Note 2. Summary of Material Accounting Policies

2.1 Basis of Preparation

These standalone financial statements have been prepared to comply in all material
respects with the Indian Accounting Standard (''Ind AS'') notified under section 133 of
the Companies Act, 2013, read together with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and as amended from time to time, issued by the
Ministry of Corporate Affairs (''MCA'').

The standalone financial statements for the year ended March 31, 2026 are the first Ind
AS standalone financial statements of the Company. The transition to Ind AS has been
carried out from accounting standards notified under section 133 of the Companies Act
2013 (''Previous GAAP''), which is the transition date of April 1, 2024.

The standalone financial statements are based on the classification provisions contained
in Ind AS 1, ''Presentation of standalone financial statements'' and Division II of Schedule
III (as amended) to the Act. Further, for the purpose of clarity, various items are
aggregated in the Balance Sheet and Statement of Profit and Loss. Nonetheless, these
items are disaggregated separately in the notes to the standalone financial statements,
where applicable or required.

The accounting policies have been applied consistently in these standalone financial
statements, except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy
hitherto in use by the Company.

The management believes that it is appropriate to prepare these standalone financial
statements on a going concern basis considering available resources, current level of
operations of the Company, and those projected foreseeable future.

All amounts are reported in lakhs of Indian Rupees (''Rupees'' or ''?'') and are rounded to
the nearest lakhs, unless stated otherwise. Further, due to rounding off, certain
amounts are appearing as ''0''.

To provide more reliable and relevant information about the effect of certain items in
the Balance Sheet and Statement of Profit and Loss, the Company has changed the
classification of certain items. Previous year figures have been re-grouped or
reclassified, to conform to such current year''s groupings / classifications. There is no
impact on Equity or Net profit due to these regroupings / reclassifications.

2.2 Basis of Measurement

The standalone financial statements have been prepared on accrual basis under the
historical cost convention except as stated otherwise in respect of certain financial
assets and liabilities measured at fair value.

Fair Value Measurement

Fair value is the price at the measurement date at which an asset can be sold or paid
to transfer a liability, in an orderly transaction between market participants. The
Company uses a three-level fair-value hierarchy:

s Level 1: Quoted (unadjusted) prices for identical assets or liabilities in active
markets

s Level 2: Significant inputs to the fair value measurement are directly or indirectly
observable

s Level 3: Significant inputs to the fair value measurement are unobservable

2.3 Basis of Transition to Ind AS

The adoption of Ind AS is carried out in accordance with Ind AS 101 on April 1, 2024
being the transition date. All Ind AS standards that are issued and effective for the year
ending March 31, 2026 are applied retrospectively and consistently for all periods
presented.

The Company has presented three balance sheets — as of March 31, 2026, March 31,
2025 and April 1, 2024 along with two statements each of profit and loss, changes in
equity, and cash flows.

Exemptions / Exceptions from Full Retrospective Applications:

s Estimates: wherever application of Ind AS requires an entity to make certain
estimates that were not required under previous GAAP, those estimates should be
made to reflect conditions that existed at the date of transition (for preparing
opening Ind AS balance sheet) or at the end of the comparative period (for
presenting comparative information as per Ind AS). The Company''s estimates
under Ind AS are consistent with the above requirement.

s Financial Assets: The Company has classified the financial assets in accordance
with Ind AS 109 on the basis of facts and circumstances that exist at the date of
transition to Ind AS.

s De-recognition of financial assets and liabilities: The Company has elected to apply
de-recognition provisions of Ind AS 109 prospectively from the date of transition
to Ind AS.

s Impairment of financial assets: The Company has applied the exception related
impairment of financial assets given in Ind AS 101. It has used reasonable and
supportable information that is available without undue cost or effort to determine
the credit risk at the date that financial assets were initially recognized and
compared that to the credit risk as at 1 April 2024.

s Borrowing Cost: The Company has applied Ind AS 23 Borrowing Costs
prospectively from the date of transition and has not restated borrowing costs
capitalised under previous GAAP.

s Deemed Cost for Property, Plant and Equipment and Intangible Assets: The
Company has elected to continue with the carrying value of all of its property,
plant and equipment and intangible assets recognised as of 01st April 2024

(transition date) measured as per the previous GAAP and use that carrying value
as its deemed cost as of the transition date.

2.4 Operating Cycle

The company has identified its normal operating cycle to be twelve months for
classification of their assets and liabilities into current and non-current.

2.5 Use of estimates and judgements

The preparation of the standalone financial statements in conformity with Ind AS
requires the management to make judgments, estimates and assumptions in the
reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. Although these estimates are based on
the management''s best knowledge of current events and actions, future results could
differ due to these judgements, assumptions and estimates and the differences between
the actual results and the estimates are recognized in the periods in which the results
are known/ materialize.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions
to accounting estimates are recognized prospectively in current and future periods.

