Accounting Policies of Adroit Industries (India) Ltd. Company

B. STATEMENT OF MATERIAL ACCOUNTING POLICIES

a) Baals of Preparation and Statement of Compliance

The separate financial statements have been prepared In accordance with Indian Accounting standards find AS”) notified, under section 133 of the
Companies Act 2013 (''Act¹) read with the Companies (Indian Accounting Standards) Rules, 201S and Companies (Indian Accounting Standard)
Amendment Rules 2016 and the relevant provisions of the Act

Upto the year ended 31st March 2025. the company prepared its financial statements in accordance with the requirement of previous GAAP, which
included Standards notified under the Companies (Accounting Standards) Rules, 2006. These financial statements are the first financial statements of
the company under Ind AS. The date of transition to ind AS Is 1st April 2024

The Company applied Ind AS 101 - First-time Adoption of the Indian Accounting Standards. A statement provides an explanation of how the adoption
of Ind AS has impacted on the balance sheet and results of operations of the Company.

Basis of Preparation

These financial statements have been prepared on accrual basis and under the historical cost convennon except for certain financial instruments
which are measured at fair value at the end of each reporting period, as explained in the accounting policies mentioned below.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and ocher criteria set out In
Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current
classification of assets and liabilities.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the dme between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has
identified twelve months as its operating cycle.

Functional and presentation currency

These separate financial statements are presented In Indian rupees, which is the Company''s functional currency All amounts have been rounded to
the nearest Rupees unless otherwise indicated.

b) Use of Estimates, Judgments and Assumptions

The preparation of financial statements in accordance with Ind AS requires management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amount of assets liabilities income and expenses Actual results may differ from these
estimates Estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected.

All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve months and other
criteria set out in Schedule III to the Companies Act. 2013.

c) Revenue
Recognition

The company recognised revenue Le account for a contract with a customer only when all of the following criteria are met:

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are
committed to perform their respective obligations;

(b) the entity can Identify each party''s rights regarding the goods or services to be transferred;

(c) the entity can identify the payment terms for the goods or services to be transferred:

(d) the contract has commercial substance (I.*. the risk, timing or amount of the entity''s future cash flows is expected to change as a result of the
contract); and

(e) it Is probable that the entity will collect the consideration to which It will be entitled in exchange for the goods or services that wtU be transferred
to the customer. In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer''s ability and
intention to pay that amount of consideration when it is due. The amount of consideration to which the entity will be entitled may be less than the
pnee stated in the contract if the consideration is variable because the entity may offer the customer a price concession.

Measurement

When (or as) a performance obligation is satisfied, company recognize as revenue the amount of the transaction price (which excludes estimates of
variable consideration that are constrained) that is allocated to that performance obligation.

The transaction price is the amount that the entity expects to be entitled to In exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties (for example, some taxes on sales). The consideration promised may include fixed amounts,
variable amounts, or both

II) lateral asMl Dividend

Interest income is recount ted on time proportion basis.

Dividend Income on In vestmenti is accounted for as and when the right to receive the payment Is established,
e) Inventories

Raw Malarial are valued at lower of cost and net realisable value on FIFO basis. Cost of Raw material comprises of cost of purchase and other cost
Incurred in bring! nil the Inventory to their present condition and location.

Finished Goods are valued at lower of cost and net realizable value on FIFO basis. Cost of Raw material comprises of cost of purchase, cost of
conversion and other coat incurred In bringing the Inventory to their present condition and location.

Net Realisable value Is the estimated selling price in the ordinary course business less estimated cost of completion and estimated cost necessary to
nuke the sale.

0 Property, Plant and Equipment

I) Recognition and Measure meat

I terns at property, plant and equipment are measured at cost leas accumulated depreciation and any accumulated impairment losses (If any).

