2.21 Prior Period and Extraordinary and Exceptional Items:

(i) All Identifiable items of Income and Expenditure pertaining to prior period are accounted through ‘'Prior Period Items''.

(ii) Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly. The nature and the amount of each extraordinary item be separately disclosed in the statement of profit and loss in a manner that its impact on current profit or loss can be perceived.

(iii) Exceptional items are generally non-recurring items of income and expenses within profit or loss from ordinary activities, which are of such, nature or incidence.

2.22 Financial Instruments (Ind AS 107 Financial Instruments: (Disclosures)I. Financial assets:

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

a) Financial assets carried at amortized cost (AC)

A financial asset is 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.

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

A Financial asset which is not classified as AC or FVOCI are measured at FVTPL e.g. investments in mutual funds. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in profit or loss and presented net in the Statement of Profit and Loss within other gains/(losses) in the period in which it arises.

c) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI 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.

B. Investments in subsidiaries

The Company does not have any subsidiaries as at the reporting date.

Accordingly, the requirements relating to accounting for investments in subsidiaries at cost or fair value are not applicable for the year.

II. Financial LiabilitiesA. Initial recognition

All financial liabilities are recognized at fair value.

B. Subsequent measurement

Financial liabilities are 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.

2.23 Operating Segments (Ind AS 108)

Operating segment is a component of an entity:

a. That engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity).

b. Whose operating results are regularly reviewed by the entity's chief operating decision maker to make decision about resources to be allocated to the segments and assess its performance, and

c. For which discrete financial information is available.

The Company is engaged in a single line of business of providing copacking services in the beverage industry. Hence IND AS 108 is not applicable.

2.24 Events After the Reporting Period (Ind AS-10)

Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting period and the date on which financial statements are approved by the Board of Directors in case of accompany, and, by the corresponding approving authority in case of any other entity for issue. Two types of events can be identified:

a. Those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period) and

b. Those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).

An entity shall adjust the amounts recognized in its financial statements to reflect adjusting events after the reporting period.

2.25 Construction Contracts (Ind AS -11):

Construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology, and function or their ultimate purpose or use.

The company does not have any construction contracts for the year ended.

2.26 Income Taxes (Ind AS 12)

Tax Expense for the period comprises of current and deferred tax.

• Current Tax:

The Company has incurred losses during the financial year and, accordingly, no provision for current income tax has been made in the books for the year ended [insert date]. As per the applicable provisions of the Income-tax Act, 1961, no taxable income arises for the current financial year, and therefore, no current tax liability is recognized.

• Deferred Taxes:

Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

2.27 Recent accounting pronouncements

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2024:

Ind AS 117 - Insurance Contracts, which replaces the interim Ind AS 104 and introduces comprehensive requirements on measurement and disclosures aligned with IFRS 17.

Amendments are made to Ind AS 101, 103, 105, 107, 109, 115, 116 which are necessary to align them with the newly issued to reflect the issuance of Ind AS 117, including scope adjustments, transition provisions and disclosure enhancements.

These changes are effective for accounting periods beginning on or after 1 April 2024.

The Company has assessed their impact and concluded that, they have no material effect on the financial statements.

30. Consolidated and Separate Financial Statement (Ind AS 27):

The company has no subsidiary companies for the current reporting period. Hence consolidate and separate financial statement are not applicable.

31. Investments in Associates (Ind AS 28):

The company has not made any investments in any of its associates during the reporting period. This accounting standard has no financial impact on the financial statements for the current reporting period.

32. Interest in Joint Ventures (Ind AS 31):

The company has no interest in any Joint ventures. This accounting standard has no financial impact on the financial statements for the current reporting period.