The following are significant management judgements in applying the accounting
policies of the Company, as well as estimates and assumptions that have a significant
effect on the standalone financial statements:

S Evaluation of Net realizable value of Inventories

Inventories comprising of electronic and telecommunication components are valued
at lower of cost and net realizable value. The net realizable value is assessed based
upon the estimates of the management including but not limited to the market
conditions and prices existing at the reporting date and is determined by the
Company based on net amount that it expects to realize from the sale of inventory
in the ordinary course of business.

S Recognition of Deferred tax assets

The extent to which deferred tax assets can be recognized is based on an
assessment of the probability of the Company''s future taxable income against which
the deferred tax assets can be utilized. In addition, significant judgement is required
in assessing the impact of any legal or economic limits or uncertainties in tax
jurisdictions.

S Impairment of assets

In assessing impairment, management estimates the recoverable amounts of each
asset or CGU (in case of non-financial assets) based on expected future cash flows
and uses an estimated interest rate to discount them. Estimation relates to
assumptions about future cash flows and the determination of a suitable discount
rate.

S Useful life and residual value of property, plant and equipment and intangible assets
Useful lives of tangible assets are based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the management estimates that the useful
lives are different from that prescribed in Schedule II based on internal technical
evaluation, the management reviews such estimate of the useful lives of

depreciable/ amortizable assets at each reporting date, based on the expected
usage of the assets. Uncertainties in these estimates relate to technical and
economic obsolescence that may change over the period of usage of certain assets.
S Recognition and measurement of defined benefit obligations (DBO)

The obligation arising from defined benefit plan is determined using actuarial
valuations. An actuarial valuation involves making various assumptions such as
standard rates of inflation, mortality, discount rate, attrition rates and anticipation
of future salary increases. Due to the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

S Fair value measurements

Management applies valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available) and non-financial
assets. This involves developing estimates and assumptions consistent with how
market participants would price the instrument/ assets. Management bases its
assumptions on observable data as far as possible, but this may not always be
available. In that case management uses the best relevant information available.
Estimated fair values may vary from the actual prices that would be achieved in an
arm''s length transaction at the reporting date.

S Impairment losses on investments

Investments in subsidiaries, joint ventures and associates are carried at cost. At
each balance sheet date, the management assesses the indicators of impairment
of such investments which requires assessment of several external and internal
factors and if the recoverable amount is less than its carrying amount, the
impairment loss is accounted for.

S Provisions and contingencies

The recognition and measurement of other provisions are based on the assessment
of the probability of an outflow of resources, and on past experience and
circumstances known at the balance sheet date. The actual outflow of resources at
a future date may therefor vary from the amount included in other provisions.

2.6 Current versus Non-Current Classification

Assets and liabilities are presented in the balance sheet based on current / non-current
classification:

S An asset is current when: expected to be realised or consumed in the normal
operating cycle; held primarily for trading; expected to be realised within twelve
months; or is cash/cash equivalent not restricted for at least twelve months.

S A liability is current when: expected to be settled in the normal operating cycle;
held primarily for trading; due within twelve months; or no unconditional right
to defer settlement for at least twelve months.

S Deferred tax assets and liabilities, and all other non-current items, are classified
as non-current.

S Separated embedded derivatives are classified based on the host contract.

2.7 Property, Plant and Equipment (PPE)

Recognition and initial measurement

Property, plant and equipment are stated at cost less accumulated
depreciation/amortisation and impairment losses, if any. On transition to Ind AS, the
Company had elected to measure all of its property, plant and equipment at the previous
GAAP carrying value (deemed cost).

Cost comprises the purchase price and any attributable/ allocable cost of bringing the
asset to its working condition for its intended use. The cost also includes direct cost and
other related incidental expenses. Cost also includes the cost of replacing part of the
plant and equipment.

Borrowing costs relating to acquisition/ construction/ development of PPE, which takes
substantial period of time to get ready for its intended use are also included to the
extent they relate to the period till such assets are ready to be put to use.

When significant components of property and equipment are required to be replaced at
intervals, recognition is made for such replacement of components as individual assets
with specific useful life and depreciation, if these components are initially recognised as
separate asset. All other repair and maintenance costs are recognised in the Statement
of Profit and Loss as incurred.

Subsequent expenditure is capitalised only if it is probable that the future economic
benefits associated with the expenditure will flow to the company.

Subsequent measurement (depreciation and useful lives)

Depreciation on Property, Plant and Equipment is provided on written down value
method based on the useful life of the asset as specified in Schedule II to the Companies
Act, 2013. The management estimates the useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013:

The useful lives, residual values and method of depreciation of property, plant and
equipment are reviewed at each financial year end. The effect of any changes is
accounted prospectively. Gains / losses on disposal are included in the statement of
profit and loss.

The residual value of 5% of Original Cost is considered for the Purpose of Calculating
Depreciation rates. The residual values, useful lives and method of depreciation are
reviewed at the end of each financial year.

Depreciation is provided on pro-rata basis in the year in which the assets are put to
use.

The carrying amount of PPE is reviewed periodically for impairment based on internal/
external factors. An impairment loss is recognized wherever the carrying amount of
assets exceeds its recoverable amount. The recoverable amount is the greater of the
asset''s net selling price and value in use.

