Notes to Accounts of Nintec Systems Ltd.

Mar 31, 2025

1.2 SIGNIFICANT ACCOUNTING POLICIES:
^a Basis of Preparation of Financial Statements:

The financial statements of the Company are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 under the historical cost convention on the accrual basis. The Ind AS are
prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant
amendment rules issued there after. Accounting policies have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in
use.

(i) Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the functional currency

(ii) Basis of Measurement

The financial statements have been prepared on the historical cost basis.

(iii) Use of Estimates and Judgements:

In preparing these financial statements, management has made judgements, estimates, and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, incomes and expenses. Actual results may differ
from these estimates

- Estimates:

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognized
prospectively.

- Judgements:

There are no significant judgements made in applying accounting policies that have the most significant effects on the amounts
recognized in the financial statements.

- Assumptions and estimation uncertainties:

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment
within the next financial year, if any are included in the respective note.

- Measurement of fair value

The Company has established policies with respect to the measurement of fair values. The Company regularly reviews significant
valuation adjustments. Significant valuation issues are reported to the Company''s Board of Directors.

b Financial instruments

1. Financial Assets:

i) Classification

The Company classifies its financial assets in the following measurement categories:

- Those measured at ''Amortized cost'' and

- Those to be measured subsequently at either ''Fair value through other comprehensive income'' (FVTOCI) or ''Fair value through
profit or loss'' (FVTPL).

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the
cash flows.

- A financial asset is measured at amortized cost if it meets both following conditions and is not designated as at FVTPL:

a. the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

b. the contractual terms of a financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

- A debt investment is measured at FVOCI if it meets both following conditions and is not designated as at FVTPL:

a. the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and

b. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

- Financial assets are not reclassified after their initial recognition except if and in the period the Company changes its business
model for managing financial assets.

ii) Measurement

At initial recognition, the company measures a financial asset when it becomes a party to the contractual provisions of the
instruments and measures at its fair value except trade receivables which are initially measured at transaction price. Transaction
costs are incremental costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss are expensed in profit or loss. A regular way purchase and sale of financial assets
are accounted for at trade date.

iii) Subsequent measurement and gains and losses

Financial assets at FVTPL : These assets are subsequently measured at fair value. Net gains including any interest

or dividend income, are recognized in profit or loss.

Financial assets at amortised cost : These assets are subsequently measured at amortised cost using the effective interest

rate method

The amortized cost is reduced by impairment losses. Interest income, foreign exchange
gains and losses and impairment are recognized in profit or loss. Any gain or loss on de¬
recognition is recognized in profit or loss.

iv) De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of
ownership of the financial asset is transferred or in which the Company neither transfers nor retains substantially all the risks and
rewards of ownership and does not retain control of the financial asset.

If the Company enters transactions whereby it transfers assets recognized on its balance sheet, but retains either all or
substantially all the risks and rewards of the transferred assets, the transferred assets are not derecognized.

2. Financial liabilities:

i) Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial
liabilities are subsequently measured at amortized cost usingthe effective interest method. Interest expense and foreign exchange
gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

ii) De-recognition

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired.

The Company also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based on the modified terms is recognized at fairvalue. The difference
between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is
recognized in the profit or loss.

3. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to
realize the asset and settle the liability simultaneously.

c Property, Plant and Equipments:

(i) Recognition and measurement :

Property, Plant and Equipments are stated at its cost less accumulated depreciation. Cost comprise of purchase price and
attributable cost, if any. The Company depreciates property, plant and equipment over the estimated useful lives using the
Written Down Value Method. The estimated useful lives of assets are as follows :

Buildings - Leasehold 30 Years

Computer Equipment 3 Years

Office Equipment 5 Years

Furniture and Fixtures 10 Years

Vehicles - Freehold 8 Years

Electric Instruments & Installation 10 Years

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on assets and their respective additions / deduction have been provided on pro- rata basis according to the period
for which each such assets have been put to use.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will
flow to the Company.

d Impairment of assets

1. Impairment of financial assets

The Company recognizes loss allowances for financial assets measured at amortized cost using expected credit loss model.

At each reporting date, the Company assesses whether financial assets carried at amortized cost is credit- impaired. A financial
asset is ''credit- impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the
financial asset, have occurred.

