Accounting Policies of Macpower CNC Machines Ltd. Company

Mar 31, 2025

2 Summary of Material accounting policies followed by the Company

2.1 Accounting Charges:

(i) The Company follows the mercantile system of accounting and recognises income and
expenditure on an accrual basis.

(ii) The Company mainta ins its ac cou nts on accrual basis fo I lowing historica I cost convention,
except for certain assets and liabil ities that are measured at fair value in accordance with
Ind AS which are as under.

Financial assets and liabilities are measured at fair value or at amortised cost depending
on classification Refer note no; 2.6

Defined benefit plans - plan assets measured at fair value ; Refer note no 2.9

Lease liability and Right-of-use assets are measured at amortised cost; Refer note no 2.11
and

(iii) Estimates and assumptions used in the preparation of these financial statements and
disclosures made therein are based upon Management''s evaluation of the relevant facts
and circumstances as on the date of the financial statements, which may differ from the
actual results at a subsequent date.

Key Estimates

The preparation of standalone financial statements requires management to make
judgments, estimates and assumptions in the application of accounting policies that
affect th e rep orted amounts of assets, liabilities, income and exp enses. Actual results may
differ from these estimates. Continuous evaluation is done on the estimation and
judgments based on historical experience and other factors, including expectations of
future events that are believed to be reasonable. Revisions to accounting estimates are
recognised prospectively.

Information about critical judgments in applying accounting policies, as well as estimates
and assumptions that have the most significant effect to the carrying amounts of assets
and liabilities within the next financial year, are included in the following notes:

A. Estimation of useful lives and residual value of Property, Plant and equipment and
intangible assets refer Note- 2.4

B. Estimate of Tax

Recognisation of provision of current tax and deferred tax refer- Note 2.5

C. Financial Assets:

Estimating Fa ir value of Financial Assets re fer N ote 2.6
Impairmrnt of Financial Assets refer Note 2.6

D. Long term Em plovee benefit plan

Estimation of Long term Employee benefit plan refer Note 2.9

E. Lease

Measurement of Right of Use Asset and Lease liabilities refer-Note-2.11

F. Provision, Contingent Liabilities and Contingent Assets:

E stimating amount of provisions refer Note 2.15
Estimati ng amount of Contingent Liability refer Note 32

2.2 Current vs Non Current Classification

The Company prese nts assets and liabilities in the balance sheet based on current/ non¬
current classification. An asset is classified as current when it is:-

a. Expected to be realized or intended to sold or consumed in normal operating cycle

b. held primarily for the purpose of trading;

c. expected to be realized within twelve months after the reporting period; or

d. cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when

a. expecte d to be settled in normal operating cycle

b. held primari ly for the purpose of trading;

c. due to be settled within twelve months after the reporting period; or

d. there is no unconditional right to defer the settlement of the liabi lity for at least twelve
mon ths afte r th e reporting period.

All other liabilities are classified as non-current.

Deferred Tax Assets and Liabilities are classified as non current assets and liabilities
respectively.

2.3 Revenue Recognition:

a Revenue from sale of goods is recognised when control of the machine being sold is
transferred to the customer and when there are no longer any unfulfilled obligations. The
Performance Obligations in the contracts are fulfilled at the time of dispatch, delivery or
upon formal customer acceptance depending on customer terms.

b Revenue is measured on the basis of contracted price, after deduction of any trade
discounts, and any taxes or duties collected on behalf of the Government such as goods
and services tax, etc. Revenue is only recognised to the extent that it is highly probable a
significant reversal will not occur.

c Income from services rendered is recognised based on agreements/arrangements with
the customers as the service is performed and there are no unfulfilled obligations.

d Revenue in respect of other income is recognised when no significant uncertainty as to its
determination or realisation exists.

2.4 Property, plant and equipment and Intangible Assets
Property, plant and equipment

a Property, plant and equipment are stated at cost less accumulated depreciation /
amorti sation and im pairment loss, if any, except freehold land wh ich is carried at cost. The
cost comprises its purchases price, borrowing cost and any cost directly attributable to
the bringing the assets to its working condition for its intended use. Subsequent
expenditures related to an item of Property, plant and equipment are added to its book
value only if they increases the future benefits from the existing asset beyond its previously
assessed standard of performance.

b Property, plant and equipme nts which are not ready for intended use as on the date of
Balance Sheet are disclosed as "Capital work-in-progress”.

c Own construction or manufactured PPE is capitalised at cost including administrative and
other general overhead expenses that are specifically attri butable to construction or
acquisition of PPE or bringing the PPE to working condition are allocated and capitalised
as a part of the cost of the PPE.

d All other expenses on Property, plant and equipment, including repair and maintenance
expend iture a nd repla cement expenditure of parts, are charged to Statement of Profit
and Loss for the period during the which such expenses are incurred.

e Gains or losses that arise on disposal or retirement of an asset are measured as the
difference between net disposal proceeds and the carrying value of an asset and are
re cognised in the statement of profit and loss when the asset is derecognised.

^f Depreciation methods, estimated useful lives and residual value:

Depreciation is recognized so as to write off the cost of assets (other than freehold land)
less their residual values over their useful lives prescribed in Schedule II to the Companies
Act, 2013, using the straight-line method. The estimated useful lives, residual values and
depreciation method are reviewed at the end of each reporting period, with the effect of
any changes in estimate accounted for on a prospective basis.

