2. Material accounting policies

Material accounting policies adopted by the company are as under:

2.1 Basis for Preparation of Financial Statements:

a) Statement of Compliance with Ind AS

These financial statements have been prepared in accordance with
Indian Accounting Standards (Ind AS) as per the Companies (Indian
Accounting Standards) Rules, 2015 notified under section 133 of the
Companies Act, 2013 as amended from time to time.

Accounting policies have been consistently applied to all the years
presented except where a newly issued Accounting Standard is initially
adopted or a revision to an existing Accounting Standard requires a
change in the accounting policy hitherto in use. These financial
statements have been prepared for the Company as a going concern on
the basis of relevant Ind AS that are effective at the Company's annual
reporting date March 31,2025.

The Ind AS financial statements were approved by the Board of
Directors of the Company on May 30, 2025.

b) Basis of measurement

The financial statements have been prepared on a historical cost
convention on accrual basis, except for the following material items that
have been measured at fair value as required by relevant Ind AS: -

i. Certain financial assets and liabilities measured at fair value (refer Note -
2.21 accounting policy on financial instruments)

ii. Net defined employee benefit assets / (liability) are measured at fair
value of plan assets, less present value of defined benefit obligations.

iii. Share based payment transactions are measured at fair value.

All the assets and liabilities have been classified as current or non¬
current as per the Company's normal operating cycle and other criteria
set out in Division II - Ind AS Schedule III to the Act. The Company
presents assets and liabilities in the balance sheet based on current/
non-current classification.

An asset is classified as current when it is:

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

• Held primarily for the purpose of trading

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

• Cash or cash equivalent unless restricted
All other assets are classified as non-current.

• 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 the Company classifies all
other liabilities as non-current.

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

The operating cycle is the time between the acquisition of assets for
processing and their realization in cash and cash equivalents. The
Company has identified twelve months as its operating cycle.

c) Presentation currency and rounding off.

The financial statements are presented in INR and all values are
rounded to nearest lakhs (INR 00,000), except when otherwise
indicated.

d) Uses of Estimates and judgments:

The preparation of standalone financial statements in conformity with
Ind AS requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities as at the Balance Sheet date, reported amount of
revenue and expenses for the year and disclosures of contingent
liabilities as at the Balance Sheet date. The estimates and assumptions
used in the accompanying financial statements are based upon the
Management's evaluation of the relevant facts and circumstances as at
the date of the financial statements. Actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on a
periodic basis. Revisions to accounting estimates, if any, are recognised
in the year in which the estimates are revised and in any future years
affected. Refer Note 2.27 for detailed discussion on estimates and
judgements. Information about significant areas of estimation
uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the
standalone financial statements is included in the following notes:

• Useful lives of property, plant and equipment;

• Impairment;

• Financial instruments;

• Employee benefits;

• Provisions;

• Income taxes

2.2 Current and Non-Current Classification:

Current assets / liabilities include the current portion of non-current
assets / liabilities respectively. All other assets /liabilities including
deferred tax assets and liabilities are classified as non-current.

All assets and liabilities have been classified as current or non-current as
per the Company's operating cycle and other criteria set out in the
Schedule III to the Companies Act, 2013. Based on the nature of
services and the time between the rendering of service and their
realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.

2.3 Property Plant and Equipment (Ind AS 16):

Items of property, plant and equipment are measured at historical cost

less accumulated depreciation and accumulated impairment losses, if
any. The cost comprises purchase price, taxes (other than those
subsequently recoverable from tax authorities), borrowing cost if
capitalisation criteria are met and directly attributable cost of bringing the
asset to its working condition for the intended use.

“Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is
derecognized when replaced. All other repairs and maintenance are
charged to Statement of Profit and Loss during the year in which they are
incurred.

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

Advances paid towards the acquisition of property, plant and equipment
outstanding at each balance sheet date is 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'.

Depreciation methods, estimated useful lives:

Items of Property, Plant and Equipment are stated at cost less
accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase
price, including import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the
site on which it is located.

The cost of a self-constructed item of property, plant and equipment
comprises the cost of materials and direct labour, any other costs directly
attributable to bringing the item to working condition for its intended use,
and estimated costs of dismantling and removing the item and restoring
the site on which it is located.

If significant parts of an item of property, plant and equipment have
different useful lives, then they are accounted for as separate items
(major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment
is recognized in profit or loss.

Assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which
the asset's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less cost 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 or groups of assets (cash-generating units).

Depreciation on the fixed assets has been provided based on useful
lives as prescribed under part C of schedule II of the Companies act,
2013.

Depreciation method, useful lives and residual values are reviewed at each

financial year-end and adjusted if appropriate.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from
(upto) the date on which the asset is ready for use (disposed of).

2.4 Intangible assets (Ind AS 38):

Intangible assets are amortized over the estimated useful lives and
assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortization period and the
amortization method are reviewed at least at each financial year end.
Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset is
accounted for by changing the amortization period or method, as
appropriate, and are treated as change in accounting estimates. The
amortization expense on intangible assets with finite useful lives is
recognized in profit or loss.

2.5 Investment in Subsidiaries

Investment in Subsidiaries are valued at cost. Dividend income from
subsidiaries is recognised when its right to receive the dividend is
established.

2.6 Trade and other payables

These amounts represent liabilities for goods and services provided to
the company prior to the end of the financial year which are unpaid. The
amounts are unsecured and are usually paid within the normal trade
cycle as per agreement. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the
reporting period.

2.7 Effects of changes in foreign exchange rates (Ind AS 21):

During the financial year the company has not entered into any foreign
exchange transactions. Hence this Ind AS does not have any financial
impact on the financial statements of the company.

