Accounting Policies of SAR Televenture Ltd. Company

Mar 31, 2025

1. SIGNIFICANT ACCOUNTING POLICIES

1.01 Corporate Information

SAR Televenture Limited (Formerly Named as SAR Televenture Private Limited)

was incorporated on 24^th May, 2019 under the Companies Act, 2013 having its
registered office at #B-16, First Floor, Sector-2, Gautam Buddha Nagar, Noida,
Uttar Pradesh-201301.The company is exclusively engaged in providing integrated
network solutions including commissioning & installations of 4G/5G telecom towers,
fiber to the home services, Enterprise network solutions etc. The Company has been
converted into a Public Limited Company on 13 ^th Day of April, 2023.

1.02 Basis of Preparation and Presentation of Financial Statements

The Standalone Financial Statements for year ended on 31^st March, 2025
of the company comprises of the Standalone Statements of Assets and
Liabilities as at March 31, 2025, March 31, 2024 and the Standalone Statement of
Profit and Loss (including other comprehensive Income), the Standalone
Statement of changes in Equity and the Standalone Statement of Cash flows for
the year ended on 31st March, 2025 and for the year ended March 31, 2024 the
Basis for Preparation and Significant Accounting Policies and the Statement of
Notes to the Standalone Financial Statements (hereinafter collectively referred to as
''Standalone Financial Statements'')

The Standalone Financial Statements has been prepared by the Management of the
company for inclusion in the offer Document to be filed by the company with the
Securities and Exchange Board of India (''SEBI'') in connection with proposed “Rights
Issue” and “Further Public Offer” together forming the “Composite Issue” of Equity
shares, in accordance with the requirements of:

• Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act")

• Relevant provisions of the securities and Exchange Board of India (Issue of Capital and

Disclosure Requirements) Regulations, 2018, issued by the Securities and Exchange
Board of India (SEBI,) as amended in pursuance of the Securities and Exchange Board
of India Act, 1992; and

• The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the
Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the
"Guidance Note").

The Standalone Financial Statements have been compiled from:

Audited Financial statements for year ended on 31st March, 2025 and Annual

Audited Financial statements for the year ended March 31, 2024 prepared in

accordance with the accounting standards notified under Companies (Accounting
Standards) Rules, 2006 (as amended) and other relevant provisions of the Act
(Previous GAAP or Indian GAAP) (hereinafter collectively referred to as "

Standalone Financial Statements ")

The Standalone Financial Statements has been compiled by the Management from the
Audited Standalone Financial statements for the respective years and:

• there were no changes in accounting policies during the respective years of these
financial statements.

• there were no material adjustments for previous years in arriving at loss/profit of the
respective years;

• appropriate regroupings have been made in the Standalone Financial Statement of
assets and liabilities, statement of profit and loss and statement of cash flow, wherever
required, by reclassification of the corresponding items of income, expenses, assets,
liabilities and cash flows, in order to bring them in line with the accounting policies and
classification as per the Schedule III of Companies Act, 2013, requirements of AS 1
and other applicable AS principles and the requirements of the Securities and Exchange
Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2018, as
amended.

1.03 Basis of measurement

These statements are prepared under historical cost convention on accrual basis and
also certain financial assets and financial liabilities which are measured at fair values at
the end of each reporting period as mentioned in the relevant notes to accounts.

Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating the fair value
of an asset or a liability, the Company takes into account the characteristics of the asset
or liability if market participants would take those characteristics into account when
pricing the asset or liability at the measurement date. Fair value for measurement and/or
disclosure purposes in these Standalone Financial Statements is determined on this
basis.

The Standalone balance Sheet and the Standalone Statement of Profit and Loss are
prepared and presented in the format prescribed in the Schedule III to the Companies
Act, 2013 (“the Act”). The Standalone Statement of cash flows has been prepared and
presented as per the requirements of AS 3 “Statement of Cash flows”. The disclosure
requirements with respect to items in the standalone Balance Sheet and the Standalone
Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented
by way of notes forming part of the Standalone Financial Statements along with the
other notes required to be disclosed under the notified Accounting Standards.

