Accounting Policies of OBSC Perfection Ltd. Company

Mar 31, 2025

NOTE: 1-CORPORATE INFORMATION

The Company was incorporated as OBSC Perfection Private Limited., on 17^th March
2017 under the Companies Act 2013, with CIN: U27100DL2017PTC314606.

It was converted to a Public Company from a Private Company and the Central
Processing Centre (CPC) of the Registrar of Companies (ROC), accorded its
approval to change of status vide -SRN- AA7899496 dated 19^th June 2024.

Consequent to the conversion a fresh Certificate of Incorporation - dated 28^th June
2024 was issued with the same CIN- U27100DL2017PLC314606 with the changed
name of OBSC Perfection Limited.

It is engaged in the business of manufacture of components made of steel and other
metals, primarily for the automotive industry.

It had two factories in operation in Chakan -a suburbs of Pune, Maharashtra and one
factory at Mapedu, Sriperumbutur, Tamil Nadu which started production during the
financial year ended on 31^st March 2024. It has started the process of setting up a
third unit in suburbs of Pune, Maharashtra during the financial year ended on 31^st
March 2024 and it has also started production during this financial year ended on
31^st March 2025.

It has not discontinued any of its activities. Therefore, there are no figures
pertaining to the discontinued business activities.

NOTE: 2- SIGNIFICANT ACCOUNTING POLICIES:

1 Basis of preparation of Financial Statements:

a) The financial statements have been prepared on accrual basis in accordance

to Generally Accepted Accounting Principles (GAAP) under the historical
cost convention -except where stated to the contrary. They are prepared in
a manner to comply with the material requirements the applicable to
Medium Companies as per general instructions with respect of Accounting
Standards prescribed and the provisions of the Companies Act 2013, and
Schedule III to Companies Act 2013- as amended by Notification dated 24¬
3-2021.

b) The figures for the last year have been regrouped and reclassified wherever
required, and the figures have been rounded off to the nearest Lakhs rupee.

c) A number of estimates and assumptions are used by the management for
preparation of the financial statements, which are based on current state of
affairs. Changes in the state of affairs on account of changes in economic and
global events in the future can impact the future results.

2.1 Method of accountings Mercantile .

a) Accounts relating to the Manufacturing and trading activities are accounted as

income on Mercantile /Accrual basis, in accordance to Accounting Standard
AS 9, .

b) Input Tax Credits available with certainty under the Excise Duty, Service Tax
/ and Sales Tax /VAT legislations, till 30^th June 2017 are excluded from the
corresponding expense and set off against the respective Output liabilities

Input-Tax Credits, available with certainty in accordance to the Goods and .
Services Tax legislations introduced w.e.f, 1^st July 2017 are excluded from the
corresponding expense and set off against the respective Output liabilities

c) Claims by and against the company if any are accounted for on settlement.

d) The Gratuity Liability for those employees who completed 5 years of services
is provided on an actual basis as per Accounting Standard AS 15.

e) Privilege / Earned Leave not availed is eligible to be accumulated and can be
is encashed at the time of retirement/ termination of services. The employees
are also eligible to encash leave during the currency of service subject to the •
consent of the Management,

Actual liability for leave not availed is. provided in the Accounts as per
Accounting Standard AS 15- and it is treated as Current Liability.

f) Other Employee Terminal and service benefits, if any are accounted on
payment,

g) Bank charges and interest (other than pre admitted interest) are accounted for
as and when they are debited by the bank,

h) Rates and taxes are accounted on receipt & finalisation of demand.

i) Dividends from subsidiary companies and on investments are recognized as
Revenue only on the date when the right to receive is established by the
reporting date.