Note: Management''s estimated useful lives, based on past experience and technical
assessment, may vary from Schedule II of the Companies Act, 2013.

De-recognition

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset)
is included in the Statement of Profit and Loss when the asset is derecognized.

2.8 Impairment of non- financial assets

The carrying amounts of assets are reviewed at each reporting date if there is any
indication of impairment based on internal/ external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the asset''s fair value less cost of disposals and
value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. Fair value
is the price that would be received to sell an asset or paid to transfer a liability in orderly
transaction between market participants at the measurement date. After impairment,
depreciation is provided on the revised carrying amount of the asset over its remaining
useful life.

The Company bases its impairment calculation on detailed budgets and forecasts
calculations, which are prepared separately for the Company Cash Generating Unit
(CGU) to which the individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses are recognized in the Statement of Profit and Loss in expense
categories.

An assessment is made at each reporting date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased.
If such indication exists, the Company estimates the asset''s or CGU''s recoverable
amount. A previously recognized impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset''s recoverable amount since the
last impairment loss was recognized. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been
recognized for the asset in prior years.

2.9 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.

Effective Interest Rate (EIR) is the rate that exactly discounts the estimated future cash
receipts or payments over the expected life of the financial instruments or a shorter
period, where appropriate, to the net carrying amount of the financial asset or liability.

2.9.1 Financial Assets
Classification

The Company classifies financial assets as subsequently measured at amortised cost,
fair value though other comprehensive income or fair value through profit or loss on the
basis of its business model for managing the financial assets and contractual cash flow
characteristics of the financial asset.

Initial recognition and measurement

The Company recognizes financial assets when it becomes a party to the contractual
provisions of the instrument. All financial assets are recognized initially at fair value plus
transaction costs that are attributable to the acquisition of financial assets.

Subsequent measurement

For the purpose of subsequent measurement, the financial assets are classified in three
categories:

s Debt instruments at amortised cost
s Debt instrument at fair value through profit or loss
s Equity investments

Debt instrument at amortised cost

A "debts instrument" is measured at the amortised cost if both the following condition
are met:

s The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flow, and

s Contractual terms of the assets give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measurement at
amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by considering any discount and premium and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the
statement of profit and loss. The losses arising from impairment are recognised in the
statement of profit and loss.

Debt instrument at fair value through profit or loss

Debt instruments included in the fair value through profit or loss (FVTPL) category are
measured at fair value with all changes recognised in the statement of profit and loss.

Equity investments

All equity investments other than investment in subsidiaries, joint venture and
associates are measured at fair value. Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments, the company decides to classify
the same either as at fair value through other comprehensive income (FVTOCI) or
FVTPL. The company makes such election on an instrument-by- instrument basis. The
classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognised in other compressive
income (OCI). There is no recycling of the amounts from OCI to statement of profit and
loss, even on sale of such investments.

Equity instrument includes within the FVTPL category are measured at fair value with
all changes recognised in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset) is primarily
derecognised when:

s The rights to receive cash flows from the assets have expired or
s the company has transferred substantially all the risks and rewards of the asset,
or

s the company has neither transferred nor retained substantially all the risks and
rewards of the asset but has transferred control of the asset.

Impairment of financial assets

The company applies ''simplified approach'' measurement and recognition of impairment
loss on the following financial assets and credit risk exposure:

s Financial assets that are debt instrument and are measured at amortised cost e.g.

loans, debt securities, deposits, and bank balance.
s Trade receivables

The application of simplified approach does not require the company to track changes
in credit risk. Rather, it recognised impairment loss allowance based on lifetime
expected credit loss at each reporting date, right from its initial recognition.

2.9.2 Financial liabilities
Classification

The company classifies all financial liabilities as subsequently measured at amortised
cost.

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loan and
borrowings and payables net of directly attributable transaction costs.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the Effective Interest Rate (EIR) Method. Gains and
losses are recognised in the statement of profit and loss when the liabilities are
derecognised.

Amortised cost is calculated by taking into account any discount or premium on
acquisition and transaction costs. The EIR amortization is included as finance costs in
the statement of profit and loss.

This category generally applies to loans & borrowings.

Derecognition

A financial liability is derecognised 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
in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to realize the assets and
settle the liabilities simultaneously.

2.10 Share Capital
Ordinary equity shares

Incremental cost directly attributable to the issue of ordinary equity shares are
recognised as a deduction from equity.

2.11 Inventories
Inventories are valued as under:

s Inventories are valued at lower of cost or net realizable value,

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

s Cost of inventories have been computed to include all costs of purchases, cost of
conversion, all non-refundable duties & taxes and other costs incurred in bringing
the inventories to their present location and condition.
s The cost of inventories is determined on the basis of weighted average cost
formula,

Under the weighted average cost formula, the cost of each item is determined from the
weighted average of the cost of similar items at the beginning of a period and the cost
of similar items purchased during the period. The average may be calculated on a
periodic basis, or as each additional shipment is received, depending upon the
circumstances of the entity.

