('OCI'). However, the Company recognizes
interest income, impairment losses and reversals
and foreign exchange gain or loss in the Statement
of Profit And Loss. On derecognition of the financial
asset other than equity instruments designated
as FVTOCI, cumulative gain or loss previously
recognised in OCI is reclassified to the Statement of
Profit and Loss.

Financial assets at fair value through profit or
loss ('FVTPL'):

Any financial asset that does not meet the criteria
for classification as at amortized cost or as financial

assets at fair value through other comprehensive
income is classified as financial assets at fair value
through profit or loss. Further, financial assets
at fair value through profit or loss also include
financial assets held for trading and financial assets
designated upon initial recognition at fair value
through profit or loss. Financial assets are classified
as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term.
Financial assets at fair value through profit or loss
are fair valued at each reporting date with all the
changes recognized in the Statement of Profit and
Loss.

Derecognition:

The Company de-recognises a financial asset only
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
entity. If the Company neither transfers nor retains
substantially all the risks and rewards of ownership
and continues to control the financial asset, the
Company recognizes its retained interest in the
asset and an associated liability for amounts it may
have to pay.

Impairment of Financial Assets:

The Company assesses impairment based on
expected credit loss ('ECL') model on the following:

• Financial assets that are measured at amortised
cost; and

• Financial assets measured at FVTOCI

ECL is measured through a loss allowance on
the following basis:

• The 12 month expected credit losses (expected
credit losses that result from those default
events on the financial instruments that are
possible within 12 months after the reporting
date)

• Full lifetime expected credit losses (expected
credit losses that result from all possible default
events over the life of financial instruments)

Financial Liabilities:

The Company's financial liabilities include trade
payable.

A. Initial recognition and measurement:

All financial liabilities at initial recognition are
classified as financial liabilities at amortized
cost or financial liabilities at fair value through
profit or loss, as appropriate. All financial

D. Offsetting of financial instruments:

Financial assets and financial liabilities are
offset and the net amount is reported in the
balance sheet if there is a currently enforceable
legal right to offset the recognised amounts
and there is an intention to settle on a net
basis, to realise the assets and settle the
liabilities simultaneously.

Other incomes, other than interest and
dividend are recognized when the same are
due to be received and right to receive such
other income is established.

n. Share Capital and Share Premium:

Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction net of tax
from the proceeds. Par value of the equity share is
recorded as share capital and the amount received
in excess of the par value is classified as share
premium.

o. Dividend Distribution to equity shareholders:

The Company recognizes a liability to make cash
distributions to equity holders when the distribution
is authorized and the distribution is no longer at the
discretion of the Company. As per the corporate
laws in India, a distribution is authorized when it
is approved by the shareholders. A corresponding
amount is recognized directly in other equity along
with any tax thereon.

p. Cash Flows and Cash and Cash Equivalents:

Statement of cash flows is prepared in accordance
with the indirect method prescribed in the relevant
IND AS. For the purpose of presentation in the
statement of cash flows, cash and cash equivalents
includes cash on hand, cheques and drafts on
hand, deposits held with Banks, other short-term,
highly liquid investments with original maturities of
three months or less that are readily convertible to
known amounts of cash and which are subject to
an insignificant risk of changes in value, and book
overdrafts. However, Book overdrafts are to be
shown within borrowings in current liabilities in the
balance sheet for the purpose of presentation.