HVAX Technologies Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note - 1 - Significant Accounting Policies

2.1 Basis of Preparation of financial statements

The financial statements have been prepared and present¬
ed under the historical cost convention on the accrual basis
of accounting and comply with the Accounting Standards
prescribed in the Companies (Accounting Standards) Rules,
2006 issued by the Central Government in consultation with
the National Advisory Committee on Accounting Standards
(‘NACAS''), and the relevant provisions of the Companies Act,
2013, to the extent applicable.

The Company has followed the same accounting policies in
preparation of the standalone financial statements as those
followed in preparation of the annual financial statements
for the year ended 31^st March 2015

The Company has also reclassified the previous year figures
in accordance with the requirements applicable in the cur¬
rent year.

2.2 Use of estimates

The preparation of financial statements in conformity with
generally accepted accounting principles (GAAP) in India
requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
the disclosure of contingent liabilities on the date of the fi¬
nancial statements. Actual results could differ from those
estimates. Management believes the assumptions used in
the estimates are prudent and reasonable. Any revision to
accounting estimates is recognized prospectively in the cur¬
rent and future periods.

2.3 Property, Plant and Equipments and Intangible Assets and
depreciation / amortisation

Property, Plant and Equipments and Intangible Assets are
stated at cost of acquisition less accumulated depreciation /
amortization and impairment. Cost includes purchase price
and other cost attributable to acquisition and installation of
the assets. Intangible assets are recognised only when it is
probable that the future economic benefits that are attrib¬
utable to the assets will flow to the Company and the cost
of such assets can be measured reliably. Intangible assets
are stated at cost less accumulated amortisation and impair¬

ment loss, if any. All costs relating to the acquisition are cap¬
italised. Property, Plant and Equipments individually costing
upto '' 5,000 are fully depreciated in the year of purchase.

2.4 Investments

Long term investments are carried at cost. Provision for dim¬
inution in the value of long term investments is made only if
such a decline is other than temporary in the opinion of the
management.

2.5 Inventories

Inventories are valued at lower of cost or net realizable val¬
ue.

2.6 Revenue recognition

Items of income are generally follows the practice of ac¬
counting on accrual basis.

2.7 Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange
rates prevailing on the dates of the transactions. Exchange
differences arising on foreign currency transactions settled
during the period are recognized in the profit and loss ac¬
count of that period.

2.8 Segment Reporting

In accordance with the Accounting Standard 17 "segment
reporting” as precribed under Companies (Accounting Stan¬
dard) Rules, 2006 (as amended ) applicable to the company.
The reporting related to same are disclosed in the Note No.
35.

2.9 Employee benefits

Provident fund and Employees State Insurance

The Company is regular in contributions to the Provident
Fund and Employees State Insurance at the prescribed rates.
Provident fund and Employee State Insurance dues are rec¬
ognized when the liability to contribute to the provident fund
and employees state insurance arises under the respective
Acts.

2.10 Taxation

Income tax expense comprises current tax (i.e. amount of tax
for the period determined in accordance with the income-tax
law) and deferred tax charge or credit (reflecting the tax ef¬
fects of timing differences between accounting income and
taxable income for the year). The current charge for income
taxes is calculated in accordance with the relevant tax regu¬
lations applicable to the Company. 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 sub¬
stantially 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 as at each
balance sheet date and written down or written-up to reflect the amount that is reasonably/ virtually certain (as the case may be) to
be realised.

2.11 Earnings per share (EPS)

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed
using the weighted average number of equity and potential equity shares outstanding during the year except where the results
would be anti-dilutive.

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Mar 31, 2024

Note - 2 - Significant Accounting Policies

2.1 Basis of Preparation of financial statements

lhe financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting
and comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central
Government in consultation with the National Advisory Committee on Accounting Standards {''NACAS''), and the relevant provisions
of the Companies Act, 2013, to the extent applicable.

2.2 Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Management
believes the assumptions used in the estimates are prudent and reasonable. Any revision to accounting estimates is recognized
prospectively in the current and future periods.

2.3 Property, Plant and Equipments and Intangible Assets and depreciation / amortisation

Property, Plant and Equipments and Intangible Assets are stated at cost of acquisition less accumulated depreciation /
amortization and impairment. Cost includes purchase price and otner cost attributable to acquisition and installation of the assets.
Intangible assets are recognised only when it is probable that the future economic benefits that are attributable to the assets will
flow to the Company and the cost of such assets can be measured reliably. Intangible assets are stated at cost less accumulated
amortisation and impairment loss, If any. All costs relating to the acquisition are capitalised. Property, Plant and Equipments
individually costing upto Rs. 5,000 are fully depreciated in the year of purchase.

2.4 Investments

Long term investments are carried at cost. Provision for diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.

2.5 Inventories

Inventories are valued at lower of cost or net realizable value.

2.6 Revenue recognition

Items of income are generally follows the practice of accounting on accrual basis.

2.7 Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the dates of the transactions. Exchange differences

arising on foreign currency transactions settled during the period are recognized in the profit and loss account of that period.

2.8 Segment Reporting

In accordance with the Accounting Standard 17 "segment reporting” as precribed under Companies (Accounting Standard) Rules.
2006 (as amended ) applicable to the company. The reporting related to same are disclosed in the Note No. 30

2.9 Employee benefits

Provident fund and Employees State Insurance

The Company is regular in contributions to the Provident Fund and Employees State Insurance at the prescribed rates. Provident
fund and Employee State Insurance dues are recognized when the liability to contribute to the provident fund and employees state
insurance arises under the respective Acts.

„_, ,

2.10 Taxation

Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law)
and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income
for the year). The current charge for income taxes is calculated n accordance with the relevant tax regulations applicable to the
Company. 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 substantially 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 as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/
virtually certain (as the case may be) to be realised.

2.11 Earnings per share (EPS)

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed
using the weighted average number of equity and potential equity shares outstanding during the year except where the results
would be anti-dilutive.