Accounting Policies of Chamunda Electricals Ltd. Company

Mar 31, 2025

1. CORPORATE INFORMATION

Our Company was incorporated on June 25, 2013 as “Chamunda Electrical Private Limited’, a private limited company under the
Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli.
Subsequently, our Company was converted into a public limited company pursuant to a resolution passed by our Shareholders at an
extraordinary general meeting held on July 23, 2024 and consequently the name of our Company was changed to “Chamunda Electrical
Limited” and a fresh certificate of incorporation dated August 21, 2024 was issued by the Registrar of Companies, Ahmedabad. The
corporate identification number of our Company is U40106GJ2013PLC075751.

The company is engaged in the business of providing specialized services of operation and maintenance of substation up to 66 KV
(kilovolt), testing and commissioning of electrical substation up to 220 KV (kilovolt) and solar power generation park of 1.5 MW
(Megawatts) capacity, it includes erection of EHV class equipments, structures and equipments, earthing, control cable works and other
associated works for substations up to 220 KV (D Class). Over the years the company has built deep expertise to develop solutions and
service offerings across the business verticals.

2. SIGNIFICANT ACCOUNTING POLICIES

2.01 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies
Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements
have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation
of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted
accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its
operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.

2.02 USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.03 PROPERTY, PLANT & EQUIPMENT

All Fixed Assets are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to
their acquisition and bringing the asset to its intended use.

2.04 DEPRECIATION / AMORTISATION
Tangible Assets:

Depreciation on fixed assets is calculated on a written down value method basis using the rates arrived at based on the
useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013. Individual
assets cost at residual value is calculated at 5% each . Intangible assets including internally developed intangible assets are
amortised over the year for which the company expects the benefits to accrue.