Murae Organisor Ltd. कंपली की लेखा नीति

Mar 31, 2025

(1) Company Background

MURAE ORGANISOR LIMITED (Formerly known as EARUM PHARMACEUTICALS LIMITED) is a
Limited Company, incorporated under the provisions of Companies Act, 1956 and having CIN:

L24230GJ2012PLC071299. The Company is mainly engaged in Pharmaceutical Business i.e.
trading of pharma products and commission agent in pharma products etc. The Registered

office of the Company is situated at S.F.A-1311 Sun West Bank, Ashram Road, Ashram Road P.O, Ahmedabad, City Ahmedabad,
Gujarat, India, 380009

(2) Significant accounting policies and key accounting estimates and judgements

2.1 Basis of preparation of financial statements

These financial statements are the separate financial statements of the Company (also called standalone financial statements)
prepared in accordance with Indian Accounting Standards (‘Ind AS’) notified under Section 133 of the Companies Act, 2013, read
together with the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of
accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting
period, as stated in the accounting policies set out below. The accounting policies have been applied consistently over all the
periods presented in these financial statements.

The financial statements are presented in Indian rupee and all values are rounded to the nearest rupee,except when otherwise
indicated.

2.2 Current / Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:

> the asset/liability is expected to be realized/settled in the Company’s normal operating cycle;

> the asset is intended for sale or consumption;

> the asset/liability is held primarily for the purpose of trading;

> the asset/liability is expected to be realized/settled within twelve months after the reporting period;

> the asset 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 date;

> in the case of a liability, the Company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. As the Company’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

2.3 Summary of significant accounting policies

a) Property, Plant and Equipment

An item of property, plant and equipment that qualifies as an asset is measured on initial recognition at cost. Following initial
recognition, items of property, plant and equipment are carried at its cost less accumulated depreciation and accumulated
impairment losses.

The Company identifies and determines cost of each part of an item of property, plant and equipment separately, if the part has a
cost which is significant to the total cost of that item of property, plant and equipment and has useful life that is materially different
from that of the remaining item.

The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other non
refundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and
the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discounts and rebates are deducted in
arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met.
Expenses directly attributable to new manufacturing facility during its construction period are capitalized if the recognition criteria
are met. Expenditure related to plans, designs and drawings of buildings or plant and machinery is capitalized under relevant heads
of property, plant and equipment if the recognition criteria are met.

Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment
are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognized in the
Statement of Profit and Loss as and when incurred.

Capital work in progress and Capital advances:

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given
towards acquisition of fixed assets outstanding at each Balance Sheet date are disclosed as Other Non-Current Assets

Depreciation:

Depreciation on each part of an item of property, plant and equipment is provided using the Straight Line Method based on the
useful life of the asset as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement
of Schedule II of the Companies Act, 2013. The estimate of the useful life of the assets has been assessed based on technical
advice which considers the nature of the asset, the usage of the asset, expected physical wear and tear, the operating conditions of
the asset, anticipated technological changes, manufacturers warranties and maintenance support, etc.The estimated useful life of

Freehold land is not depreciated.

The Company, based on technical assessment made by technical expert and management estimate, depreciates certain items of
property plant and equipment (as mentioned below) over estimated useful lives which are different from the useful lives prescribed
under Schedule II to the Companies Act, 2013 (Schedule III). The management believes that these estimated useful lives are
realistic and reflect fair approximation of the period over which the assets are likely to be used.

Information Technology Hardware are depreciated over the estimated useful lives of 10 years, which is higher than the life
prescribed in Schedule II

The useful lives, residual values of each part of an item of property, plant and equipment and the depreciation methods are
reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is accounted for
as a change in an accounting estimate.