Amounts in the Standalone Financial Statements are presented in INR in Lakhs
rounded off to two decimal places as permitted by Schedule III to the Companies Act,
2013 except otherwise stated.

All assets and liabilities have been classified as current or non-current as per the
Company’s normal operating cycle. The Operating cycle has been taken to be 12
months. Deferred tax assets and deferred tax liabilities are classified as non-current
assets and non-current liabilities, as the case may be.

1.04 Use of Estimates

The preparation of the Standalone Financial Statements in conformity with AS requires
the Management to make estimates, judgement and assumptions that affect the
application of accounting policies and the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities. The principal
accounting estimates have been described under the relevant income /expense and / or
assets / liability item in the Standalone Financial Statements. The Management believes
that the estimates used in the preparation of these Standalone Financial Statements are
prudent and reasonable. Actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized in the period in which the estimate is revised if
the revision affects only the period of the revision and future periods if the revision
affects both current and future periods.

1.05 Property, Plant and Equipment

Property, plant, and equipment are stated at their cost of acquisition less accumulated
depreciation and impairment (if any). The cost comprises the purchase price, borrowing
cost and attributable cost of bringing the asset to its working condition for its intended
use.

Gains or losses arising on retirement or disposal of property, plant and equipment are
recognized in the statement of Profit and Loss.

The residual values, useful lives, and method of depreciation of property, plant and
equipment is reviewed at each financial year end and adjusted prospectively, if
appropriate.

Property, plant, and equipment which are not ready for intended use as on the date of
Balance Sheet are disclosed as “Capital work-in-progress”.

1.06 Depreciation and Useful Life

Depreciation on Property, Plant and Equipment is provided on Written Down Value
and computed on the basis of the useful life prescribed in Schedule II to the Companies
Act, 2013 (Act) from the date the asset is ready to put to use.

Depreciation on office building and investment properties is provided on Written Down
value Method and computed on the basis of the useful life prescribed in Schedule II to
the Act from the date the asset is ready to put to use.

The residual value of 5% of Original Cost is considered for the Purpose of Calculating
Depreciation rates. The residual values, useful lives and method of depreciation are
reviewed at the end of each financial year.

Depreciation is provided on pro-rata basis in the year in which the assets are put to use.

The Company has used rates to provide depreciation which coincide with the rates
indicated in schedule II of the Companies Act 2013 on its fixed assets.

1.07 Capital Work in Progress and Intangible Assets under Development

Property, Plant and Equipment which are not ready for intended use as on the date of
Balance Sheet are disclosed as “Capital Work-in-Progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at
each balance sheet date are classified as capital advances under other non-current assets.

1.08 Impairment of Tangible Assets

The carrying amount of assets is reviewed at each balance sheet date and impairment
loss is recognized whenever there is any indication of impairment based on internal/
external indicators. An impairment loss is recognized in the Statement of Profit and
Loss where the carrying amount of the assets exceeds the recoverable amount.

An impairment loss is recognized immediately in profit or loss. An impairment loss is
reversed if there is change in the recoverable amount and such loss either no longer
exists or has decreased.

A previously recognized impairment loss is reversed only if there has been a change in
the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognized. The reversal is limited so that the carrying amount of
the asset does not exceed its recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been
recognized for the asset in prior years. Such reversal is recognized in the statement of
profit or loss unless the asset is carried at a revalued amount, in which case, the reversal
is treated as a revaluation increase.

1.09 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its
realization or collection. Revenue on sale of product is recognised on delivery of the
product, when all significant contractual obligations have been satisfied, the property
in goods is transferred for a price, significant risk and reward of ownership have been
transferred and no effective ownership control is retained. Interest income is recognised
on time proportion basis.

1.10 Employee Benefits

Employee benefits include salaries, wages, provident fund, gratuity, etc. Short term
employee benefits are recognized at their undiscounted amount in the accounting period
in which they are incurred.

Employees benefit under defined Contribution Plan comprises Employee Provident
Fund under the provisions of Employees'' Provident Fund and Miscellaneous Provisions
Act, 1952, for which the Company contributes to the plan under the provisions of the
said Act.

