Accounting Policies of Presstonic Engineering Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133
of The Companies Act, 2013 ("the Act") read with Rule 7 of The Companies (Accounts) Rules, 2014, the provisions of the Act. The
accounting policies adopted in the preparation of financial statements have been consistently applied. All assets and liabilities have
been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Schedule III
to The Companies Act, 2013. Based on the nature of operations and time difference between the provision of services and
realization of cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of
current and non-current classification of assets and liabilities.

The financial statements are presented in Indian Rupees (INR) and are rounded off to the nearest lakhs, except share and per
share data, which is not rounded off. Due to rounding off, the numbers presented throughout the document may not add up
precisely to the totals and percentages may not precisely reflect the absolute figures.

b Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made
that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements
and the reported amount of revenues and expenses during the reporting period. Difference between the actual
results and estimates are recognized in the period in which the results are known / materialized.

c Cash Flow Statement

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating,
financing and investing activities of the Company is segregated.

d Property, Plant and Equipment

Items of Property, plant and equipment are measured at its cost less any accumulated depreciation and any accumulated
impairment losses. The cost comprises its purchase price including import duties and non- refundable purchase taxes after
deducting trade discounts and rebates and any cost directly attributable to bringing the assets to its working condition for its
intended use.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future
economic benefits from the existing asset beyond its previously assessed standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the
Balance Sheet as "Capital Work in Progress."

e Intangible assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The company has capitalized all
costs relating to acquisition and installation of intangible assets.

f Depreciation and amortization

Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount on the written down value
method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act 2013, which
is given in the table below.

The Intangible assets are amortized using straight line method over their estimated useful lives, which is given below. The
estimated useful life is reviewed annually by the management.

Depreciation is not recorded on capital work-in progress until construction and installation is completed and the asset is for
intended use.

g Impairment of assets

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that a non-financial asset,
other than inventory and deferred tax, may be impaired. For the purpose of assessing impairment, the smallest identifiable group
of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or
groups of assets is considered as a cash generating unit.

If any indication of impairment exists, an estimate of the recoverable amount of the individual asset/cash generating unit is
made. Asset/cash generating unit whose carrying value exceeds their recoverable amount are written down to the recoverable
amount by recognising the impairment loss as an expense in the statement of profit and loss.

h Leases

Leases are classified into Finance Lease and Operating Lease at the inception of lease and accounted for accordingly. Leases where
substantially all the risks and rewards of ownership are transferred to the lessee, even though legal ownership may not be
transferred are identified as Finance Leases. All other leases i.e. Leases where the lessor retains the risks and rewards of
ownership are considered as Operating Leases. The Company is primarily a Lessee.

Under a finance lease, the leased asset and a corresponding liability are recognised at the present value of the minimum lease
payments. Under an operating lease, the lease payments other than refundable deposits are recognised as an expense over the
lease term.

i Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is arrived at by applying weighted average method. Costs
comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. Net realisable value is the price at which the inventories can be realised in the
normal course of business after allowing for the cost of conversion from their existing state to a finished condition.

j Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with
a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to
be cash equivalents.

k Revenue recognition

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to
the buyer as per the terms of the contract, the Company retains no effective control of the goods transferred to a degree usually
associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived
from the sale of goods. Sales are recognized net of trade discounts, rebates and Goods and Service Tax.

Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.

Interest income is recognised on accrual basis on the Bank Deposit balance outstanding as at end of financial year.

l Employee Benefits

Post-employment benefit plans

(i) Defined Contribution Plan are post-employment benefit plans under which an enterprise pays fixed contributions into a separate
entity (a fund) and will have no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee
benefits relating to employee service in the current and prior periods. The Company contributes to the Provident Fund of the
employees operated by the Regional Provident Fund Commissioner, which qualifies to be a defined contribution plan.

(ii) Defined Benefit Plan are post-employment benefit plans other than defined contribution plans. Gratuity (defined befit plan) :
The Company provides for Gratuity, covering eligible employees under Company Gratuity Scheme. On reporting date, liabilities
with respect to gratuity plan as determined by an independent actuarial valuation and actuarial gains/losses are charged to the
Statement of Profit and Loss Account. The Company has obtained an insurance policy to cover the Gratuity Liabilities of the
Company.