2.12 Revenue recognition

Revenue is recognized when it is probable that the economic benefits associated with
the transaction will flow to the Company and the amount of revenue can be measured
reliably. Revenue is measured at the fair value of the consideration received or
receivable, net of taxes, duties, discounts, rebates and other similar allowances.

Revenue from the sale of products is recognized when control of the goods has been
transferred to the customer, which generally coincides with delivery of the goods,
fulfillment of significant contractual obligations, transfer of significant risks and

rewards of ownership, and when no effective control over the goods is retained by the
Company.

Revenue is recognized only when there is no significant uncertainty regarding its
ultimate collection.

2.13 Income tax

Income tax expense comprises current tax and deferred tax. It is recognised in the
statement of profit and loss except to the extent that it relates to items recognised
directly in equity or in OCI.

2.13.1 Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or
loss for the year and any adjustment to the tax payable or receivable in respect of
previous years. It is measured using tax rates enacted or substantively enacted at the
reporting date.

Current tax assets and liabilities are offset only if, the Company:

s has a legally enforceable right to set off the recognised amounts; and
s intends either to realise the asset and settle the liability on a net basis or
simultaneously.

2.13.2 Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes.

Deferred tax assets are recognised for unused tax losses, unused tax credits and
deductible temporary differences to the extent there is convincing evidence that
sufficient taxable profit will be available against which such deferred tax asset can be
realised. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised; such
reductions are reversed when the probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised
to the extent that it has become probable that future taxable profits will be available
against which they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, using tax rates enacted or substantively enacted at the
reporting date.

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

Deferred tax assets and liabilities are offset only if:

s The Company has a legally enforceable right to set off current tax assets against
current tax liabilities; and

s The deferred tax assets and the deferred tax liabilities relate to income taxes
levied by the same taxation authority on the same taxable entity.

2.14 Employee benefits

2.14.1 Short-term obligations

Liabilities for salaries and wages, including non-monetary benefits, that are expected to
be settled wholly within 12 months after the end of the period in which the employees
render the related service are recognized up to the end of the reporting period and are
measured at the amounts expected to be paid on settlement of such liabilities. The
liabilities are presented as current employee benefit obligations in the balance sheet.

2.14.2 Other long-term employee benefits obligations

The liabilities for earned and sick leave are not expected to be settled wholly within 12
months after the end of the period in which the employees render the related service.
They are therefore measured as the present value of expected future payments to be
made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method. The benefits are discounted using the market
yields at the end of the reporting period that have terms approximating to the terms of
the related obligation. Re-measurements as a result of experience adjustments and
changes in actuarial assumptions are recognized in the statement of profit and loss. The
obligations are presented as current liabilities in the balance sheet since the Company
does not have an unconditional right to defer the settlement for at least twelve months
after the reporting period, regardless of when the actual settlement is expected to occur.

2.14.3 Post employment obligations
Provident fund

The Company makes contribution to statutory provident fund in accordance with
Employees'' Provident Funds and (Miscellaneous Provisions) Act, 1952. The plan is a
defined contribution plan and contribution paid or payable is recognized as an
expense in the period in which services are rendered by the employee.

Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan.

The liability recognized in the balance sheet in respect of gratuity is the present
value of the defined benefit obligation at the balance sheet date, together with
adjustments for unrecognized actuarial gains or losses and past service costs. The
defined benefit obligation is calculated annually by an independent actuary using
the projected unit credit method.

Re-measurements gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognized in the period in which they occur,
directly in OCI.

Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed
within one year from the balance sheet date is recognized on the basis of undiscounted
value of estimated amount required to be paid or estimated value of benefit expected
to be availed by the employees. Liability in respect of compensated absences becoming
due or expected to be availed more than one year after the balance sheet date is
estimated on the basis of actuarial valuation performed by an independent actuary
using the projected unit credit method.

Re-measurements gains and losses arising from experience adjustments and changes
in actuarial assumptions are recognized in the period in which they occur, directly in
OCI.

Other short-term benefits

Expense in respect of other short-term benefits including performance bonus is
recognized on the basis of the amount paid or payable for the period during which
services are rendered by the employee.

2.15 Borrowing cost

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

2.16 Cash and cash equivalents

Cash and cash equivalents, for the purposes of cash flow statement, comprise cash on
hand, demand deposits, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.

2.17 Foreign Currency Transactions

s The standalone financial statements are presented in Indian Rupees, the
functional and presentation currency.

s Foreign currency transactions are initially recorded at the exchange rates
prevailing at the date of the transaction.
s Monetary assets and liabilities in foreign currencies are translated at closing
exchange rates, with resulting differences recognised in the statement of profit
and loss within finance costs / finance income.
s Non-monetary assets and liabilities are translated using exchange rates at the
date of initial recognition (historical cost) or date of fair value determination.

s Equity items denominated in foreign currencies are translated at historical cost.

2.18 Earnings per share ("EPS")

Basic earnings per share is calculated by dividing net profit or loss for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the
period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of dilutive potential equity
shares.

