Accounting Policies of Net Avenue Technologies Ltd. Company

Mar 31, 2025

2 Significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these standalone financial

statements.

2.1 Basis of preparation of standalone financial statements

The standalone financial statements have been prepared and presented in accordance with the generally accepted accounting
principles In India (“Indian GAAP''”). The standalone financial statements have been prepared to comply in all material respects
with the Accounting Standards ("AS”) notified under section 133 of the Companies Act. 2013 and the other relevant provisions
of Companies Act. 2013 as applicable. The standalone financial statements have been prepared on accrual basis under the
historical cost convention

All assets and liabilities have been classified into current or non-current as per the normal operating cycle of the Company and
other criteria as set out in Schedule III to the Companies Act, 2013. Based on the nature of the services and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating
cycle as twelve months for the purpose of current and non-current classification of assets and liabilities

The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held

on 29th May 2025

The financial statements have been prepared on a going concern basis.

2.2 Use of estimates

The preparation of standalone financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the
standalone financial statements and reported amounts of income and expenses during the period. Actual figures may differ from
these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Current-non-current classification

All assets and liabilities arc 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 realised in, or is intended for sale or consumption 111, the company’s normal operating cycle;

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

c it is expected to be realised 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 scale a liability for at least 12 months after

Current assets include the current portion of non-current assets. All other assets arc classified as non-current.

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 docs 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.

Current liabilities include current portion of non-current liabilities. All other liabilities are classified as non-current.

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

2.4 Property, plant and equipment and depreciation

The cost of property. plant and equipment includes freight. duties and taxes and other incidental expenses related to the
acquisition. but exclude duties and taxes that arc recoverable subsequently from tax authorities. Borrowing costs directly
attributable to acquisition of those property, plant and equipment which necessarily take a substantial period of time to get ready
for their intended use arc capitalized. Depreciation is provided on written down value method over the useful life as prescribed
under Part C of Schedule II of the Companies Act. 2013. Pursuant to the above. the useful life of the assets arc as below:

Leasehold improvements arc amortised using straight line method over the lease period.

Advances paid towards acquisition of property, plant and equipment and the cost of assets not ready to be put to use before the
year end are disclosed under long-term loans and advances. and capital work in progress respectively.

2.5 Intangible assets and amortisation

intangible assets arc recorded at the consideration paid for acquisition including any import duties and other taxes (other than
those subsequently recoverable by the enterprise from the taxing authorities). and any directly attributable expenditure in making
the asset ready for its intended use. Intangible assets comprise primarily of software licenses that are amortized over their
estimated useful life of 3 years

2.6 Impairment

The Company assesses at each balance sheet whether there is an indication that an asset may be impaired. If any such condition
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 111 the statement of profit and loss . If at the
balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciated historical cost.

2.7 Inventories

Inventories which comprise raw materials, work in-progress. finished goods and stock-in-trade are carried at the lower of cost and
net realisable value. The comparison of cost and net realizable value is made on an item by item basis. Cost of inventories
comprises of purchase costs, costs of conversion. and other costs incurred in bringing the inventories to their present condition and
location. In determining the cost, specific identification method is used

2.8 Income from operations and other income

Revenue from sale of goods including shipping charges is recognised on delivery of goods to customers. which generally coincides
with the transfer of all significant risks and rewards of ownership to the buyer. Sale value of goods is exclusive of sales tax,
returns, and inclusive of price adjustments and quantity discounts.

Dividend income is recognized when the shareholders'' right to receive payment is established by the balance sheet date.

Interest income is recognized on time proportion basis.

2.9 Investments

Investments are either classified as current or non-current based on the management''s intention. Current investments are earned at
the lower of cost and fair value. In case of investments in mutual funds, the net asset value of units declared by the mutual funds is
considered as the fair value. Non-current investments are carried at cost and provisions are recorded to recognize any decline,
other than temporary. in the carrying value of each investment.

2.10 Foreign currency transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the day of the respective transactions. Monetary
assets and liabilities denominated in foreign currencies arc translated at the exchange rate on the balance sheet date. Exchange
differences arising on foreign currency transactions during the year and on restatement of monetary assets and liabilities are
recognized in the statement of profit and loss of the year.

Integral foreign operations are those which carry on their business as if they were an extension of the Company’s operations.

The financial statements of an integral foreign operation are translated into Indian rupees as if the transactions of the foreign
operation were those of the Company itself.

2.11 Earnings per share

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

For the purpose of calculating diluted earnings per share, net profit after tax attributable to the equity shareholders for the year and
the weighted average number of shares outstanding during the year arc adjusted for the effects of all dilutive potential equity
shares The dilutive potential equity shares arc deemed converted as of the beginning of the period, unless they have been issued at
a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued
at fair value (i.e. the average market value of the outstanding shares).