Other employee benefits

Short-term Employees Benefits: All employee benefits payable within twelve months of rendering the service are classified as short¬
term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay
etc. in the period in which the employee renders the related service. A liability is recognized for the amount expected to be paid
when there is a present obligation to pay this amount as a result of past service provided by the employee and the obligation can
be estimated reliably.

m Foreign currency transactions

The transactions in foreign currency are recorded at the rate of exchange in force at the time the transactions are effected. At the
end of each reporting period, monetary items denominated in foreign currencies are translated at the closing exchange rate
prevailing at the balance sheet date. Gains / Losses arising out of fluctuations in the exchange rate at the time of settlement or
restatement, are recognized as Income / Expense in the period in which they arise.

n Taxation

The accounting treatment for the Income Tax in respect of the Company''s income is based on the Accounting Standard on
Accounting for Taxes on Income" (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and
deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year
after considering various deductions available under the Income Tax Act, 1961.

Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that
originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability
is reviewed at each Balance Sheet date and consequential adjustments are carried out. Deferred tax assets are only recognised to
the extent that it is probable that future taxable profits will be available against which the temporary differences
can be utilised.

Minimum Alternate Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period. The Company reviews the same at each balance sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect
that the Company will pay normal Income Tax during the specified period.

o Segment accounting

The company identifies distinguishable components of the business as business segments based on the business''s internal
organization and the way they are managed. A segment is considered reportable if its revenue, segment result (profit or loss), or
total segment assets are 10% or more of the corresponding totals for all segments. If the total revenue from reportable segments
is less than 75% of the company''s overall revenue, additional segments are identified as reportable until 75% of the revenue is
covered.

The revenues and expenses are allocated to different segments either based on direct attribution or reasonable allocation based
on sales to external customers. The assets and liabilities are allocated to each segment based on factors like the segment''s direct
use of assets and liabilities, and the nature of the segment''s operations. Segment liabilities would exclude borrowings and other
liabilities incurred for financing purposes.

For secondary segmentation, the company identifies the distinguishable geographic segment that is engaged in providing an
individual product or service or a group of related product or services within a specific environment and subject to risks and
returns exclusive of other segments, primarily domestic and exports.

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Mar 31, 2024

1 COMPANY INFORMATION

Presstonic Engineering Limited (the "Company" or "Presstonic") was first established as a partnership firm under the name and style of "M/s. Presston Engineering Corporation" in accordance with a deed of partnership dated June 3, 1996. On March 23, 2021, M/s. Presston Engineering Corporation was converted into a private limited company with the name "M/s. Presstonic Engineering Private Limited" in accordance with the provisions of Section 366, Chapter XXI of the Companies Act, 2013, and a certificate of incorporation dated March 23, 2021 was issued by the Registrar of Companies, CRC. Presstonic Engineering Private Limited was converted to a public limited company on 31-07-2023 with the change of name to "Presstonic Engineering Limited" in accordance with the provisions of the Companies Act, 2013, and a new certificate of incorporation dated July 31,2023 was issued by the Registrar of Companies, Bangalore.

The registered office of the Company is situated at Sy. No.2, Khata No.145. Srigandadakavalu, Hoysalanagara Main Road, Pillappa Industrial Layout, Sunkdakatte, Bengaluru - 560 091, Karnataka. The Company is engaged in the business of manufacturing of Metro Rail Rolling Stock Products, Railway Signaling Products, Infrastructure Products and related products.

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021 (as amended).

2 SIGNIFICANT ACCOUNTING POLICIES

A BASIS FOR ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of The Companies Act, 2013 ("the Act") read with Rule 7 of The Companies (Accounts) Rules, 2014, the provisions of the Act. The accounting policies adopted in the preparation of financial statements have been consistently applied. All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Schedule III to The Companies Act, 2013. Based on the nature of operations and time difference between the provision of services and realization of cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The financial statements are presented in Indian Rupees (INR) except share and per share data, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

B USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C INVENTORIES

Inventories are stated at the lower of cost and net realisable value. Cost is arrived at by applying weighted average method. Costs comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Net realisable value is the price at which the inventories can be realised in the normal course of business after allowing for the cost of conversion from their existing state to a finished condition.

D CASH FLOW STATEMENT

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated.

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

E CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE

Contingent Liabilities are not recognized but are disclosed in the notes to accounts when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources, when there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote. Contingent Assets are not recognized in the Financial Statements.

F NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES

Net Profit for the period and prior period items are shown separately in the Statement of Profit & Loss wherever applicable.

Prior period items of income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.

Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly.