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. The gain or loss arising from the Derecognition of an item of property, plant and equipment is
measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the
Statement of Profit and Loss when the item is derecognized.

b) Intangible assets

Measurement at recognition:

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets arising on acquisition of
business are measured at fair value as at date of acquisition. Internally generated intangibles including research cost are not
capitalized and the related expenditure is recognized in the Statement of Profit and Loss in the period in which the expenditure is
incurred. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated
impairment loss, if any

Amortization:

Intangible Assets with finite lives are amortized on a Straight Line basis over the estimated useful economic life. The amortization
expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss. The estimated useful life of
intangible assets is mentioned below:

Years

Information Technology Software 10

The Company, based on technical assessment made by technical expert and management estimate, depreciates Information
Technology Software (as mentioned below) over estimated useful lives which are different from the useful lives prescribed under
Schedule II to the Companies Act, 2013 (Schedule III). The management believes that these estimated useful lives are realistic and
reflect fair approximation of the period over which the assets are likely to be used.

Information Technology Software are depreciated over the estimated useful lives of 10 years, which is higher than the life
prescribed in Schedule II

The amortization period and the amortization method for an intangible asset with finite useful life is reviewed at the end of each
financial year. If any of these expectations differ from previous estimates, such change is accounted for as a change in an
accounting estimate.

Derecognition:

The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its
use or disposal. The gain or loss arising from the Derecognition of an intangible asset is measured as the difference between the
net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Statement of Profit and Loss when
the asset is derecognized.

c) Impairment

Assets that have an indefinite useful life, for example goodwill, are not subject to amortization and are tested for impairment
annually and whenever there is an indication that the asset may be impaired. Assets that are subject to depreciation and
amortization are reviewed for impairment, whenever events or changes in circumstances indicate that carrying amount may not be
recoverable. Such circumstances include, though are not limited to, significant or sustained decline in revenues or earnings and
material adverse changes in the economic environment.

An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To
calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market rates and the risk specific to the asset. For an asset that does not generate largely independent cash
inflows, the recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best
estimate of the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties,
less the cost of disposal.

Impairment losses, If any, are recognized in the Statement of Profit and Loss and included in depreciation and amortization
expenses. Impairment losses are reversed in the Statement of Profit and Loss only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognized.

d) Revenue

Effective April,1 2018, The Company adopted Ind AS 115 "Revenue from Contract with Customer". Ind AS 115 supersedes Ind AS
11, Construction Contract and Ind AS 18, Revenue.

Ind AS 115 requires an entity to report information regarding nature, amount, timing and uncertainty of revenue and cash flows
arising from a contract with customers.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the
consideration we expect to receive in exchange for those products or services.

The impact of application of the Standard is not material.

Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume
rebates allowed by the Company.

Revenue includes only the gross inflows of economic benefits received and receivable by the Company, on its own account.
Amounts collected on behalf of third parties such as GST are excluded from revenue.

Sale of products:

Revenue from sale of products is recognized when the Company transfers all significant risks and rewards of ownership to the
buyer, while the Company retains neither continuing managerial involvement nor effective control over the products sold.

Rendering of services:

Revenue from services is recognized when the stage of completion can be measured reliably. Stage of completion is measured by
the services performed till Balance Sheet date as a percentage of total services contracted.

Interest, royalties and dividends:

Interest income is recognized using effective interest method. DEPB licence income / MEIS licence income / FPS income is
recognized on an accrual basis in accordance with the substance of the relevant agreement. Dividend income is recognized when
the right to receive payment is established.

e) Inventory

Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components and consumables are carried at
the lower of cost and net realizable value. However, materials and other items held for use in production of inventories are not
written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost. The
comparison of cost and net realizable value is made on an item-by item basis.

In determining the cost of raw materials, packing materials, stores, spares, components and consumables, first in first out cost
method is used. Cost of inventory comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from
tax authorities) and all other costs incurred in bringing the inventory to their present location and condition.

Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, an appropriate share of fixed and
variable production overheads, excise duty as applicable and other costs incurred in bringing the inventories to their present
location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale.

f) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

> Financial Assets

The Company recognizes a financial asset in its Balance Sheet when it becomes party to the contractual provisions of the
instrument. All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value
through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair
value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair
value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a
valuation technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value
and transaction price is deferred appropriately and recognized as a gain or loss in the Statement of Profit and Loss only to the
extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial
asset.

However, trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent measurement:

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

i. The Company''s business model for managing the financial asset and

ii. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

i. Financial assets measured at amortized cost

ii. Financial assets measured at fair value through other comprehensive income (FVTOCI)

iii. Financial assets measured at fair value through profit or loss (FVTPL)

i. Financial assets measured at amortized cost:

A financial asset is measured at the amortized cost if both the following conditions are met:

a) The Company’s business model objective for managing the financial asset is to hold financial assets in order to collect
contractual cash flows, and

b) 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.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company.Such financial
assets are subsequently measured at amortized cost using the effective interest method.

Under the effective interest method, the future cash receipts are exactly discounted to the initial recognition value using the
effective interest rate. The cumulative amortization using the effective interest method of the difference between the initial
recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the
financial asset over the relevant period of the financial asset to arrive at the amortized cost at each reporting date. The
corresponding effect of the amortization under effective interest method is recognized as interest income over the relevant period of
the financial asset. The same is included under other income in the Statement of Profit and Loss.

The amortized cost of a financial asset is also adjusted for loss allowance, if any.

ii. Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both of the following conditions are met:

a) The Company’s business model objective for managing the financial asset is achieved both by collecting contractual cash flows
and selling the financial assets, and

b) 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.

iii. Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above. This is a
residual category. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are
recognized in the Statement of Profit and Loss.

Derecognition:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e.
removed from the Company’s Balance Sheet) when any of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all
the risks and rewards of ownership of the financial asset;

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows
without material delay to one or more recipients under a ‘pass-through’ arrangement (thereby substantially transferring all the risks
and rewards of ownership of the financial asset);

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the
financial asset.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but
retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the Company also recognizes an associated liability. The financial asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On Derecognition of a financial asset, (except as mentioned in ii above for financial assets measured at FVTOCI), the difference
between the carrying amount and the consideration received is recognized in the Statement of Profit and Loss.

Impairment of financial assets:

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

i. Trade receivables

ii. Financial assets measured at amortized cost (other than trade receivables)

iii. Financial assets measured at fair value through other comprehensive income (FVTOCI)

In case of trade receivables and lease receivables, the Company follows a simplified approach wherein an amount equal to lifetime
ECL is measured and recognized as loss allowance.

In case of other assets (listed as ii and iii above), the Company determines if there has been a significant increase in credit risk of
the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-
month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to
lifetime ECL is measured and recognized as loss allowance.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of
Profit and Loss under the head ‘Other expenses’.

> Financial Liabilities

Initial recognition and measurement:

The Company recognizes a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the
instrument. All financial liabilities are recognized initially at fair value minus, in the case of financial liabilities not recorded at fair
value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.

Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the fair
value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair
value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a
valuation technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value
and transaction price is deferred appropriately and recognized as a gain or loss in the Statement of Profit and Loss only to the
extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial
liability.

Subsequent measurement

All financial liabilities of the Company are subsequently measured at amortized cost using the effective interest method
Derecognition:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the Derecognition of the original liability and the recognition
of a new liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid is
recognized in the Statement of Profit and Loss.

g) Fair value

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:

> In the pricipal market for the assest or liability, or

> In the absence of principal market, in the most advantageous market for the assets or liability

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair
value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the
lowest priority to unobservable inputs (Level 3 inputs).

Level 1 — quoted (unadjusted) market prices in active markets for identical assets or 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 — inputs that are unobservable for the asset or liability

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

h) Foreign Currency Translation

Initial Recognition:

On initial recognition, transactions in foreign currencies entered into by the Company are recorded in the functional currency (i.e.
Indian Rupees), by applying to the foreign currency amount, the spot exchange rate between the functional currency and the foreign
currency at the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are
recognized in the Statement of Profit and Loss.

Measurement of foreign currency items at reporting date:

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non-monetary items that are
measured at historical cost in a foreign currency, are translated using the exchange rate at the date of the transaction. Non¬
monetary items that are measured at fair value in a foreign currency, are translated using the exchange rates at the date when the
fair value is measured.