1. SIGNIFICANT ACCOUNTING POLICIES

1.01 Corporate Information

SAR Televenture Limited (Formerly Named as SAR Televenture Private Limited)

was incorporated on 24^th May, 2019 under the Companies Act, 2013 having its
registered office at #B-16, First Floor, Sector-2, Gautam Buddha Nagar, Noida,
Uttar Pradesh-201301.The company is exclusively engaged in providing integrated
network solutions including commissioning & installations of 4G/5G telecom towers,
fiber to the home services, Enterprise network solutions etc. The Company has been
converted into a Public Limited Company on 13 ^th Day of April, 2023.

1.02 Basis of Preparation and Presentation of Financial Statements

The Standalone Financial Statements for year ended on 31^st March, 2025
of the company comprises of the Standalone Statements of Assets and
Liabilities as at March 31, 2025, March 31, 2024 and the Standalone Statement of
Profit and Loss (including other comprehensive Income), the Standalone
Statement of changes in Equity and the Standalone Statement of Cash flows for
the year ended on 31st March, 2025 and for the year ended March 31, 2024 the
Basis for Preparation and Significant Accounting Policies and the Statement of
Notes to the Standalone Financial Statements (hereinafter collectively referred to as
''Standalone Financial Statements'')

The Standalone Financial Statements has been prepared by the Management of the
company for inclusion in the offer Document to be filed by the company with the
Securities and Exchange Board of India (''SEBI'') in connection with proposed “Rights
Issue” and “Further Public Offer” together forming the “Composite Issue” of Equity
shares, in accordance with the requirements of:

• Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act")

• Relevant provisions of the securities and Exchange Board of India (Issue of Capital and

Disclosure Requirements) Regulations, 2018, issued by the Securities and Exchange
Board of India (SEBI,) as amended in pursuance of the Securities and Exchange Board
of India Act, 1992; and

• The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the
Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the
"Guidance Note").

The Standalone Financial Statements have been compiled from:

Audited Financial statements for year ended on 31st March, 2025 and Annual

Audited Financial statements for the year ended March 31, 2024 prepared in

accordance with the accounting standards notified under Companies (Accounting
Standards) Rules, 2006 (as amended) and other relevant provisions of the Act
(Previous GAAP or Indian GAAP) (hereinafter collectively referred to as "

Standalone Financial Statements ")

The Standalone Financial Statements has been compiled by the Management from the
Audited Standalone Financial statements for the respective years and:

• there were no changes in accounting policies during the respective years of these
financial statements.

• there were no material adjustments for previous years in arriving at loss/profit of the
respective years;

• appropriate regroupings have been made in the Standalone Financial Statement of
assets and liabilities, statement of profit and loss and statement of cash flow, wherever
required, by reclassification of the corresponding items of income, expenses, assets,
liabilities and cash flows, in order to bring them in line with the accounting policies and
classification as per the Schedule III of Companies Act, 2013, requirements of AS 1
and other applicable AS principles and the requirements of the Securities and Exchange
Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2018, as
amended.

1.03 Basis of measurement

These statements are prepared under historical cost convention on accrual basis and
also certain financial assets and financial liabilities which are measured at fair values at
the end of each reporting period as mentioned in the relevant notes to accounts.

Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services. 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, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating the fair value
of an asset or a liability, the Company takes into account the characteristics of the asset
or liability if market participants would take those characteristics into account when
pricing the asset or liability at the measurement date. Fair value for measurement and/or
disclosure purposes in these Standalone Financial Statements is determined on this
basis.

The Standalone balance Sheet and the Standalone Statement of Profit and Loss are
prepared and presented in the format prescribed in the Schedule III to the Companies
Act, 2013 (“the Act”). The Standalone Statement of cash flows has been prepared and
presented as per the requirements of AS 3 “Statement of Cash flows”. The disclosure
requirements with respect to items in the standalone Balance Sheet and the Standalone
Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented
by way of notes forming part of the Standalone Financial Statements along with the
other notes required to be disclosed under the notified Accounting Standards.

Amounts in the Standalone Financial Statements are presented in INR in Lakhs
rounded off to two decimal places as permitted by Schedule III to the Companies Act,
2013 except otherwise stated.

All assets and liabilities have been classified as current or non-current as per the
Company’s normal operating cycle. The Operating cycle has been taken to be 12
months. Deferred tax assets and deferred tax liabilities are classified as non-current
assets and non-current liabilities, as the case may be.

1.04 Use of Estimates

The preparation of the Standalone Financial Statements in conformity with AS requires
the Management to make estimates, judgement and assumptions that affect the
application of accounting policies and the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities. The principal
accounting estimates have been described under the relevant income /expense and / or
assets / liability item in the Standalone Financial Statements. The Management believes
that the estimates used in the preparation of these Standalone Financial Statements are
prudent and reasonable. Actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized in the period in which the estimate is revised if
the revision affects only the period of the revision and future periods if the revision
affects both current and future periods.

1.05 Property, Plant and Equipment

Property, plant, and equipment are stated at their cost of acquisition less accumulated
depreciation and impairment (if any). The cost comprises the purchase price, borrowing
cost and attributable cost of bringing the asset to its working condition for its intended
use.