2.8 Impairment of non-financial assets/unlisted equity investments

The carrying amounts of the Company's tangible and intangible assets,
including unlisted equity investments, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any
such indication exists, then the asset's recoverable amount is estimated
in order to determine the extent of the impairment loss, if any.

The recoverable amount of an asset or cash-generating unit is the
greater of its value in use and its fair value less costs of disposal. In
assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to
the asset or the cash generating unit for which the estimates of future
cash flows have not been adjusted. For the purpose of impairment
testing, assets are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets.

An impairment loss is recognized in the statement of profit or loss if the
estimated recoverable amount of an asset or its cash generating unit is
lower than its carrying amount. If, at the reporting date there is an
indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and reversed only to the extent
that the asset's carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortization, if
no impairment loss had been previously recognized.

2.9 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7,
whereby profit/(loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

a. Non-cash items: Nil

b. Changes in Liability Arising from Financing Activity

2.10 Capital Work in Progress

Capital Work in Progress (CWIP) includes Plant & Equipment under
erection and Preoperative Expenditure pending allocation on the assets
to be acquired/commissioned, capitalized. It also includes payments
made towards technical know-how fee and for other General
Administrative Expenses incurred for bringing the asset into existence.

2.11 Investments

Investments are classified as Non-Current and Current investments.
Investments, which are readily realisable and are intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non¬
Current Investments are carried at cost less provision for other than
temporary diminution, if any, in value of such investments.

2.12 Borrowing Costs (Ind AS 23):

Borrowing costs that are attributable to the acquisition or construction of
qualifying assets up to the date of capitalization of such asset are
capitalized as part of the cost of such assets. All other borrowing costs
are charged to the Statement of Profit and Loss.

2.13 Revenue Recognition (Ind AS 18-Revenues):

Revenue is recognized to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized:

• Sales Revenue is recognized on dispatch to customers as per the terms
of the order. Sales Revenue is net of returns and applicable trade
discounts and excluding GST billed to the customers.

• Subsidy from Government is recognized when such subsidy has been
earned by the company and it is reasonably certain that the ultimate
collection will be made.

• Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head “other income” in the
statement of profit and loss.

• All other incomes are recognized based on the communications held
with the parties and based on the certainty of the incomes.

2.14 Inventories (Ind AS 2):

Inventories at the year-end are valued as under:

• Cost of Material excludes duties and taxes which are subsequently
recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the
time of dispatch from Factories.

2.15 Retirement and other Employee Benefits (Ind AS 19):

The Company has an obligation towards gratuity, Post-retirement
Medical Facility and Other Defined Retirement Benefit which are being
considered as defined benefit plans covering eligible employees.
Under the defined benefit plans, the amount that an employee will
receive on retirement is defined by reference to the employee's length
of service, final salary, and other defined parameters. The legal
obligation for any benefits remains with the Company, even if plan
assets for funding the defined benefit plan have been set aside.

Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as expenditure,
when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing
the benefits under this plan has not determined on the basis of
actuarial valuation at each year-end. Further, the Company has not
maintained a gratuity fund or made any provision for gratuity in its
books, resulting in non-compliance with the prescribed accounting
treatment for defined benefit plans.

Accumulated leave, which is expected to be utilized within the next 12
months, is treated as short term employee benefit. The Company has
not provided any provision for leave encashment.

2.16 Ind AS 116- Leases

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

a) As a Lessee

The Company applies the single lease accounting model for all leases,
except for:

Short-term leases (lease term of 12 months or less), and
Leases of low-value assets (such as small office equipment)

For these exempted leases, the Company recognises lease payments
as an expense on a straight-line basis over the lease term.

For all other leases, the Company recognises a right-of-use (ROU)
asset and a corresponding lease liability at the lease commencement
date.

The ROU asset is initially measured at cost and subsequently
depreciated on a straight-line basis over the shorter of the lease term
or useful life of the asset. It is also adjusted for impairment losses, if
any.

The lease liability is initially measured at the present value of future
lease payments, discounted using the Company's incremental
borrowing rate. Subsequently, it is measured at amortised cost using
the effective interest method.

Lease liabilities are re-measured when there is a change in future
lease payments arising from a change in an index or rate or a
reassessment of the lease term. The corresponding adjustment is
made to the carrying amount of the ROU asset.

b) Lease Term

The lease term includes the non-cancellable period of the lease and
any periods covered by an option to extend or terminate the lease, if
the Company is reasonably certain to exercise or not exercise those
options.

c) Disclosure

The Company has applied the exemption available under Ind AS 116
for leases of low-value assets and leases with lease terms of 12
months or less.

These provisions are not applicable to the company therefore, such
lease payments are not recognised as an expense in the Statement of
Profit and Loss on a straight-line basis over the lease term.

2.17 Insurance Claims:

Insurance Claims are accounted for on the basis of claims
admitted/expected to be admitted and to the extent that the amount
recoverable can be measured reliably and it is reasonable to expect
ultimate collection.

2.18 Earnings per Share (Ind AS 33):

Basic earnings per share is calculated by dividing the net profit or loss
for the period attributable to equity shareholders by the weighted

average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number of equity
shares outstanding for the effects of all dilutive potential ordinary
shares.

2.19 Segment Reporting (Ind AS 108):

The Company is engaged in multiple lines of business, including the
distribution of IT and IT-related goods and services, retail sale of toys,
and apparels. These operations are carried out across different
customer segments and distribution channels, supported by
continuous market development and operational improvement
initiatives.

In accordance with the requirements of Ind AS 108 - Operating
Segments, the Company has identified and disclosed reportable
segments. The segments are primarily based on the nature of
products and services, the class of customers, and the risk-return
profiles of each business activity.

Accordingly, segment reporting is applicable to the Company, and
detailed disclosures have been provided in the notes forming part of
the financial statements.