Accounting Policies of Eppeltone Engineers Ltd. Company

Mar 31, 2025

2.1 Basis of Preparation of Financial Statements

a) These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention on the accrual basis and comply with mandatory accounting standards as prescribed under section 133 of
the Companies Act 2013 (‘Act’) read with Rule 7 of the Companies ( Accounts ) Rules, 2014, of the provisions the Act ( to the
extent notified ). 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, or as otherwise
disclosed.

b) The preparation of the financial statements, in conformity with GAAP, requires management to make estimates and assumptions
that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses during the period. Accounting estimates are made as the management
becomes aware of changes in circumstances,surrounding and estimates. Changes in estimates are reflected in the financial statements
in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

2.2 Plant, Property and Equipment’ and ’Intangible Assets’

a) . Plant, Property and Equipment

Property, plant and equipment are stated at acquisition cost less accumulated depreciation and recognised accumulated impairment
loss, if any. Direct Costs are capitalised until such assets are ready for their intended use. Property, plant and equipment in the course
of construction (Capital work-in-progress) comprises of the cost of such assets that are not yet ready for their intended use and are
depreciated from the date on which they are ready for their intended use.

The gain or loss arising on disposal of an asset is determined as the difference between the sale proceeds and the carrying amount of
the asset, and is recognised in the statement of profit and loss.

Subsequent costs are included in the carrying value of assets when it is probable that additional future economic benefits will flow to
the Company and the cost of the item can be measured reliably. All other repairs and renewals are charged to the statement of profit
and loss as incurred.

b) . Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset
comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing
authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and
rebates. Subsequent expenditure on an intangible asset after its acquisition/ completion is recognised as an expense when incurred,
unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally
assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such
expenditure is added to the cost of the asset.

2.3 Depreciation and Amortisation

a) Depreciation on Property, plant and equipment or part thereof (other than leasehold improvements) is provided by applying the
Straight Line Method having regard to:

(i) the useful lives of such assets prescribed in Schedule II to the Companies Act, 2013, as amended from time to time;

(ii) the estimated useful lives given below in respect of certain assets that, in terms of the management''s internal assessment, are
different from the useful lives prescribed in Schedule II.

b) The annual charge of depreciation is determined by systematically allocating the depreciable amount of the asset i.e. the original
cost of such asset less its residual value of up to 5% of the original cost, over its useful life. Such depreciation is calculated on pro rata
basis from the date of addition of the asset or up to the date of sale/ discard/ disposal, as the case may be.

c) The cost of leasehold improvements, having regard to the general estimated duration of their effective use, is amortized annually on
pro rata basis under the straight line method over a period of five years or over the remaining lease period, whichever is lower.
Amortization of Intangible Assets

The cost of intangible assets like software, licenses, trademarks, logo, etc. is amortized annually on pro rata basis under the straight
line method over a period of three years from the date of acquisition.

2.4 Trade Receivable

Trade Receivables are stated at book value.

2.5 Inventories

The inventory is valued at cost or net realizable value (on FIFO basis) whichever is lower (rejected raw material at cost less claim
received thereon). Cost includes cost of purchase and other costs incurred in bringing the inventories to their present condition and
location. The costs of purchase consist of the purchase price including duties and taxes (other than those subsequently recoverable by
the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the acquisition.

The basis of determining cost for various categories of inventories are as follows :-
Raw Material : At Cost

Work In Progress & Finished Goods : At Cost of Raw Materials plus manufacturing overheads and appropriate share of Labour

2.6 Revenue Recognitions

(a) Sales

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to
the buyer as per the terms of the contract, the Company retains no effective control of the goods transferred to a degree usually
associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived
from the sale of goods. Sales are recognized net of trade discounts, rebates and Goods and Service Tax.

(b) Interest income

Interest income is recognized on time proportion basis.

(c) Shares

Revenue from sale of shares is being recognized when the risk and reward of ownership is being transferred.

(d) Dividend Income

Revenue from dividend income is being recognised when right to receive the same is established.

2.7 Employee Benefits

(a) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee
benefits. Benefits such as salaries, wages, short term compensated absences, annual paid leave etc. and the expected cost of
bonus, ex-gratia are recognized in the period in which the employee renders the related services.

(b) Post-employment benefits

(i) Defined contribution plan :

All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee
benefits. Benefits such as salaries, wages, short term compensated absences, annual paid leave etc. and the expected cost of
bonus, ex-gratia are recognized in the period in which the employee renders the related services.

The company’s state governed employee state insurance scheme and employee provident fund scheme are defined contribution
plans. The contribution paid/payable under the scheme is recognized during the period in which the employee renders the related

(ii) Defined benefit plans:

Gratuity is a defined benefit plan payable at the end of the employment and is provided for on the basis of actuarial valuation at
each year-end using the projected unit credit method. Actuarial gain and loss for defined benefit plan is recognized in full in the
period in which it occur in the statement of profit and loss.

Leave Encashment is a defined benefit plan payable at the end of the employment and is provided for on the basis of actuarial
valuation at each year-end using the projected unit credit method. Actuarial gain and loss for defined benefit plan is recognized in
full in the period in which it occur in the statement of profit and loss.