Termination benefits are payable when employment is terminated by the company
before the normal retirement date or when an employee accepts voluntary redundancy
in exchange for these benefits. In case of an offer made to encourage voluntary
redundancy; the termination benefits are measured based on the number of employees
expected to accept the offer.

1.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition and/or construction of qualifying
assets are capitalized as part of the cost of such assets during the period of time that is
necessary to complete and prepare the assets for its intended use or sale. A qualifying

asset is one that necessarily takes a substantial period of time to get ready for its
intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.12 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders (after deducting attributable taxes) by the weighted-
average number of equity shares outstanding during the period. The weighted-average
number of equity shares outstanding during the period is adjusted for events including a
FPO, Right Issue, and Share Swap in proportion to the period they were outstanding.

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. The Company has issued 25% Warrants during the year, which are considered
as potential equity shares for the purpose of diluted EPS. The Weighted-Average
Number of shares have been calculated after considering the impact of such warrants as
per AS 20 requirements.

1.13 Accounting for Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. It is recognized in
the Statement of Profit and Loss except to the extent it relates to an item which is
recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the
year using applicable tax rates at the Balance Sheet date

Deferred tax is recognized in respect of temporary differences between the carrying
amount of assets and liabilities for financial reporting purposes and the corresponding
amounts used for taxation purposes. Deferred tax assets are recognized only to the
extent that it is probable that future taxable profits will be available against which the
asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced
to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the
extent there is convincing evidence that the Company will pay normal income tax
during the specified period. Such asset is reviewed at each Balance Sheet date and the
carrying amount of the MAT credit asset is written down to the extent there is no longer
convincing evidence to the effect that the Company will pay normal income tax during
the specified period.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on tax rates (and

tax laws) that have been enacted or substantively enacted by the end of the reporting
period.

Transaction or event which is recognized outside profit or loss, either in other
comprehensive income or in equity, is recorded along with the tax as applicable.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

2.01 Corporate Information

SAR Televenture Limited (Formerly Named as SAR Televenture Private Limited)

was incorporated on 24^th May, 2019 under the Companies Act, 2013 having its registered office at #346-A, 2nd Floor, Udyog Vihar Phase-4 Gurugram, 122016 (Haryana). The company is exclusively engaged in General construction (including alteration, addition, repair and maintenance) of 4G & 5G Networks Towers, carried out on own-account basis or on a fee or contract basis The Company has been converted into a Public Limited Company on 13^th Day of April, 2023.

2.02 Basis of Preparation and Presentation of Financial Statements

The Standalone Financial Statements for year ended on 31^st March, 2024 and Financial Year 2022-23 of the company comprises of the Standalone Statements of Assets and Liabilities as at March 31, 2024, March 31, 2023 and the Standalone Statement of Profit and Loss (including other comprehensive Income), the Standalone Statement of changes in Equity and the Standalone Statement of Cash flows for the year ended on 31st March, 2024 and for the year ended March 31, 2023 the Basis for Preparation and Significant Accounting Policies and the Statement of Notes to the Standalone Financial Statements (hereinafter collectively referred to as '' Standalone Financial Statements''). The Standalone Financial Statements has been prepared by the Management of the company for inclusion in the offer Document to be filed by the company with the Securities and Exchange Board of India (''SEBI'') in connection with proposed “Rights Issue” and “Further Public Offer” together forming the “Composite Issue” of Equity shares, in accordance with the requirements of:

• Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act")

• Relevant provisions of the securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, issued by the Securities and Exchange Board of India (SEBI,) as amended in pursuance of the Securities and Exchange Board of India Act, 1992; and

• The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").

The Standalone Financial Statements have been compiled from:

Audited Financial statements for year ended on 31st March, 2024 and Annual Audited Financial statements for the year ended March 31, 2023 prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (Previous GAAP or Indian GAAP) (hereinafter collectively referred to as " Standalone Financial Statements ")

The Standalone Financial Statements has been compiled by the Management from the Audited Standalone Financial statements for the respective years and:

• there were no changes in accounting policies during the respective years of these financial statements.

