Accounting Policies of Affordable Robotic & Automation Ltd. Company

Mar 31, 2025

55.01 Method of Accounting

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards
(Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section
133 of the Companies Act, 2013 (“the Act”) and other relevant provisions of the Act. of accounting.

55.02 Basis for preperation of financial statements

The financial statements of the Company have been prepared under the historical cost conventions in accordance
with IND AS. Accounting policies not specifically referred to otherwise are consistent and in accordance with Ind
AS.

55.03 Property,Plant and Equipment and Intangible Assets

Property,Plant and Equipment and Intangible Assets are stated at cost of acquisition / construction less
accumulated depreciation. None of the Fixed Assets have been revalued during the year under review.

55.04 Depreciation

Depreciation on Property,Plant and Equipment is calculated on a Written Down Value Method using the rates
arrived at based on the useful lives estimated by the management commonsurate with The Companies Act, 2013

55.05 Investments

Investments are stated at cost of acquisition, if any.

55.06 Revenue recognition

Sales are accounted for on the basis of dispatch to customers, which excludes indirect taxes and duties and other
income is recognized on accrual basis.

55.07 Inventories

The inventories of Raw material, Stores and WIP are valued by the management at cost or market price whichever
is lower and on FIFO basis of physical verification of stock at the end of the year.

55.08 Current Assets, Loans and Advances

In the opinion of the management, the value of all current assets, loans, advances and other realizables are not
less than their realizable value in the ordinary course of business.

55.09 Employee benefit

Retirement Benefits in the form of provident fund contributions are charged to the Profit & Loss Account of the
period when the contributions to the fund are due. There are no obligations other than the contribution payable to
the fund. Provision of Gratuity Act ,1972 are applicable to the company . As per the actuarial valuation report taken,
the company should provide for Gratuity of Rs.303.03/- Lakhs up to the current year. (from this Current obligation is
Rs.31.43 and Non Current is Rs.271.60 Lakh). The provision for FY 24 -25 as per acturial report comes to Rs 74.71
lacs. The Company has not provided for the same in its books of Account and estimation for leave encashment
could not be done.

55.10 Accounting for taxes on Income

Income Tax comprises of current tax, deferred tax. Provision for current income tax is made on the assessable
income/benefits at the rate applicable to relevant assessment year. Deferred tax asset & liabilities are recognised
for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets
& liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date. The
carrying amount of deferred tax asset/liability are reviewed at each Balance Sheet date & recognised and carried
forward only to the extent that there is a reasonable certainty that the asset will be realised in future.

55.11 Borrowing Costs

Borrowing costs that are directly attributable to acquisition of assets has been capitalized and other borrowing
costs has been treated as an expense during the period in which they have incurred. Interest cost of Rs.121.18/-
Lakh related to capital wip has been capitalised.

55.12 Contingencies & events occurred after the Balance Sheet date

a) No such liabilities were noticed which are contingent in nature, other than those specified in independent
auditors report and CARO Point No VII.

b) There are no such events except mentioned above that have occurred after the Balance Sheet date which will
have bearing on profitability and / or state of affairs of the company.

c) As on 31.03.2025, Bank Gurantee Issued by the company is Rs.111.61 Lac

55.13 Foreign Exchange Transactions

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transaction.
Exchange difference arising on the foreign exchange transaction settled during the period are recognised in the
Profit & Loss Account. Monetary items outstanding on date of Balancesheet have been accounted at exchange rate
as on that date and difference has been charged to Profit and Loss account.

55.14 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and items of Income or Expense associated with investing or financing cash flows.

55.15 Impairment of Assets

The company on annual basis tests the carrying amount of assets for impairment so as to determine

a) The provision for impairment loss, if any, or

b) the reversal, if any, required on account of impairment loss recognized in previous periods.

55.16 Earnings Per Share

Basic Earning Per Share is calculated by dividing the Net Profit attributable to the Shareholders by the total weighted
average number of Equity Shares outstanding at the end of the year.

55.17 Ratio Analysis

Detailed Ratio Analysis given in Schedule No.13

55.18 Segment Reporting

Notes on Financial Statements 1 to 34

Notes referred to above form an integral part of the Balance Sheet.