Gains or losses arising on retirement or disposal of property, plant and equipment are
recognized in the statement of Profit and Loss.

The residual values, useful lives, and method of depreciation of property, plant and
equipment is reviewed at each financial year end and adjusted prospectively, if
appropriate.

Property, plant, and equipment which are not ready for intended use as on the date of
Balance Sheet are disclosed as “Capital work-in-progress”.

1.06 Depreciation and Useful Life

Depreciation on Property, Plant and Equipment is provided on Written Down Value
and computed on the basis of the useful life prescribed in Schedule II to the Companies
Act, 2013 (Act) from the date the asset is ready to put to use.

Depreciation on office building and investment properties is provided on Written Down
value Method and computed on the basis of the useful life prescribed in Schedule II to
the Act from the date the asset is ready to put to use.

The residual value of 5% of Original Cost is considered for the Purpose of Calculating
Depreciation rates. The residual values, useful lives and method of depreciation are
reviewed at the end of each financial year.

Depreciation is provided on pro-rata basis in the year in which the assets are put to use.

The Company has used rates to provide depreciation which coincide with the rates
indicated in schedule II of the Companies Act 2013 on its fixed assets.

1.07 Capital Work in Progress and Intangible Assets under Development

Property, Plant and Equipment which are not ready for intended use as on the date of
Balance Sheet are disclosed as “Capital Work-in-Progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at
each balance sheet date are classified as capital advances under other non-current assets.

1.08 Impairment of Tangible Assets

The carrying amount of assets is reviewed at each balance sheet date and impairment
loss is recognized whenever there is any indication of impairment based on internal/
external indicators. An impairment loss is recognized in the Statement of Profit and
Loss where the carrying amount of the assets exceeds the recoverable amount.

An impairment loss is recognized immediately in profit or loss. An impairment loss is
reversed if there is change in the recoverable amount and such loss either no longer
exists or has decreased.

A previously recognized impairment loss is reversed only if there has been a change in
the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognized. The reversal is limited so that the carrying amount of
the asset does not exceed its recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been
recognized for the asset in prior years. Such reversal is recognized in the statement of
profit or loss unless the asset is carried at a revalued amount, in which case, the reversal
is treated as a revaluation increase.

1.09 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its
realization or collection. Revenue on sale of product is recognised on delivery of the
product, when all significant contractual obligations have been satisfied, the property
in goods is transferred for a price, significant risk and reward of ownership have been
transferred and no effective ownership control is retained. Interest income is recognised
on time proportion basis.

1.10 Employee Benefits

Employee benefits include salaries, wages, provident fund, gratuity, etc. Short term
employee benefits are recognized at their undiscounted amount in the accounting period
in which they are incurred.

Employees benefit under defined Contribution Plan comprises Employee Provident
Fund under the provisions of Employees'' Provident Fund and Miscellaneous Provisions
Act, 1952, for which the Company contributes to the plan under the provisions of the
said Act.

Termination benefits are payable when employment is terminated by the company
before the normal retirement date or when an employee accepts voluntary redundancy
in exchange for these benefits. In case of an offer made to encourage voluntary
redundancy; the termination benefits are measured based on the number of employees
expected to accept the offer.

1.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition and/or construction of qualifying
assets are capitalized as part of the cost of such assets during the period of time that is
necessary to complete and prepare the assets for its intended use or sale. A qualifying

asset is one that necessarily takes a substantial period of time to get ready for its
intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.12 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders (after deducting attributable taxes) by the weighted-
average number of equity shares outstanding during the period. The weighted-average
number of equity shares outstanding during the period is adjusted for events including a
FPO, Right Issue, and Share Swap in proportion to the period they were outstanding.

For the purpose of calculating diluted earnings per share, the net profit or loss for the
period attributable to equity shareholders and the weighted-average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity
shares. The Company has issued 25% Warrants during the year, which are considered
as potential equity shares for the purpose of diluted EPS. The Weighted-Average
Number of shares have been calculated after considering the impact of such warrants as
per AS 20 requirements.

1.13 Accounting for Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. It is recognized in
the Statement of Profit and Loss except to the extent it relates to an item which is
recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the
year using applicable tax rates at the Balance Sheet date

Deferred tax is recognized in respect of temporary differences between the carrying
amount of assets and liabilities for financial reporting purposes and the corresponding
amounts used for taxation purposes. Deferred tax assets are recognized only to the
extent that it is probable that future taxable profits will be available against which the
asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced
to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the
extent there is convincing evidence that the Company will pay normal income tax
during the specified period. Such asset is reviewed at each Balance Sheet date and the
carrying amount of the MAT credit asset is written down to the extent there is no longer
convincing evidence to the effect that the Company will pay normal income tax during
the specified period.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on tax rates (and

tax laws) that have been enacted or substantively enacted by the end of the reporting
period.

Transaction or event which is recognized outside profit or loss, either in other
comprehensive income or in equity, is recorded along with the tax as applicable.

