Kody Technolab Ltd. कंपली की लेखा नीति

2. Significant accounting policies

2.1. Basis of Preparation (AS 1 - Disclosure of Accounting Policies)

The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with
generally accepted accounting principles in India (''Indian GAAP''). These financial statements comply in all material respects with
the Accounting Standards (AS) notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts)
Rules, 2014 and the provisions of the Companies Act, 2013. The financial statements are presented in Indian Rupees (INR) and all
values are rounded to the nearest Rupee, unless otherwise stated.

2.2. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, revenue, costs and disclosures of contingent assets and liabilities at the date of the financial
statements and the results of operations during the reporting period. Actual results could differ from those estimates. Any revision
to such accounting estimates is recognised prospectively in the current and future periods.

2.3. Revenue Recognition (AS 9 - Revenue Recognition)

(a) Revenue from Sale of Robots & Hardware

Revenue from sale of robotic systems, machines, components and hardware is recognised when all the significant risks and
rewards of ownership of the goods have been passed to the buyer, recovery of consideration is probable, associated costs and
possible return of goods can be estimated reliably, and the amount of revenue can be measured reliably. Revenue from product
sales is recorded net of trade discounts, returns and Goods & Services Tax (GST). Revenue from long-term contracts for supply and
integration of robotic systems is recognised using the Percentage of Completion Method where the outcome can be reliably
estimated.

(b) Revenue from ERP / Software Services

Revenue from ERP implementation and related services is recognized based on achievement of contractual milestones as
specified in the agreement entered into with customers.Where contracts provide for milestone-based billing, revenue is
recognized upon completion of identified milestones and when the corresponding right to receive consideration is
established.Milestones are determined based on measurable deliverables such as completion of design, development, deployment,
testing, implementation, customization, training, or other agreed project stages.Revenue is recognized only when:

• The stage of completion can be reliably measured;

• Contractual obligations relating to the milestone are substantially fulfilled; and

• There is reasonable certainty of ultimate collection.

Amounts received in advance for incomplete milestones are disclosed as contract liabilities / advances from customers until the
related performance obligation is completed.

(c) Other Income

Interest income is recognised on time proportion basis. Dividend income is recognised when the right to receive dividend is
established. Profit or loss on sale of investments is recognised at the time of sale.

2.4.1.4 Property, Plant & Equipment (AS 10 - Accounting for Fixed Assets)

Property, Plant & Equipment (PPE) are stated at cost of acquisition or construction less accumulated depreciation and impairment
loss, if any. Cost comprises the purchase price and all directly attributable costs of bringing the asset to its working condition for
its intended use. Subsequent expenditure is capitalised only if it increases the future economic benefits from the asset beyond the
previously assessed standard of performance. Repairs and maintenance costs are expensed as incurred.

During the Financial year as on 31st March,2026 fire has been occurred in Gift City office on 28/03/2026 and furniture and fixtures
and assets had been damaged which has been reconditionable and repairable so no material effect given in WDV value and
depredation has been claimed on the same.

2.5. Depreciation

Depreciation on tangible fixed assets is provided using the Written Down Value (WDV) based on the useful lives prescribed under
Schedule II of the Companies Act, 2013. Depreciation is calculated on a pro-rata basis from the date of acquisition. Assets costing
less than Rs. 5,000/- individually are fully depreciated in the year of purchase.

2.6. Intangible Assets & Amortisation (AS 26 - Intangible Assets)

Intangible assets comprising acquired software licences, proprietary ERP platform (internally developed), and purchased patents
are recognised at cost. Internally generated intangible assets are recognised when it is probable that the future economic benefits
that are attributable to the asset will flow to the Company and the cost of the asset can be measured reliably (development phase
costs only; research phase costs are expensed). Intangible assets are amortised on a SLM basis over their estimated useful lives:

2.7. Inventories (AS 2 - Valuation of Inventories)

• Inventories are valued at the lower of cost or net realisable value.

• Cost of raw materials, components, stores and spares is determined on the First-In-First-Out (FIFO) basis.