This is the Balance Sheet referred to in our report of even date.

As per my Audit Report Under the Companies Act, For and on behalf of the Board of Directors of
2013, of even date Affordable Robotic and Automation Ltd.

For, Vijay Moondra & Co. Manohar P. Padole Milind M. Padole

Chartered Accountants Whole Time Director Managing Director

(FRN 112308W) DIN: 02738236 DIN : 02140324

CA Vinit Moondra Dakshnamurthy K Ruchika Shinde

Partner Chief Financial Officer Company Secretary

M No - 119398

Place: Ahmedabad Place : Pune

Date : 28/05/2025 Date: 28/05/2025

UDIN: 25119398BMHVBR2592

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Mar 31, 2024

38 Significant Accounting Policies

38.01 Method of Accounting

The accounts of the Company are prepared in accordance with the accounting principles generally accepted in India. The Company has maintained its accounts on mercantile system of accounting.

38.02 Basis for preparation of financial statements

The financial statements of the Company have been prepared under the historical cost conventions in accordance with generally accepted accounting principles. Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

38.03 Property, Plant and Equipment and Intangible Assets

Property, Plant and Equipment and Intangible Assets are stated at cost of acquisition / construction less accumulated depreciation. None of the Fixed Assets have been revalued during the year under review.

38.04 Depreciation

Depreciation on Property, Plant and Equipment is calculated on a Written Down Value Method using the rates arrived at based on the useful lives estimated by the management commensurate with The Companies Act, 2013

38.05 Investments

Investments are stated at cost of acquisition, if any.

38.06 Revenue recognition

Sales are accounted for on the basis of dispatch to customers, which excludes indirect taxes and duties and other income is recognized on accrual basis.

38.07 Inventories

The inventories of Raw material, Stores and WIP are valued by the management at cost or market price whichever is lower and on FIFO basis of physical verification of stock at the end of the year.

Particulars	INR in Lakh
Raw Material	1,720.72
WIP	3,595.80
WIP-Masterji.AI Project	68.72
Stores	33.15
Total	5,418.39

38.08 Current Assets, Loans and Advances

In the opinion of the management, the value of all current assets, loans, advances and other realizable are not less than their realizable value in the ordinary course of business.

38.09 Employee benefit

Retirement Benefits in the form of provident fund contributions are charged to the Profit & Loss Account of the period when the contributions to the fund are due. There are no obligations other than the contribution payable to the fund. Provision of Gratuity Act ,1972 are applicable to the company. As per the actuarial valuation report taken, the company should provide for Gratuity of Rs.2,52,80,492/- up to the current year. The provision for FY 23 -24 as per the actuarial report comes to Rs 61.38 lacs. The Company has not provided for the same in its books of Account and estimation for leave encashment could not be done.

38.10 Accounting for taxes on Income

Income Tax comprises of current tax, deferred tax. Provision for current income tax is made on the assessable income/benefits at the rate applicable to relevant assessment year. Deferred tax asset & liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets & liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date. The carrying amount of deferred tax asset/liability are reviewed at each Balance Sheet date & recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

38.11 Borrowing Costs

Borrowing costs that are directly attributable to acquisition of assets have been capitalized and other borrowing costs have been treated as an expense during the period in which they have incurred. Interest cost related to capital WIP has been capitalized.

38.12 Contingencies & events occurred after the Balance Sheet date

a) No such liabilities were noticed which are contingent in nature, other than those specified in independent auditor’s report and CARO Point No VII.

b) There are no such events except mentioned above that have occurred after the Balance Sheet date which will have bearing on profitability and / or state of affairs of the company.

c) The Company is planning for migration from BSE SME platform to BSE & NSE Main board, for the same EGM Conducted on 13.04.2023 to get approval from shareholder.

d) As on 31.03.2024, Bank Guarantee Issued by the company is Rs.111.61 Lac

38.13 Foreign Exchange Transactions

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange differences arising on the foreign exchange transaction settled during the period are recognized in the Profit & Loss Account. Monetary items outstanding on date of Balance sheet have been accounted at exchange rate as on that date and difference has been charged to Profit and Loss account.