The management of the company believes that the useful lives as given below best
represent the useful lives of these assets based on internal assessment and supported by
technical ad vice w herever necessary which is a s prescribed under Par t C of Schedule II
of the Companies Act 2013.

Intangible Assets

^a Intangible assets purchased are initially measured at cost. The cost of an intangible asset
comprises its purchase price including duties and taxes and any costs directly attributable
to making the asset ready for their intended use.

^b The Company expenses costs incurred during research phase to profit or loss in the year in
which they are incurred. Expenses incurred during the development phase are initially
re cognised as intangible assets under development until the development phase is
complete, upon which the amount is capitalised as intangible asset.

c Subsequent expenditure is capitalised only whe n it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure are recognised in
standalone statement of profit or loss as incurred.

Subsequently, intangible assets are carried at cost less any accumulated amortisation
and accumulated impairment losses, if any.

2.5 Taxation

Tax expense represents the sum of the current tax and deferred tax. Current and deferred
tax are recognized in profit or loss, except when they relate to items that are recognized
in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in Other Comprehensive Income or directly in equity
respectively.

(a) Current Tax:

The current tax payable is based on taxable profit for the year. Taxable profit differs from
‘profit before tax'' as reported in the Statement of Profit and Loss because of items of
income or expense that are taxable or deductible in other years and items that are never
taxable or deductible. The Company''s current tax is calculated using tax rates that have
been enacted by the end of the reporting period. Current tax assets and current tax
liabilities are off set, and presented as net.

(b) Deferred Tax:

Deferred tax is recog nized on temporary differences between the ca rrying amo unts of
assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit. Deferred tax liabilities are generally recognized for all
taxable temporary differences. Deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable th at taxable profits will
be available against which those deductible temporary differences can be utilized. Such
deferred tax assets and liabilities are not reco gnized if the temporary difference arises
from the initial recognition of assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.Deferred tax assets and deferred tax liabilities are
off set, and presented as net.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profits will be
available against which the temporary differences can be utilised.

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. Financial assets and financial
liabilities are recognized when a Company becomes a party to the contractual provisions
of the instruments.

(a ) Financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

Those to be measured subsequently, at fair value (either through other comprehensive
income, or through profit or loss), and those already measured, at amortised cost.

The classification is done depending upon the Company''s business model for managing
the financial assets and the contractual terms of the cash flows. For assets meas ured at
fair value, gains and losses will be recorded in profit or loss or in Other Comprehensive
Income as per the requirement of applicable Ind AS .

(ii) Measurement

At initial recognition

At initial recognition, the Company measures a financial asset at its fair value. Trade
receivables that d o not contain significant financing component are measured at
transaction price.

Subsequent Measurement

All recognised financial assets are subsequently measured in their entirety either at
amortised cost or at fair value as follows:

At amortised cost

A financial asset is measured at the amortised cost if both the following conditions are
met:

(i) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

(ii) Contractual terms of the asset give rise, on specified dates, to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

At Fair Value through Other Co mprehensive Income (FVTOCI)

A financial asset is measured at fair value through other comprehensive income (FVOCI) if
both the following conditions are met :

(i) The objective of the business model is achieved both by collecting contractual cash
flows and selling the financial assets, and

(ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

At Fair Value through Profit & Loss (FVTPL)

Fina ncial assets which are not measured at amortised cost or FVTOCI and are held for
trading are measured at FVTPL.

⁽ⁱⁱⁱ⁾ Im pairment of financial assets

The Company a ssesses on a forward looking basis of the expected credit losses
associated with its assets carried at amortised cost. The impairment methodology applied
depends on whether there has been a significan t increase in credit risk and if so, assess
the need to provide for the same in the Statement of Profit and Loss.

Lifetime ECL are the expected credit losses resulting from all possible default events over
the expected life of a financial asset. 12-month ECL are a portion of the lifetim e ECL which
result from default events that are possible within 12 months from the reporting date.

For Trade Receivables the Company applies ‘simplified approach'' which requires
expected lifetime losses to be recognised from initial recognition of the receivables

ECL impairment allowance recognised (or reversed) during the year is recognised as
income/expense in the Statement of Profit and Loss under the head ‘Other expenses'' /
''Other Income''.

^(iv) Derecognition of financial assets

A financial asset is derecognised only when Company has transferred the rights to receive
cash flows from the financial asset. Where the entity has transferred an asset, the
Company evaluates whether it has transferred substantially all risks and rewards of
ownership of the financial asset. In such cases, the financial asset is derecognised.

(i) Classification as debt or Equity

Debt and equity instruments issued by the Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements
and the definition of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residu al interest in the assets of an
entity after deducting all of its liabilities.

(ii) Measurement

At initial recognition

All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction co sts.

The Company''s financial liabilities include borrowings, trade payables and other financial
liabilities.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described
below:

The amount for tra de payables & other payables represent obligations to pay for goods
or services that have been acquired in the ordi nary cou rse of business from suppliers.
These payable are classified as ''current liabilities'' if payments are due within one year or
less otherwise they are presented as ''non-current liabilities''. Trade payables are
subsequently measured at amortised cost.