• there were no material adjustments for previous years in arriving at loss/profit of the respective years;

• appropriate regroupings have been made in the Standalone Financial Statement of assets and liabilities, statement of profit and loss and statement of cash flow, wherever required, by reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with the accounting policies and classification as per the Schedule III of Companies Act, 2013, requirements of AS 1 and other applicable AS principles and the requirements of the Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2018, as amended.

2.03 Basis of measurement

These statements are prepared under historical cost convention on accrual basis and also certain financial assets and financial liabilities which are measured at fair values at the end of each reporting period as mentioned in the relevant notes to accounts.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these Standalone Financial Statements is determined on this basis.

The Standalone balance Sheet and the Standalone Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Standalone Statement of cash flows has been prepared and presented as per the requirements of AS 3 “Statement of Cash flows”. The disclosure requirements with respect to items in the standalone Balance Sheet and the Standalone Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the Standalone Financial Statements along with the other notes required to be disclosed under the notified Accounting Standards.

Amounts in the Standalone Financial Statements are presented in INR in Lakhs rounded off to two decimal places as permitted by Schedule III to the Companies Act, 2013 except otherwise stated.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle. The Operating cycle has been taken to be 12 months. Deferred tax assets and deferred tax liabilities are classified as non-current assets and non-current liabilities, as the case may be.

2.04 Use of Estimates

The preparation of the Standalone Financial Statements in conformity with AS requires the Management to make estimates, judgement and assumptions that affect the application of accounting policies and the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. The principal accounting estimates have been described under the relevant income /expense and / or assets / liability item in the Standalone Financial Statements. The Management believes that the estimates used in the preparation of these Standalone Financial Statements are prudent and reasonable. Actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods.

2.05 Property, Plant and Equipment

Property, plant, and equipment are stated at their cost of acquisition less accumulated depreciation and impairment (if any). The cost comprises the purchase price, borrowing cost and attributable cost of bringing the asset to its working condition for its intended use.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the statement of Profit and Loss.

The residual values, useful lives, and method of depreciation of property, plant and equipment is reviewed at each financial year end and adjusted prospectively, if appropriate.

Property, plant, and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital work-in-progress”.

2.06 Depreciation and Useful Life

Depreciation on Property, Plant and Equipment is provided on Written Down Value and computed on the basis of the useful life prescribed in Schedule II to the Companies Act, 2013 (Act) from the date the asset is ready to put to use.

Depreciation on office building and investment properties is provided on Written Down value Method and computed on the basis of the useful life prescribed in Schedule II to the Act from the date the asset is ready to put to use.

The residual value of 5% of Original Cost is considered for the Purpose of Calculating Depreciation rates. The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.

Depreciation is provided on pro-rata basis in the year in which the assets are put to use.

The Company has used rates to provide depreciation which coincide with the rates indicated in schedule II of the Companies Act 2013 on its fixed assets.

2.07 Capital Work in Progress and Intangible Assets under Development

Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital Work-in-Progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are classified as capital advances under other non-current assets.

2.08 Impairment of Tangible Assets

The carrying amount of assets is reviewed at each balance sheet date and impairment loss is recognized whenever there is any indication of impairment based on internal/ external indicators. An impairment loss is recognized in the Statement of Profit and Loss where the carrying amount of the assets exceeds the recoverable amount.

An impairment loss is recognized immediately in profit or loss. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.

A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

2.09 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue on sale of product is recognised on delivery of the product, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risk and reward of ownership have been transferred and no effective ownership control is retained. Interest income is recognised on time proportion basis.

2.10 Employee Benefits

Employee benefits include salaries, wages, provident fund, gratuity, etc. Short term employee benefits are recognized at their undiscounted amount in the accounting period in which they are incurred.

Employees benefit under defined Contribution Plan comprises Employee Provident Fund under the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952, for which the Company contributes to the plan under the provisions of the said Act.

Termination benefits are payable when employment is terminated by the company before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits. ln case of an offer made to encourage voluntary redundancy; the termination benefits are measured based on the number of employees expected to accept the offer.