38.14 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of Income or Expense associated with investing or financing cash flows.

38.15 Impairment of Assets

The company on annual basis tests the carrying amount of assets for impairment so as to determine

a) The provision for impairment loss, if any, or

b) the reversal, if any, required on account of impairment loss recognized in previous periods.

38.16 Earnings Per Share

Basic Earnings Per Share is calculated by dividing the Net Profit attributable to the Shareholders by the total weighted average number of Equity Shares outstanding at the end of the year.

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Mar 31, 2023

Significant Accounting Policies

38.1 Method of Accounting

The accounts of the Company are prepared in accordance with the accounting principles generally accepted in India. The Company has maintained its accounts on mercantile system of accounting.

38.2 Basis for preparation of financial statements

The financial statements of the Company have been prepared under the historical cost conventions in accordance with generally accepted accounting principles. Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

38.3 Property, Plant and Equipment and Intangible Assets

Property, Plant and Equipment and Intangible Assets are stated at cost of acquisition / construction less accumulated depreciation. None of the Fixed Assets have been revalued during the year under review.

38.4 Depreciation

Depreciation on Property, Plant and Equipment is calculated on a Written Down Value Method using the rates arrived at based on the useful lives estimated by the management commensurate with The Companies Act, 2013

38.5 Investments

Investments are stated at cost of acquisition, if any.

38.6 Revenue recognition

Sales are accounted for on the basis of dispatch to customers, which excludes indirect taxes and duties and other income is recognized on accrual basis.

38.7 Inventories

The inventories of Raw material, Stores and WIP are valued by the management at cost or market price whichever is lower and on FIFO basis of physical verification of stock at the end of the year.

Particulars	INR in Lakh
Raw Material	1,558.69
WIP	2,994.24
WIP-Masterji.AI Project	68.72
Stores	45.28
Total	4,666.93

38 8 Current Assets, Loans and . Advances

In the opinion of the management, the value of all current assets, loans, advances and other realizables are not less than their realizable value in the ordinary course of business.

38.9 Employee benefit

Retirement Benefits in the form of provident fund contributions are charged to the Profit & Loss Account of the period when the contributions to the fund are due. There are no obligations other than the contribution payable to the fund. Provision of Gratuity Act ,1972 are applicable to the company . As per the actuarial valuation report taken, the company should provide for Gratuity of Rs.1,60,31,384/- up to the current year. The provision for FY 22 -23 as per actuarial report comes to Rs 44.22 lacs. The Company has not provided for the same in its books of Account and estimation for leave encashment could not be done.

38.10 Accounting for taxes on Income

Income Tax comprises of current tax, deferred tax. Provision for current income tax is made on the assessable income/benefits at the rate applicable to relevant assessment year. Deferred tax asset & liabilities are recognised for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets & liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date. The carrying amount of deferred tax asset/liability are reviewed at each Balance Sheet date & recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.

38.11 Borrowing Costs

Borrowing costs that are directly attributable to acquisition of assets has been capitalized and other borrowing costs has been treated as an expense during the period in which they have incurred. Interest cost related to capital WIP has been capitalised.

38.12 Contingencies & events occurred after the Balance Sheet date

a) No such liabilities were noticed which are contingent in nature, other than those specified in independent auditors'' report and CARO Point No VII.

b) There are no such events except mentioned above that have occurred after the Balance Sheet date which will have bearing on profitability and / or state of affairs of the company.

c) The Company is planning for migration from BSE SME platform to BSE & NSE Main board, for the same EGM Conducted on 13.04.2023 to get approval from shareholder.

d) As on 31.03.2023, Bank Guarantee Issued by the company is Rs.80.60 Lac

38.13 Foreign Exchange Transactions

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange difference arising on the foreign exchange transaction settled during the period are recognised in the Profit & Loss Account. Monetary items outstanding on date of Balance sheet have been accounted at exchange rate as on that date and difference has been charged to Profit and Loss account.

38.14 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of Income or Expense associated with investing or financing cash flows.