• Cost of Work-in-Progress and Finished Goods (robots and assemblies) includes direct material cost, direct labour, and an
appropriate share of manufacturing overheads.

• Traded goods (resale hardware) are valued at cost on FIFO basis.

• Net Realisable Value is the estimated selling price in the ordinary course of business less estimated costs of completion and
estimated costs necessary to make the sale.

• Obsolete and slow-moving inventories are identified periodically and written down.

2.8. Foreign Currency Transactions (AS 11)

Foreign currency transactions are recorded on initial recognition in the reporting currency (Indian Rupees) at the exchange rate
on the date of the transaction. For export transactions of robotic systems and IT services, the Company adopts the exchange rate
as notified by the Central Board of Indirect Taxes & Customs (CBIC / Customs Notification) for the relevant fortnight / period in
which the transaction is recorded. The same rate is applied for the purpose of:

Recording the export revenue in the books of account

- Booking the corresponding foreign currency receivable (trade debtors for exports) in Indian Rupees; and

- Reporting the outstanding balance as at the Balance Sheet date at the closing rate applicable (rate as notified by Customs / RBI
reference rate).

Monetary assets and liabilities denominated in foreign currencies outstanding at the Balance Sheet date are restated at the
closing exchange rate. The resulting exchange differences, whether gain or loss, are recognised in the Statement of Profit & Loss in
the period in which they arise, in accordance with AS 11.

Disclosure under AS 11 Para 52 / RBI / SEBI LODR

The Company has NOT entered into any forward exchange contracts, options, swaps, or any other derivative instruments for
hedging its foreign currency exposure arising from export transactions. The entire foreign currency receivable is therefore
exposed to foreign exchange fluctuation risk.

2.9. Employee Benefits (AS 15 - Employee Benefits)

(a) Short-term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. Short-term employee benefits such as salaries, wages, bonus, and leave encashment expected to occur within twelve
months are recognised as an expense at the undiscounted amount in the period in which the employee renders the related
service.

(b) Post-employment Benefits - Gratuity (Defined Benefit)

The liability for gratuity is determined on the basis of an actuarial valuation as at the Balance Sheet date using the Projected Unit
Credit method. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. The
Company funds the gratuity obligation through a Group Gratuity Trust / LIC policy.

Retirement Benefits in the form of provident fund contributions are charged to the Profit & Loss Account of the period when the
contributions to the fund are due. There are no obligations other than the contribution payable to the fund. Provision of Gratuity
Act ,1972 are applicable to the company . As per the actuarial valuation report taken, the company had provided provision for
Gratuity of Rs 71.82 Lakhs up to the current year.

(c) Provident Fund (Defined Contribution)

The Company’s contribution to the Employees'' Provident Fund is charged to the Statement of Profit and Loss as incurred. The
Company has no further obligation beyond the monthly contributions.

2.10. Taxes on Income (AS 22)

Current tax is determined as the amount of tax payable in respect of taxable income for the period in accordance with the
provisions of the Income Tax Act, 1961. Deferred tax is recognised, subject to the consideration of prudence, on timing differences
being the differences between taxable income and accounting income that originate in one period and are capable of reversal in
one or more subsequent periods. Deferred tax assets are recognised to the extent there is reasonable certainty that sufficient
future taxable income will be available.

2.11. Borrowing Costs (AS 16)

Borrowing costs that are attributable to the acquisition, construction, or production of qualifying assets are capitalised as part of
the cost of such assets until such time as the assets are ready for their intended use or sale. All other borrowing costs are charged
to the Statement of Profit and Loss in the period in which they are incurred.

2.12. Impairment of Assets (AS 28)

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such
indication exists, the Company estimates the recoverable amount of the asset. If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount and
the impairment loss is recognised in the Statement of Profit and Loss.

