g. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the
effect of the time value of money is material, provisions are discounted using a current pre tax rates that reflects, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage
of time is recognized as a finance cost.

A provision for onerous contract is recognized when the expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present
value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the
contract. Before a provision is established, the Grouprecognizes any impairment loss on the assets associated with the
contract.

Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor
disclosed in the financial statements.

h. Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those
goods or services. 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.

The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the
goods or services before transferring them to the customer.

The specific recognition criteria described below must also be met before revenue is recognized.

Sale of Goods

Revenue is recognised when control of goods is transferred to a customer in accordance with the terms of the contract.
The control of the goods is transferred upon delivery to the customers either at factory gate of the entity or specific
location of the customer or when the goods are handed over to the freight carrier, as per the terms of the contract. A
receivable is recognised by the Group when the goods are delivered to the customer as this represents the point in time
at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due.

The Group accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax/ GST in the year of
admission of such claims by the concerned authorities. Export benefits are classified as other operating income and
recognized on accrual basis in the year of export based on eligibility and when there is no uncertainty on receiving the
same.

Interest Income

Interest income is recognised using the effective interest method as set out in Ind AS 109 - Financial Instruments:
Recognition and Measurement, when it is probable that the economic benefits associated with the transaction will flow to
the Group and the amount of the revenue can be measured reliably. The effective interest method is a method of

calculating the amortised cost of a financial asset or a financial liability and of allocating the interest income or interest
expense over the relevant period.

I. Leases

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

The Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets

i. Right of use

The Group recognises right-of-use assets ("ROU Assets) at the commencement date of the lease (i.e., the date
the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets.

If ownership of the leased asset transfers to the entity at the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use
assets are also subject to impairment. Refer to the accounting policies in Note f "Impairment of non-financial
assets”.

ii. Lease Liability

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of
penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset. Lease liabilities has been presented under the head
"Financial Liabilities”.

iii. Short-term leases and leases of low-value assets

The Group 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 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.

j. Foreign Currency Translation

In preparing the financial statements of the Group, transactions in currencies other than the parent company's functional
currency are recognised at the rate of exchange prevailing at the date of the transactions. At the end of each reporting
period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non¬
monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in profit and loss in the period in which they arise except for
exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign
currency borrowings.

k. Borrowing Costs
Borrowing costs include

i. Interest expense calculated using the effective interest rate method,

ii. Finance charges in respect of finance leases, and

iii. Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

l. Employee benefits
Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled.

Post-employment obligations

The Group operates the following post-employment schemes:

(I) defined contribution plans - provident fund and employee state insurance.

(ii) defined benefit plans - gratuity

I. Defined Contribution Plan

The Group has defined contribution plan for the post-employment benefits namely Provident Fund and
Employees Death Linked Insurance, the contributions towards such funds and schemes are recognised as
employee benefits expense and charged to the Statement of Profit and Loss when they are due. The Group
does not carry any further obligations with respect to this, apart from contributions made on a monthly basis.

ii. Defined Benefit Plan

The Group has defined benefit plan, namely gratuity for eligible employees in accordance with the Payment of
Gratuity Act, 1972 the liability for which is determined on the basis of an actuarial valuation (using the Projected
Unit Credit method) at the end of each year.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have terms
approximating to the tenor of the related obligation. The liability or asset recognized in the balance sheet in
respect of gratuity is the present value of the defined benefit obligation at the end of the reporting period less the
fair value of plan assets

The service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements) is recognised in the Statement of profit and loss in the line item 'Employee benefits expense'.

Remeasurements of the net defined liability, comprising of actuarial gains and losses, return on plan assets
(excluding amounts included in net interest on the net defined benefit liability) and any change in the effect of
asset ceiling (excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the balance sheet with a corresponding debit or credit to retained earnings through Other
Comprehensive Income (OCI) in the period in which they occur. Remeasurements are not reclassified to profit
or loss in subsequent periods.

Change in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in the profit or loss as past service cost.

m. Income Taxes

Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognized in the Statement of
Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive income

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as reported in
the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and
items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit
nor the accounting profit.

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 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 realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner
in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.

Current & Deferred Tax for the year

Current and deferred tax are recognised in the Statement of profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises
from the initial accounting for a business combination, the tax effect is included in the accounting for the business
combination.

Minimum Alternate Tax

MAT is recognised as an asset only when and to the extent there is convincing evidence that the entity will pay normal
income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised, it is credited
to the Statement of Profit and Loss and is considered as (MAT Credit Entitlement). The Group reviews the same at each
Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer
convincing evidence to the effect that the entity will pay normal Income Tax during the specified period. Minimum
Alternate Tax (MAT) Credit are in the form of unused tax credits that are carried forward by the entity for a specified period
of time, hence, it is presented as Deferred Tax Asset.

n. Earnings per Share

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to the ordinary shareholders of the parent company by the weighted average
number of ordinary shares outstanding during the period. Where ordinary shares are issued but not fully paid, they are
treated in the calculation of basic earnings per share as a fraction of an ordinary share to the extent that they were entitled
to participate in dividends during the period relative to a fully paid ordinary share. Diluted earnings per share is computed
by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and
also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a
later date. Dilutive potential equity shares are determined independently for each period presented.

o. Fair value Measurement

A number of Group's accounting policies and disclosures require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair value is the price that would be received on sell of an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. A fair value measurement
assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset
or liability or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal
market or the most advantageous market must be accessible to the Group.

The fair value of an asset or 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 Group uses valuation techniques that 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 assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair
value hierarchy is described as below:

Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.