38.2 Impairment of Assets

The company on annual basis tests the carrying amount of assets for impairment so as to determine

a) The provision for impairment loss, if any, or

b) the reversal, if any, required on account of impairment loss recognized in previous periods.

38.2 Earnings Per Share

Basic Earning Per Share is calculated by dividing the Net Profit attributable to the Shareholders by the total weighted average number of Equity Shares outstanding at the end of the year.

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Mar 31, 2018

1 Significant Accounting Policies

1.1 Method of Accounting

The accounts of the Company are prepared in accordance with the accounting principles generally accepted in India. The Company has maintained its accounts on mercantile system of accounting.

1.2 Basis for preperation of financial statements

The financial statements of the Company have been prepared under the historical cost conventions in accordance with generally accepted accounting principles. Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

1.3 Fixed Assets

Fixed assets are stated at cost of acquisition / construction less accumulated depreciation. None of the Fixed Assets have been revalued during the year under review.

1.4 Depreciation

Depreciation on fixed assets is calculated on a Written Down Value Method using the rates arrived at based on the useful lives estimated by the management commonsurate with The Companies Act, 2013

1.5 Investments

Investments are stated at cost of acquisition, if any.

1.6 Revenue recognition

Sales are accounted for on the basis of dispatch to customers, which excludes excise duty and value added tax and other income is recognized on accrual basis.

1.7 Inventories

The inventories are valued by the management at cost or market price whichever is lower and on the basis of physical verification of stock at the end of the year.

1.8 Current Assets, Loans and Advances

In the opinion of the management, the value of all current assets, loans, advances and other realizables are not less than their realizable value in the ordinary course of business.

1.9 Employee benefit

Retirement Benefits in the form of provident fund contributions are charged to the Profit & Loss Account of the period when the contributions to the fund are due. There are no obligations other than the contribution payable to the fund. Provision of Gratuity Act ,1972 are applicable to the company . As per the actuarial valuation report taken, the company should provide for Gratuity of Rs. 59,16,455 for the current year. But The Comapny has not provided for the same in its books of Account.

1.10 Accounting for taxes on Income

Income Tax comprises of current tax, deferred tax. Provision for current income tax is made on the assessable income/benefits at the rate applicable to relevant assessment year. Deferred tax asset & liabilities are recognised for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets & liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date. The carrying amount of deferred tax asset/liability are reviewed at each Balance Sheet date & recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.

1.11 Borrowing Costs

Borrowing costs that are directly attributable to acquisition of assets has been capitalized and other borrowing costs has been treated as an expense during the period in which they have incurred.

1.12 Contingencies & events occurred after the Balance Sheet date

a) No such liabilities were noticed which are contingent in nature.

b) The Company has gone for Initial Public Offer in FY 2018-19 for Fresh Issue Of 26,81,600 Equity Shares of Face Value Rs 10 and Premium of Rs 75 per share. The IPO started on 24/05/2018 and closed on 28/05/2018 and it has been listed on SME Platform of BSE on 04/06/2018

c) The Company has made Private Placement in FY 2018-19 of Fresh Issue Of 10,00,000 Equity Shares of Face Value Rs 10 and Premium of Rs 65 per share on 26/04/2018

d) There are no such events except mentioned above that have occurred after the Balance Sheet date which will have bearing on profitability and / or state of affairs of the company.

1.13 Foreign Exchange Transactions

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Exchange difference arising on the foreign exchange transaction settled during the period are recognised in the Profit & Loss Account. Monetary items outstanding on date of Balancesheet have been accounted at exchange rate as on that date and difference has been charged to Profit and Loss account.

1.14 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of Income or Expense associated with investing or financing cash flows.

1.15 Impairment of Assets

The company on annual basis tests the carrying amount of assets for impairment so as to determine

a) The provision for impairment loss, if any, or

b) the reversal, if any, required on account of impairment loss recognized in previous periods.

1.16 Earnings Per Share

Basic Earning Per Share is calculated by dividing the Net Profit attributable to the Shareholders by the total weighted average number of Equity Shares outstanding at the end of the year.