(iii) Derecogniti on

Liability is removed from the balance sheet when the obligation specified in the contract
is discharged, cancelled or expired. The difference between the carrying amount of a
financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other gains/ (losses).

When an existing fin ancial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the derecognition of the original liability
and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the statement of profit or loss.

2.7 Foreign Currency Transactions:

Ite ms included in the financial statements are measured and presented in Indian rupee
(INR), which is Company''s functional and presentation currency.

a Initial Recognition:

Foreign currency transactions are recorded in the reporting currency by applying to the
foreign currency amount the exchange rate between the reporting current and the
foreign currency at the date of the transac tions.

b Conversion:

Foreign currency monetary items are retranslated using the exchange rate prevailing at
the reporting date. Non- mo netary items, which are measured in terms of historical cost
denominated in a foreign currency, are reported using the exchange rate at the date of
the transactions. Non- monetary items, which are measured at fair value or others similar
valuation de nominated in a foreign currency, are translated usi ng the excha nge rate at
the date when such value was determined.

c Exchange Differences:

The company accounts for exchange differences arising on translation/ settlement of
foreign cu rrency monetary are recognized as incom e or as expenses in the period in
which they arise.

2.8 Inventories:

Inventories are valued after providing for obsolescence, as under:

Raw Materials, Work-In-Progress and Finished Goods are valued at lower of Cost or Net
Realizab l e Value. FIFO method is used for determining cost.

Cost of Inventories comprises cost of purchase, cost of conver >ion and other costs
incurred in bringing the inventories to the present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less
estimated cost of completion and estimated cost necessary to make the sale.

2.9 Employee Benefits:

^A Short-term employee benefits:

a Employee benefits such as salaries, wages, bonus, etc falling due wholly within twelve
months of rendering the service are classified as short-term employee benefits and are
expensed in the period in which the employee renders the service.

^B Post-employment benefits:

^a Retirement benefit in the form of provident fund is a defined contribution scheme. The
company has no obligation, other than the contribution payable to the provident fund.
The company recognizes contributions payable to the provident fund scheme as an
expenditure, whe n a n employee ren ders the related servi ces.

^b The Company has defined benefit plans for its employees, viz., gratuity. The cost of
providing benefits under this plans are determined on the basis of actuarial valuation at
each year end. Actuarial valuation is carried out for the plan using the projected unit
credit method. Ac tuarial gains and losses for defined benefit plans are recognised in
Other Comprehensive Income.

²-l ⁰ Brrowing Cost:

^a Borrowing cost includes interest and ancillary costs incurred in connection with the
arrangement of borrowings.

^b Borrowing costs directly attributable to the construction of an asset that necessarily take a
substantial pe riod of time to get ready for its intende d use are capitali zed as part of the
cost of the respective asset. All of these borrowing cos ts are expensed in the period they
are incurred.

²-!¹ Lease:

Company as lessee measures the right-of-use asset at cost by recognition of right-of-use
asset and a lease liability on initial measurement of the right-of-use asset at the
comme ncement date of the lease.

The cost of the righ t-of-use asset comprises:

i) the amount of the initial measurement of the lease liability,

ii) any lease payments made at or before the commencement date less any incentives
received,

iii) any initial direct costs incurred,

iv) an estimate of costs to be incurred in dismantling and removing the underlying asset,
restoring the site on w hich it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease, unless those costs are incurred to
produce inventories.

Lease liability is initially measured at the present value of the lease payments that are not
paid at that date. The lease payments are discounted using the interest rate implicit in the
lease, if the rate cannot be readily determined incremental borrowing rate is considered.
Interest on lease liability in each period during the lease is the amount that produces a
constant periodic rate of interest on the remaining balance of the lease liability.

Lease payments comprises the following payments for the right to use asset during the
lease term that are not paid at the commencement date:

i) fixed payments less any lease incentives receivable

ii) variable lease payments

iii) amounts expected to be payable under residual value guarantees

iv) the exercise price of a purchase option, if the Company is reasonably certain to
exercise that option

v) payments of penalties for terminating the lease, if the lease term reflects the Company
exercising an option to terminate the lease.

Subsequent measurement of the right-of-use asset after the commencement date is at
cost model, the value of righ t-of-use asset is initia l ly measured cost less accumulated
depreciation and any accumulated impairment loss and adjustment for any re¬
measurement of the lease liability.

The right-of-use asset is depreciated from the commencement date to the earlier of the
end of the useful life of the asset or the end of lease term, unless lease transfers ownership
of the underlying asset to the company by th e end o f the lease term or if the cost of the
right-of-asset reflects that the Company will exercise a purchase option, in such case the
Company depreciates asset to the end of the useful life. Subsequent measurement of the
lease liability after the commencement date reflects the initially measured liability
increased by interest on lease liability, reduced by lease p ayments and re-measuring the
carrying amount to reflect any re-assessment or lease modification.

Right-of-use asset and lease liability are presented on the face of balance sheet.
Depreciation charge on right-to-use is presented under depreciation expense as a
separate line item. Interest charge on lease liability is presented under finance cost as a
separate line item. Under the cash flow statement, cash flow from lease payments
including interest are p resente d un der fin ancing activities.

