Accounting Policies of Vdeal System Ltd. Company

Mar 31, 2025

2 Significant Accounting Policies. _

1 Basis of Preparation

This financial statements has been prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under
the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards specified under Section 133 of
the Act, read with Companies (Accounting Standards) Rules,2021 and the provisions of the Companies Act, 2013. The accounting
policy have been consistently applied by the company and are consistent with those used in previous year except in case of better
disclosure of relevant reliable information and matching concepts. The Company has rounded off all the amounts in these financial
statements and two decimal thereof, unless otherwise specifically stated.

Operating cycle

All assets and liabilities have been classified as current and non-current as per the companies operating cycle and of other criteria
set out in schedule III of Companies Act 2013. Based on the nature of operation, the company has ascertained its operating cycle as
12 months for the purpose of current/non-current classification of assets and liabilities. The operating cycle is the time between the
acquisition of assets for processing and their realization in cash and cash equivalents. Deferred tax Assets and Liabilities are
classified as non-current only.

2 Summary of Significant Accounting Policies.

a. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make judgements,
estimates and assumptions that affect the reported amounts of the assets and liabilities (including contingent liabilities) and the
reported income and expenses during the period. Although these estimates are based on management''s best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring as material
adjustment to the carrying amount of assets or liabilities in the future periods.

b. AS - 2 Valuation of inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where
considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi, conversion charges and
other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of
overheads.

c. AS - 3 Cash Flow Statements

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are segregated based on the available information.

d. AS - 4 Events Occurring after the Balance Sheet date

Assets and Liabilities are adjusted for events occurring after the Balance Sheet date that provide additional evidence to assist the
estimation of amounts relating to condition existing at the Balance sheet date.

e. AS - 5 Net Profit or Loss for the Period, Prior Period Items, and changes in Accounting Policies

Significant items of Extra-Ordinary Items, and Prior Period Incomes and Expenditures, are accounted in accordance with
Accounting Standards 5.

f. AS - 9 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
reliably measured.

Revenue from Sales

Revenue is primarily derived from manufacturing of electrical equipment and apparatus. Sa les are recorded net of GST collected.

Other income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head "other income" in the statement of profit and loss.

g. AS -10 Property, Plant and Equipments

Property, Plant and Equipment are stated at cost less accumulated depreciation (other than freehold land where no depreciation is
charged). The Company capitalizes all costs relating to PPE till such assets are installed.

Depreciation

Depreciation on Plant, Property and Equipment was provided using straight line method. Depreciation provided is based on
using life of the assets as prescribed in schedule II of the Company Act, 2013.

h. AS -13 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. Current investment are carried at lower cost or fair value determined on
an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value made to
recognize a decline other than temporary in the value of the investments. The company has not made any investment during the
financial year.

i. AS -15 Employee Benefits

1. Defined Contribution Plan:

- Contributions to recognized provided fund are charged to Statement of Profit and Loss as and when incurred.

2. Defined Benefit Plan:¬
- Gratuity has been ascertained and recognized in the accounts on the basis of independent actuarial valuation. Employees are not
eligible for any other long-term benefits as per service conditions and hence not provided in the accounts. The company has not
registered under Gratuity Act.

3. All short term employee benefits such as salaries, incentives, special awards, medical benefits, bonus which fall due widen 12
months of the period in which the employees renders the related services and which the employee is entitled to avail, are
recognized in the statement of profit and loss on accrual basis without discounting.

j. AS - 16 Borrowing cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and
exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
Borrowings 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
borrowings costs are expensed in the period they occur.

k. AS - 18 Related Party Transaction

Salary to Key Managerial Personnel, salary to relatives of Key Management Personnel and transactions with Company in which
Key Management Personnel / Relatives of Key Management Personnel can exercise significant influence are disclosed as Related
Party Transaction in the Notes to Accounts.

l. AS -19 Lease

(i) Operating lease payment are recognized as an expense in the statement in the statement of profit & Loss on a straight line basis
over the lease term.

(ii) Assets under Financial Lease are capitalized at the inception of these term at the lower of fair value of the leased property and
present value of minimum lease payments.

(iii) Asset given under operating Leases are included under Fixed Assets. The land has been procured on lease basis from IDCO
through an auction. Though there was premises at the time of auction but the same was not having a good condition, therefore,
company keeps on investing on civil construction of the building.

m. AS - 20 Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.

n. AS - 22 Accounting for Taxes on Income

1 Current income tax is measured at the amount expected to be paid to tax authorities in accordance with the Income Tax Act, 1961
that is enacted or substantially enacted on the reporting date.

2 Deferred tax liability/asset resulting from "timing difference" between book and taxable profit is accounted for using the tax rates
and laws that have been enacted or substantially enacted as on Balance Sheet date. The deferred tax asset is recognized and earned
forward only to the extent that there is reasonable certainty that the assets will be realized in future. The carrying amount of
deferred tax assets are reviewed at each balance sheet date.

o. AS - 26 Intangible Assets

Intangible assets are recognized when the assets is identifiable, is within the control of the Company, it is probable that the future
economic benefits that are attributable to the assets will flow to the company and cost of the assets can be reliably measured.

The company has intangible assets which are procured externally The amortization of the intangible assets are based on the license
period of those assets.

p. AS - 28 Impairment of Assets

No such impairment process for tangible assets is carried out by the company during the current year.

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Mar 31, 2024

Data Not Good