Exchange differences arising out of these translations are recognized in the Statement of Profit and Loss.

i) Income Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and
deferred tax.

Current tax:

Current tax is the amount of income taxes payable in respect of taxable profit for a period. 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 under the Income Tax Act, 1961.

Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be
recovered from or paid to the taxation authorities.

Deferred tax:

Deferred tax is recognized 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 under Income Tax Act, 1961

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that
arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable
profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from
initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits
will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise
from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit
nor the accounting profit, deferred tax assets are not recognized.

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 the benefits of part or all of such deferred tax assets to be
utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance
Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled.

Presentation of current and deferred tax:

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except when they relate to
items that are recognized in Other Comprehensive Income, in which case, the current and deferred tax income/ expense are
recognized in Other Comprehensive Income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. In case of
deferred tax assets and deferred tax liabilities, the same are offset if the Company has a legally enforceable right to set off
corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same tax authority on the Company.

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Mar 31, 2024

Note: - 1 Significant accounting policies:

1.0 Corporate Information

MURAE ORGANISOR LIMITED (Formerly known as EARUM PHARMACEUTICALS LIMITED) is a

Limited Company, incorporated under the provisions of Companies Act, 1956 and having CIN:
L24230GJ2012PLC071299. The Company is mainly engaged in Pharmaceutical Business i.e.
trading of pharma products and commission agent in pharma products etc. The Registered
office of the Company is situated at S.F. Shop - 3/2/B Samruddhi Residency, Raspan Arcade,
Cross Road, Nr. Satyam Complex, Nikol, Ahmedabad - 382 350

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally
Accepted Accounting Principles in India (“Indian GAAP”]. Indian GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies Act, 2013 (“the Act”]
read with the Rule 7 of the Companies (Accounts] Rules, 2014. The financial statements have
been prepared on an accrual basis and under the Historical Cost Convention and the
Companies (Accounting Standards] Amendment Rules 2016 and the relevant provisions of
the Companies Act, 2013.

All 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 the Part I of Schedule Ill to the Companies
Act, 2013. Based on the nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This financial
statement is presented in Indian rupees. Due to rounding off, the numbers presented
throughout the document may not add up precisely to the totals and percentages may not
precisely reflect the absolute figures.

All amounts disclosed in the financial statements and notes are rounded off to thousands the
nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated.

c. Compliance with Ind AS

The financial statements have been prepared in accordance with Ind AS notified under the
Companies (Indian Accounting Standards] Rules, 2015.

d. Use of Estimates and Judgments

The preparation of the Ind AS financial statements in conformity with the generally accepted
accounting principles in India requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities as of the Balance Sheet date, reported

amount of revenue and expenses for the year and disclosure of contingent labilities and
contingent assets as of the date of Balance Sheet. The estimates and assumptions used in
these Ind AS financial statements are based on management''s evaluation of the relevant facts
and circumstances as of the date of the Ind AS financial statements. The actual amounts may
differ from the estimates used in the preparation of the Ind AS financial statements and the
difference between actual results and the estimates are recognized in the period in which the
results are known/materialize.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and in
future periods affected.

Particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial Statement are as below:

1. Evaluation of recoverability of deferred tax assets/Liabilities;

2. Useful lives of property, plant and equipment and intangible assets;

3. Provisions and Contingencies;

4. Provision for income taxes, including amount expected to be paid/recovered for

uncertain tax positions;

5. Recognition of Deferred Tax Assets/Liabilities

6. Valuation of Financial Instruments;

e. Current and Non - Current Classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non¬
current classification.

An asset / liability is treated as current when it is:-

i. Expected to be realized or intended to be sold or consumed or settled in normal
operating cycle.

ii. Held primarily for the purpose of trading.

iii. Expected to be realized / settled within twelve months after the reporting period,
or.

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

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

All other assets and liabilities are classified as non-current.