2.12 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at bank, deposits held at call with
banks, other short-term highly liquid investments with original maturities of three months or
less that are readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value and are held for the purpose of meeting short-term
cash commitments. For the purpose of the Statement of Cash Flows, cash and cash
equivalents consists of cash and short term deposits, as defined above, net of outstanding
bank overdraft as they are being considered as integral part of the Company''s cash
management.

2.13 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker (CODM). Managing Director of the
Company has been identified as CODM and he assesses the financial performance and
position of th e Company and makes strategic decisions. Refer to note 40 for the segment
information presented.

2.14 Earning Per Share:

Basic earnings per share is 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. Earnings considered in ascertaining the Company''s
earnings per sh are is the net profit for the period. The wei ghted average number of equity
shares outstanding during the period and all periods presented is adjusted for events,
such as bonus shares, other th an the conversion of potentiai equity shares, that have
changed the number of equity shares outstanding, without a corresponding change in
resources. For the purpose of calculating diluted earnings per share, the net profit or loss
for the period attributable to equity shareholde rs and the weighted average number of
share outstanding during the period is adjusted for the effects of all dilutive potential
equity shares.

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Mar 31, 2024

Corporate Information:

Macpower CNC Machines Limited was incorporated in 2003. The Company is situated o- Plot No. 2234. Near Kranti Gate. GIDC Metoda. Rajkot - 360021 Gujarat. The Company is engaged in the business of manufacturing and sale of CNC and VMC Machines.

1 Basis of Preparation and presentation

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards ("Ind AS") notified under section 133 of the Companies Act 2013. read together with the Companies(lnd^;an Accounting Standards) Rules. 2015. as amended and presentation requirements of Division II of schedule III to the Companies Act. 2013 (as amended), other relever? provisions of the act, and other accounting principles generally accepted in India, on the historical cost basis except tor certain financial instruments that are measured at fair values, as explained in the accounting policies below.

The financial statements have been prepared on accrual basis and under historical cost convention except certain financial assets and liabilities which are measured at fair value.

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

2 Summary of significant accounting policies followed by the Company

2.1 Accounting Charges:

(I) The Company follows the mercantile system of accounting and recognises income and expenditure on on accrual basis except in case of significant uncertainties.

(ii) The Company maintains its accounts on accrual basis following historical cost convention, except for certain assets and liabilities that are measured at fair value in accordance with Ir.d AS.

(iii) Estimates and assumptions used in the preparation of these financial statements and disclosures made therein are based upon Management''s evaluation of the relevant facts and circumstances as on the date of the financial statements, which may differ from the actual results at a subsequent date

Key Estimates

The preparation of standalone financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

A. Estimate of Tax

Recognisation of provision of current fax and deferred fax refer- Note 2.5

B. _EstjmaJjg n _gf. useful .1 iyes-.3ridjg.sj dual v.qlu^.QL^QXiet.ty^Elflni g.n;iejauip,[r^t.gn^ijatgrigi die. Qis&U.

C. Lease

Measurement of Right of Use Asset and Lease l abilities refer-Note-2.10

Pi.LQna term Employee benefit pi.gn

Estimation of Long term Employee benefit plan refer Note 2.9 E. Provision. Contingent Liobilities and Contingent Assets:

Estimating amount of provisions refer Note 2.13

2.2 Current vs Non Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as cunrent when it is:-

a. Expected to be realized or intended to sold or consumed in normal operating cycle

b. held pnmarily for the purpose of trading;

c. expected to be realized within twelve months after the reporting period: or

d. cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when

a. expected to be settled in normal operating cycle

b. held primarily for the purpose ot trading:

c. due to be settled within twelve months after the reporting period; or

d. there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred Tax Assets and Liabilities are classified as noncurrenf assets and liabilities respectively.

2.3 Revenue Recognition:

a Revenue from sale of goods is recognised when control of the machine being sold is transferred to the customer and when there are no longer any unfulfilled obligations. The Performance Obligations in the contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

b Revenue is measured on the basis of contracted price, alter deduction ol any trade discounts, and any taxes or duties collected on behalf of the Government such as goods and services tax. etc. Revenue is only recognised to the extent that it is highly probable a significant reversal will not occur.

c Income from services rendered is recognised based on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.

d Revenue in respect ol other income is recognised when no significant uncertainty as to its determination or realisation exists.

2 4 Property, plant and equipment and intangible Assets

Property, plant and equipment

a Property, plant and equipment are stated at cost less accumulated depreciation / amortisation and impairment loss, if any. except freehold land which is carried at cost. The cos! comprises its purchases price, borrowing cost and any cost directly attributable to the bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustment arising from exchange rate variations attributable to the assets. Subsequent expenditures related to an item of Property, plant and equipment are added to its book value only if they increases the future benefits from the existing asset beyond its previously assessed standard of performance.

b Property, plant and equipments which are not ready tor intended use as on the date of Balance Sheet are disclosed as "Capital work-in-progress".

c Own construction or manufactured PPE is copitalised at cost including administrative and other general overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and capitalised as a port of the cost of the PPE.

d All other expenses on Property, plant and equipment, including repair and maintenance expenditure and replacement expenditure of parts, are charged to Statement of Profit and Loss for the period during the which such expenses are incurred.

e Gains or losses thaf arise on disposal or retirement of an asset are measured as the difference between net disposal proceeds and the carrying value ot on asset and are recognised >n the statement of profit and loss when the asset is derecognised.

f Depreciation methods, estimated useful lives and residual value:

The management of the company believes that the useful lives as given below best represent the useful lives of these assets based on internal assessment and supported by technical advice wherever necessary which is as prescribed under Part C of Schedule II of the Companies Act 2013.

