Accounting Policies of Labelkraft Technologies Ltd. Company

Mar 31, 2025

1a Corporate Information

Labelkraft Technologies Limited, was incorporated on 10 Oct 2022 with its registered office at Karnataka. The main object of the company is to carry on and engage in the
business of production and development, sell, deal in all types of Scanners, Barcode Scanners & RFID Printers, Computers to run and operate both software and hardware for
printing of labels, products labels & barcode labels and to buy & sell all types of duty credit licences like MEIS (Merchandise Exports from India Scheme), SEIS (Service
Exports from India Scheme), RODTEP (Remission of Duties or Taxes on Export Products Scheme), ROSCTL (Scheme for Rebate of State and Central Taxes and Levies on
Export of Garments and Made-ups) etc, issued by Government of India to the exporters as incentive.

1b Basis Of Preparation Of Financial Statement

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India ("Indian GAAP"). The Company has
prepared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 ("the Act"),
read together with rule 7 of the Companies (Accounts) Amendment Rules, 2021. The financial statements have been prepared on an accrual basis and under the historical
cost convention.

1c Use Of Estimates

The preparation of financial statements is in conformity with generally accepted accounting principles, requires the management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting periods. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from those estimates.
Significant estimates used by management in the preparation of these financial statements include the estimates of the economic useful lives of the fixed assets, provisions
for bad and doubtful debts, recognition of deferred tax asset, provision for employee benefits and provision for income taxes.

Note 2:

Significant Accounting Policies:

2a. Revenue recognition

a) Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company and the revenue can be reliably measured.

b) Revenue from Sale of services is recognized as and when the services are performed.

c) Interest income is recognised on time basis determined by amount outstanding and rate applicable.

d) All other income and expenditure materially affecting financial are accounted on accrual basis to the extent they are ascertainable, in case of unascertainable income and
expenditure such as claim towards damages, discount, rate difference, rebate etc., are accounted as and when received and paid.

2b. Property, Plant and Equipments

Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price (including
all duties and taxes, net of duty credits, if any), borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition
for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

All other expenses on existing Property, Plant and Equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the
statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2c. Intangible Assets and amortization:-

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure
is reflected in the statement of profit and loss in the period in which the expenditure is incurred.

Intangible asset is amortized based on management''s estimation of its useful economic life i.e. 5 years on straight line basis.

2d. Capital work-in-progress:

Capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2e. Impairment of assets:-

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.
If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated historical cost.

2f. Depreciation:-

In respect of fixed assets, depreciation is charged on straight line basis so as to write off the cost of the assets over the useful lives as prescribed in the Schedule II of the
Companies Act ,2013 ("the Act").

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives have been assessed based on
technical advice, taking into account the nature of the PPE and the estimated usage of the asset on the basis of management''s best estimation of obtaining economic
benefits from those classes of assets, based on technical reports received from Chartered Engineers and relevant industry experts. The estimated useful life is reviewed
periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

2g. Inventories:-

Inventories are valued at lower of cost and the net realisable value. Cost of Inventories is determined on a Weighted average cost method and the cost of inventories of
items that are not ordinarily interchangeable are determined by specific identification of their individual costs.

2h. Cash and Cash Equivalents:-

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash & cash equivalents and other bank balances. Cash & cash equivalents further comprise of
Cash at bank ,Cash in hand and short-term investments with an original maturity of three months or less. Bank balances comprise of balances with banks held as margin
money or security against borrowings, guarantees, etc. and bank deposits with more than 12 months maturity.

2i. Taxation:-

Tax expense comprises current and deferred tax. The current charge for income taxes is calculated in accordance with the relevant tax regulations. Deferred income taxes
reflects the impact of current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier periods.
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 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. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax
assets can be realized against future taxable profits.

Unrecognized deferred tax assets of earlier periods are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be
available against which such deferred tax assets can be realized.

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Mar 31, 2024

1a Corporate Information

Labelkraft Technologies Limited, was incorporated on 10 Oct 2022 with its registered office at Karnataka. The main object of the company is to carry on and engage in the
business of production and development, sell, deal in all types of Scanners, Barcode Scanners & RFID Printers, Computers to run and operate both software and hardware for
printing of labels, products labels & barcode labels and to buy & sell all types of duty credit licences like MEIS (Merchandise Exports from India Scheme), SEIS (Service Exports
from India Scheme), RODTEP (Remission of Duties or Taxes on Export Products Scheme), ROSCTL (Scheme for Rebate of State and Central Taxes and Levies on Export of
Garments and Made-ups) etc, issued by Government of India to the exporters as incentive.

1b Basis Of Preparation Of Financial Statement

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (“Indian GAAP”). The Company has
prepared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 (“the Act”), read
together with rule 7 of the Companies (Accounts) Amendment Rules, 2021. The financial statements have been prepared on an accrual basis and under the historical cost
convention.

1c Use Of Estimates

The preparation of financial statements is in conformity with generally accepted accounting principles, requires the management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting
periods. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from those estimates. Significant
estimates used by management in the preparation of these financial statements include the estimates of the economic useful lives of the fixed assets, provisions for bad and
doubtful debts, recognition of deferred tax asset, provision for employee benefits and provision for income taxes.

Note 2:

Significant Accounting Policies:

2a. Revenue recognition

a) Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognized to the extent that it is probable that
the economic benefits will flow to the Company and the revenue can be reliably measured.

b) Revenue from Sale of services is recognized as and when the services are performed.

c) Interest income is recognised on time basis determined by amount outstanding and rate applicable.

d) All other income and expenditure materially affecting financial are accounted on accrual basis to the extent they are ascertainable, in case of unascertainable income and
expenditure such as claim towards damages, discount, rate difference, rebate etc., are accounted as and when received and paid.

2b. Property, Plant and Equipments

Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price (including all
duties and taxes, net of duty credits, if any), borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

All other expenses on existing Property, Plant and Equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement
of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the
asset and are recognized in the statement of profit and loss when the asset is derecognized.

2c. Intangible Assets and amortization

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization
and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the
statement of profit and loss in the period in which the expenditure is incurred.

Intangible asset is amortized based on management’s estimation of its useful economic life i.e. 5 years on straight line basis
2d. Impairment of assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. If at
the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at
the recoverable amount subject to a maximum of depreciated historical cost.

2e. Depreciation

I n respect of fixed assets, depreciation is charged on straight line basis so as to write off the cost of the assets over the useful lives as prescribed in the Schedule 11 of the
Companies Act ,2013 ("the Act").

2f. Inventories

Inventories are valued at lower of cost and the net realisable value. Cost of Inventories is determined on a Weighted average cost method and the cost of inventories of items
that are not ordinarily interchangeable are determined by specific identification of their individual costs.

2g. Cash and bank balances

Cash and bank balances for the purposes of cash flow statement comprise cash & cash equivalents and other bank balances. Cash & cash equivalents further comprise of cash
at bank and in hand and short-term investments with an original maturity of three months or less. Bank balances comprise of balances with banks held as margin
money or security against borrowings, guarantees, etc. and bank deposits with more than 12 months maturity.

2h. Taxation:

Tax expense comprises current and deferred tax. The current charge for income taxes is calculated in accordance with the relevant tax regulations. Deferred income taxes
reflects the impact of current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier periods.
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 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. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax
assets can be realized against future taxable profits.

Unrecognized deferred tax assets of earlier periods are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be
available against which such deferred tax assets can be realized.