Accounting Policies of Novus Loyalty Ltd. Company

Mar 31, 2026

Note 1: CORPORATE INFORMATION

Initially CLAVAX TECHNOLOGIES PRIVATE LIMITED (the ''Company'') was incorporated as on 24 June 2011. The name of the Company was changed from CLAVAX TECHNOLOGIES PRIVATE LIMITED to NOVUS LOYALTY PRIVATE LIMITED, pursuant to approval from the Ministry of Corporate Affairs. A fresh Certificate of Incorporation was issued on 6th September 2024 by the Registrar of Companies. Later on company was changed to a Limited company as Novus Loyalty Limited during the year 2025.26.

NOVUS LOYALTY LIMITED is a listed company and was listed on Bombay Stock Exchange on 25^th March 2026.

The company is engaged in Computer/software related activities (For Example activities of development of Multimedia Presentation on account of others, maintenance of Website on account of others etc.). During the year Company was engaged in Loyalty Programme also.

Note 2: BASIS OF PREPARATION OF FINANCIAL STATEMENTS

2.1 Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards ("Ind AS”), the provisions of the Companies Act, 2013 ("the Companies Act”), as applicable. The Ind AS are prescribed under Section133 of the Companies Act read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

These financial statements are authorized for issue by the Board of Directors on May 16, 2026.

Estimates and underlying assumptions are reviewed on an ongoing basis.

The Company uses the following accounting estimates in preparation of its financial statements:

2.2 Basis of preparation and presentation

These financial statements have been prepared on the historical cost basis. The company follows the mercantile system of accounting and recognizes items of income and expenditure on accrual basis considering that company is a going concern. All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realization in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.

The statement of cash flows has been prepared under the indirect method. Accounting policies have been applied consistently to all periods presented in these financial statements.

All amounts included in the financial statements are reported in thousands of Indian rupees except Shares and Earning Per Share data, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

2.3 Use of Estimates

The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between actual result and estimates are recognized in the period in which the results are known/materialized.

2.4 Inventories

Inventory is valued at lower of cost or net realizable value. Cost is determined on the basis of specific identification method.

2.5 Plant Property and Equipment

Property, plant and equipment are stated at costs less accumulated depreciation.

There is no impairment loss during the year.

The cost includes purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use.

The cost of an item of property, plant and equipment shall be recognized as an asset if, and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

2.6 Intangible Assets

Intangible assets purchased are measured at cost as of the date of acquisition, as applicable, less accumulated amortization.

Intangible assets are amortized on a Written down value basis over their estimated useful lives from the date that they are available for use. The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year.

2.7 Depreciation and Amortization

Depreciation on Property Plant and Equipment and Software IP is provided on the Written down value method at the rates specified under Schedule-II of the Companies Act, 2013.

2.8 Investments

Long term/ Short term investments are stated at cost.

2.9 Cash and Cash Equivalents

Cash and Cash Equivalents comprises cash in hand and balance with banks as on 31^st March 2026.

2.10 Bank Balances other than Cash and Cash Equivalents

Bank Balances comprises Fixed Deposits with bank with original maturity of more than 3 months but less than 12 months.

2.11 Revenue Recognition

In case of Services, Revenues are recognized on completion of services rendered, and in case of Goods, on the transfer of all significant risks & rewards of ownership to the customers.

Revenue is recognized upon completion of services and transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services.

Revenue also excludes taxes (GST) collected from customers.

Interest income is accounted for using the effective interest method.

Foreign currency gains and losses are reported on net basis, if any.

2.12 Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rate prevailing at the time of transactions. Foreign currency relating to current assets and liabilities are converted at the year-end rate and the difference if any adjusted in the Profit and Loss Account on net basis only.

2.13 Employee Benefits

Employee benefits include contribution to Employees provident fund,, compensated absences (leave encashment), etc.

All the expenses have been provided on accrual basis. Provision for gratuity and leave encashment has been made on the basis of actuarial reports.

2.14 Provisions and Contingent Liabilities

The company recognizes the provisions when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the same. A disclosure for a contingent liability is made when there is a possible obligation that may require outflow of resources.

Contingent Assets are not recognized in the financial statements. However, disputed GST demand for Rs. 5879.26 (thousand) net of pre deposit is recognized as contingent liability in financial statements as on 31^st march 2026.

2.15 Taxes on Income

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred tax are recognized in statement of profit or loss.

Current income tax for the current period is measured at the amount expected to paid to the taxation authorities based on the taxable income.

The tax rates and tax laws used to compute the amount are those that are enacted by the balance sheet date.

2.16 Deferred Income Taxes

Deferred tax is recognized using the balance sheet liability method. It is provided for all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Assets are recognized and carried forward only to the extent that there is a certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Differential Depreciation as per book and tax is major part.

2.17 Impairment of Plant Property and Equipment and Intangible Assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, (the recoverable amount i.e. higher of the fair value less cost to sell and the value-in-use), the carrying amount of the asset is reduced to its recoverable amount.

2.18 Basic and Diluted Earnings Per Share

Basic earnings per share (EPS) are computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Since the Company does not have the interest and other financing costs or income and associated potential dilutive equity shares, therefore both basic and diluted EPS is the same.