Sr. No.	Assets Category	Useful Life (Years)
1	Building	30 Years
2	Computers	3 Years
3	Furniture & Fixtures	10 Years
4	Office Equipment	5 Years
5	Plant & Machinery	15 Years
6	Vehicle	8 Years

Intangible Assets

a Intangible assets purchased are initially measured at cost. The cost of an intangible asset comprises its purchase price including duties and taxes and any costs directly attributable to making the osset ready for their intended use.

b Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure are recognised in standalone statement of profit or loss as incurred.

c Subsequently, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

d Amortization methods, estimated useful lives and residual value:-

The useful lives of intangible assets are assessed as either finite or infinite. Finite life intangible assets are amortised on a straight-line basis over the period of their estimated useful lives. Estimated useful lives by _major class of finite-life intangible assets are as follows:_

	Sr. No.	Assets Category	Useful Life (Years)
	1	Computer software and mobile application	10 Years
	2	Other Software	10 Years
	3	Designs for Machinery	10 Years

Impairment of Assets

At the date of balance sheet, if there are indications of impairment and the carrying amount of the cash generating unit exceeds its recoverable amount ji.e. the higher of the fair value less costs of disposal and value in use), an impairment loss is recognised. The carrying amount is reduced to the recoverable amount and the reduction is recognised as on impairment loss in the profit or loss. The impairment loss recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.

Reasonable assumptions are made by the management in estimating the value-in-use ond fair value less costs of disposal. Management has considered the indicators required for impairment testing and estimated reliably that there is no impairment loss for the purpose of Ind AS 36 and AS 28.

2.5 Taxation

Income tax expenses or credit for the period comprised of tax payable on the current period''s taxable income based on the applicable income tax rate, the changes in deferred tax assets ana liabilities attributable to temporary differences and to unused tax losses and previous year tax adjustments.

Tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised directly in equity or other comprehensive income, in such cases the tax is also recognised directly in equity or in other comprehensive income. Any subsequent change in direct tax on items initially recognised in equity or other comprehensive income is also recognised in equity or other comprehensive income, such change could be for change in tax rate.

The current income tax charge or credit is calculated on the basis of the tax law enacted after considering allowances, exemptions and unused tax losses under the provisions of the applicable Income Tax Laws. Current tax assets and current tax liabilities are off set, and presented as net Deferred income tax is recognised, using the balance sheet method, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using fax rates and laws that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax liabilities are recognised tor all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if ir is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and deferred tax liabilities are off set. and presented os net.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be utilised.

2.6 Financial Instruments

(a) Other investments and financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

Those to be measured subsequently, of fair value (either through other comprehensive income, or through profit or loss), and those already measured, at amortised cost.

The classification is done depending upon the Company''s business mode! for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will be recorded in profit or loss.

(ii) Measurement

At initial recognition

At initial recognition, the Company measures a financial asset at Its fair value.

Subsequent Measurement

All recognised financial assets are subsequently measured in (hen entirety either at amortised cost or at fair value as follows:

I. investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value. Debt instruments at FVTPL is a residual category for debt instruments, if any. and all changes are recognised in profit or loss.

7. Investments in debt instruments that meet the following conditions are subsequently measured at amortised cost (unless the same designated as fair value through profit or loss):

(i) The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows:

and

(ii) The contractual terms of instrument g ve rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

3. Investment in debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income [FVFOCI] (unless the same are designated as fair value through profit or loss).

(i) The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets: and

(ii) The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal ond interest on the principal amount outstanding.

4. Trade receivables, security deposits, cash and cash equivalents, employee and other advances - at amortised cost.

(iii) Impairment of financial assets

The Company assesses on a forward looking basis of the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk and if so. assess the need to provide for the same in the Statement of Profit and Loss.

(Iv) Derecognition of financial assets

A financial asset is derecognised only when Company has transferred the rights to receive cash flows from the financial asset. Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.

(v) Income recognition Interest Income

Interest income from fixed deposits is recognised using the effective interest rate method. When calculating the effective interest rate, the Company estimates the expected cash flows by considering ail the contractual terms of the financial instrument.

(b) Financial Liability

(i) Classification as debt or Equity

Debt and equity instruments issued by the Compqny qre classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

(ii) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include borrowings, trade payables and other financial liabilities.

(iii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

a. Trade and other payable

These amounts represent obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These payable are classified as current liabilities'' if payments are due within one year or less otherwise they are presented as ‘non-current liabilities''. Trade payables are subsequently measured at amortised cost using the effective interest method.

b. Derecognition

Liability is removed from the balance sheel when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non cash assets transferred or liabilities assumed, is recognised in profit or loss as other gains/ (losses).