In computing diluted earnings per share. only potential equity shares that arc dilutive and that reduce profit / loss per share are
included.

2.12 Leases

Leases under which the Company assumes substantially all the risk and rewards of ownership are classified as finance leases.
Such assets acquired arc capitalised at the fair value of the asset or present value of the minimum lease payments at the inception
of the lease, whichever is lower. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of
the leased items are classified as operating leases. Operating lease payments arc recognised as an expense in the statement of profit and loss on a straight line basis over the period of the lease. .

2.13 Employee benefits
Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee
benefits. These benefits include salaries and wages. bonus and ex-gratia The undiscounted amount of short-term employee
benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by employees.

Post-employment benefits
Defined contribution plan:

Provident Fund: A defined contribution plan is a post employment benefit plan under which an entity pays specified
contributions to a separate entity and has no obligation to pay any further amounts. The company makes specified monthly
contributions towards employee provident fund and pension to Government administered provident fund scheme and pension
scheme which is a defined contribution plan. The Company has no further obligations under the plan beyond its monthly
contributions. The company''s contribution is recognized as an expense in the Statement of profit and loss during the period in
which the employee renders the related service

Defined benefit plan:

Gratuity: The company’s gratuity benefit scheme is the defined benefit plan. The company’s net obligation in respect of the
defined benefit plan is calculated by estimating the amount of future benefit that the employees have earned in return for their
service 111 the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service
costs and the fair value of any plan assets arc deducted. The calculation of the company’s obligation is performed by a qualified
actuary using the projected unit credit method. The Companies gratuity scheme is administered by Life Insurance Corporation of
India.

The company recognizes all actuarial gains and losses arising from the defined benefit plan immediately in the statement of profit
and loss. All expenses related to defined benefit plans are recognized in employee benefits expense in the statement of profit and
loss. When the benefits of the plan are improved, the portion of the increased benefit related to past service by employees is
recognized in the statement of profit and loss on a straight line basis over the average period until the benefits become vested. The
company recognizes gains and losses on the curtailment or settlement of the plan when the curtailment or settlement occurs

Compensated absences: The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it
111 future service periods or receive cash compensation on termination of employment. The obligation is measured on the basis of
independent actuarial valuation using the projected unit credit method as at the balance sheet date.

2.14 Taxation

Income-tax expense comprise current tax (i.e. amount of tax for the period determined in accordance with the income-tax law),
and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income
for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the
tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized
only to the extent there is a reasonable certainty that the assets can be realized in future; however, where there is unabsorbed
depreciation or carried forward loss under taxation laws, deferred tax assets arc recognized only if there is a virtual certainty of
realization of such assets. Deferred tax assets are reviewed as at the balance sheet date and written down or written up to reflect
the amount that is reasonably/virtually certain (as the case may be) to be realized.

Current tax and deferred tax assets and liabilities are offset to the extent to which the Company has a legally enforceable right to
set off and they relate 10 taxes on income levied by the same governing taxation laws

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Mar 31, 2024

2 Significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these standalone financial

statements.

2.1 Basis of preparation of standalone financial statements

The standalone financial statements have been prepared and presented in accordance with the generally accepted accounting
principles in India ("Indian GAAP”) The standalone financial statements have been prepared to comply in all material respects
with the Accounting Standards (“AS”) notified under Section 133 of the Companies Act, 2013 and the other relevant provisions
ol Companies Act, 2013 as applicable. The standalone financial statements have been prepared on accrual basis under the
historical cost convention.

Ail assets and liabilities have been classified into current or non-current as per the normal operating cycle of the Company and
uihcr criteria as set out tn Schedule 111 to the Companies Act, 2013. Based on the nature of the services and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating
cvclc as twelve months for the purpose of current and non-current classification of assets and liabilities

1 he Board, duly taking into account all the relevant disclosures made, lias approved these financial statements in its meeting held
on 25th May 2024.

The financial statements have been prepared on a going concern basis.

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2.2 Use of estimates

The preparation of standalone financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure ol contingent liabilities on the date of the
standalone financial statements and reported amounts of income and expenses during the period Actual figures may differ from
these estimates Any revision to accounting estimates is recognized prospectively in current and future periods

2.3 Cm rent non current classification

All asset i and liabilities aic class lied into current and non-current
Assets

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

a n is expected to he realised in, or is intended for sale or consumption m. the company’s normal operating cycle,
b. it is held primarily for the purpose of being traded,
c it is expected to be realised 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 at least !2 months after
Current assets include the current portion of non-current assets Ali other assets are classified as non-current.