For trade receivables, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

For all other financial assets, the Company measures loss allowances at an amount equal to twelve months expected credit losses
unless there has been a significant increase in credit risk from initial recognition in which those are measured at life time expected
credit risk.

Life time expected credit losses are the expected credit losses that result from all possible default events over the expected life of a
financial asset. Twelve months expected credit losses are the portion of lifetime expected credit losses that represent the expected
credit losses that result from default events on a financial instrument that are possible within the twelve months after the
reporting date (or a shorter period if the expected life of the instrument is less than twelve months)

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available
without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s
historical experience and informed credit assessment and including forward-looking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 360 days past due. The
Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in
full.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all
cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows
that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.
Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic
prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of
income that could generate sufficient cash flows to repay the amounts subject to the write- off. However, financial assets that are
written off could still be subject to enforcement activities in order to comply with the Company''s procedures for recovery of
amounts due.

2. Impairment of non-financial assets

The Company''s non-financial assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses
are recognized in the statement of profit and loss.

In respect of assets for which impairment loss has been recognized in prior periods, the Company reviews at each reporting date
whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset''s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if
no impairment loss had been recognized.

e Foreign Currency Transaction:

Transactions in foreign currencies are translated to the reporting currency based on the average exchange rate for the month.
Exchange differences arising on settlement thereof during the year are recognized as income or expenses in the Profit and Loss
Statement.

Cash and Bank balances, receivables and liabilities ( monetary items) in foreign currencies as at the year end are translated at
closing-date rates, and unrealized translation differences are included in the Statement of Profit and Loss.

The Company enters into derivate contracts strictly for hedging purposes and not for trading or speculation. Derivative
transactions settlement take place with the terms of the respective contracts and Profit/Loss if any is recognized at the time of
settlement of the contract.

f Income Tax:

(1) Provision for Current Tax is made as per the provisions of the Income Tax Act, 1961.

(2) Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognized for all taxable temporary differences. Deferred tax assets are generally recognized 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. 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.

(3) The Company has opted for Section 115BAA of the Income Tax Act, 1961, hence provisions of MAT are not applicable to the
company.

g Revenue Recognition:

i) Revenue for fixed-price contracts is recognised using percentage-of completion method. The Company uses judgement to
estimate the future cost-to-completion of the contracts which is used to determine degree of completion of the performance
obligation

ii) Dividend is recorded when the right to receive payment is established.

iii) Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Revenue from the software export is recognised as and when the software development activity is completed and delivered.

h Expenditure :

Expenditure is recognized on accrual basis.

i Employee Retirement Benefits:

i) Gratuity:

The Company accounts for its gratuity liability, a defined retirement benefit plan covering eligible employees. The gratuity plan
provides for a lump sum payment to employees at retirement, death and on attending specified years of completed services as
per The Payment of Gratuity Act, 1972. Liabilities with regards to Gratuity plan are determined based on the actuarial valuation
carried out by an independent actuary as at the Balance Sheet date using Projected Unit Credit Method.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as as an asset or liability. Gains and
losses through remeasurement of the net defined benefit liability / (asset) are recognised in other comprehensive income. The
effect of any plan amendments are recognized in the Statement of Profit & Loss

ii) Provident Fund:

The eligible employees of the Company are entitled to receive the benefits of Provident fund, a defined contribution plan, in
which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary
(Currently at 12% of Maximum Base Pay of Rs.15000/- p.m.), which are charged to the Statement of Profit and Loss on accrual
basis. The provident fund contributions are paid to the Regional Provident Fund Commissioner by the Company.

The Company has no further obligations other than its monthly contributions.

iii) Leave Encashment:

The Company is not having any policy for payment of leave encashment so no provision for the same has been made.
j Inventories

The Company is not having any Inventory.
k Preliminary Expenses

Preliminary and Pre- Operating expenses are written off entirely during the year on adoption of Ind AS.
l Earning Per Share:

In determining earnings per share, the company considers the net profit / loss after tax. The no. of shares used in computing both
basic and dilutive earnings per share is the weighted average number of shares outstanding during the period. There is no
potential dilutive equity shares.

m Cash Flow Statement

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

n Segment Reporting

The company has only one reportable business segment. Hence, Segment Reporting as defined in IND AS-108 is not applicable.