2.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized as part of the cost of such assets during the period of time that is necessary to complete and prepare the assets for its intended use or sale. A qualifying

asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

2.12 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equities shares outstanding during the period. The weighted-average number of equity shares outstanding during the period is adjusted for events including a bonus issue and sub division of equity shares.

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. The Weighted-Average Number of shares have been calculated after considering the sub-division of equity shares on 19-06-2023, into Rs. 2 each of 5 equity shares out of 1 share of Rs. 10.

2.13 Accounting for Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent it relates to an item which is recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date

Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and

tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Transaction or event which is recognized outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.

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Mar 31, 2023

1    Corporate Information

SAR TELEVENTURE LIMITED is a Private Limited Company since incorporation under the provisions of the Companies Act, 2013 but now it is converted in to Public Limited on 12.04.2023 and also becomes the Holding Co. of M/s Shoora International FZE Dubai (WOS) by making an investment of (US$100,000 @ 82.78 INR) and It is also a Subsidary Co. of an Indian Co. i.e. M.G Metalloys Private Limited.

2    Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Companies Act, 2013. Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act, 2013 shall be made in the notes to accounts in addition to the requirements set out in this Schedule.

2.1 Significant Accounting Policies Use of Estimates

The preparation of the financial statements is in conformity with the generally accepted accounting principles requires management to Property, Plant & Equipments

Property, Plant & Equipments and Intangible assets are stated at cost of acquisition less accumulated depreciation and impairment. Cost includes any borrowing costs directly attributable to the acquisition/ construction of fixed assets and bringing the assets to its working condition for its intended use.

Exchange difference arising on account of liabilities incurred for acquisition or construction of Fixed Assets is adjusted in the carrying amount of related Fixed Assets.

Capital Work-in-Progress

Costs of assets not ready for use before the year-end and expenditure during that period that is directly or indirectly related to Telecome maintenance, including borrowing costs are included under Capital Work-in-Progress.

Depreciation

Depreciable amount for the property, plant and equipment is the cost of an asset, or other amount substituted for cost, less its estimated residual value based on the technical advice.

Depreciation on property, plant and equipment has been provided on the written down value as the Companies Act, 2013 taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.:

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 greater of the asset’s net selling price and value in use. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Long term investments are stated at cost. Provision for diminution in the value of long- term investments is made only if such diminution is other than temporary. Current Investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that Company incurs in connection with the borrowing of funds.

Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be readily measured.

Sales of Goods and Services

Income from services is recognized on the completion of services. Period based services are accounted for proportionately over the period of service.

Income from Interest

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Other Incomes

Other Incomes are accrued as earned except where the receipt of income is uncertain.

Retirement and other Employee Benefits

Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the statement of Profit and Loss for the year when the contributions to the respective funds are due. The Company has no other obligation other than the contribution payable.

Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that company incurs in connection with the borrowing of funds.

Taxes on Income

Tax expense comprises of current and deferred tax.

(i)    Current income tax is determined as the amount of tax payable in respect of taxable income for the year based on provisions of Income Tax Act, 1961.

(ii)    Deferred income tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

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 and deferred tax liabilities are offset, if legally and enforceable right exist to set off current tax asset against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. 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. In case of unabsorbed depreciation and 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 balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets 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.

Earnings Per Share_Notes to standalone nnanciai statements ior the year enaea march 31, 2023_

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders after deducting attributable taxes by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of equity shares outstanding during the period. Both profit for the year and weighted average numbers of shares are adjusted for the effects of all diluted potential equity shares except where the results are anti-dilutive.

Cash and cash equivalents

In the cash flow statement, cash and cash equivalents include cash in hand, term deposits with banks and other short-term highly liquid investments with maturities of three months or less.

Current and non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

•    Expected to be realized or intended to be sold or consumed in normal operating cycle

•    Held primarily for the purpose of trading

•    Expected to be realized within twelve months after the reporting period, or

•    Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as- non-current.

A liability is current when:

•    It is expected to be settled in normal operating cycle

•    It is held primarily for the purpose of trading

•    It is due to be settled within twelve months    after the reporting period, or

•    There is no unconditional right to defer the    settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

M/s Shoora Capital Limited HongKong is a Short Term Liabilty and it will repaid within 6 months