Accounting Policies of Vivaa Tradecom Ltd. Company

Mar 31, 2025

The Company was originally formed & incorporated as a Private Limited Company in the state of Gujarat under the
Companies Act, 1956 in name and style of "Anantnath Infracon Private Limited" vide certificate of incorporation
dated April 23rd, 2010 bearing Corporate Identity Number U70101GJ2010PTC060395 issued by the Registrar of
Companies, Ahmedabad. Subsequently, the name of the Company has changed from "Anantnath Infracon Private
Limited" to "Vivaa Tradecom Private Limited" vide Fresh Certificate of Incorporation dated September 6th, 2012
bearing Corporate Identification Number U17120GJ2010PTC060395. Further, our Company was converted in to a
Public Limited Company pursuant to a Special Resolution passed by our shareholders at the EGM held on December
2nd, 2022 and consequently, the name of our Company was changed to "Vivaa Tradecom Limited" and a fresh
certificate of incorporation was issued by the Registrar of Companies, Ahmedabad dated December 14th, 2022. The
CIN of the Company is U46411GJ2010PLC060395.

The company is mainly engaged in the business of Trading in Textile Industry and Laminated sheets and other
related items.

a) BASIS OF PREPARATION OF FINANCIAL STATEMENT

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 the Companies
(Accounting Standards) Rules, 2021 (as amended) and the relevant provisions of the Companies Act, 2013. 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.

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make
estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) and the reported income and expenses during the year. The Management believes that the estimates
used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these
estimates and the difference between the actual results and the estimates are recognized in the periods in which
the results are known/materialize

c) INVENTORIES

Inventories of traded goods are valued at lower of cost and net realizable value. Cost comprises of all costs of
purchase and other costs incurred in bringing the inventories to their present location and condition. Cost formula
used is FIFO.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to
make the sale.

d) INSURANCE

Company is having inadequate insurance on stock, Cash and Plant & Machinery during the year.

e) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

f) REVENUE RECOGNITION

(I) Revenue from sale of goods is recognized when significant risk and rewards of ownership of the goods have
been passed to the buyer and it is reasonable to expect ultimate collection. Sale of goods is recognized net
of GST and other taxes as the same is recovered from customers and passed on to the government.

(II) Income are accounted for on accrual basis except sale of scrapped/ disposed/ discarded articles.

g) (i) Property, Plants and Equipment''s:

a. Tangible Assets:-Property, Plants and equipment’s are stated at cost of acquisition including any
attributable cost for bringing the assets to its working condition for its intended use, less accumulated
depreciation.

b. The cost comprises purchaser price less discount/rebates, eligible borrowing costs and directly attributable
cost of bringing the asset to its working condition for the intended use.

c. Renewals and replacement are either capitalized or charged to revenue, as appropriate, depending upon
the nature and long-term utility of such renewals/replacements. In respect of assets scrapped, discarded or
retired during the year, the net book value of such assets is written off as loss on discarded assets. The
receipts on sale of such scrapped assets are accounted for as and when realized.

h) Depreciation

i. Depreciation on fixed assets is provided to the extent of depreciable amount on the Written Down Value

(WDV) method. Depreciation is provided based on useful life of the assets as prescribed in schedule- II to

the Companies Act 2013.

i) Investments

a. Long term Investments are stated at cost. Provision for diminution in value of long-term investments is

made only if such a decline is other than temporary in the opinion of the management.

b. Current Investments are carried at lower of cost and quote/fair value, computed category wise.

j) Employee Benefits:

i. Since Employees strength is less than specified limit so, Provident fund and ESI is not applicable and all
present employees have not completed their 5 year tenure of employment, so company has not made
provision for Gratuity Liability.

k) Borrowing Costs

i. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized
as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period to get
ready for intended use. All other borrowing costs are charged to revenue.

l) Related Party Transactions

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party disclosures''
has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the
Accounting Standard 18 have been identified based on representation made by key managerial personnel and
information available with the Company.

m) Rent

The Company''s significant Rent arrangements are in respect for office premises & Godown. The Rent arrangements
Start from 01.04.2024 to 30.03.2025 (11 months and 29 days), same is renewed from 01.04.25 for further period.

n) Earning Per Share

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20
prescribed under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing
the income available to equity shareholders by the weighted average number of equity shares outstanding during
the accounting periods. The Diluted EPS has been computed using the weighted average number of equity shares
and dilutive potential equity shares outstanding at the end of the periods.

o) Taxes on Income

i. Deferred Taxation

In accordance with the Accounting Standard for Taxes on Income, prescribed under the Companies
Accounting Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits
for the year is accounted for by using the tax rates and laws that have been enacted or substantively
enacted as of the Balance Sheet Date.

Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty
that the assets can be realized in future

ii. Current Taxation

Provision is made for current tax based on tax liability computed in accordance with relevant tax laws
applicable to the Company.