2. SIGNIFICANT ACCOUNTING POLICIES

2.01 Corporate Information

SAR Televenture Limited (Formerly Named as SAR Televenture Private Limited)

was incorporated on 24^th May, 2019 under the Companies Act, 2013 having its registered office at #346-A, 2nd Floor, Udyog Vihar Phase-4 Gurugram, 122016 (Haryana). The company is exclusively engaged in General construction (including alteration, addition, repair and maintenance) of 4G & 5G Networks Towers, carried out on own-account basis or on a fee or contract basis The Company has been converted into a Public Limited Company on 13^th Day of April, 2023.

2.02 Basis of Preparation and Presentation of Financial Statements

The Standalone Financial Statements for year ended on 31^st March, 2024 and Financial Year 2022-23 of the company comprises of the Standalone Statements of Assets and Liabilities as at March 31, 2024, March 31, 2023 and the Standalone Statement of Profit and Loss (including other comprehensive Income), the Standalone Statement of changes in Equity and the Standalone Statement of Cash flows for the year ended on 31st March, 2024 and for the year ended March 31, 2023 the Basis for Preparation and Significant Accounting Policies and the Statement of Notes to the Standalone Financial Statements (hereinafter collectively referred to as '' Standalone Financial Statements''). The Standalone Financial Statements has been prepared by the Management of the company for inclusion in the offer Document to be filed by the company with the Securities and Exchange Board of India (''SEBI'') in connection with proposed “Rights Issue” and “Further Public Offer” together forming the “Composite Issue” of Equity shares, in accordance with the requirements of:

• Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act")

• Relevant provisions of the securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, issued by the Securities and Exchange Board of India (SEBI,) as amended in pursuance of the Securities and Exchange Board of India Act, 1992; and

• The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").

The Standalone Financial Statements have been compiled from:

Audited Financial statements for year ended on 31st March, 2024 and Annual Audited Financial statements for the year ended March 31, 2023 prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (Previous GAAP or Indian GAAP) (hereinafter collectively referred to as " Standalone Financial Statements ")

The Standalone Financial Statements has been compiled by the Management from the Audited Standalone Financial statements for the respective years and:

• there were no changes in accounting policies during the respective years of these financial statements.

• there were no material adjustments for previous years in arriving at loss/profit of the respective years;

• appropriate regroupings have been made in the Standalone Financial Statement of assets and liabilities, statement of profit and loss and statement of cash flow, wherever required, by reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with the accounting policies and classification as per the Schedule III of Companies Act, 2013, requirements of AS 1 and other applicable AS principles and the requirements of the Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2018, as amended.

2.03 Basis of measurement

These statements are prepared under historical cost convention on accrual basis and also certain financial assets and financial liabilities which are measured at fair values at the end of each reporting period as mentioned in the relevant notes to accounts.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these Standalone Financial Statements is determined on this basis.

The Standalone balance Sheet and the Standalone Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Standalone Statement of cash flows has been prepared and presented as per the requirements of AS 3 “Statement of Cash flows”. The disclosure requirements with respect to items in the standalone Balance Sheet and the Standalone Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the Standalone Financial Statements along with the other notes required to be disclosed under the notified Accounting Standards.

Amounts in the Standalone Financial Statements are presented in INR in Lakhs rounded off to two decimal places as permitted by Schedule III to the Companies Act, 2013 except otherwise stated.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle. The Operating cycle has been taken to be 12 months. Deferred tax assets and deferred tax liabilities are classified as non-current assets and non-current liabilities, as the case may be.

2.04 Use of Estimates

The preparation of the Standalone Financial Statements in conformity with AS requires the Management to make estimates, judgement and assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. The principal accounting estimates have been described under the relevant income /expense and / or assets / liability item in the Standalone Financial Statements. The Management believes that the estimates used in the preparation of these Standalone Financial Statements are prudent and reasonable. Actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods.

2.05 Property, Plant and Equipment

Property, plant, and equipment are stated at their cost of acquisition less accumulated depreciation and impairment (if any). The cost comprises the purchase price, borrowing cost and attributable cost of bringing the asset to its working condition for its intended use.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the statement of Profit and Loss.

The residual values, useful lives, and method of depreciation of property, plant and equipment is reviewed at each financial year end and adjusted prospectively, if appropriate.

Property, plant, and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital work-in-progress”.

2.06 Depreciation and Useful Life

Depreciation on Property, Plant and Equipment is provided on Written Down Value and computed on the basis of the useful life prescribed in Schedule II to the Companies Act, 2013 (Act) from the date the asset is ready to put to use.

Depreciation on office building and investment properties is provided on Written Down value Method and computed on the basis of the useful life prescribed in Schedule II to the Act from the date the asset is ready to put to use.

The residual value of 5% of Original Cost is considered for the Purpose of Calculating Depreciation rates. The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.

Depreciation is provided on pro-rata basis in the year in which the assets are put to use.

The Company has used rates to provide depreciation which coincide with the rates indicated in schedule II of the Companies Act 2013 on its fixed assets.

2.07 Capital Work in Progress and Intangible Assets under Development

Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital Work-in-Progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are classified as capital advances under other non-current assets.

