ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Defrail Technologies Ltd.

2 Summary of Significant accounting policies

i Basis of Preparation

The Standalone Summary Statement of the Assets and Liabilities of the Company as at 31st March 2026 and 31st March, 2025 the Statement of Profit and
Loss and the statement of Cash Flow thereof (collectively referred to as ''Financial Statements'') have been compiled by the management of the Company
and These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the
Accounting Standards notified under Section 133 of the Companies Act, 2013 read together with paragraph 7 of the companies (Accounts) rules 2014 and
companies (accounting standards) Rules, 2021 (as amended from time to time). The financial statements have been prepared on going concern on an
accrual basis and under the historical cost convention. The financial statements are presented in Indian rupees and rounded off to the nearest lacs.

ⁱⁱ Use of estimates

The preparation of financial statements requires the management to make judgments, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and disclosure of contingent liabilities, at the end of the reporting period. Although, these estimates are
based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

ⁱⁱⁱ Property, Plant and Equipment and Intangible assets
Property, Plant and Equipment

Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Cost of
acquisition or construction of property, plant and equipment comprises its purchase price including import duties and non-refundable purchase taxes
after deducting trade discounts, rebates and any directly attributable cost of bringing the item to its working condition for its Intended use.

a. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when 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. All other repairs and
maintenance cost are charged to the standalone statement of profit and loss during the period in which they are incurred.

b. Gains or losses that arise on disposal or retirement of an asset are measured as the difference between net disposal proceeds and the carrying
value of property, plant and equipment and are recognized in the statement of profit and loss when the same in derecognized.

Intangible assets

Acquired intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible
assets are amortised on a straight line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will
not exceed ten years from the date when the asset is available for use is considered by the management. The amortisation period and the
amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous
estimates, the amortisation period is changed accordingly.

^iv Depreciation on property, plant and equipment

Depreciation on Property, Plant & Equipment is provided to the extent of depreciable amount using Straight Line Method (SLM). Depreciation is
provided based on useful life of the assets as prescribed in schedule II of The Companies Act,2013.

^v 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 recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of
the assets'' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the
weighted average cost of capital.

After impairment, depreciation/amortization is provided on the revised carrying amount of the asset over its remaining useful life.

vi 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 sale of goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the buyer.

Interest income

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

vii Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks. Bank overdrafts are shown within borrowings in current liabilities in
balance sheet.

viii Employees Benefit

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are defined contribution plans and the contributions are
charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other
than the contribution payable to the respective funds.

Short-term employee benefits: All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits and are recognised in the Statement of Profit and Loss in the period in which the employee renders the related service.

ix Foreign currency translation
Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying the exchange rate between the reporting currency and the foreign
currency at the date of the transaction.

Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated
in a foreign currency are reported using the exchange rate at the date of the transaction; non-monetary items which are carried at fair value or other
similar valuation denominated in a foreign currency are reported using the exchange rates that existed when such values were determined.

Exchange differences:

Exchange differences arising on the settlement of monetary items or on reporting the Company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year
in which they occur.

x Inventories and Work in progress

Inventories are valued at lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished
goods and work in progress comprises raw materials, direct labour, other direct cost and related overheads.

Provision of obsolescence on inventories is considered on the basis of management''s estimate based on demand and market of the inventories.

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

^xi Income taxes

Tax expense for the period comprises of current tax, deferred tax and Minimum alternate tax credit considered in determining the net profit or loss
for the year.

Current tax

Provision for current tax is recognized on the basis of estimated taxable income for the current accounting year in accordance with the Income-tax
Act, 1961.

Deferred tax

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been
substantively enacted as of the reporting date.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The
deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or
substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets
can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and are written-down or written up to
reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.

At each reporting date, the Company reassesses the unrecognized deferred tax assets, if any.

Minimum alternate tax

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period,
i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in
accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the
said asset is created by way of credit to the Statement of Profit and Loss and shown as “MAT Credit Entitlement." The Company reviews the “MAT
credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will
pay normal tax during the specified period.

^xii Leases

Operating leases - As a lessee

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments
made under operating leases are charged to Statement of Profit and Loss on a straight-line basis over the period of lease.