Accounting Policies of Nirmitee Robotics India Ltd. Company

Mar 31, 2025

A) General Information: -

Nirmitee Robotics India Limited (“the Company”) is registered under the Company’s Act, 2013 engaged in providing repairs and maintenance services. The Company offers HVAC air duct cleaning for offices, hotels, convention centres, hospitals, trains and bus coaches, aircrafts, ships, buildings, and operation theatres. The Company has its registered office at c/o Vithoba Healthcare and Research Private Limited, D 3/2 Hingna MIDC Nagpur, 440028 India.

B) Significant Accounting Policies: -

1. Basis of Preparation of Financial Statements: -

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, wherever applicable. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act,2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing standard requires a change in the accounting policy hitherto in use.

2. Use of Estimates: -

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, postsales customer support and the useful lives of fixed tangible assets and intangible assets. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects if any, are disclosed in the notes to the financial statements.

3. Valuation of Inventories (AS - 2): -

Inventories are stated at cost or net realizable value whichever is lower. Cost comprises all cost of purchase and other costs which are being incurred in bringing the inventories to their present location and condition. The inventories consist of items related to the manufacturing of robots and materials used for duct cleaning on various sites.

4. Cash Flow Statement (AS - 3): -

Cash Flow statement has been prepared as per the requirement of Accounting Standard- 3. Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non- cash nature, any deferrals, or accruals of past or future operating cash receipts or payments and item of income and expenses associated with investing or financing cash flows. Cash flows from operating, investing, and financing activities of the Company are segregated, accordingly.

5. Contingencies and Event Occurring After the Balance Sheet Date (AS - 4): -

Effects of, event occurred after Balance Sheet date and having material effect on financial statements if any, are reflected where ever required.

6. Net profit or loss for the period, prior period items and changes in accounting policies (AS

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There are no changes in the accounting policies of the company during the current year.

7. Revenue Recognition (AS - 9): -

(i) Revenue is recognised when service is performed. Company is following Proportionate Completion Method for recognition of revenue, wherever applicable. As such, the service completion consists of the execution of at least one service and Revenue is recognized with the completion of each such service.

(ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head ‘Other income’ in the statement of Profit and Loss.

8. Property, Plant & Equipment (Tangible Assets) (AS - 10): -

Property, Plant, and Equipment are stated at cost less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by the Management. The Company depreciates property, plant and equipment over their estimated useful lives using the written down value method, considering a salvage value of 5%. The estimated useful lives of assets are as follows:

Asset	Estimated Useful Life
Plant & Equipment	15 years
Office Equipment	5 years
Tools	3 years
Computers & IT Equipment	3 years
Furniture & Fittings	10 years

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. Subsequent expenditures relating to property, plant and equipment are capitalised only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognised in net profit in the Statement of Profit and Loss when incurred. Depreciation is charged from the time asset is available for and put to use. The cost and related accumulated depreciation will be eliminated from the financial statements upon sale or retirement of the asset

and the resultant gains or losses will be recognised in the Statement of Profit and Loss as per the policy promulgated in this regard.

The assets lying under the head ‘Capital Goods in Transit’ have been apportioned to the respective items of PPE as these goods were received on 19.06.2024 on account of closure of the wholly owned subsidiary, Nirmitee Robotics AC Maintenance LLC. Out of this, Rs. 17.74 was classified into stores, spares, consumables and printing & stationary, being items of revenue nature as the company intends to utilize them as spares and consumables or in its trading activity.

Intangible Assets (AS - 26): -

The cost of an intangible asset comprises its purchase price, including any other taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use. Directly attributable expenditure includes, for example, professional fees for legal services. Any trade discounts and rebates are deducted in arriving at the cost.

9. The effects of changes in Foreign Exchange Rates (AS - 11): -

There is no foreign exchange gain or loss during the year in the Standalone Financial Statements.

10. Accounting for Government Grant (AS - 12): -

No Government Grant has been received by the company during the current year.

11. Employee Benefits (AS - 15): -

The Contribution made by the Company paid/ payable towards PF/ESIC of employees’ benefits are debited to Profit & Loss account. The Company pays PF/ESIC contributions as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. The Company is yet to apply the provisions of gratuity and leave encashment.