When an existing financial liability is replaced by another from the some lender or substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss

2.7 Foreign Currency Transactions:

items included in the financial statements are measured and presented in Indian rupee {INR). which is Company’s functional ana presentation currency.

a Initial Recognition:

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

b Conversion:

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non- monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transactions. Non- monetary items, which are measured at fair value or others similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

c Exchange Differences:

The company accounts for exchange differences ansing on translation/ settlement ol foreign currency monetary are recognized as Income or as expenses in the period in which they arise.

2.8 Inventories:

Inventories are valued after providing for obsolescence, as under:

Raw Materials. Work In-Prcgress and Finished Goods are valued at Cost or Net Realizable Value whichever is lower using FIFO method. Waste and Scrap are valued at Ne* Realisable Value.

Cost of Inventories comprises cost of purchase, cost of conversion and other costs incurred in bringing the inventories to the present location and condition.

2.9 Employee Benefits:

A Short-term employee benefits:

a

Employee benefits such as salaries, wages, bonus, etc falling due wholly within twelve months of rendenng the service are classified as short-term employee benefits and are expensed in the period in which the employee renders the service.

B Long term employee benefits

a Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contributions payable to the provident fund scheme as an expenditure, when an employee renders the related services.

b The Company has defined benefit plans for its employees, viz., gratuity. The cost of providing benefits under this plans are determined on the basis of actuarial valuation at each year end. Actuarial valuation is carried out for the plan using the projected unit credit method. Actuarial gains and losses for defined benefit plans are recognised in full in the period in which they occurs in the statement of profit and loss.

During the year, company has nor incurred any borrowing cost which is required to be capitalised. However the policy for the same is as under:

a Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings.

b Borrowing costs directly attributable to the construction of an asset that necessarily take a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All of these borrowing costs are expensed in the period they are incurred.

2.10 Lease:

Company as lessee measures the right-of-use asset at cost by recognition of nght-of-use asset and a lease liability on initial measurement of the right-of-use asset at the commencement date of the lease. The cost of the right-of-use asset comprises:

i) the amount of the initio- measurement of the lease liability.

ii) any lease payments made at or before the commencement date less any incentives received. iil| any initial direct costs incurred,

iv) an estimate of costs to be incurred in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs ore incurred to produce inventories.

Lease liability is initially measured at the present value of the lease payments that ore not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if the rate cannot be readily determined incremental borrowing rate is considered. Interest on lease liability in each period during the lease is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability.

Lease payments comprises the following payments for the right to use asset during the lease term thai are not paid at the commencement date:

i) fixed payments less any lease incentives receivable

ii) variable lease payments

ill) amounts expected to be payable under residual value guarantees

iv) the exercise price of a purchase option, if the Company is reasonably certain to exercise that option

v) payments of penalties for terminating the lease, if the lease term reflects the Company exercising an option to terminate the lease.

Subsequent measurement of the right-ol-use asset after the commencement date is at cost model, the value of right-of-use asset is Initially measured cost less accumulated depreciation and any accumulated impairment loss and aajustment for any re-measurement of the lease liability.

The nght-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the asset or the end of lease term, unless lease transfers ownership of the underlying asset to the company by the end of the lease term or if the cost of the right-cf-asset reflects that the Company will exercise a purchase option, in such case the Company depreciates asset to the end of the useful life. Subsequent measurement of the lease liability after the commencement date reflects the nitially measured liability increased by interest on lease liability, reduced by lease payments and re measuring the carrying amount to reflect any re-assessment or lease modification.

Right-of-use asset and lease liability are presented on the face of balance sheet. Depreciation charge on righf-tc-use is presented under depreciation expense as a separate line item. Interest charge on lease liability is presented under finance cost as a separate line item. Under the cash (low statement, cash flow from lease payments including interest are presented under financing activities.

2.11 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible ?o a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short term cash commitments. For the purpose of the Statement of Cash Rows, cash and cash equivalents consists of cash and short term deposits, as defined above, net of outstanding bank overdraft as they are being considered as integral part of the Company''s cash management.

2.12 Earning Per Share:

Basic earnings per share is 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. Eomings considered in ascertaining the Company''s earnings per share is the net profit tor the period. The weighted average number of equity shares outstanding during the period and all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. 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 share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.13 Provision. Contingent Liabilities and Contingent Assets:

a Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates reviewed at each reporting date and adjusted to reflect the current best estimate.

b Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are not recognised in the financial statements.

2.14 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items tor the effects of:

(i) changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

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Mar 31, 2023

Corporate Information :

Macpower CNC Machines Limited was incorporated in 2003. The Company is situated at Plot No. 2234, Near Kranti Gate, GIDC Metoda, Rajkot -360 021 Gujarat. The Company is engaged in the business of manufacturing and sale of CNC and VMC Machines.

1 Basis of Preparation and presentation

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (“Ind AS") notified under section 133 of the Companies Act 2013, read together with the Companies(Indian Accounting Standards) Rules, 2015, as amended and presentation requirements of Division II of schedule III to the Companies Act, 2013 (as amended), on the historical cost basis except for certain financial instruments that are measured at fair values, as explained in the accounting policies below.

The financial statements are presented in INR (Rs.) (Indian Rupees) which is also Company''s functional currency and all values are shown upto two decimal in lacs & value are rounded to the nearest thousand, except when otherwise indicated.