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Mar 31, 2024

CORPORATE INFORMATION:

The Company was originally formed & incorporated as a Private Limited Company in the state of Gujarat under the Companies
Act, 1956 in name and style of "Anantnath Infracon Private Limited" vide cer''ficate of incorpora''on dated April 23^rd, 2010
bearing Corporate Iden''ty Number U70101GJ2010PTC060395 issued by the Registrar of Companies, Ahmedabad. Subsequently,
the name of the Company has changed from "Anantnath Infracon Private Limited" to "Vivaa Tradecom Private Limited" vide Fresh
Cer''ficate of Incorpora''on dated September 6^th, 2012 bearing Corporate Iden''fica''on Number U17120GJ2010PTC060395.
Further, our Company was converted in to a Public Limited Company pursuant to a Special Resolu''on passed by our shareholders
at the EGM held on December 2^nd, 2022 and consequently, the name of our Company was changed to "Vivaa Tradecom Limited"
and a fresh cer''ficate of incorpora''on was issued by the Registrar of Companies, Ahmedabad dated December 14^th, 2022. The
CIN of the Company is U17120GJ2010PLC060395.

The company is mainly engaged in the business of Trading in Textile Industry and other related items.

a) Basis of Preparation of Financial Statement

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accoun''ng
Principles in India (Indian GAAP) to comply with the Accoun''ng Standards no''fied under the Companies (Accoun''ng
Standards) Rules, 2021 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements
have been prepared on accrual basis under the historical cost conven''on. The accoun''ng policies adopted in the
prepara''on of the financial statements are consistent with those followed in the previous year.

b) Use of Estimates

The prepara''on of the financial statements in conformity with Indian GAAP requires the Management to make es''mates
and assump''ons considered in the reported amounts of assets and liabili''es (including con''ngent liabili''es) and the
reported income and expenses during the year. The Management believes that the es''mates used in prepara''on of the
financial statements are prudent and reasonable. Future results could differ due to these es''mates and the difference
between the actual results and the es''mates are recognized in the periods in which the results are known/materialize.

c) Inventories

Inventories of traded goods are valued at lower of cost and net realizable value. Cost comprises of all costs of purchase
and other costs incurred in bringing the inventories to their present location and condition. Cost formula used is FIFO.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make
the sale.

d) Insurance

Company is having inadequate insurance on stock, Cash and Plant & Machinery during the year.

e) Cash and Cash Equivalents (For purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisi''on), highly liquid investments that are readily conver''ble into
known amounts of cash and which are subject to insignificant risk of changes in value.

f) Revenue Recognition

(I) Revenue from sale of goods is recognized when significant risk and rewards of ownership of the goods have been
passed to the buyer and it is reasonable to expect ultimate collection. Sale of goods is recognized net of GST and other
taxes as the same is recovered from customers and passed on to the government.

(II) Income is accounted for on accrual basis except sale of scrapped/ disposed/ discarded ar''cles.

g) Property, Plants and Equipment''s:

a. Tangible Assets:-Property, Plants and equipment''s are stated at cost of acquisi''on including any attributable cost for
bringing the assets to its working condi''on for its intended use, less accumulated deprecia''on.

b. The cost comprises purchaser price less discount/rebates, eligible borrowing costs and directly attributable cost of
bringing the asset to its working condition for the intended use.

c. Renewals and replacement are either capitalized or charged to revenue, as appropriate, depending upon the nature
and long-term utility of such renewals/replacements. In respect of assets scrapped, discarded or retired during the
year, the net book value of such assets is written off as loss on discarded assets. The receipts on sale of such scrapped
assets are accounted for as and when realized.

h) Depreciation

Depreciation on fixed assets is provided to the extent of depreciable amount on the Straight-Line Method (SLM) method.
Depreciation is provided based on useful life of the assets as prescribed in schedule- II to the Companies Act 2013.

i) Investments

i. Long term Investments are stated at cost. Provision for diminution in value of long-term investments is made only if
such a decline is other than temporary in the opinion of the management.

ii. Current Investments are carried at lower of cost and quote/fair value, computed category wise.

j) Employee Benefits:

Since Employees strength is less than specified limit so. Provident fund and ESI is not applicable and all present employees
have not completed their 5 year tenure of employment, so company has not made provision for Gratuity Liability.

k) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes substantial period of ''me to get ready for intended use.
All other borrowing costs are charged to revenue.

l) Related Party Transactions

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party disclosures'' has been
set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting
Standard 18 have been identified on the basis of representation made by key managerial personnel and information
available with the Company.

m) Rent

The Company''s significant Rent arrangements are in respect for office premises & Godown. The Rent arrangements Start
from 01.04.2023 to 30.03.2024 (11 months and 29 days), same is renewed from 01.04.24 for further period.

n) Earning Per Share

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 prescribed
under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing the income
available to equity shareholders by the weighted average number of equity shares outstanding during the accounting
periods. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential
equity shares outstanding at the end of the periods.

o) Taxes on Income

i. Deferred Taxation

In accordance with the Accounting Standard for Taxes on Income, prescribed under the Companies Accounting
Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is
accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet
Date.

Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that the assets
can be realized in future.

ii. Current Taxation

Provision is made for current tax based on tax liability computed in accordance with relevant tax laws applicable to the
Company.