2 Summary of material accounting policies

a) Statement of compliance and basis of preparation

The financial statements as at and for the year ended
March 31, 2025 have been prepared in accordance with
Indian Accounting Standards ("Ind AS”) notified under the
Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment
Rules, 2016 (as amended from time to time), and presentation
requirements of Division II of Schedule III to the Companies
Act, 2013, (Ind AS compliant Schedule III), as applicable to
the financial statement.

The financial statements have been prepared on the
accrual and going concern basis, and the historical cost
convention except where the Ind AS requires a different
accounting treatment.

The financial statements are approved for issue by the
Company's Board of Directors on 29 May 2025.

b) Functional and presentation currency

The financial statements are presented in Indian Rupees
(INR), which is the functional and presentation currency. The
financial statements values are rounded to the nearest lakhs
(INR 00,000), except when otherwise indicated.

c) Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current/ non-current classification.

(i) An asset is classified as current when it is:

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

• Held primarily for the purpose of trading

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

• Cash or cash equivalents unless restricted from
being exchanged or used to settle a liability for at
least twelve months

after the reporting period

(ii) All other assets are classified as non-current.

(iii) A liability is classified as current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

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

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

(iv) All other liabilities are classified as non-current.

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

Based on the nature of service, the Company has

ascertained its operating cycle as twelve months for all

assets and liabilities.

d) Property, plant and equipment

Property, plant and equipment are stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. The cost comprises purchase price, cost directly
attributable to bring the assets to its working condition for the
intended use and borrowing costs, if capitalization criteria
are met. Any trade discounts and rebates are deducted in
arriving at the purchase price.

Subsequent expenditure related to an item of property, plant
and equipment is added to its book value only if it increases the
future benefits from the existing asset beyond its previously
assessed standard of performance. All other expenses on
existing property, plant and equipment, including day-to-day
repair and maintenance expenditure and cost of replacing
parts, are charged to the statement of profit and loss for the
period during which such expenses are incurred.

Gains or losses arising from de-recognition of property, plant
and equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset
and are recognized in the statement of profit and loss when
the asset is de-recognized.

Depreciation on property, plant and equipment is provided
on the straight-line method over their estimated useful
lives, as estimated by the Management. Schedule II of the
Companies Act, 2013, prescribes useful life for fixed assets.
Further schedule II also allows companies to use higher/
lower useful live and residual value if such useful live and
residual values can be technically supported and justification
for differences is disclosed in the financial statements. The
Management believes that depreciation rate currently used
fairly reflects the estimate of the useful lifes and residual value
of property plant and equipments.

The Company has estimated the following useful
lives to provide depreciation on its property, plant and
equipment, as follows:

Leasehold improvements are amortised over the useful life of
assets or the primary period of lease, whichever is shorter.

Pro-rata depreciation is provided from / upto the date of
purchase / disposal for assets purchased or sold during
the year. Assets individually costing INR 5,000 or less are
depreciated over a period of one year.

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.

Property, plant and equipment under installation or
construction as at balance sheet date are shown as capital
work-in-progress and the related advances are shown
as other assets.

e) Revenue recognition

"Revenue is recognised on the basis of approved contracts
regarding the transfer of goods or services to a customer
for an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those
goods and services.

Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The
transaction price of goods sold and services rendered is net
of variable consideration. Any amounts receivable from the
customer are recognised as revenue after the control over the
goods sold and services rendered are transferred to the customer.

Variable consideration includes incentives, rebates, discounts
etc. which is estimated at contract inception considering the
terms of various schemes with customers and constrained
until it is highly probable that a significant revenue reversal
in the amount of cumulative revenue recognised will not
occur when the associated uncertainty with the variable
consideration is subsequently resolved. It is reassessed at
end of each reporting period.

Satisfaction of performance obligation

Revenue is recognised when (or as) the Company satisfies
a performance obligation by transferring a promised good
or service (i.e. an asset) to a customer. An asset is transferred

when (or as) the customer obtains control of that asset.
For each performance obligation identified, the Company
determine at contract inception whether it satisfies the
performance obligation over time or satisfies the performance
obligation at a point in time.

Where performance obligation is satisfied over time, the
Company recognizes revenue over the contract period.
Where performance obligation is satisfied at a point in time,
Company recognizes revenue when customer obtains
control of promised goods and services in the contract.

Rental income

Service revenue includes rental revenue for use of leased
premises and related ancillary services. Revenue from leased
out premises under an operating lease is recognized on a
straight line basis over the non-cancellable period (lease
term from revenue), except where there is an uncertainty of
ultimate collection. After lease term for revenue where there
is no non-cancellable period, rental revenue is recognized as
and when services are rendered on a monthly basis as per
the contractual terms prescribed under agreement entered
with customers.

Revenue from lease income is classified as operating or
finance lease as per the lease policy at point (f) below

Other ancillary services

Revenue from other ancillary services mainly includes
other value added services. It is recognised as and when
the services are rendered in accordance with terms of
respective agreements.

f) Leases

Company as a lessee

The Company assesses whether a contract is, or contains a
lease, at inception of the contract. A contract is, or contains,
a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company
assesses whether:

i) the contract involves the use of an identified asset,

ii) the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and

iii) the Company has the right to direct the use of the asset.