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

2 Summary of significant accounting policies followed by the Company

2.1 Accounting Charges:

(i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

(ii) The Company maintains its accounts on accrual basis following historical cost convention, except for certain assets and liabilities that are measured at fair value in accordance with Ind AS.

(iii) Estimates and assumptions used in the preparation of these financial statements and disclosures made therein are based upon Management''s evaluation of the relevant facts and circumstances as on the date of the financial statements, which may differ from the actual results at a subsequent date.

Key Estimates

The preparation of standalone financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:

A. Estimate of Tax

Recognisation of provision of current tax and deferred tax refer- Note 2.4

B. Estimation of useful lives and residual value of Property, Plant and equipment and intangible assets

C. Lease

Measurement of Right of Use Asset and Lease liabilities refer-Note-2.11.

D. Long term Employee benefit plan

Estimation of Long term Employee benefit plan refer Note 2.8

E. Provision, Contingent Liabilities and Contingent Assets:

Estimating amount of provisions refer Note 2.13

2.2 Revenue Recognition:

a Revenue from sale of goods is recognised when control of the machine being sold is transferred to the customer and when there are no longer any unfulfilled obligations. The Performance Obligations in the contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

b Revenue is measured on the basis of contracted price, after deduction of any trade discounts, and any taxes or duties collected on behalf of the Government such as goods and services tax, etc. Revenue is only recognised to the extent that it is highly probable a significant reversal will not occur.

c Income from services rendered is recognised based on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.

d Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

2.3 Property, plant and equipment and Intangible Assets Property, plant and equipment

a Property, plant and equipment are stated at cost less accumulated depreciation / amortisation and impairment loss, if any, except freehold land which is carried at cost. The cost comprises its purchases price, borrowing cost and any cost directly attributable to the bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustment arising from exchange rate variations attributable to the assets. Subsequent expenditures related to an item of Fixed Assets are added to its book value only if they increases the future benefits from the existing asset beyond its previously assessed standard of performance.

b Property, plant and equipments which are not ready for intended use as on the date of Balance Sheet are disclosed as "Capital work-in-progress"

c Own construction or manufactured PPE is capitalised at cost including administrative and other general overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and capitalised as a part of the cost of the PPE.

d All other expenses on Property, plant and equipment, including repair and maintenance expenditure and replacement expenditure of parts, are charged to Statement of Profit and Loss for the period during the which such expenses are incurred.

e Gains or losses that arise on disposal or retirement of an asset are measured as the difference between net disposal proceeds and the carrying value of an asset and are recognised in the statement of profit and loss when the asset is derecognised.

f Depreciation methods, estimated useful lives and residual value:

The management of the company believes that the useful lives as given below best represent the useful lives of these assets based on internal assessment and supported by technical advice wherever necessary which is as prescribed under Part C of Schedule II of the Companies Act 2013.

Sr. No.	Assets Category	Useful Life (Years)
1	Building	30 Years
2	Computers	3 Years
3	Furniture & Fixtures	10 Years
4	Plant & Machinery	15 Years
5	Vehicle	8 Years

Intangible Assets

a Intangible assets purchased are initially measured at cost. The cost of an intangible asset comprises its purchase price including duties and taxes and any costs directly attributable to making the asset ready for their intended use.

b Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure are recognised in standalone statement of profit or loss as incurred.

c Subsequently, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

d Amortization methods, estimated useful lives and residual value

The useful lives of intangible assets are assessed as either finite or infinite. Finite-life intangible assets are amortised on a straight-line basis over the period of their estimated useful lives. Estimated useful lives by major class of finite-life intangible assets are as follows:

Sr. No.	Assets Category	Useful Life (Years)
1	Computer software and mobile application	6 Years
2	Other Software	3 Years
3	Designs for Machinery	10 Years

2.4 Taxation

a Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961. b Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company''s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates as per laws enacted or substantively enacted as on the Balance Sheet date.

c Transaction or event which is recognised outside profit or loss, either in other comprehensive income or

in equity, is recorded along with the tax as applicable.

2.5 Financial Instruments

(a) Other investments and financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

those to be measured subsequently, at fair value (either through other comprehensive income, or

through profit or loss), and those already measured, at amortised cost.

The classification is done depending upon the Company''s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses _will be recorded in profit or loss.

(ii) Measurement

At initial recognition

At initial recognition, the Company measures a financial asset at its fair value.

Subsequent Measurement

A. All recognised financial assets are subsequently measured in their entirety either at amortised cost or at fair value as follows:

1. Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value. Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or loss.

2. Investments in debt instruments that meet the following conditions are subsequently measured at amortised cost (unless the same designated as fair value through profit or loss):

(i) The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;

and

(ii) The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

3. Investment in debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)

(i) The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

(ii) The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

4. Trade receivables, security deposits, cash and cash equivalents, employee and other advances - at amortised cost

(iii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk and if so, assess the need to provide for the same in the Statement of Profit and Loss.

(iv) Derecognition of financial assets

A financial asset is derecognised only when Company has transferred the rights to receive cash flows from the financial asset. Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.

(v) Income recognition

Interest Income

Interest income from fixed deposits is recognised using the effective interest rate method. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.