12. Borrowing Costs (AS - 16): -

The Company has cash credit facility with ICICI Bank during the year. The interest costs and other charges are debited to Profit & Loss account.

13. Segment Reporting (AS - 17): -

The objective of AS 17 is to establish principles for reporting financial information by segment, i.e., information about the different types of products and services an enterprise produces and the different geographical areas in which it operates. Since the company, has only one line business, the scope of reporting is limited under this standard and hence could not been made.

14. Related Party Disclosures (AS - 18): -List of related Parties is as under: -

15. Accounting for Leases (AS - 19): - Not Applicable.

16. Earnings Per Share (EPS) (AS - 20): -

Basic and diluted earnings per share are computed in accordance with Accounting Standard 20 “Earnings per Share”. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year except where the results are anti-dilutive.

17. Consolidated Financial Statements (AS - 21): -

The objective of AS 21, Consolidated Financial Statements, is to lay down principles and procedures for the preparation and presentation of consolidated financial statements. Consolidated financial statements are presented by a parent (also known as the holding enterprise) to provide financial information about the economic activities of its group. These statements are intended to present financial information about a parent and its subsidiary(ies) as a single economic entity to show the economic resources controlled by the group, the obligations of the group and the results, the group achieves with its resources.

The Company had set up a wholly-owned subsidiary by the name of Nirmitee Robotics AC Maintenance LLC in Dubai, UAE. The subsidiary has been liquidated with effect from 15^th July 2024. The financial information of the subsidiary up to the date of its liquidation is included in the consolidated financial statements.

18. Accounting for Taxes on Income (AS - 22): -

The Company had an opening balance of Deferred Tax Asset of Rs. 1.44 Lakhs. During the year, deferred tax asset amounting to Rs. 0.77 Lakhs has been created on account of timing differences. The closing balance of deferred tax asset is Rs. 2.20 Lakhs as on 31^st March 2025. . Fixed Assets shown under the head Capital goods in transit are not considered for the purpose of calculation of deferred tax. Similarly, items of Property, Plant, and Equipment included Furniture and Plant & Machinery, located in the subsidiary company in Dubai, which were not taken into consideration for the calculation of Deferred Tax effects.

19. Accounting for Investments in Associates (AS - 23): - Not Applicable

20. Discontinuing Operations (AS - 24):

The Company had set up a wholly owned subsidiary in Dubai, United Arab Emirates engaged in the same business of HVAC air duct cleaning. The subsidiary has been liquidated with effect from 15^th July 2024. This however, does not affect the going concern of the parent company.

21. Interim Financial Reporting (AS - 25): -

The Company has adhered to the norms of the regulatory authorities including the BSE in reporting the interim financials wherever applicable.

22. Financial Reporting of Interests in Joint Ventures (AS - 27): - Not Applicable.

23. Impairment of Assets (AS - 28): -

At each Balance Sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such condition exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of an assets and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset. Reversal of impairment loss is recognised immediately as income in the statement of profit and loss.

24. Provisions, Contingent Liabilities and Contingent Assets (AS - 29): -

Provisions are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but disclosed in the notes. While contingent assets are neither recognized nor disclosed.

25. Going Concern: -

The Financial Statements are prepared on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. The Company had set up a wholly owned subsidiary in Dubai, United Arab Emirates engaged in the same business of HVAC air duct cleaning. The subsidiary has been liquidated with effect from 15^th July 2024. This however, does not affect the going concern of the parent company.

26. Income Tax Provision: -

Provision for taxation is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred tax resulting from timing difference between the book profit and taxable profit is accounted for using the tax rates and tax laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

27. Expenditure: -

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities. No personal expenses are charged in the accounts and the genuineness of all the expenses is affirmed.

28. Profit and Loss Account -

The Profit and Loss account is drawn incorporating the revenues and expenses of the business operations.

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Mar 31, 2024

B) Significant Accounting Policies: -

1. Basis of Preparation of Financial Statements: -

The financial statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual basis except
for certain financial instruments which are measured at fair values, wherever applicable. GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the Companies
Act,2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of
the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of
India (SEBI). Accounting policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing standard requires a change
in the accounting policy hitherto in use.

