2. Significant accounting policies.

a) Basis of preparation of financial statements

i) Statement of compliance

The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended), and presentation requirements of Division II of
Schedule III to the Companies Act, 2013 (Act), (Ind AS compliant Schedule III), as
applicable to the Company.

Accounting policies have been consistently applied 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.

The financial statements have been approved by the company's Board of Director's on May
30, 2024.

ii) Accounting Conventions

The financial statements have been prepared on the historical cost basis except for certain
financial instruments that are measured at fair values at the end of each reporting period,
as explained in the accounting policies below. Historical cost is generally based on the fair
value of the consideration given in exchange for goods and services.

iii) Current-Non Current Classification

All assets and liabilities are classified into current and non-current.

Assets

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

(a) it is expected to be realized in, or is intended for sale or consumption in, the
Company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within 12 months after the reporting date; or;

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

Liabilities

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

(a) it is expected to be settled in the Company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

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

(d) the company does not have an unconditional right to defer settlement of the liability for
at least 12 months after the reporting date. Terms of a liability that could, at the option of
the counterparty, result in its settlement by the issue of equity instruments do not affect
its classification.

iv) Operating Cycle

Based on the nature of products/ activities of the Company and the normal time between

acquisition of assets and their realization in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose of classification of its assets
and liabilities as current and non-current.

b) Use of estimates and Judgement

The preparation of the financial statements are in conformity with Ind AS which requires
management to make estimates, judgments and assumptions. These estimates,
judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenues and expenses during
the period. Accounting estimates could change from period to period. Actual results could
differ from those estimates. Appropriate changes in estimates are made as management
becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are
made and, if material, their effects are disclosed in the notes to the financial statements.

c) RECENT ACCOUNTING DEVELOPMENTS
Standards issued but not yet effective:

The MCA has notified below amendments which are effective 1st April 2019

a) Appendix C to Ind AS 12, Income taxes

b) Amendments to Ind AS 103, Business Combinations

c) Amendments to Ind AS 109, Financial Instruments

d) Amendments to Ind AS 116, Leases

e) Amendments to Ind AS 19, Employee Benefits

f) Amendments to Ind AS 23, Borrowing Costs

Based on Preliminary work, the Company does not expect these amendments to have any
significant impact on its Financial statements.

d) Property, plant & equipment

i) Property, plant and equipment's are stated at cost and net of accumulated depreciation
and/or impairment loss, if any. Cost of fixed assets includes all incidental expenses
and interest costs on borrowings, attributable to the acquisition of qualifying assets, up
to the date of commissioning of assets.

ii) Subsequent expenditures relating to property, plant and equipment is capitalized only
when it is probable that future economic benefits associated with these will flow to the
Company and the cost of the item can be measured reliably.

iii) The cost and related accumulated depreciation are eliminated from the financial
statements upon sale or retirement of the asset and the resultant gains or losses are
recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at
the lower of the carrying value or the fair value which is further reduced by the cost
that shall be incurred for disposal of the asset.

iv) Depreciation is provided on property, plant and Equipments on Straight Line Method,
less its Residual Values, over their useful lives as specified in Schedule II of the
Companies Act, 2013.

v) In respect of assets added/disposed off during the year, depreciation is charged on pro¬
rate basis with reference to the month of addition/disposal.

vi) Depreciation methods, useful lives and residual values are reviewed periodically,
including at each financial year end.

e) Capital Advances

Advances given towards acquisition of fixed assets outstanding at each balance sheet date
are disclosed as other Non - Current Assets.

f) Financial Instruments
Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party

to the contractual provisions of the instrument. All financial assets and liabilities are
recognized at fair value on initial recognition, except for trade receivables which are
initially measured at transaction price. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities that are not at fair value
through profit or loss are added to the fair value on initial recognition. Regular purchase
and sale of financial assets are accounted for at trade date.

Subsequent measurement

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a
business model whose objective is to hold the asset in order to collect contractual cash
flows and 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.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these
financial assets are held within a business whose objective is achieved by both collecting
contractual cash flows and selling financial assets and 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.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at
amortised cost or at fair value through other comprehensive income on initial recognition.
The transaction costs directly attributable to the acquisition of assets and liabilities at fair
value through profit and loss are immediately recognised in the statement of profit and
loss.

Financial Liabilities

Financial Liabilities are measured at amortised cost.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or it transfers the financial asset and the transfer qualifies
for derecognition in accordance with Ind AS 109 "Financial Instruments" issued by the
Ministry of Corporate Affairs, Government of India. A financial liability (or a part of a
financial liability) is derecognized from the Company's Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expires.

g) Impairment

Financial assets

Assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An Impairment loss is recognised for
the amount by the asset's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less cost if disposal and value in
use. For the purpose of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of cash
inflows from other assets or group of assets (cash generating units). Non-financial asset's
other than goodwill that suffered an impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.