(b) Financial Liability

(i) Classification as debt or Equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

(ii) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include borrowings, trade payables and other financial liabilities.

(iii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

a. Trade and other payable

These amounts represent obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These payable are classified as ''current liabilities'' if payments are due within one year or less otherwise they are presented as ''non-current liabilities''. Trade payables are subsequently measured at amortised cost using the effective interest method.

b. Derecognition

Liability is removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other gains/ (losses).

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

2.6 Foreign Currency Transactions:

Items included in the financial statements are measured and presented in Indian rupee (INR), which is Company''s functional and presentation currency.

a Initial Recognition:

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

b Conversion:

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non- monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transactions. Non- monetary items, which are measured at fair value or others similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

c Exchange Differences:

The company accounts for exchange differences arising on translation/ settlement of foreign currency monetary are recognized as income or as expenses in the period in which they arise.

2.7 Inventories:

Inventories are valued after providing for obsolescence, as under:

Raw Materials, Work-In-Progress and Finished Goods are valued at Cost or Net Realizable Value whichever is lower. Waste and Scrap are valued at Net Realisable Value using FIFO method.

Cost of Inventories comprises cost of purchase, cost of conversion and other costs incurred in bringing the inventories to the present location and condition.

2.8 Employee Benefits:

A Short-term employee benefits:

_a Employee benefits such as salaries, wages, short-term compensated absences, bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are expensed in the period in which the employee renders the service.

B Long term employee benefits

a Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no

obligation, other than the contribution payable to the provident fund. The company recognizes contributions payable to the provident fund scheme as an expenditure, when an employee renders the related services.

b The Company has defined benefit plans for its employees, viz., gratuity. The cost of providing benefits under this plans are determined on the basis of actuarial valuation at each year end. Actuarial valuation is carried out for the plan using the projected unit credit method. Actuarial gains and losses for defined benefit plans are recognised in full in the period in which they occurs in the statement of profit and loss.

During the year, company has not incurred any borrowing cost. However the policy for the same is as under:

a Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings.

b Borrowing costs directly attributable to the construction of an asset that necessarily take a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All of these borrowing costs are expensed in the period they are incurred.

2.10 Lease:

a Assets taken on lease by the Company in its capacity as lessee, where the company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability of each year.

b Lease arrangement where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement or profit and loss on a straight line basis over the lease term.

c Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease. The Company''s lease asset primarily consists of land and Building. The company assesses whether a contract contains a lease, at inception of contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

As a Lessee

At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases), and lease contract for which the underlying asset is of low value (low-value assets). For these short-term, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial measurement of the lease liability adjusted plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate of cost of capital. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

In calculating the present value of lease payments, the company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable.

2.11 Cash and cash equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, balance with banks.

2.12 Earning Per Share:

Basic earnings per share is 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. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period. The weighted average number of equity shares outstanding during the period and all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. 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 share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.13 Provision, Contingent Liabilities and Contingent Assets:

a Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates reviewed at each reporting date and adjusted to reflect the current best estimate.

b Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent

assets are not recognised in the financial statements.

2.14 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

2.15 Recent Accounting Developments

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company''s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, as and when they become effective. The Ministry of Corporate Affairs (MCA) has notified certain amendments to Ind AS, through Companies (Indian Accounting Standards) Amendment Rules, 2022 on 31st March, 2023. These amendments maintain convergence with IFRS by incorporating amendments issued by International Accounting Standards Board (IASB) into Ind AS and has amended the following standards:

i. Ind AS 1 - Presentation of Financial Statements

ii. Ind AS 8 - Accounting Policies, Changes in accounting estimates & errors

iii. Ind AS 12 - Income Taxes

iv. Ind AS 101 - First-time adoption of Ind AS

v. Ind AS 102 - Share Based Payment

vi. Ind AS 103 - Business Combinations

vii. Ind AS 107- Financial Instruments: Disclosures

viii. Ind AS 109 - Financial Instruments

ix. Ind AS 115 - Revenue from Contracts with Customers

These amendments shall come into force with effect from April 01, 2023.

The Company is assessing the potential effect of the amendments on its financial statements. The Company will adopt these amendments, if applicable, from applicability date

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Mar 31, 2018

1 SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF PREPARATION

The Financial statements of the company are prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). GAAP comprises mandatory accounting standards as

b) RECOGNITION OF REVENUE

Revenue from Sale of Machine is recognised when significant risk & rewards of ownership have been transferred to buyer.

c) INVENTORIES:

Inventories are valued lower of Cost or Net Realisable Value.

d) FIXED ASSETS :

Fixed Assets are stated at Cost less Depreciation. Cost comprises all the expenditure incurred in

e) DEPRECIATION :

Depreciation on Fixed Assets is provided on written down value as per the rates prescribed under Part C of Schedule II of Companies Act, 2013.

e) INVESTMENTS :

Investments are stated at cost plus Accrued Return on Investements if any.

f) DISCLOSURE AS REQUIRED IN ACCOUNTING STANDARD 18 “RELATED PARTY DISCLOSURE”

g) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Exchange differences arising on the date of settlement are recognised in Profit & Loss Statement.

h) BORROWING COSTS

Borrowing costs that are attributable to acquisition or construction of assets are capitalized as a part