2.08 Impairment of Tangible Assets

The carrying amount of assets is reviewed at each balance sheet date and impairment loss is recognized whenever there is any indication of impairment based on internal/ external indicators. An impairment loss is recognized in the Statement of Profit and Loss where the carrying amount of the assets exceeds the recoverable amount.

An impairment loss is recognized immediately in profit or loss. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.

A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

2.09 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue on sale of product is recognised on delivery of the product, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risk and reward of ownership have been transferred and no effective ownership control is retained. Interest income is recognised on time proportion basis.

2.10 Employee Benefits

Employee benefits include salaries, wages, provident fund, gratuity, etc. Short term employee benefits are recognized at their undiscounted amount in the accounting period in which they are incurred.

Employees benefit under defined Contribution Plan comprises Employee Provident Fund under the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, for which the Company contributes to the plan under the provisions of the said Act.

Termination benefits are payable when employment is terminated by the company before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits. ln case of an offer made to encourage voluntary redundancy; the termination benefits are measured based on the number of employees expected to accept the offer.

2.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized as part of the cost of such assets during the period of time that is necessary to complete and prepare the assets for its intended use or sale. A qualifying

asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

2.12 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equities shares outstanding during the period. The weighted-average number of equity shares outstanding during the period is adjusted for events including a bonus issue and sub division of equity shares.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted-average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The Weighted-Average Number of shares have been calculated after considering the sub-division of equity shares on 19-06-2023, into Rs. 2 each of 5 equity shares out of 1 share of Rs. 10.

2.13 Accounting for Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to an item which is recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date

Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and

tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Transaction or event which is recognized outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.

1    Corporate Information

SAR TELEVENTURE LIMITED is a Private Limited Company since incorporation under the provisions of the Companies Act, 2013 but now it is converted in to Public Limited on 12.04.2023 and also becomes the Holding Co. of M/s Shoora International FZE Dubai (WOS) by making an investment of (US$100,000 @ 82.78 INR) and It is also a Subsidary Co. of an Indian Co. i.e. M.G Metalloys Private Limited.

2    Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Companies Act, 2013. Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act, 2013 shall be made in the notes to accounts in addition to the requirements set out in this Schedule.

2.1 Significant Accounting Policies Use of Estimates

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires management to Property, Plant & Equipments

Property, Plant & Equipments and Intangible assets are stated at cost of acquisition less accumulated depreciation and impairment. Cost includes any borrowing costs directly attributable to the acquisition/ construction of fixed assets and bringing the assets to its working condition for its intended use.

Exchange difference arising on account of liabilities incurred for acquisition or construction of Fixed Assets is adjusted in the carrying amount of related Fixed Assets.

Capital Work-in-Progress

Costs of assets not ready for use before the year-end and expenditure during that period that is directly or indirectly related to Telecome maintenance, including borrowing costs are included under Capital Work-in-Progress.

Depreciation

Depreciable amount for the property, plant and equipment is the cost of an asset, or other amount substituted for cost, less its estimated residual value based on the technical advice.

Depreciation on property, plant and equipment has been provided on the written down value as the Companies Act, 2013 taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.:

Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Long term investments are stated at cost. Provision for diminution in the value of long- term investments is made only if such diminution is other than temporary. Current Investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that Company incurs in connection with the borrowing of funds.

Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be readily measured.

Sales of Goods and Services

Income from services is recognized on the completion of services. Period based services are accounted for proportionately over the period of service.

Income from Interest

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Other Incomes

Other Incomes are accrued as earned except where the receipt of income is uncertain.

Retirement and other Employee Benefits

Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the statement of Profit and Loss for the year when the contributions to the respective funds are due. The Company has no other obligation other than the contribution payable.

Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that company incurs in connection with the borrowing of funds.

Taxes on Income

Tax expense comprises of current and deferred tax.

(i)    Current income tax is determined as the amount of tax payable in respect of taxable income for the year based on provisions of Income Tax Act, 1961.

(ii)    Deferred income tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if legally and enforceable right exist to set off current tax asset against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized 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 case of unabsorbed depreciation and 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 balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets 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.

Earnings Per Share_Notes to standalone nnanciai statements ior the year enaea march 31, 2023_

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders after deducting attributable taxes by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of equity shares outstanding during the period. Both profit for the year and weighted average numbers of shares are adjusted for the effects of all diluted potential equity shares except where the results are anti-dilutive.

Cash and cash equivalents

In the cash flow statement, cash and cash equivalents include cash in hand, term deposits with banks and other short-term highly liquid investments with maturities of three months or less.

Current and non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

•    Expected to be realized or intended to be sold or consumed in normal operating cycle

•    Held primarily for the purpose of trading

•    Expected to be realized 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

All other assets are classified as- non-current.

A liability is current when:

•    It is expected to be settled in normal operating cycle

•    It is held primarily for the purpose of trading

•    It is due to be settled within twelve months    after the reporting period, or

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

All other liabilities are classified as non-current.

M/s Shoora Capital Limited HongKong is a Short Term Liabilty and it will repaid within 6 months