The cost of an item of property, plant and equipment comprises its purchase price. Including import duties and non-refundable purchase taxes; after
daducdity trade discounts and rebates and including acquisition or construction cost, borrowing costa or any costs directly attributable to bringing
. the asset to the location and condition necessary for it to be capable of operating in the manner Intended by management

If significant parts of an item of property, plant and equipment have different useful byes; then they are accounted for as separate Items (ma)or
components) of property, plant and equipment

Any gain or lots on disposal of an item of property, plant and equipment Is recognised in statement of profit or loss.

II) Subsequent Expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the
company

ill) Depreciation

Depredation on property, plant and equipment is provided on Straight Line method (SLM) as per the useful life of the assets in die manner as
specified in Schedule II to the Companies Act 2013. The estimated useful life of assets and estimated residual value is taken as prescribed under
Schedule II to the Companies Act 2013.

Depreciation on additions during the year is provided on pro rata basis with reference to date of addiOon/lnstaiittion. Depredation on assets
d isposed/discarded is charged up to the date on which such asset is sold

Iv) Government Grants

Government Grants and subsidies from Government are recognised when there is reasonable certainty that the grant/subsidy will be received and all
attaching conditions will be complied with. Government grant related to income are recognised In the Statement of Profit ft Loss on a systematic basis
over the period in which the Company recognizes as expenses the related costs for which the gram is Intended id compensate.

Government Grants related to assets are presented In the balance sheet by deducting the grant In arriving at the carrying amount of asset.

g) Intangible Assets

0 Recognition and Measurement

Computer softwares have finite useful lives and are measured at cost less accumulated amortisation and any accumulated impairment losses. As on
transition date It April L 2024 the same are measured at carrying vafueadfusted for fnd AS.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other
expenditure, Including expenditure on Internally generated goodwill and brands, when Incurred is recognised in statement of profit or loss.

II) Amortisation .

Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their
estimated useful lives and is generally recognised In statement of profit or foes. Computer software are amortised over their estimated useful life of 3
years.

Amortisation methods, useful lives and residual values are reviewed at each reporting data and adjusted. if required.

h) Employee benefits

I) Short Term Employee Benefits

Short-term employee benefits are expensed as the related service is provided. A liability Is recognised for the amount expected to be paid if the
company his a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can
be estimated reliably.

in Defined Benefit Plus

The liability for gratuity a defined benefit plan ia determined annually by a qualified actuary using the protected unit credit method.

The company pays gratuity to the employees who have completed 5 Years of service with company at the time when the employee leaves the
company as per the payment of gratuity act 1972.

Renteaniremcnt of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the
affect of the asset ceiling (if any, excluding interest), are recognised immediately In OCL Net interest expense (Income) on the net defined liability
(assets) It computed by applying the discount rate, used to measure die net defined liability (asset), to the net defined liability (asset) at the start of
the financial year after taking Into account any changes ss a result of contribution and benefit payments during the year. Net Interest expense and
other expenses related to defined benefit plans are recoenised In nrofit or lots.

When the benefits of a plan are changed or when a plan Is curtailed, the resulting change in benefit that relates to past service or the gain or km on
curtailment Is recognised immediately in profit or loss. The Company recognise* gains and losses on the settlement of a defined benefit plan when the
settlement occurs

ill) Other Employee Benefits

Compensated absences which art not expected to occur within twelve months after the end of the period In which the employee renders the related
services are recognised as a liability at the present value of obligation as at the Balance sheet date determined based on an actuarial valuation.

hr) Defined Contribution Plan

The company''s payments to the defined contribution plans are recognised as expenses during die period in which the employees perform the
services that payment covers. Defined contribution plan comprise of contribution to the employees'' provident fond with government. Employees''
State Insurance and Pension Scheme

) Income Tax

Income tax expense comprises current and deferred tax. It Is recognised in profit or loss except to the extent that It relates to a business combination,
or items recognised directly In equity or in 0(2.

I) Current tax

Currant tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or
receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also indudes
artv tax arisina from dividends.

Current Income tax relating to Items recognised outside profit or toss Is recognised outside profit or loss (either in OG or In equity). Current tax Items
are recognised in correlation to the underivtng transaction either in OG or directly In equity.