I The Company does not have any investment property.

II As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are
carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required
as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

III No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

IV There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section
560 of the Companies Act, 1956 for the year ended March 31, 2025.

V The Company has not operated in any crypto currency or Virtual Currency transactions.

VI During the year the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of
accounts in the tax assessments under Income Tax Act, 1961.

VII The borrowings taken by the company from banks/financial institutions has been used for the specific purpose for which it was
taken.

In terms of our report attached. For and on behalf of the Board of Directors

For Samir M. Shah & Associates NINtec Systems Limited

Chartered Accountants
Firm Reg. No.-122377W

Niraj C. Gemawat Indrajeet A. Mitra

Managing Director Director

DIN :00030749 DIN:00030788

Samir M. Shah

Partner

Membership No. 111052

Mohit S Soni Disha N. Shah

Chief Finance Officer Company Secretary

Place : Ahmedabad Place : Ahmedabad

Date : 28th May, 2025 Date : 28th May, 2025

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Mar 31, 2024

The disclosure in respect of the amount payable to enterprises which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made based on the information received and available with the Company. On the basis of such information, no interest is payable to any micro, small and medium enterprises. These facts have been relied upon by the auditors.

* Company has issued Bonus Shares on June 7, 2022 in the ratio of 1:2 i.e.,One Bonus Equity Shares of Rs. 10 each for every Two fully paid-up Equity Shares by utilisation of Free reserves.

**Company has issued Bonus Shares on August 04, 2023 in the ratio of 4:5 i.e.,Four Bonus Equity Shares of Rs. 10 each for every Five fully paid-up Equity Shares by utilisation of Free reserves.

(i) The Company has onlyone class ofshares referred to as equity shares having parvalue of Rs. 10/- each. Each holder of equity share is entitled to one vote per share,

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

(iii) Aggregate Numbers and class of shares allotted as fully paid up pursuant to contract without payment being received in cash.

24 Additional regulatory disclosures as per Schedule III of Companies Act. 2013

I The Company does not have any investment property.

II As per the Company’s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

III No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

IV There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 for the year ended March 31, 2024.

V The Company has not operated in any crypto currency or Virtual Currency transactions.

VI During the year the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of accounts in the tax assessments under Income Tax Act, 1961.

VII The borrowings taken by the company from banks/financial institutions has been used for the specific purpose for which it was taken.

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Mar 31, 2023

Details of employee benefit as required by the Ind AS 19 - Employee Benefits are as under:

a) Defined Contribution Plan

Amount recognized as an expense in the Statement of Profit and Loss for the period ended March 31, 2023 in respect of defined contribution plan is Rs. 1,948/- (March 31, 2022 : Rs. 1,100).

b) Defined Benefit Plan

The defined benefit plan comprises of gratuity. The gratuity plan is not funded. Changes in the present value of defined obligation representing reconciliation of opening and closing balance thereof and fair value in the Balance Sheet are as follow:

** Company has issued Bonus Shares on June 7, 2022 in the ratio of 1:2 i.e.,One Bonus Equity Shares of Rs. 10 each for every Two fully paid-up Equity Shares by utilisation of Free reserves. For calculation of weighted average number of ordinary equity shares ,The number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented. The company has presented Resated EPS for the year ended March 31, 2022.

** Company has issued Bonus Shares on June 7, 2022 in the ratio of 1:2 i.e.,One Bonus Equity Shares of Rs. 10 each for every Two fully paid-up Equity Shares by utilisation of Free reserves.

(i) The Company has only one class of shares referred to as equity shares having par value of Rs. 10/- each. Each holder of equity share is entitled to one vote per share,

(ii) In the event of liquidation ofthe Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

(iii) Aggregate Numbers and class of shares allotted as fully paid up pursuant to contract without payment being received in cash.

Note : 22 Additional regulatory disclosures as per Schedule III of Companies Act. 2013

I The Company does not have any investment property

II As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable

III No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

IV There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 for the year ended 31st March, 2023

V The Company has not operated in any crypto currency or Virtual Currency transactions

VI During the year the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of accounts in the tax assessments under Income Tax Act, 1961