2. Use of Estimates: -

The preparation of the financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of such estimates
include computation of percentage of completion which requires the Company to estimate the
efforts or costs expended to date as a proportion of the total efforts or costs to be expended,
provisions for doubtful debts, future obligations under employee retirement benefit plans,
income taxes, post-sales customer support and the useful lives of fixed tangible assets and
intangible assets. Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are made as the
Management becomes aware of changes in circumstances surrounding the estimates. Changes
in estimates are reflected in the financial statements in the period in which changes are made
and, if material, their effects if any, are disclosed in the notes to the financial statements.

3. Valuation of Inventories (AS - 2): -

Inventories are stated at cost or net realizable value whichever is lower. Cost comprises all cost
of purchase and other costs which are being incurred in bringing the inventories to their present
location and condition. The inventories consist of items related to the manufacturing of robots
and materials used for duct cleaning on various sites.

Cash Flow statement has been prepared as per the requirement of Accounting Standard- 3.
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of non- cash nature, any deferrals, or accruals of past or future operating
cash receipts or payments and item of income and expenses associated with investing or
financing cash flows. Cash flows from operating, investing, and financing activities of the
Company are segregated, accordingly.

⁵- Contingencies and Event Occurring After the Balance Sheet Date (AS - 41: -

Effects of, event occurred after Balance Sheet date and having material effect on financial
statements if any, are reflected where ever required.

⁶- Net profit or loss for the period, prior period items and changes in accounting policies

(AS — ~

There are no changes in the accounting policies of the company during the current year.

7. Revenue Recognition (AS - 91: -

(i) Revenue is recognised when service is performed. Company is following Proportionate
Completion Method for recognition of revenue, wherever applicable. As such, the service
completion consists of the execution of at least one service and Revenue is recognized
with the completion of each such service.

(ii) Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate. Interest income is included under the head
‘Other income’ in the statement of Profit and Loss.

8. Property, Plant & Equipment (Tangible Assets! (AS - 10); -

Property, Plant, and Equipment are stated at cost less accumulated depreciation and
impairment, if any. Costs directly attributable to acquisition are capitalised until the property,
plant and equipment are ready for use, as intended by the Management. The Company
depreciates property, plant and equipment over their estimated useful lives using the written
down value method, considering a salvage value of 5%. The estimated useful lives of assets
are as follows:

Depreciation methods, useful lives and residual values are reviewed periodically, including at
each financial year end. Subsequent expenditures relating to property, plant and equipment are
capitalised only when it is probable that future economic benefits associated wdth these will
flow to the Company and the cost of the item can be measured reliably. Repairs and
maintenance costs are recognised in net profit in the Statement of Profit and Loss when
incurred. Depreciation is charged from the time asset is available for and put to use. The cost
and related accumulated depreciation will ffejgEliminated from the financial statements upon

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sale or retirement of the asset and the resultant gains or losses will be recognised in the
Statement of Profit and Loss as per the policy promulgated in this regard. During the year
under consideration, certain items of fixed assets amounting to Rs. 36,24,587.70/- were shown
under the head Capital goods in transit in the Standalone Balance Sheet. These fixed assets
belonged to the wholly owned subsidiary of the company named Nirmitee Robotics AC
Maintenance LLC, Dubai. The Wholly owned Subsidiary company has transferred these
assets to the Parent Company during the year which were lying at Dubai Port for some
customs clearance till the date of Balance Sheet. Hence, these assets are being shown under
the head Capital goods in transit in Fixed Assets.

Intangible Assets (AS - 26): -

The cost of an intangible asset comprises its purchase price, including any other taxes (other
than those subsequently recoverable by the enterprise from the taxing authorities), and any
directly attributable expenditure on making the asset ready for its intended use. Directly
attributable expenditure includes, for example, professional fees for legal services. Any trade
discounts and rebates are deducted in arriving at the cost.

9. The effects of changes in Foreign Exchange Rates (AS - 111: - The Company has entered
into certain foreign transactions with its wholly owned subsidiary company in Dubai and other
foreign clients during the financial year 2023-2024. The transactions in case of wholly owned
subsidiary company pertains to transfer of funds in the nature of loan and equity and in case of
foreign clients the transactions pertain to export of goods and services. The details of which
are given in table below:-

This has resulted into foreign exchange loss of Rs. 2,18,330/- due to the difference between
the exchange rate on the transaction date and the settlement date which is duly debited to the
profit and loss account in accordance with the provisions of AS - 11.