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.

e. n is due to be settled within 12 months after the reporting date; or

J ihe company docs not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting
date ! erm.s ol a liability that could, at the option oi the counterparty, result m its settlement bv the issue of equity instruments do

not affect its classification

Cwiwt liabilities include current portion of non-current liabilities. All other liabilities are classified as non-current
Opcriditir c ‘ e is the nine between the acquisition of assets for processing and their realisation in cash or cash equivalents.

2.4 Properly, plant and equipment and depreciation

: he cost ot property, plant and equipment includes freight, duties and taxes and other incidental expenses related to the
acquisition, bul exclude duties and taxes that arc recoverable subsequently from tax authorities. Borrowing costs directly
attributable to acquisition oi those property, plant and equipment which necessarily take a substantial period of time to get ready
lor their intended use arc capitalized. Depreciation is provided on written down valoe method over the useful Ufc as prescribed
under Part C oi Schedule II of the Companies Act. 2013, Pursuant to the above, the useful life of the assets are as below:

Leasehold improvements are amortised using straight line method over the lease period

Advances paid towards acquisition of property, plant and equipment and the cost of assets not ready to be put to use before the
year end are disclosed under long-term loans and advances, and capital work in progress respectively.

2.5 Intangible assets amt amortisation

Intangible lived assets are recorded ai the consideration paid lor acquisition including any import duties and other taxes (other
!hai! those subsequently recoverable hv the enterprise from the taxing authorities), and any directly attributable expenditure in
making the asset read'' lor its intended use Intangible assets comprise primarily of software licenses that are amortized over their

estimated useful life of 3 years.

2.6 Impairment

I he Company assesses ai each balance sheet whether there is an indication that an asset may be impaired. If any such condition
exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable
amount ol the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to
its recoverable amount. I he reduction is treated as an impairment loss and is recognised in the statement of profit and loss . Ifat
the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount
IS reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciated historical cost

2.7 Inventories

Inventories which comprise raw materials, work tn-progress. finished goods and stock-in-trade are carried at the lower of cost
and net realisable value The comparison or cost and net realizable value is made on an item by item basis. Cost of inventories
comprises ol purchase costs, costs of conversion, and other costs incurred in bringing the inventories to their present condition
and location In determining the cost, specific identification method is used,

2.8 Income from operations and other income

Revenue from sale of goods including shipping charges is recognised on delivery of goods to customers, which generally
coincides with the transfer of all significant risks and rewards of ownership to the buyer. Sale value of goods is exclusive of sales
tax, returns, and inclusive of price adjustments and quantity discounts.

Dividend income is recognized when the shareholders'' right to receive payment is established by the balance sheet date.

Interest income is recognized on time proportion basis

2.9 Investments

Investments ..re either classified as current or long-term based on the management''s intention Current investments are earned at
me lower oi cost and lair value In case of investments in mutual funds, the net asset value of units declared by the mutual funds
is considered as the lair value. I.ong-tcrm investments arc carried at cost and provisions arc recorded to recognize any decline,
other than temporary, in the carrying value ol each investment

2.10 Foreign currency transactions

foreign cutTcncy transactions are recorded at the exchange rates prevailing on the day of the respective transactions. Monetary
assets and liabilities denominated in foreign currencies are translated at the exchange rate on the balance sheet date. Exchange
differences arising on foreign currency transactions during the year and oil restatement of monetary assets and liabilities are
recognized in the statement of profit and loss of the year.

Integral foicign operations are those which cany on their business as if they were an extension of the Companv’s operations.

I he financial statements of an integral foreign operation are translated into Indian rupees as If the transactions of the foreign
operation were those of the Company itself

2.1! Earnings per .share

Biisic earnings per share amounts are computed by dividing net profit or loss for the year attributable to equity shareholders by
the weighted average number of shares outstanding during the year.

hoi the purpose of calculating diluted earnings per share, net profit after tax attributable to the equity shareholders for the year
and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity
shares I lie dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued
at a later date lhe diluted potential equity shares have been adjusted lor the proceeds receivable had the shares been actually
issued at fair value (i.e. the average market value of the outstanding shares).

hi computing diluted earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are

included.

2.12 Leases

leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases
Such assets acquired are capitalised at the fair value of the asset or present value of the minimum lease payments at the inception
ol the tease, whichever is lower Leases where the lessor effectively retains substantially all the risks and benefits of ownership
ot the leased items are classified as operating leases. Operating lease payments are recognised as an expense in the statement of
proln and loss on a straight line basis over the period of the lease

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2.13 Kmplovee benefits

Short-term employee benefits

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l*ost-employment benefits
Defined eontributinn plan:

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Defined benefit plan:

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2.14 Taxation

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