33. Derivative instruments and un-hedged foreign currency exposure:

a) There are no outstanding derivative contracts as at March 31,2025 and March 31,2024.

b) Particulars of Un-hedged foreign currency exposure is: Nil

34. Secured Loans:

The company has availed secured term loans and working capital loans from Axis bank by offering primary/ Collateral security of company's factory land and machinery, current assets of the company and assets owned by Director Pabbathi Badari Narayana Murthy & his spouse smt. Pabbathi Siva ranta Mahalakshmi prasanna the details are as under:

• Term loan I & Term loan II: Total limits: Rs. 2400 Lakhs and outstanding as on 31.03.2025 is Rs. 1938 Lakhs.

• Working capital Cash credit limit is Rs. 500 Lakhs and outstanding as on 31.03.2025 is Rs. 469 Lakhs.

Primary securities offered to bank:

• Entire current assets of the company.

• EM of factory land and building to the extent of 2.425 acres at SY No's 36/34/B, Kallem village, Lingala Ghanput Mandal, Janagoan Dst, Telangana, Pincode: 506201 owned by Arun jyoti Bio Ventures limited and Pabbathi Siva Ranta Mahalakshmi Prasanna.

• EM of factory land and building to the extent of 3.53 acres at Annadevarapet village, Tallapudi Mandal, East Godavari dst., Andhrapradesh in the name of Arunjyoti Bio ventures Limited.

Collateral securities offered to bank:

• Extension of EM on the commercial property flat No 604B, 6th floor, Jain sadguru capital park, Image Gardens road, Madhapur, Hyderabad owned by Pabbathi Siva ranta Malakshmi prasanna and Pabbathi Dhatvik.

• Em of residential flat No: 500, 5th floor, Burlingame building, Sy No: 1009/B, Kukatpally village, Hyderabad owned by P. Badari Narayana Murthy and Pabbathi Siva ranta Malakshmi prasanna.

• EM open residential plot No: 164, Shilpa nature avenue, Gudur village, Kandukur Mandal, Ranga reddy district owned by Pabbathi Siva ranta Malakshmi prasanna.

Further, Personally Guarranteed by Pabbathi Badari Narayana Murthy,

Pabbathi Siva ranta Malakshmi prasanna and Pabbathi Dhatvik.

Furthur, Corporate guarantee issued by MSRM International trading pvt. Ltd

to Axis bank.

35. Confirmation of Balances:

Confirmation letters have been issued by the company to Trade Receivables, Trade Payables, Advances to suppliers and others advances requesting that the confirming party responds to the company only if the confirming party disagrees with the balances provided in the request and however the company has not received any letters on disagreements.

** During the year, the Company has made a rights issue of 1,65,67,200 equity shares of Rs.10 each at a premium of Rs. 10 per share, aggregating to Rs. 20 per share with rights issue value of Rs. 33,13,44,000 including premium. The deemed date of allotment is on April 20, 2024.

** During the quarter ended 31 March 2025, the company made the stock split as on 17 January 2025 from the face value of the Rs. 10 per share to Rs. 1 per share and hence the earning per share was recalculated for all the reporting periods as per "Ind AS-33 Earning Per Share”. Consequently, the number of shares becomes to 18,63,81,000 from 1,86,38,100 for EPS purpose for all the reporting periods in the results. The number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented.

41. Details of Loans given, Investments made and Guarantee given covered Under Section 186(4) of the Companies Act, 2013.

The company has not extended any Corporate Guarantees in respect of loans availed by any company/firm as at March 31,2025

The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of information available with company.

44. Financial Risk Management

In course of its business, the company is exposed to certain financial risk such as market risk (Including currency risk and other price risks), credit risk and liquidity risk that could have significant influence on the company’s business and operational/financial performance. The Board of directors reviews and approves risk management framework and policies for managing these risks and monitor suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

45. Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, a means of mitigating the risk of financial loss from defaults.

The company makes an allowance for doubtful debts/advances using expected credit loss model.

46. Liquidity risk

Liquidity risk refers to the risk that the company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as pre requirements. The Company’s exposure to liquidity risk is minimal as the promoters of the company is infusing the funds based on the requirements.

47. Amounts have been rounded off to nearest Lakhs.

Notes 3 to 47 forms part of Balance Sheet and have been authenticated