Current Tax Assets and liabilities are Offset only if. The Company;

a) has a legally enforceable right to *et off the recognised amounts; and

b) inlands either to settle on a net basts, or to realise the asset and settle the liability simultaneously.

II) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements end the
corresponding tax bases used In the computation of taxable profit Deferred tax liabilities an generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that It is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from the Initial recognition of assets and liabilities In a transaction that affects neither the taxable profit nor the
accounting profit

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred taut liabilities aid assets are measured at the tax rates that are expected to apply in the period in which the liability it settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or substantively enacted bv the end of the reporting period.

Deferred tax assets Include Minimum Alternative Tax (MAT) paid In accordance with the tax laws in India, which ia likely to give future economic
benefits in the form of availability of set off against future income tax liability. Accordingly, MAT Is recognised as deferred tax asset in the balance
sheet when the asset can be measured reliably, and it Is probable that the future economic benefit associated with the asset will be realised.

Deferred Tax Assets and Liabilities are Offset only If

a) the entity has a legally enforceable right to set off currant tax assets against current tax liabilities; and

b) the deferred tax assets and the deferred tax liabilities relate to Income taxes levied by the same taxation authority on the same taxable entity.

1 Foreign Currency Transactions

Transactions in foreign currencies are translated into the respective functional currencies of the company at the exchange rates at the date* of the
transactions.

Monetary assets and liabilities denominated In foreign currencies are translated into the functional currency at the exchange rats at the reporting
date. Difference arising on settlement of monetary Itsms are ganeraily recognised in statement of profit and leas.

Non-monetary Items that are measured based on historical cost in a foreign currency are not translated. Hoo-monetary assets and liabilities that are
measured at fair value In a foreign currency are translated Into the functional currency at the exchange rate when the fair value was determined.
Exchange difference arisina out of these transactions are generally recognised In statement of profit and loss.

I Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset are capitalised as part of the cost of
that asset till the date It Is ready for its intended use or sale, qualifying asset are the assets that necessarily takes ¦ substantial period of time to get
ready for Its intended uss. Other borrowing costs art recognised as an expense In the period in which they are incurred. .

l) Cash and Cash Equivalent

In cash (low statement. Cash and cash equivalent includes the cash and Cheques in hand, bank balances, demand deposits with bank and other short
term, highly liquid investments with original maturity of three months or less that are readily convertible to known amounts of cash and which are
subiect to an insignificant risk of changes In value.

Bank overdraft are shown within borrowings in current liabilities in the balance sheet and forms part of financing activities in the cash flow
statement Book overdraft are shown within other financial liabilities In the balance sheet and forms part of operating activities In the cash flow
statement

m) Cash Flow Statement

Cash flows are reported using indirect method, whereby profit/ (loss) before tax is adjusted for the effect of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or payments and items of income or expenses associated with investing or financing cash flow.
The cash flow from operating, investing and financing activities of the company is segregated based on the available Information.

n) Earning Per Share

I) Basic earnings per shares is arrived at based on net profit / (loss) after tax available to equity shareholders divided by Weighted average number of
equity shares, adjusted for bonus elements in equity shares Issued during the year (If any) and excluding treasury shares.

II) Diluted earnings per shares is calculated by dividing Profit attributable to equity holders after tax divided by Weighted average number of shares
considered for basic earning per shares Including potential dilutive equity shares.

1

Sale of Goods

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company
expects to receive in exchange for those goods. Revenue from the sale of goods is recognised at the point In time when control is transferred to the
customer which is usually on dispatch / delivery of goods, based on contracts with the customers. Revenue is measured based on the transaction
price, which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with
the customers Revenue excludes taxes collected from customers on behalf of the government Further, the revenue amount Is adjusted for the time
value of monev if that contract contains a significant financing comoonent

The export incentives to which the Company is entiUe, are recognized as income In the year of export of goods on accrual basis, taking Into account
certainty of realization and its subsequent utilization