10. Accounting for Government Grant (AS - 12): -

No Government Grant has been received by the company during the current year.

11. Employee Benefits (AS - 15): -

The Contribution made by the Company paid/ payable towards PF/ESIC of employees’
benefits are debited to Profit & Loss account. The Company pays PF/ESIC contributions as
per local regulations. The Company has no further payment obligations once the contributions
have been paid. The contributions are accounted for as defined contribution plans and the
contributions are recognized as employee benefit expense when they are due. The Company is
yet to apply the provisions of gratuity and leave encashment.

12. Borrowing Costs (AS - 16): -

The Company has cash credit facility with ICICI Bank during the year. The interest costs and

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other charges are debited to Profit & Loss account.

13. Segment Reporting (AS -17): -

The objective of AS 17 is to establish principles for reporting financial information by
segment, i.e., information about the different types of products and services an enterprise
produces and the different geographical areas in which it operates. Since the company, has
only one line business, the scope of reporting is limited under this standard and hence could
not been made.

14. Related Party Disclosures (AS - 18): -
List of related Parties are as under; -

15. Accounting for Leases (AS - 19): - Not Applicable.

16. Earnings Per Share (EPS) (AS - 20): -

Basic and diluted earnings per share are computed in accordance with Accounting Standard 20
“Earnings per Share”. Basic earnings per share is calculated by dividing the net profit or loss
after tax for the year attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year. Diluted earnings per share are computed using the
weighted average number of equity shares and dilutive potential equity shares outstanding
during the year except where the results are anti-dilutive.

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17. Consolidated Financial Statements (AS - 211: -

The objective of AS 21, Consolidated Financial Statements, is to lay down principles and
procedures for the preparation and presentation of consolidated financial statements.
Consolidated financial statements are presented by a parent (also known as the holding
enterprise) to provide financial information about the economic activities of its group. These
statements are intended to present financial information about a parent and its subsidiary(ies) as
a single economic entity to show the economic resources controlled by the group, the
obligations of the group and the results, the group achieves with its resources.

The Company has set up a wholly-owned subsidiary by the name of Nirmitee Robotics AC
Maintenance LLC in Dubai, UAE. The Consolidated Financial Statements are subject to be
prepared as per the guidance provided in AS 21 and presented separately, in accordance with
the provisions of the Companies Act, 2013 and the requirements of SEBI. The relevant
reporting is made under the report of Consolidated Financial Statements.

18. Accounting for Taxes on Income (AS - 221: -

The Company had an opening balance of Deferred Tax Asset of Rs. 7,426.62/-. During the year,
deferred tax asset amounting to 1,36,345.37/- has been created on account of timing differences.
The closing balance of deferred tax asset is 1,43,771.99/- as on 31^st March 2024. Fixed Assets
shown under the head Capital goods in transit are not considered for the purpose of calculation
of deferred tax.

19. Accounting for Investments in Associates (AS - 23): - Not Applicable.

20. Discontinuing Operations (AS - 24): - The Company has taken a decision to discontinue the
operations of its wholly owned subsidiary namely Nirmitee Robotics AC Maintenance LLC,
Dubai by the end of the year 2024 due to inviability of the business. This intent will not cause
any effect on the continuity of the operations of the parent company.

21. Interim Financial Reporting (AS - 25): -

The Company has adhered to the norms of the regulatory authorities including the BSE in
reporting the interim financials wherever applicable.

22. Financial Reporting of Interests in Joint Ventures (AS - 27): - Not Applicable.

23. Impairment of Assets (AS - 28): -

At each Balance Sheet date, the management reviews the carrying amounts of its assets
included in each cash generating unit to determine whether there is any indication that those
assets were impaired. If any such condition exists, the recoverable amount of assets is estimated
in order to determine the extent of impairment loss. Recoverable amount is the higher of an
assets net selling price and value in use. In assessing value in use, the estimated future cash
flows expected from the continuing use of an assets and from its disposal are discounted to their
present value using a pre-tax discount rate that reflects the current market assessments of time
value of money and risks specific to the assei. Reversal of impairment loss is recugnised
immediately as income in the statement of profit and loss.