Accounting Policies of Kalyani Cast-Tech Ltd. Company

Mar 31, 2025

2) SIGNIFICANT ACCOUNTING POLICIES:

The Standalone Financial Statements have been prepared using the significant accounting policies and measurement bases
summarized below:

• Basis Of Accounting And Preparation Of Financial Statements

The financial statements of the Company have been prepared on Going Concern basis in accordance with the accounting
principles generally accepted in India. Further, the financial statements have been prepared on historical cost convention on the
accrual basis.

These financial statements have been prepared to comply in all material aspects with the Accounting Standards as prescribed
under section 133 of the Companies Act, 2013 (the "Act") read with rules under the Companies (Accounts) Rules, 2021
(amended) and other relevant provisions of the Companies Act, 2013.

The financial statements are presented in Indian Rupees(^) which is also the functional currency of the Company.

• Use of Estimates

The Preparation of Financial Statements in conformity with Indian generally accepted accounting principles (IGAAP) requires
the management to make estimates and assumptions that effect the reported amount of Assets and Liabilities (including the
disclosure of contingent liabilities) at the date of the Financial Statements and the results of operation of 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.

• Revenue Recognition

(a) Revenue from sales of goods are recognised when all significant risks and rewards of ownership have been transferred to
the buyer and no significant uncertainty exists regarding the amount of the consideration that will be realized from the sale of
goods. Sale are recognised, net of returns and trade discounts.

(b) Revenue from services are recognized on achievement of performance on the basis of completed service contract method.

(c) Interest income are recognised on accrual basis.

(d) Dividend income is accounted for when the right to receive it is established.

• Property Plant & Equipments

Property Plant & Equipments are carried at cost of acquisition/construction including import duties & non-refundable
purchase taxes(after deducting trade discounts and rebates)and other incidental expenses directly attributable to bringing the
asset to location and condition necessary for it to be capable of operating in the manner intended by the management, as the
case may be, less accumulated depreciation, amortisation and impairment as necessary.

• Intangible Assets

Intangible Assets are measured as costs, on intial recognition. Following intial recognition, intangible assets are carried at costs
less accumulated amortization and accumulated impairment loss as necessary.

• Depreciation and Amortization

Depreciation on property,plant & equipments has been charged on written down value method in accordance with useful lives
and rates specified in Schedule II of the "Companies Act,2013". Depreciation on Assets purchased or sold during the year is
taken on prorata basis.

Intangible Assets are amortized on written down value method assuming useful life of 5 years.

• Foreign Currency Transactions & Translations

(i) Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction or at rates that
closely approximate the rate at the date of the transaction. Gain/loss arising out of fluctuation rate between transaction date
and settlement date in respect of revenue items is recognized in the profit & loss account and in case of other assets, is
recognized to the carrying cost of respective assets.

(ii) Foreign currency monetary items as on the date of balance sheet are translated at the exchange rate prevailing on the date of
balance sheet. The resulting exchange difference,if any except on account on property,plant & equipment, is charged to the
revenue account.

• Purchase

The costs of purchase consist of the purchase price including duties &taxes (other than those subsequently recoverable by the
enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to bringing the inventory to
the present location and condition. Trade discounts,rebates and other similar items are deducted in determining the costs of
purchase.

• Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Further, the company follows First In First Out
system of accounting for stock in trade.

300

• Investments

Investments that are intended to be held for more than an year, from the date of acquisition, are classified as long-term
investments and are carried at cost. However, provision for diminution in value of investments is made to recognise a decline,
other than temporary, in the value of the investments. Current investments not intended to be held for a period more than one
year, are stated at lower of cost and fair value.

• Leases

In respect of Operating Lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

• Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary
items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges of expense or income relating to the dilutive potential equity
shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

• Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the
cost of such assets up to the date when such assets are ready for its intended use. All other borrowing costs are recognised in
profit and loss in the period in which they are incurred. Borrowing costs includes interest, ancillary costs incurred in
connection with the arrangement of the borrowings and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

• Employee Benefits

(a) Defined Contribution Plan:

The Company''s Contribution towards Provident Fund, State Insurance Fund and other Funds are considered as Defined
Contribution Plan and are charged as an expenses to the Statement of Profit and Loss statement when it falls due based on the
amount of Contribution required to made for the reporting period. There is no other obligation other than the contribution
payable to the respective funds.

(b) Defined Benefit Plan:

For Defined Benefit Plans in the form of Gratuity Fund, the cost of providing benefit is determined using the Projected Unit
Credit Method, with Actuarial Valuations being carried out at the end of each Balance Sheet Date. Actuarial gains and losses
are recognized in the Statement of Profit and Loss in the period in which they occur.