At the commencement date of the lease, the Company
recognises a right-of-use asset and a corresponding lease
liability for all lease arrangements in which it is a lessee,
except for short-term leases (leases with a term of twelve
months or less), leases of low value assets and, for contract

where the lessee and lessor has the right to terminate a lease
without permission from the other party with no more than an
insignificant penalty. The lease expense of such short-term
leases, low value assets leases and cancellable leases, are
recognised as an operating expense on a straight-line basis
over the term of the lease.

At the commencement date, lease liability is measured at
the present value of the lease payments to be paid during
non-cancellable period of the contract, discounted using
the incremental borrowing rate. The right-of-use assets is
initially recognised at the amount of the initial measurement
of the corresponding lease liability, lease payments made
at or before commencement date less any lease incentives
received and any initial direct costs.

Subsequently, the right-of-use asset is measured at cost
less accumulated depreciation and any impairment losses.
Lease liability is subsequently measured by increasing the
carrying amount to reflect interest on the lease liability (using
effective interest rate method) and reducing the carrying
amount to reflect the lease payments made. The right-of-use
asset and lease liability are also adjusted to reflect any lease
modifications or revised in-substance fixed lease payments.

Short-term leases and leases of low-value assets:

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e. those leases that have
a lease term of 12 months or less from the commencement
date and do not contain a purchase option). It also applies
the lease of low-value assets recognition exemption to
leases of assets that are considered to be low value. Lease
payments on short-term leases and leases of low value
assets are recognised as expense on a straight-line basis over
the lease term.

Company as a lessor

As a lessor, Leases for which the Company is a lessor are
classified as finance or operating leases. Whenever the terms
of the lease substantially transfer all the risks and rewards of
ownership to the lessee, the contract is classified as a finance
lease. All other leases are classified as operating leases

Income from operating leases where the Company is a lessor
is recognised as income on a straight-line basis over the lease
term unless the receipts are structured to increase in line
with the expected general inflation to compensate for the
expected inflationary cost increases. The respective leased
assets are included in the Standalone Balance Sheet based
on their nature. Leases of property, plant and equipment
where the Company as a lessor has substantially transferred
all the risks and rewards are classified as finance lease.
Finance leases are capitalised at the inception of the lease
at the fair value of the leased property or, if lower, the present
value of the minimum lease payments. The corresponding

rent receivables, net of interest income, are included in other
financial assets. Each lease receipt is allocated between the
asset and interest income. The interest income is recognised
in the Standalone Statement of Profit and Loss over the lease
period so as to produce a constant periodic rate of interest on
the remaining balance of the asset for each period.

g) Employee benefits expense and retirement

(i) Gratuity liability

The Company provides for gratuity, a defined benefit
plan (the "Gratuity Plan”) covering eligible employees.
The Gratuity Plan provides a lump sum payment to
vested employees at retirement, death, incapacitation
or termination of employment, of an amount based on
the respective employee's base salary and the tenure
of employment. The liability is determined based on
an actuarial valuation carried out by an independent
actuary as at the balance sheet date using the
projected unit credit method. Actuarial gains / losses
are recognized immediately in the balance sheet with
a corresponding debit or credit to retained earnings
through other comprehensive income in the year in
which they occur.

(ii) Compensated absences

The employees of the Company are entitled to
compensated absences which are both accumulating
and non-accumulating in nature. The employees
can carry forward up to the specified portion of the
unutilized accumulated compensated absences and
utilize it in future periods or receive cash as per the
Company policy. The expected cost of accumulating
compensated absences is determined by actuarial
valuation (using the projected unit credit method)
based on the additional amount expected to be paid as
a result of the unused entitlement that has accumulated
at the balance sheet date. The expense on non¬
accumulating compensated absences is recognized in
the statement of profit and loss in the year in which the
absences occur.

The Company presents the liability as current liability
in the balance sheet, to the extent it does not have an
unconditional legal and contractual right to defer its
settlement for twelve months after the reporting date.

(iii) Provident fund

The Company's contribution to provident fund is
charged to the statement of profit and loss. The
Company's contributions towards provident fund
are deposited with the Regional Provident Fund
Commissioner under a defined contribution plan, in
accordance with Employees' Provident Funds and
Miscellaneous Provisions Act, 1952.

h) Tax expense

Tax expense comprises current and deferred income tax.
Current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income-
tax Act, 1961 enacted in India and tax laws prevailing in the
respective tax jurisdictions where the Company operates.
The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the
reporting date.

Deferred income taxes reflect the impact of temporary
differences between taxable income and accounting income
originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured
using the tax rates and the tax laws enacted or substantively
enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary
differences, except when the deferred tax liability arises from
the initial recognition of goodwill or 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 the taxable profit or loss.

Deferred tax assets are recognized for deductible temporary
differences, the carry forward of unused tax credits and
unused tax losses. Deferred tax assets are recognized only
to the extent that it is probable that taxable profit will be
available against which deductible temporary differences,
the carry forward of unused tax credits and unused tax
losses can be utilized, except when the deferred tax asset
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 the taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
or part of the deferred tax asset to be utilised. 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 profit will allow the deferred tax assets
to be recovered.

Current and deferred tax are recognised in profit or loss,
except when they are related to items that are recognised in
other comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognized in other
comprehensive income or directly in equity respectively.

Deferred tax assets and liabilities are offset, if a legally
enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and
deferred taxes relate to the same taxable entity and the same
taxation authority.