Accounting Policies of Holmarc Opto-Mechatronics Ltd. Company

Mar 31, 2025

B Summary of significant accounting policies

B.1 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, read with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared under
the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company
and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous
period. The Company has prepared the financial statements on a going concern basis.

B.2 Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the results of operations during the reporting period end. Although
these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from
these estimates.

B.3 Tangible fixed assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss if any. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs, if any, relating
to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the
extent they relate to the period till such assets are ready to be put to use.

B.4 Depreciation on tangible fixed assets

Depreciation is provided using the Written Down Value Method (‘WDV’) as per the useful life prescribed in Schedule II of
the Companies Act, 2013.

B.5 Intangible assets and amortization

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, the intangible assets are
carried at cost less accumulated amortization and accumulated impairment, if any. The amortization period and method are
reviewed at each Balance Sheet date. If the expected useful life of the asset is significantly different from the previous
estimates, the amortization period is changed accordingly.

B.6 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

B.7 Inventories

Inventories are valued at lower of cost and net realisable value whichever is lower, cost is determined on FIFO basis.

B.8 Revenue recognition

Sales:

Revenue from sale of products is recognised when significant risks and rewards of ownership are passed to the buyer.

Rental Income:

Rental income, if any, is recognised on a straight-line basis over the lease term.

Interest:

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

B.9 Foreign currency transactions

i. Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non¬
monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported
using the exchange rates that existed when the values were determined.

iii. Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the
Company and its integral foreign operations are recognised as income or expense in the Statement of Profit and Loss.

B.10 Retirement and other employee benefits

(i) Retirement benefits in the form of provident fund is a defined contribution scheme and the contributions are charged to
the Statement of Profit and Loss of the year when the contributions are due. There are no obligations other than the
aforementioned contribution payable.

(ii) Gratuity liability under the Payment of Gratuity Act is accrued and provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each financial year. Actuarial gains and losses are recognized in full in the
statement of profit and loss for the period in which they occur. Past service cost is recognized immediately to the extent that
the benefits are already vested. The retirement benefit obligation recognized in the balance sheet represents the present value
of the defined benefit obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme
assets, if any.

B.11 Income Taxes

Tax expense comprises current tax and deferred tax. Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year
timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier
years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities across various countries of operation are not set off against each other as the
company does not have a legal right to do so. Deferred tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In
situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised
only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred
tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future
taxable income will be available against which such deferred tax assets can be realised.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of
adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay
normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future
economic benefit associated with it will flow to the Company.

B.12 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares, if any.

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Mar 31, 2024

A. Corporate information

Holmarc Opto-Mechatronics Limited (hereinafter referred to “the Company” ) was incorporated on 11-02-1993 under the Indian Companies Act, 1956 in the State of Kerala. The company is engaged in the manufacture of scientific and engineering instruments for research, industry and education.

B. Summary of significant accounting policies

B.1 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, read with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous period. The Company has prepared the financial statements on a going concern basis.

B.2 Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

B.3 Tangible fixed assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs, if any, relating to acquisition of fixed

assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

B.4 Depreciation on tangible fixed assets

Depreciation is provided using the Written Down Value Method (‘WDV’) as per the useful life prescribed in Schedule II of the Companies Act, 2013.

B.5 Intangible assets and amortization

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, the intangible assets are carried at cost less accumulated amortization and accumulated impairment, if any. The amortization period and method are reviewed at each Balance Sheet date. If the expected useful life of the asset is significantly different from the previous estimates, the amortization period is changed accordingly.

B.6 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

B.7 Inventories

Inventories are valued at lower of cost and net realisable value whichever is lower, cost is determined on FIFO basis.

B.8 Revenue recognition Sales:

Revenue from sale of products is recognised when significant risks and rewards of ownership are passed to the buyer.

Rental Income:.

Rental income, if any, is recognised on a straight-line basis over the lease term.

Interest:

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

B.9 Foreign currency transactions

i. Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non- monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii. Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognised as income or expense in the Statement of Profit and Loss.

B.10 Retirement and other employee benefits

i. Retirement benefits in the form of provident fund is a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions are due. There are no obligations other than the aforementioned contribution payable. i. Gratuity liability under the Payment of Gratuity Act is accrued and provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. Actuarial gains and losses are recognized in full in the statement of profit and loss for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested. The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets, if any.