• Tax Expenses

a) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions
of the Income Tax Act, 1961. Provision for current tax are measured on the basis of the assessable income at the tax rates and
tax laws are enacted on the balance sheet date.

b) Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax asset and
deferred tax liability are calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the
Balance Sheet date.

c) Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation or
carried forward losses are recognised, if there is virtual certainty that there will be adequate future taxable income against
which such deferred tax assets can be realised. Deferred tax assets are recognized for timing differences of other items only to
the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be
realized. Deferred tax assets are reviewed at each Balance Sheet date for their reliability

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Mar 31, 2024

2) SIGNIFICANT ACCOUNTING POLICIES:

The Standalone Financial statements have been prepared using the Significant Accounting Policies and Measurement bases summarized below:

¦ Basis Of Accounting And Preparation Of Financial Statements

The financial statements of the Company have been prepared on Going Concern basis in accordance with the accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost convention on the accrual basis.

These financial statements have been prepared to comply in all material aspects with the Accounting Standards as prescribed under section 133 of the Companies Act, 2013 (the "Act") read with rules under the Companies (Accounts) Rules, 2021 (amended) and other relevant provisions of the Companies Act, 2013.

The financial statements are presented in Indian Rupees(^) which is also the functional currency of the Company.

• Use of Estimates

The Preparation of Financial Statements in conformity with Indian generally accepted accounting principles (IGAAP) requires the management to make estimates and assumptions that effect the reported amount of Assets and Liabilities (including the disclosure of contingent liabilities) at the date of the Financial Statements and the results of operation of 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.

¦ Revenue Recognition

(a) Revenue from sales of goods are recognised when all significant risks and rewards of ownership have been transferred to the buyer and no significant uncertainty exists regarding the amount of the consideration that will be realized from the sale of goods. Sale are recognised, net of returns and trade discounts.

(b) Revenue from services are recognized on achievement of performance on the basis of completed service contract method.

(c) Interest income are recognised on accrual basis.

(d) Dividend income is accounted for when the right to receive it is established.

• Property. Plant & Equipments

Property, plant & equipment are carried at cost of acquisition/construction including import duties & non-refundable purchase taxes(after deducting trade discounts and rebates)and other incidental expenses directly attributable to bringing the asset to location and condition necessary for it to be capable of operating in the manner intended by the management, as the case may be, less accumulated depreciation, amortisation and impairment as necessary.

¦ Intangible Assets

Intangible Assets are measured as costs, on intial recognition. Following intial recognition, intangible assets are carried at costs less accumulated amortization and accumulated impairment Loss as necessary.

• Depreciation and Amortization

Depreciation on property,plant & equipments has been charged on written down value method in accordance with useful Iifes and rates specified in Schedule II of the "Companies Act,2013". Depreciation on Assets purchase or sold during the year is taken on prorata basis.

Intangible Assets are amortized on written down value method assuming useful life of 5 years.

• Foreign Currency Transactions & Translations

(i) Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Gain/loss arising out of fluctuation rate between transaction date and settlement date in respect of revenue items is recognized in the profit & loss account and in case of other assets, is recognized to the canying cost of respective assets.

(ii) Foreign currency monetary items as on the date of balance sheet are translated at the exchange rate prevailing on the date of balance sheet The resulting exchange difference,if any except on account on property,plant & equipment, is charged to the revenue account

¦ Purchase

The costs of purchase consist of the purchase price including duties &taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to bringing the inventory to the present location and condition. Trade discounts,rebates and other similar items are deducted in determining the costs of purchase.

¦ Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Further, the company follows First In First Out system of accounting for stock in trade.

• Investments

Investments that are intended to be held for more than an year, from the date of acquisition, are classified as long-term investments and are carried at cost However, provision for diminution in value of investments is made to recognise a decline, other them temporary, in the value of the investments. Current investments not intended to be held for a period more than one year, are stated at lower of cost and fair value.

¦ Leases

In respect of Operating lease, Lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

¦ Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges of expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

• Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets up to the date when such assets are ready for its intended use. All other borrowing costs are recognised in profit and loss in the period in which they are incurred. Borrowing costs includes interest, ancillary costs incurred in connection with the arrangement of the borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost

¦ Employee Benefits

fat Defined Contribution Plan:

The Company''s Contribution towards Provident Fund, State Insurance Fund and other Funds are considered as Defined Contribution Plan and are charged as an expenses to the Statement of Profit and Loss statement when it falls due based on the amount of Contribution required to made for the reporting period. There is no other obligation other than the contribution payable to the respective funds.

fbl Defined Benefit Plan:

For Defined Benefit Plans in the form of Gratuity Fund, the cost of providing benefit is determined using the Projected Unit Credit Method, with Actuarial Valuations being carried out at the end of each Balance Sheet Date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur.

¦ Tax Expenses

a) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Provision for current tax are measured on the basis of the assessable income at the tax rates and tax laws are enacted on the balance sheet date.

b) Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax asset and deferred tax liability are calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

c) Deferred tax liabilities are recognized for all tuning differences. Deferred tax assets in respect of unabsorbed depreciation or carried forward losses are recognised, if there is virtual certainty that there will be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets are reviewed at each Balance Sheet date for their reliability