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

1.2 ACCOUNTING POLICIES:

(A) Property, Plant and Equipment

All items of property, plant and equipment are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Cost includes purchase price, non-recoverable taxes and duties, labour cost and direct
overheads for self-constructed assets and other direct costs incurred up to the date the asset
is ready for its intended use.

Subsequent costs are included in the asset''s carrying amount or recognized 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 profit or loss during the reporting
period in which they are incurred.

Depreciation is provided on the Written-Down Value (WDV) over the estimated useful lives of
the assets considering the nature, estimated usage, operating conditions, past history of
replacement, anticipated technological changes, manufacturers'' warranties and maintenance
support. The Company provides pro-rata depreciation from the day the asset is put to use and
for any asset sold, till the date of sale.

Projects under commissioning and other Capital work-in-progress are carried at cost
comprising of direct and indirect costs, related incidental expenses and attributable interest.
Depreciation is not recorded on capital work-in-progress until construction and installation
are complete and the asset is ready for its intended use.

An item of property, plant and equipment is derecognized on disposal. Any gain or loss arising
from derecognition of an item of property, plant and equipment is included in profit or loss.

(B) Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes, accumulated
amortization, and impairment losses, if any. Such costs include purchase price, borrowing cost,
and any cost directly attributable to bringing the asset to its working condition for the
intended use, net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the entity and cost can be measured reliably.

The amortization period for intangible assets with finite useful lives is reviewed at each year-
end. Changes in expected useful lives are treated as changes in accounting estimates.

Internally generated intangible asset Research costs are charged to the statement of Profit and
Loss in the year in which they are incurred.

The cost of an internally generated intangible asset is the sum of directly attributable
expenditure incurred from the date when the intangible asset first meets the recognition
criteria to the completion of its development.

Product development expenditure is measured at cost less accumulated amortization and
impairment, if any. Amortization is not recorded on product in progress until development is
complete.

Gains or losses arising from derecognition of an Intangible Asset 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 derecognised.

(C) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or changes
in circumstances indicate that they might be impaired. Other assets are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized 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 costs of disposal and value in use.

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 such recoverable amount of the asset or the recoverable amount of the cash¬
generating unit to which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction is treated as an impairment loss
and is recognized in the statement of profit and loss. If at the balance sheet date there is an
indication that a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reflected at the recoverable amount subject to a
maximum of depreciable historical cost.

(D) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to Chief Operating Decision Maker (CODM).

The Company has identified its Managing Director as CODM who is responsible for allocating
resources and assessing performance of the operating segments and makes strategic
decisions.

The Company is operating in single business segments. Hence, reporting requirement of
Segment reporting is not arise.

(E) Statement of Cashflow

Cash Flows of the Group are reported using the indirect method, whereby profit before tax is
adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past
or future operating cash receipts or payments and item of income or expenses associated with
investing or financing Cash Flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

(F) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and highly liquid
investments with an original maturity of up to three month that are readily convertible into
cash and which are subject to an insignificant risk of changes in value.

(G) Foreign Currency Transactions

i) Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the
foreign currency amount the exchange rate between the functional currency and the
foreign currency at the date of the transaction.

ii) Subsequent Recognition

As at the reporting date, non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the
transaction. All non-monetary items which are carried at fair value or other similar
valuation denominated in a foreign currency are reported using the exchange rates that
existed when the values were determined.

All monetary assets and liabilities in foreign currency are restated at the end of accounting
period. Exchange differences on restatement of all other monetary items are recognised
in the Statement of Profit and Loss.

Any subsequent events occurring after the Balance Sheet date up to the date of the approval of
the financial statement of the Company by the board of directors on 29^th May, 2023 have been
considered, disclosed and adjusted, if changes or event are material in nature wherever
applicable, as per the requirement of Ind AS .

(H) Income Taxes

The tax expense for the period comprises of current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss, except to the extent that it relates to items
recognized in the Other Comprehensive Income or in Equity. In which case, the tax is also
recognized in Other Comprehensive Income or Equity.

