Accounting Policies of Diggi Multitrade Ltd. Company

Mar 31, 2024

1. SIGNIFICANT ACCOUNTING POLICIES

a. Company Overview

Diggi Multitrade Limited (L65900MH2010PLC210471) (the Company) was incorporated under the provisions
of the Companies Act, 1956 on 01 December, 2010 as a Private Limited Company namely "Diggi Securities
Private Limited" with Registrar of Companies - Mumbai (ROC).

The Company vide resolutions dated 24 April 2014, resolved to change the name and the status of the
Company from private limited to public limited company. The said resolutions were duly filed with ROC.
Pursuant to the said approvals, the name of the Company was changed from "Diggi Securities private Limited"
to "Diggi Multitrade Limited" with effect from 05 June 2014.

The Company is engaged in the business of

- To act as a Super Stockiest, C & F (Clearing and Forwarding) Agent, Dealer, Distributor, Trader or
Franchiser in India or elsewhere to deal in all types of Fast-moving consumer goods Product including but
not limited to fruits, vegetables, sea foods, health foods, protein foods, food products, agro foods, fast
foods, packed foods and others.

- Trading in fabrics, real estate viz. Flats, Land, Construction material and acquiring interest in various real
estate projects.

b. Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared on accrual basis and under historical cost
convention method and in accordance with Generally Accepted Accounting Principles in India (Indian GAAP).
The Company has prepared these financial statements to comply in all material respects with the Accounting
Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

As per MCA notification dated 16th February 2015, the companies whose shares are listed on BSE SME
Platform as referred to in Chapter XB of the Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations 2009 are exempted from the compulsory requirements of adoption of
IND-AS. As the Company is covered under exempted category from the compulsory adoption of IND AS, it
has not adopted IND AS for preparation of financial statements.

c. Use of Estimate:

The preparation of financial statements require management to make estimates and assumptions that affects
the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the
financial statements and reported amount of revenue and expenses during the year. Actual results could differ
from those estimates. Any revision in the accounting estimate are recognized prospectively in the current and
future periods.

d. Property, Plant and Equipment:

Property, Plant and Equipment are recorded and stated at cost less accumulated depreciation and impairment
losses, if any. The cost comprises of the purchase price and other costs directly attributable to bringing the
assets to its working condition for its intended use.

e. Depreciation:

Depreciation on Property Plant and Equipments is provided by complying the provisions contained in
Schedule - II of the Companies Act, 2013.

Depreciation is provided using Written down Value Method, after retaining residual value at the rate of 5% of
the cost, over the useful lives of the assets prescribed in Schedule - II of the Act.

In case of assets purchased during the year, Depreciation is provided on prorate basis on the basis of use full
lives prescribed in Schedule - II.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the Statement of Profit and Loss.

f. Impairment of Property, Plant and Equipment:

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 v alue
in use. In assessing value in use, the estimated future cash flows are discounted to the present value at interest
rate specific to the asset and in case where the specific rate is not available at the weighted average cost of
capital which is adjusted for country risk/currency risk.

g. Investments:

Investments have been classified as long-term investments in accordance with the Accounting Standard 13, as
notified by the Companies (Accounting Standards) Rules, 2006 (as amended). Long term investments are
carried at cost. Provision for diminution in value is made to recognize a decline other than temporary in the
value of the investments. On disposal of the investment, the difference between its carrying amount and net
disposal proceeds is charged or credited to the Statement of Profit and Loss.

Dividends are accounted for when the right to receive the payment is established.

h. Inventories:

Inventories are carried at cost or net realizable value whichever is lower. Cost of inventories is generally
ascertained on FIFO (First-In-First-Out) basis. The cost comprises of cost of purchase and other costs incurred
in bringing the inventory to its present location and condition.

Inventories of residential flats are valued at actual cost based on the information provided.

i. Revenue Recognition:

As per AS - 9 "Revenue Recognition" Revenue from the sale of goods or services are recognized when
ownership or control of the goods or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods or services. In other
cases revenue is recognized when right to receive income is established.

j. Subsequent Events

Subsequent Events are those events which occur after the Balance Sheet date and before the date on which
Books of Accounts are approved by Board of Directors. All the subsequent events which provide further

evidence of conditions that existed at the Balance Sheet date have been duly incorporated by the Management
in the Financial Statements.

k. Prior Period, Extra Ordinary and Exceptional Items

> Items of Incomes or Expenses which aroused in the current year but the conditions, events or evidences
for those transactions relates to one or more prior periods are separately disclosed in the Financial
Statements.

> The Items of Incomes or Expenditure which does not relates to ordinary business activities are classified
as Extra ordinary items in the Financial Statements.

> Incomes or Expenditures which relates to ordinary business activities but are exceptionally high or low
as compared to one or more comparatives are classified as Exceptional Items.

l. Taxes on Income:

Tax expense comprises Current and Deferred tax. Current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with Income-tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the
reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are
recognized for timing differences only to the extent that there is reasonable certainty exists that sufficient
future taxable income will be available against which these can be realized.

m. Earnings Per Share:

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard 20,
''Earnings Per Share''. Basic earnings per equity share is computed by dividing net profit/(loss) after tax by the
weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is
computed by adjusting net profit or loss and using the weighted average number of equity shares outstanding
during the year for dilution.

n. Employee Benefits:

The amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees is recognized during the period when the employee renders the service. Post-employment benefits
such as gratuity have not been provided for as the Company employs less than 10 employees during the year.

o. Segment Reporting

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted
for the Company. Revenue and expenses have been identified to segments on the basis of their relationship to
the operating activities for the segment. Revenue and expenses, which relate to the Company as a whole and
are not allocable to segments on a reasonable basis, have been included under" Unallocated corporate
expenses/income.