Accounting Policies of Niks Technology Ltd. Company

Mar 31, 2025

24 SIGNIFICANT ACCOUNTING POLICIES & NOTES :

^A Basis Of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India
(Indian GAAP) to comply 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 relevant provisions of the Companies Act, 2013 ("the Act"). The financial statements
have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the previous year.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria
set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets
for processing and their realization in cash and cash equivalents, the Company ascertained its operating cycle as 12 months for the
purpose of current and non-current classification of assets and liabilities.

^B Use Of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at
the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.

^C Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments
with an original maturity of three months or less.

^D Taxes on Income:

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions
where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting Income originating during the
current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws
enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is
recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for taxable timing differences. Deferred tax assets are recognized for deductible timing
differences 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. In situations where the company has unabsorbed depreciation or carry forward tax losses,
all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized
against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset
to the extent that it has become reasonably certain or virtually certain as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount
of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain as the case may be that sufficient future
taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain as the case may be that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current
tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

E Property, Plant and Equipment, Tangible Assets

Property, plant and equipment (PPE), being fixed assets are tangible items held for use or for administrative purposes and are
measured at cost less acumulated depreciation ans any accumulated impairment. Cost comprises of the purchase price including
import duties and non-refundable purchase taxes after deducting trade discounts and rebates and any costs attributable to bringing the
asset to the location and condition necessery for it to be capable of operating in the manner intended by the Management. Financing
costs relating to acquisition of assets relating to acquisition of assets which take substantial period of time to get ready for intended use
are also included to the extent they relate to the period up to such assets are ready for their intended use.

Gains or losses arising from derecognition of property, plant & 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 dereconized.
the residual values, useful lives and methods of depreciation of property, plant & equipment are reviewed at each financial year end
and adjusted preospectively, if appropriate.

Depreciation

Depreciation on Property, Plant and equipment are provided under Written Down value method as per the useful lives and manner
prescribed under schedule II to the Companies Act, 2013. Depreciation is calculated after reclassification of assets.

Intangible Assets

Intangible Assets are recognised only if it is probable that future economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. During the year the company does not possessed any intangible assets.

^F Current Assets, Loans & Advances

In the opinion of the Board and to the best of its knowledge and belief the value on realisation of current assets in the ordinary course
of business would not be less than the amount at which they are stated in the Balance Sheet and repayable on demand.

^G Recognition of Income & Expenditure

Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognised
on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding
realisation of the consideration. Sales are recorded net of sales returns, sales tax/VAT, cash and trade discounts.

H Earning Per Shares

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting Standard - 20 on Earning Per
Share. In determining earning per share, the Company considers the net profit after tax and includes the post tax effect of any
extraordinary/exceptional items. The number of shares used in computing basic earning per share is the weighted avergae number of
equity shares outstanding during the period. The numbers of shares used in computing diluted earning per share comprises the
weighted average number of equity shares that would have been issued on the conversion of all potential equity shares. Dilutive
potential equity shares have been deemed converted as of the beginning of the period, unless issued at a later date.

---

Mar 31, 2024

23 SIGNIFICANT ACCOUNTING POLICIES & NOTES :

^A Basis Of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indiar
GAAP) to comply 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 relevant provisions of the Companies Act, 2013 ("the Act"). The financial statements have been
prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set
out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the Company ascertained its operating cycle as 12 months for the purpose of
current and non-current classification of assets and liabilities.

^B Use Of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingentliabilities, at the
end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts
of assets or liabilities in future periods.

^C Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.

D Taxes on Income:

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities
in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the
company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting Income originating during the
current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted
or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.

Deferred tax liabilities are recognized for taxable timing differences. Deferred tax assets are recognized for deductible timing differences
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. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets
are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable
profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to
the extent that it has become reasonably certain or virtually certain as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of
deferred tax asset to the extent that it is no longer reasonably certain or virtually certain as the case may be that sufficient future
taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain as the case may be that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax
liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

E Property, Plant and Equipment, Tangible Assets

Property, plant and equipment (PPE), being fixed assets are tangible items held for use or for administrative purposes and are measured
at cost less acumulated depreciation ans any accumulated impairment. Cost comprises of the purchase price including import duties and
non-refundable purchase taxes after deducting trade discounts and rebates and any costs attributable to bringing the asset to the location
and condition necessery for it to be capable of operating in the manner intended by the Management. Financing costs relating to
acquisition of assets relating to acquisition of assets which take substantial period of time to get ready for intended use are also included
to the extent they relate to the period up to such assets are ready for their intended use.

Gains or losses arising from derecognition of property, plant & 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 dereconized.
the residual values, useful lives and methods of depreciation of property, plant & equipment are reviewed at each financial year end and
adjusted preospectively, if appropriate.

Depreciation

Depreciation on Property, Plant and equipment are provided under Written Down value method as per the useful lives and manner
prescribed under schedule II to the Companies Act, 2013. Depreciation is calculated after reclassification of assets.

Intangible Assets

Intangible Assets are recognised only if it is probable that future economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. During the year the company does not possessed any intangible assets.

^F Current Assets, Loans & Advances

In the opinion of the Board and to the best of its knowledge and belief the value on realisation of current assets in the ordinary course of
business would not be less than the amount at which they are stated in the Balance Sheet and repayable on demand.

^G Recognition of Income & Expenditure

Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognised on
transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realisation of
the consideration. Sales are recorded net of sales returns, sales tax/VAT, cash and trade discounts.

^H Earning Per Shares

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting Standard - 20 on Earning Per Share.
In determining earning per share, the Company considers the net profit after tax and includes the post tax effect of any
extraordinary/exceptional items. The number of shares used in computing basic earning per share is the weighted avergae number of
equity shares outstanding during the period. The numbers of shares used in computing diluted earning per share comprises the weighted
average number of equity shares that would have been issued on the conversion of all potential equity shares. Dilutive potential equity
shares have been deemed converted as of the beginning of the period, unless issued at a later date.