I. Current tax: -

Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with the taxation laws prevailing in the respective jurisdictions. Current tax
assets and current tax liabilities are offset when there is a legally enforceable right to
set off the recognized amounts and there is an intention to settle the asset and the
liability on a net basis.

II. Deferred tax:-

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and
liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amount in financial
statements.

Deferred tax asset is recognized to the extent that it is probable that taxable profit will be
available against which such deferred tax assets can be realized. 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 all or part of the deferred
income tax asset to be utilized.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF ACCOUNTING:

a. The financial statements have been not prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on accrual basis, the provisions
of the companies Act, 2013 (“the Act’) (to the extent notified) and guidelines issued by the
securities and Exchange Board of India (SEBI), The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the companies Indian Accounting Standards) Rule 2015
and relevant amendment rules issued thereafter.

b. Effective April 1, 2017, the Company has not adopted all the Ind AS standards and the
adoption was carried out in accordance with Ind AS 101 First time adoption of Indian
Accounting Standards, with April 1, 2016 as the transition date. The transition was carried
out from Indian Accounting Principles generally accepted in India as prescribed under
section 133 of the Act, read with Rule 7 of the Companies (Accounts0 Rules, 2014
(IGAAP), which was the previous GAAP.

B. USE OF ESTIMATES:

The preparation of the Financial Statements are not in conformity with Generally Accepted
Accounting Principles requires the Management to make estimates and assumptions considered in
the reported amounts of assets and liabilities (including contingent liabilities) and the reported
amounts of income and expenditure during the period. The Management believes that the estimates
used in preparation of the Financial Statements are prudent and reasonable. Future results could
differ due to these estimates and the differences between the actual results and the estimates are
recognized in the period in which the results are known/ materialized.

C. DIVIDEND:

The company has not declared any dividends.

D. PROPERTY, PLANT AND EQUIPMENTS:

Property, Plant and Equipments has been recorded at actual cost inclusive of duties, taxes and other
residual expenses related to acquisition, improvement and installation. The company depreciates
property, plant and equipments over their estimated useful lives using the WDV method.

The estimated useful lives of assets are as under:

all of its property, plant and equipments recognized as of April 1, 2016 (transition date)
measured as per the previous GAAP and use that carrying value as its deemed cost as of
the transition date.

Intangible Assets:

Intangible Assets are stated at cost of acquisition or less accumulated amortization. If any.

E. IMPAIRMENT OF ASSETS :

Assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of
an asset’s net selling price and value in use.

F. INVESTMENTS:

Long-term investments are carried individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are carried individually, at the
lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage,

G. BORROWING COST AND FINANCE CHARGES:

Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily
takes a substantial period of time to get ready for its intended use are capitalized as part of the cost
of the asset until such time that the assets are substantially ready for their intended use.
Capitalization of borrowing costs is suspended and charged to profit and loss during the extended
periods when the active development on the qualifying assets is interrupted. Qualifying fixed asset
is an asset that necessarily takes a substantial period of time to get ready for their intended use or
sale. SBI & all other borrowing costs are not charged to statement of Profit and Loss over the tenure
of the borrowing.

H. INVENTORIES:

Current Year inventory valued at lower of the cost and net realizable value. Quantity records
maintain in Tally software, however no physical verification report and details of sub¬
standard / expire date material not ascertain.

I. REVENUE RECOGNITION:

Revenue is recognized to the extent it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured, regardless of when the payment is being made.
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 duty except turn over with
related party. The Company assesses its revenue arrangements against specific criteria to determine
if it is acting as principle or agent. The company has concluded that it is acting as a principal is all
of its revenue arrangements except turn over with related party.

J. TAXATION:

Taxes on Income are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made on the basis of estimated taxable income, in accordance
with the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the tax
effect of timing difference The timing differences are differences between the taxable income and
accounting Income for a period that originate in one period and are capable of reversal in one or
more subsequent periods. However company has not paid income tax payable as per provision

made in profit loss account Rs. 76.52lacs for FY 2022-23 and Rs. 85.76lacs for FY 2021¬
22 excluding interest.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that
the Company will pay normal income tax during the specified period