Accounting Policies of Lakshya Powertech Ltd. Company

Mar 31, 2025

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 Account¬
ing 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 pol¬
icies 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 lia¬
bilities) 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 esti¬
mates 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 AND INTANGIBLE ASSETS

All Property, Plant & Equipment 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. Intangible Assets are stated at
acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

2.04 DEPRECIATION / AMORTISATION

"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, or those prescribed under the Schedule II to the Companies Act,
2013. Individual assets cost of which doesn''t exceed Rs. 5,000/- each are depreciated in full in the year of purchase.
Intangible assets including internally developed intangible assets are amortised over the year for which the com¬
pany expects the benefits to accrue. Intangible assets are amortized on straight line method basis over 10 years in
pursuance of provisions of AS-26.

2.05 INVENTORIES

Inventories comprises of Raw Material, Work-in-Progress and Finished Goods. Inventories are measured at the lower
of cost and net realisable value. The cost of inventories is based on the first-in, first-out principle.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of com¬
pletion and the estimated costs necessary to make the sale.

2.06 INVESTMENTS

Current investments are carried at cost or fair-value whichever is lower. Further, any reduction to fair value and any
reversals of such reductions are included in the profit and loss statement. Profit or loss on sale of investments is
determined as the difference between the sale price and carrying value of investment, determined individually for
each investment. Cost of investments sold is arrived using average method."

2.07 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount
is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future
cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life.
Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledge¬
able, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in
the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is
reversed if there has been a change in the estimate of the recoverable value.

2.08 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
intended use. All other borrowing costs are charged to revenue.

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Mar 31, 2024

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 Account¬
ing 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 pol¬
icies 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 lia¬
bilities) 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 esti¬
mates 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 AND INTANGIBLE ASSETS

All Property, Plant & Equipment 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. Intangible Assets are stated at
acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

2.04 DEPRECIATION / AMORTISATION

"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, or those prescribed under the Schedule II to the Companies Act,
2013. Individual assets cost of which doesn''t exceed Rs. 5,000/- each are depreciated in full in the year of purchase.
Intangible assets including internally developed intangible assets are amortised over the year for which the com¬
pany expects the benefits to accrue. Intangible assets are amortized on straight line method basis over 10 years in
pursuance of provisions of AS-26.

2.05 INVENTORIES

Inventories comprises of Raw Material, Work-in-Progress and Finished Goods. Inventories are measured at the lower
of cost and net realisable value. The cost of inventories is based on the first-in, first-out principle.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of com¬
pletion and the estimated costs necessary to make the sale.

2.06 INVESTMENTS

Current investments are carried at cost or fair-value whichever is lower. Further, any reduction to fair value and any
reversals of such reductions are included in the profit and loss statement. Profit or loss on sale of investments is
determined as the difference between the sale price and carrying value of investment, determined individually for
each investment. Cost of investments sold is arrived using average method."

2.07 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount
is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future
cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life.
Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledge¬
able, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in
the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is
reversed if there has been a change in the estimate of the recoverable value.

2.08 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
intended use. All other borrowing costs are charged to revenue.