Significant accounting policies
Note:

1. Company Overview

M/s KODY TECHNOLAB LIMITED, incorporated on 5th Day of
May 2017, having its registered office at 2nd floor, block-J,
safal mondeal reatil park, Nr. iscon mall, Nr. rajpath club, S G
Highway, bodakdev, ahmedabad-380054. Kody Technolab
Limited is a leading, publicly traded robotics and AI solutions
provider, specializing in enterprise-level projects and mobile
application development. Known for its expertise in artificial
intelligence, machine learning, and advanced robotics,

Significant accounting policies

a. Use of estimates

The preparation of the financial statements in conformity
with generally accepted accounting principles in India
requires management to make estimates and assumption;
that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts
of revenues and expenses during the reporting period. The
Company''s most significant estimates include those on
the useful life of assets, deferred taxes and provision for
taxes. Management believes that the estimates used in the
preparation of the financial statements are prudent and
reasonable. Actual results could differ from these
estimates. Appropriate changes in estimates are made as
management becomes aware of changes in
circumstances surrounding the estimates.

b. Rounding of amounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lakh as per the
requirement of schedule III (except per share data), unless
otherwise stated.

c. Current-non-current classification
Assets

An asset is classified as current when it satisfies any of
the following criteria:

a. it is expected to be realised in, or is intended for sale or
consumption in, the company’s normal operating cycle;

b. it is held primarily for the purposes of being traded;

c. Invetory has been valued at cost or market price which
ever is lower.

d. it is cash or cash equivalent unless it is restricted from
being exchanged or used to settle a liability for at least 12
months after the reporting date.

Current assets include the current portion of non-current
financial assets. All other assets are classified as non-
current.

Liabilities

A Lability is classified as current when it satisfies any of
the following criteria:

a. it is expected to be settled in the company''s normal
operating cycle;

b. it is held primarily for the purposes of being traded;

c. it is due to be settled within 12 months after the
reporting date; or

d. the company does not have an unconditional right to
defer settlement of the liability for at least 12 months after
the reporting date. Current liabilities include the current
portion of non-current financial liabilities.

All other liabilities are classified as non-current.

i. Current Assets, Loans and Advances

In the opinion of the management, the value of all current
assets, loans, advances and other realizables are not less
than their realizable value in the ordinary course of
business.

?. Property, plant and equipment

Property, plant and equipment are stated at cost less
accumulated depreciation. Cost includes all incidental
costs related to acquisition and installation, Software
development, Moulds,other pre-operative costs and interest
on borrowed funds, if any, used to finance the acquisitions
of fixed assets and is capitalized up to the date the assets
are ready for commercial use. Items in the nature of Fixed
Assets below Rs 2000 are not Capitalized

Depreciation is provided over the estimated useful life of
the assets using written down value method, except in case
of moulds & software development expenses has been
amortised taking in to account life of 5 years on straight
line method basis. The rates of depreciation used are those
which have been calculated as per the method specified in
Schedule II of the Companies Act, 2013. The new
Companies Act prescribes that the asset should be written
off over its useful life as estimated by the management and
provides the indicative useful lives for the different class of
assets. Other assets are depreciated over their balance
useful life.

Investments

All Investments are stated at cost of acquisition
Impairment of assets

The carrying values of assets / cash generating units at
each balance sheet date are reviewed for impairment if
any indication of impairment exists.

If the carrying amount of the assets exceed the estimated
recoverable amount, an impairment is recognized for such
excess amount. The impairment loss is recognized as an
expense in the statement of profit and loss, unless the asset is
carried at revalued amount, in which case any impairment
loss of the revalued asset is treated as a revaluation decrease
to the extent a revaluation reserve is available for that asset.

When there is indication that an impairment loss recognized
for an asset (other than a revalued asset) in earlier
accounting periods no longer exists or may have decreased,
such reversal of impairment loss is recognized in the
Statement of Profit and Loss, to the extent the amount was
previously charged to the Statement of Profit and Loss. In
case of revalued assets such reversal is not recognized.

h. Cash and cash equivalents

Cash equivalents represent highly liquid investments with
remaining maturities, at the date of purchase/investment, of
three months or less. As of the balance sheet date, the
Company had no such investment. Cash and cash equivalents
comprise of cash in hand and balance in bank accounts.

i. Inventories

1. Inventories are valued at cost or net realisable value,
whichever is lower. Stock of finished goods, traded goods,
raw materials, own manufactured components, work in
progress and stores are determined on First In First Out
basis.

