Vegorama Punjabi Angithi Ltd. कंपली की लेखा नीति

CORPORATE INFORMATION

Vegorama Punjabi Angithi Limited (formerly known as Vegorama Punjabi Angithi Private Limited) is a company incorporated under the
provisions of the Companies Act, 2013, having its registered office at B-376 Third Floor, Meera Bagh, Outer Ring Road, Paschim Vihar,
New Delhi - 110063. The company is engaged in the business of operating dine-in restaurants and follows a Cloud Kitchen model.

Pursuant to the approval of the Board ofDirectors and in compliance with the applicable provisions of the Companies Act, 2013 and the
rules made thereunder, the company has been converted into a public limited company with effect from April 9, 2025, vide a fresh
Certificate of Incorporation issued by the Ministry of Corporate Affairs.

The company affirms that all statutory requirements and applicable accounting have been duly complied with during the process of
conversion.

SIGNIFICANT ACCOUNTING POLICIES

I) Basis of Preparation of Financial Statements

he financial statements of the Company have been prepared in accordance with the Accounting Standards specified under Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Rules, 2021, as
amended from time to time, and other relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the
historical cost convention on an accrual basis of accounting, except for those assets and liabilities which are required to be measured at fair value or
otherwise in accordance with the applicable Accounting Standards. The financial statements are presented in Indian Rupees (^), which is the
functional currency of the Company. All amounts have been rounded off to the nearest lakh/crore, as applicable, in accordance with the
requirements of Schedule III to the Companies Act, 2013, unless otherwise stated. Assets and liabilities have been classified as current and non¬
current as per the Company''s operating cycle and other criteria specified in Schedule III to the Companies Act, 2013.

Functional and presentation of currency : The financial statements are prepared in Indian Rupees which is also the Company''s functional
currency. All amounts are rounded to the nearest rupees in lakhs.

II) Basis of Accounting

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP)
and comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, as
amended, and the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the historical cost convention on an accural basis, unless otherwise stated.

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

III) Use of Estimates

The preparation of 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 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 periods in which the results are known / materialize.

IV) Inventories

Inventories are valued at cost or net realizable value, whichever is lower and cost includes cost of conversion and other costs incurred in
bringing the inventories to the present location and condition.

V) Cash Flow Statement

Cash Flows are presented using an indirect method, whereby profit/loss before extra-ordinary items and tax is adjusted for the effects
of transactions of non -cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from
operating, investing, and financing activities of the company is segregated based on the available information.

VI) Cash & Cash equivalents

Cash comprise Cash in hand, Bank Balances and Fixed Deposits. Cash equivalents are highly liquid investments that are readly
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

VII) Property, Plant & Equipments

Property, Plant & Equpiments are stated at cost less accumulated Depreciation. Cost of acquisition or construction is inclusive of inward
freight, duties, taxes and incidental expenses incurred related to acquisition and is exclusive of the amount of Modvat & Input tax credit
wherever it is available for duties & taxes paid thereon.

VIII) Depreciation

Depreciation on tangible assets is provided on the WDV method over the useful lives of assets and residual value of assets as prescribed
in Schedule II to the companies Act 2013. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible
assets are amortized over their respective individual estimated useful lives on a WDV basis, commencing from the date the asset is
available to the Company for use. Leasehold improvements are written off over the lower of the remaining primary period oflease or the
life of the asset.

Based on technical evaluation, the Management believes that the useful lives best represent the period over which the Management
expects to use these assets. Hence, the useful lives for these assets may / may not be different from the useful lives as prescribed under
Part C of Schedule II of the Companies Act 2013. Depreciation and amortization methods, useful lives and residual values are reviewed
periodically, including at each financial year end.

IX) Revenue Recognition

Revenue comprise cloud kitchen, catering services, dine-in, takeaway sales & corporate thali service which is exclusive of GST. Interest
income is accounted for on accrual basis.

X) Employee Benefits

i) Short term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as Short term employee benefits.
Benefits such as salaries, wages etc. are recognized in the Profit and Loss Account in the period in which the employee renders the
related service.

ii) Long term employee benefits:

The Contributions for Provident Funds & E.S.I.C. are deposited with the appropriate government authorities and are recognized in the
Profit & Loss Account in the financial year to which they relate and there is no further obligation in this regard. Gratuity expense is
recognized based on actuarial valuation under AS 15.

XI) Foreign Currency Transactions:

There are no foreign Currency transaction for the current Financial year.

XII) Taxation:

i) Tax expenses comprises of Current Tax & Deferred Tax. Current Income Tax measured at the amount expected to be paid to the tax
authorities in respect of the taxable income of the current period in accordance with the Indian 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 law enacted or
substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that
sufficient future taxable income will be available against which these assets can be realized in future where as in cases of existence of
carry forward of losses or unabsorbed depreciation, deferred tax assets are recognized only if there is virtual certainty of realization
backed by convincing evidence. Deferred tax assets are reviewed at each balance sheet date.

XIII) Borrowing Cost

Borrowing cost are recognised as an expense in the period in which they are incurred.