Accounting Policies of Innokaiz India Ltd. Company

Mar 31, 2025

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

(a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian
GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting
policies are consistently applied by the Company.

(b) The financial statements are prepared to comply in all material respects with the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of
Companies Act, 2013.

(c) The preparation of the financial statements requires estimates and assumptions to be made that affect the
reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Differences between the actual results and estimates are
recognized in the period in which the results are known / materialize.

1.2 Revenue Recognition

(a) The company generally follows the mercantile system of accounting and recognizes Income & Expenditure on
accrual basis.

(b) Sales are recognized at the time o passage of the title that generally coincides with their delivery. Sales are net
of GST and Trade discounts.

(c) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the
rate applicable.

1.3 Property, Plant & Equipment and Intangible Assets & Depreciation

(a) Fixed Assets are stated at Cost less accumulated depreciation. The Company has capitalized all cost relating to
the acquisition and installation of Fixed Assets.

(b) Depreciation is provided on Fixed Assets on Written down value Method on the basis of Useful Life as
prescribed under Part C of Schedule - II of the Companies Act, 2013.

(c) Cost of the fixed assets not ready for their intended use at the Balance Sheet date together with all related
expenses are shown as Capital Work-in-Progress.

(d) There are no Intangible Assets in the company.

1.4 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 higher of the asset''s net selling price and value in
use, which is determined by the present value of the estimated future cash flows.

1.5 Investments

Investments classified as long-term investments are stated at cost. Provision is made to recognize any diminution
other than temporary in the value of such investments. Current investments are carried at lower of cost and fair
value.

1.6 Inventories

Inventories consisting of Stock-in-trade of Electrical Goods are valued at lower of cost and net realizable value.
Cost of inventories comprises of material cost on FIFO basis and expenses incurred in bringing the inventories to
their present location and condition.

1.7 Employee Benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the
provident fund is charged to the statement of profit and loss for the year when an employee renders the related
services.

Provision for Gratuity has been considered as per Actarial valuation report.

Leave encashment to the employees are accounted for as & when the same is claimed by eligible employees.

1.8 Borrowing Costs

(a) Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period
until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of
time to get ready for its intended use.

(b) Other Borrowing costs are recognized as expense in the period in which they are incurred.

1.9 Taxes on Income

Tax expense comprises of current tax and deferred tax.

Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance
with the applicable tax rates and tax laws.

Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more
subsequent periods is recognized, using the tax rates and tax laws that are enacted or substantively enacted.
Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the same
in future years as a matter of prudence.

1.10 Earnings per Share (EPS)

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

(b) 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.

1.11 Prior Period Items

Prior Period and Extraordinary items and Changes in Accounting Policies having material impact on the financial
affairs of the Company are disclosed in financial statements if any.

Mar 31, 2024