2. Obsolete, defective and unserviceable stocks are duly
provided for.

j. Revenue recognition

The Company uses the percentage-of-completion method in
accounting for its fixed-price contracts. Use of the
percentage-of-completion method and ongoing supply order
of product onhand requires the Company to estimate the
efforts or costs expended to date as a proportion of the total

efforts or costs to be expended. Efforts or costs expended
have been used to measure progress towards completion as
there is a direct relationship between input and
productivity.Revenue on time and material contracts are
recognized as there lated services are performed and revenue
from the end of the last invoicing to the reporting date is
recognized as unbilled revenue.

Further, the company uses significant judgments while
determining the transaction price allocated to performance
obligations using the expected cost plus margin approach.

k. Other operational revenue

Other operational revenue represent income earned from
the activities incidental to the business and is recognized
when the right to receive the income is established as per the
terms of the contract.

l. Interest

Interest income is recognized on a time proportion basis by
considering the amount outstanding and rate applicable.

m. Accounting for taxes on Income

Income Tax comprises of current tax, deferred tax. Provision
for current income tax is made on the assessable income/
benefits at the rate applicable to relevant assessment year.
Deferred tax asset & liabilities are recognised for the future
tax consequences of timing differences, subject to the
consideration of prudence. Deferred tax assets & liabilities are
measured using the tax rates enacted or substantively
enacted by the Balance Sheet date. The carrying amount of
deferred tax asset/liability are reviewed at each Balance
Sheet date & recognised and carried forward only to the
extent that there is a reasonable certainty that the asset will
be realised.

n. Employee benefit

Retirement Benefits in the form of provident fund
contributions are charged to the Profit & Loss Account of the
period when the contributions to the fund are due. There are
no obligations other than the contribution payable to the
fund. Provision of Gratuity Act ,1972 are applicable to the
company . As per the actuarial valuation report taken, the
company had provide for Gratuity of Rs.4283350.848/- up to
the current year.

o. Deferred tax

The deferred tax charge or benefit and the corresponding
deferred tax liabilities and assets are recognized using the
tax rates that have been enacted or substantially enacted as
at the balance sheet date. Deferred tax assets are recognized
only to the extent there is reasonable certainty that the asset
can be realized in future, however, where there is unabsorbed
depreciation or carried forward loss under taxation laws,
deferred tax assets are recognized only if there is a virtual
certainty of realization of the assets. Deferred tax assets are
reviewed as at each balance sheet date and written down or
written up to reflect the amount that is reasonably/virtually
certain to be realized.

p. Foreign Exchange Transactions

Transactions denominated in foreign currency are recorded
at the exchange rate prevailing on the date of transaction.
Exchange difference arising on the foreign exchange
transaction settled during the period are recognised in the
Profit & Loss Account.

Monetary items outstanding on date of Balancesheet have
been accounted at exchange rate as on that date and
difference has been settled in profit & loss account.

q. Cash Flow Statement

Cash Flows are reported using the indirect method, whereby
profit before tax is adjusted for the effects of transactions of
non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and items of Income or
Expense associated with investing or financing cash flows.

r. Minimum Alternate Tax (MAT)

MAT credit asset is recognized where there is convincing
evidence that the asset can be realized in future. MAT credit
assets are reviewed at each balance sheet date and written
down or written up to reflect the amount that is reasonably
certain to be realized.

s. Earnings per share

The Company reports basic earnings per share (EPS) in
accordance with Accounting Standard - 20. The basic
earnings per share is computed by dividing the net profit/loss
attributable to equity shareholders and proposed share
warrant holder for the year by the weighted average number
of equity shares outstanding during the year. The Company
has no potentially dilutive equity shares outstanding during
the period.