B.11 Income Taxes

Tax expense comprises current tax and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes

reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities across various countries of operation are not set off against each other as the company does not have a legal right to do so. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax

assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

B.12 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

B.13 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet

date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

B.14 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future receipts or payments. In the cash flow statement, cash and cash equivalents consist of cash in hand, cheques on hand, balances with banks in current accounts and demand deposits .

B.15 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be

confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

B.16 Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur .

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Mar 31, 2023

A Corporate information

Holmarc Opto-Mechatronics Limited (hereinafter referred to "the Company" ) was incorporated on 11-02-1993 under the Indian Companies Act. 1956 in the Slate of Kerala. The company is engaged in the manufacture of scientific and engineering instruments for research, industry and education.

B Summary of significant accounting policies

B I 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, read with Rule 7 of the Companies (Accounts) Rules 2014 The financial statements have been prepared under the historical cost convention on an accrual basis The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous period The Company has prepared the financial statements on a going concern basis.

B 2 llse of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

B 3 Tangible fixed assets

f ixed assets are stated at cost, less accumulated depreciation and impairment loss if any Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use Borrowing costs, if any. relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use

B 4 Depreciation on tangible fixed assets

Depreciation is provided using the Written Down Value Method (WDV’) as per the useful life prescribed in Schedule II of the Companies Act, 2013.

B 5 intangible assets and amortization

intangible assets acquired are measured on initial recognition at cost Following initial recognition, the intangible assets arc carried at cost less accumulated amortization and accumulated impairment, if any The amortization period and method are reviewed at each Balance Sheet date If the expected useful life of the asset is significantly different from the previous estimates, the amortization period is changed accordingly

B o Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount The recoverable amount is the greater of the assets net selling price and value in use In assessing value in use. the estimated future cash flows are discounted to their present value at the weighted average cost of capital After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

13 7 Inventories

Inventories are valued at lower of cost and net realisable value whichever is lower, cost is determined on FIFO basis

B.8 Revenue recognition

Sales;

Revenue front sale of products is recognised when significant risks and rewards of ownership are passed to the buyer.

Rental Income;

Rental income, if any, is recognised on a straight-line basis over the lease term Interest;

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

B.9 Foreign currency transactions

i. Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and die foreign currency ai the date of the transaction

ii Foreign currency monetary items are reported using the closing rate Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using die exchange rate at the date of the transaction, and nonmonetary items which are carried at fair value or oilier similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the

Company and us integral foreign operations are recognised as income or expense in the Statement of Profit and Loss.

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15 10 Retirement and other employee benefits

Retirement benefits in the form of provident fund is a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions are due. There are no obligations other than the aforementioned contribution payable.

U.ll Income Taxes

lax expense comprises current lax and deferred tax Current income lax is measured at the amount expected to be paid to the lax authorities in accordance with the Indian Income I ax Act. Deferred income taxes reflects the impact of current year liming differences between taxable income and accounting income for the year and reversal of timing differences of earlier years

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet dale. Deferred tax assets and deferred tax liabilities across various countries of operation are not set off against each other as the company does not have a legal right to do so. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits

At each balance sheet date the Company re-assesses unrecognised deferred tax assets It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain, as Ihe case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax Accordingly. MAT is recognised as an asset m the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

B 12 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during [he period.

for the purpose of calculating diluted earnings per share, the net profit or loss for ihe period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shines, if any

B 13 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect ol which a reliable estimate can be made Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date Those are reviewed at each balance sheet dale and adjusted to reflect the current best estimates.

B 14 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/!loss) before extraordinary items and tax is adjusted for the effects ol transactions ot non-cash nature and any deferrals or accruals of past or future receipts or payments In the cash flow statement, cash and cash equivalents consist ol cash in hand, cheques on hand, balances with banks in current accounts and demand deposits.

R 15 Contingent liabilities

A contingent liability is a possible obligation that arises front past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will he required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot he recognised because it cannot be measured reliably, A disclosure is made for a contingent liability when there is a

a) possible obligation, the existence of which will be confirmed by ihe occurrcnce/tion-occurrence of one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required lo settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

B. 16 Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection w ith the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of Ihe asset. All other borrowing costs are expensed in the period in w hich they occur