Sancode Technologies Ltd. कंपली की लेखा नीति

NOTE 1: SIGNIFICANT ACCOUNTING POLICIESA. Basis of preparation of Financial Statements:

These financial statements are prepared in accordance with Generally Accepted Accounting Principles in India
(GAAP) under historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as
prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts)
Rules, 2014, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956
("the 1956 Act"), as applicable.

The financial statements are prepared under the historical cost convention and on the accounting principles of
going concern. The Company follows accrual system of accounting where income & expenditure are recognized
on accrual basis.

Accounting policies not specifically referred to are consistent and in consonance with generally accepted
accounting policies.

B. Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect
amounts in the financial statements and reported notes thereto. Actual results could differ from these
estimates. Differences between the actual result and estimates are recognized in periods in which the results
are known/ materialised.

C. Property, Plant and Equipment:

Property Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation
and impairment loss, if any. The cost of an asset comprises of its purchase price (net of cenvat / duty credits
availed wherever applicable) and any directly attributable cost of bringing the assets to working condition for
its intended use. Expenditure on additions, improvements and renewals is capitalized and expenditure for
maintenance and repairs is charged to profit and loss account.

D. Depreciation and Amortization:

Depreciation on property, plant, and equipment (PPE) is provided on the Written Down Value (WDV) method
over the useful lives of the assets as prescribed in Schedule II of the Companies Act, 2013. Depreciation is
charged on a pro-rata basis for assets acquired or disposed of during the year, with reference to the date the
asset is installed and put to use or disposed of.

Amortization of intangible assets is provided on the Straight Line Method (SLM) over the estimated useful life
of the asset, considering factors such as the nature of the asset, expected usage, operating conditions, past
history of replacement, anticipated technological changes, manufacturer warranties, and availability of
maintenance support.

E. Revenue Recognition:

Revenue is recognised on rendering of services, performance of related obligations and assurance of
collectability of resulting receivables in accordance with the terms of contracts entered into with customers.

Interest income is accounted on accrual basis. Income other than interest income is accounted for when right
to receive such income is established.

F. Earning Per Share

Basic earning per share is computed by dividing the net profit after tax for the year after prior period
adjustments attributable to equity shareholders by the weighted average number of equity shares outstanding
during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post
tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or
income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average
number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

G. Taxation & Deferred Tax

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for taxes on
income", notified under Companies (Accounting Standard) Rules, 2014. Income tax comprises of both current
and deferred tax. Current tax is measured on the basis of estimated taxable income and tax credits computed in
accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are
capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax
liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet
date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax
laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence.
Deferred tax assets on account of other timing differences are recognized only to the extent there is a
reasonable certainty of its realization.

B. SIGNIFICANT ACCOUNTING POLICIES

1.01 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

i. These financial statements are prepared in accordance with Generally Accepted Accounting Principles in India (GAAP) under historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable.

The financial statements are prepared under the historical cost convention and on the accounting principles of going concern. The Company follows accrual system of accounting where income & expenditure are recognized on accrual basis in accordance with the accounting principles generally accepted in India (Indian GAAP) and the requirements of the Companies Act, including the Accounting Standards as prescribed by the Section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of Companies (Accounts) Rules, 2014.

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 Schedule III to the Companies Act, 2013.

1.02 USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. 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 recognised in the periods in which the results are known / materialise.

1.03 PROPERTY, PLANT & EQUIPMENT

All Fixed Assets are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

1.04 DEPRECIATION / AMORTISATION Tangible Assets:

Depreciable amount of assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets has been provided on the written down value basis as per the useful life prescribed in Schedule II to the Companies Act, 2013.

1.05 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

1.06 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.