Accounting Policies of Swagtam Trading & Services Ltd. Company

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 General information and statement of compliance with Ind AS

These standalone financial statements (‘financial statements’) of the Company have been prepared in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies
Act, 2013 (‘the Act’) and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods
presented. These financial statements were approved for issue by the Board of Directors in the board Meeting held on 24^th May 2024.

2.2 Basis for preparation of Financial Statements

These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair
values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value
of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date.

2.3 Use of estimates

The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India and
also these financial statements are in conformity with the recognition and measurement principles of Ind AS requires the management of the
Company to make judgment, estimates and assumptions that affect the reported amounts of revenue, expense, assets and liabilities, and the
accompanying disclosures and the disclosure relating to contingent liabilities as at the date of the financial presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period
in which the estimates are revised and future periods are affected. Any revision in accounting estimates is recognized prospectively in the
period of change and material revision, including its impact on financial statements, is reported in the notes to accounts in the year of
incorporation of revision

2.4 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from services rendered is recognized based on
agreements/arrangements with the customers as the service is performed in proportion to the stage of completion of the transaction at the
reporting date and the amount of revenue can be measured reliably. Revenue is recognized only when evidence of an arrangement is obtained
and the other criteria to support revenue recognition are met, including the price is fixed or determinable, services have been rendered and
collectability of the resulting receivables is reasonably assured. Dividend income is recognized when the right to receive payment is
established. Interest income is recognized using effective rate of interest method.

2.5 Employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These
benefits include salaries and wages, performance incentives and compensated absences which are expected to occur in next twelve months.
The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the
related service is rendered by employees.

2.6 Property, Plant and Equipment and Intangible Assets

Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow and the cost of the item can be measured reliably. All other repairs and maintenance
are charged to the Statement of Profit and Loss during the period in which they are incurred.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the Statement of Profit and Loss.

Depreciation has been provided based on estimated useful life assigned to each asset in accordance with Schedule II of the Companies Act,
2013.

Intangible assets purchased are measured at cost as at the date of acquisition, as applicable, less accumulated amortization and accumulated
impairment, if any. Intangible assets consist of rights under licensing agreement and software licenses which are amortized over license period
which equates the economic useful life ranging between 2-5 years on a straight-line basis over the period of its economic useful life.

Intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be
recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets.
In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs

2.7 Impairment of Assets

(i) Financial assets

The company recognizes loss allowances using Expected Credit Losses (ECL) model for the Financial Assets which are not fair valued through
Profit or Loss. Loss Allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.
For all other Financial Assets, ECLs are measured at an amount equal to 12-month ECL, unless there has been a significant increase in credit
risk from initial recognition in which case those are measured at Lifetime ECL. The amount of ECL that is required to adjust the loss allowance
at the reporting date to the amount that is required to be recognized is recognized as an impairment Gain or Loss in the Statement of Profit or
Loss.

(ii) Non-financial assets (Tangible and intangible assets)

An asset is deemed impairable when recoverable value is less than its carrying cost and the difference between the two represents provisioning
exigency. Recoverable value is the higher of the ‘Value in Use’ and ‘fair value as reduced by cost of disposal’. Test of impairment of PPE,
investment in subsidiaries / associates / joint venture and goodwill are undertaken under Cash Generating Unit (CGU) concept. For Intangible
Assets and Investment Properties it is undertaken in asset specific context. Test of impairment of assets are generally undertaken based on
indication of impairment, if any, from external and internal sources of information outlined in para 12 of Ind AS-36.

Non-financial assets other than goodwill suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting
period.