Level 3 - Unobservable inputs for the asset or liability.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of
each reporting period.

p. Current / non- current classification

An asset is classified as current if:

i. it is expected to be realized or sold or consumed in the Group's normal operating cycle;

ii. it is held primarily for the purpose of trading;

iii. it is expected to be realized within twelve months after the reporting period; or

iv. it is cash or cash equivalent unless it is 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 classified as current if:

i. it is expected to be settled in normal operating cycle;

ii. it is held primarily for the purpose of trading;

iii. it is expected to be settled within twelve months after the reporting period;

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

All other liabilities are classified as non-current.

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

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

Note 3: Consolidation of Financial Statements

3.1 Principle of Consolidation

i. The consolidated financial statements relate to Archit Organosys Limited and its subsidiaries. Subsidiary is an
entity over which the Parent Company has control. The Parent Company controls an entity when the Parent
Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the relevant activities of the entity. Consolidation of an entity
begins when the Parent Company obtains control over the entity and ceases when Parent Company loses
control of the entity. Specifically, income and expenses of an entity acquired or disposed of during the year are
included in the consolidated statement of profit and loss from the date the Parent Company gains control or until
the date when the Parent Company ceases to control the entity, respectively.

ii. Consolidated financial statements are prepared using uniform accounting policies for like transactions and other
events in similar circumstances. If a member of the Group uses accounting policies other than those adopted in
the consolidated financial statements for like transactions and events in similar circumstances, appropriate
Material adjustments are made to that Group member's financial statements in preparing the consolidated
financial statements to ensure conformity with the Group's accounting policies.

iii. Non-controlling interests, if any, in the results and equity of subsidiary are shown separately in the consolidated
statement of profit and loss, consolidated statement of changes in equity and consolidated Balance Sheet
respectively.

iv. Non-Controlling Interest's share of profit / loss, if any, of consolidated subsidiary for the year is identified and
adjusted against the income of the group in order to arrive at the net income attributable to shareholders of the
Parent Company.

v. The Difference between the cost of investment in the subsidiary and the share of net assets at the time of
acquisition of shares in the subsidiary is identified and recognized in the consolidated financial statements as
Goodwill or Capital reserve as the case may be.

3.2 Consolidation Procedure

i. Combine like items of assets, liabilities, equity, income, expenses and cash flows of the Parent with those of its
subsidiary.

ii. Offset (eliminate) the carrying amount of the Parent's investment in subsidiary and the Parent's portion of equity
of subsidiary.

iii. Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between entities of the group (profits or losses resulting from intragroup transactions that are recognized in
assets, such as inventory and fixed assets, are eliminated in full). Intragroup losses may indicate an impairment
that requires recognition in the consolidated financial statements.

iv. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it:

Derecognizes the assets (including goodwill) and liabilities of the subsidiary;

Derecognizes the carrying amount of any non-controlling interests;

Derecognizes the cumulative translation differences recorded in equity;

Recognizes the fair value of any investment retained;

Recognizes any surplus or deficit in profit or loss, and

Reclassifies the Parent's share of components, previously recognized in OCI, to profit or loss or retained
earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or
liabilities.

Note 4: Significant accounting judgments, estimates and assumptions

The preparation of consolidated financial statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income
and expense during the period. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. However, uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognized in the periods in which the estimates are revised and in future periods which are affected.

Critical Accounting Estimates and Judgments

In the process of applying the Group's accounting policies, management has made the following judgments, which have
the most significant effect on the amounts recognised in the financial statements.

(i) Contingences and Commitments

In the normal course of business, contingent liabilities may arise from litigations and other claims against the
Group. Where the potential liabilities have a low probability of crystallizing or are very difficult to quantify reliably,
such liabilities are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not provided
for in the financial statements. Although there can be no assurance regarding the final outcome of the legal
proceedings, the management do not expect them to have a materially adverse impact on our financial position
or profitability.

(ii) Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgment is required to determine
the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future
taxable profits together with future tax planning strategies.

(iii) Employee Benefits

Discount rate used to determine the carrying amount of the Group's defined benefit obligation.

The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves
making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality
rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to
significant uncertainty.

In determining the appropriate discount rate for plans operated in India, the management considers the interest
rates of government bonds in currencies consistent with the currencies of the post-employment benefit
obligation.

(iv) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques.
The inputs to these models are taken from observable markets where possible, but where this is not feasible, a
degree of judgment is required in establishing fair values. Estimated irrecoverable amounts are based on the
ageing of the receivable balance and historical experience. Individual trade receivables are written off when
management deems it not to be collectible.

(v) Allowance for uncollectible trade receivables

Provision matrix takes into accounts historical credit loss experience and adjusted for forward looking
information. The expected credit loss allowance is based on the ageing of the day of the receivables are due and
the rates as given in the provision matrix.

(vi) Impairment of Property, Plant & Equipment

The value in use calculation requires the directors to estimate the future cash flows expected to arise from the
cash-generating unit and a suitable discount rate in order to calculate present value. Where the actual future
cash flows are less than expected, an impairment loss which is material in nature is accounted for.

(vii) Litigations

The provision is recognized based on the best estimate of the amount desirable to settle the present obligation
arising at the reporting period and of the income is recognized in the cases involving high degree of certainty as
to realization.

(viii) Useful Life of Property, Plant and Equipment

The Group reviews the estimated useful lives and residual values of property, plant and equipment at the end of
each reporting period. During the current financial year, the management determined that there were no
changes to the useful lives and residual values of the property, plant and equipment.