G REVENUE RECOGNITION

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, the Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Sales are recognized net of trade discounts, rebates and Goods and Service Tax.

Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.

Interest income is recognised on accrual basis on the Bank Deposit balance outstanding as at end of financial year.

H PROPERTY, PLANT & EQUIPMENT

Items of Property, plant and equipment are measured at its cost less any accumulated depreciation and any accumulated impairment losses. The cost comprises its purchase price including import duties and non- refundable purchase taxes after deducting trade discounts and rebates and any cost directly attributable to bringing the assets to its working condition for its intended use.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future economic benefits from the existing asset beyond its previously assessed standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the Balance Sheet as "Capital Work in Progress."

I INTANGIBLE ASSETS

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The company has capitalized all costs relating to acquisition and installation of intangible assets.

J DEPRECIATION & AMORTISATION

Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount on the written down value method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act 2013, which is given below:

Plant & Machinery: 15 years Vehicles: 8 years Office Equipments: 5 years Computer: 3 years Furniture & Fixtures: 10 years Building Partitions & Interiors: 30 years

The Intangible assets are amortized using straight line method over their estimated useful lives, which is given below. The estimated useful life is reviewed annually by the management.

Software: 6 years

Depreciation is not recorded on capital work-in progress until construction and installation is completed and the asset is for intended use.

K FOREIGN CURRENCY TRANSACTIONS

The transactions in foreign currency are recorded at the rate of exchange in force at the time the transactions are effected. Gains / Losses arising out of fluctuations in the exchange rate at the time of settlement, are recognized as Income / Expense in the period in which they arise.

L EMPLOYEE BENEFITS

Short-term Employees Benefits: All employee benefits payable within twelve months of rendering the service are classified as short-term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. in the period in which the employee renders the related service. A liability is recognized for the amount expected to be paid when there is a present obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Leave Encashment: The obligation for Leave Encashment recognised, provided for and paid on Monthly basis.

Other employee benefits:

(i) Defined Contribution Plan are post-employment benefit plans under which an enterprise pays fixed contributions into a separate entity (a fund) and will have no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. The Company contributes to the Provident Fund of the employees operated by the Regional Provident Fund Commissioner, which qualifies to be a defined contribution plan.

(ii) Defined Benefit Plan are post-employment benefit plans other than defined contribution plans.

Gratuity (defined befit plan) : The Company provides for Gratuity, covering eligible employees under Company Gratuity Scheme. On reporting date, liabilities with respect to gratuity plan as determined by an independent actuarial valuation and actuarial gains/losses are charged to the Statement of Profit and Loss Account. The Company has obtained an insurance policy to cover the Gratuity Liabilities of the Company.

M SEGMENT REPORTING

A reportable segment is a business segment or a geographical segment identified on the basis of foregoing definitions for which segment information is required to be disclosed by this Standard.

The basic factor for Business segment is the nature of the products for the Company. which is a distinguishable component that is engaged in providing an individual product or a group of related products and that is subject to risks and returns that are different from those of other business segments or as a whole business.

The basic factor Geographical segment, for the Company, is relationships between operations in different geographical areas in terms of India and Outside India, which is a distinguishable component that is engaged in providing products or within a particular economic environment and that is subject to risks and returns that are different from those of components operating in other economic environments.

N EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the financial year. Earnings considered in ascertaining the company''s earnings per share is the net profit for the period after deducting any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for 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.

Diluted Earnings Per Share: 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 shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

O ACCOUNTING FOR TAXES ON INCOME

The accounting treatment for the Income Tax in respect of the Company''s income is based on the Accounting Standard on Accounting for Taxes on Income" (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out. Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Minimum Alternate Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

P PROVISIONS AND CONTINGENCIES

A provision is recognized when the Company has a present obligation as a result of past event. it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 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 are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

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Mar 31, 2023

Presston Engineering Pvt. Ltd. (''the Company'') is a private limited company domiciled in India and is incorporated on 23.03.2021. The registered office of the Company is situated at Sy. No.2, Khata No. 145. Srigandadakavalu Hoysalanagara Main Road, Pillappa Industrial Layout, Sunkdakatte, Bengaluru - 560 091, Karnataka.

The Company is engaged in the business of manufacturing of Metro Train Pioducts (Metal Fabrication) and metal working service activities.

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021 (as amended).

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS

AS 1: DISCLOSURE OF ACCONTING POLICIES

The financial statements are prepared on a ‘going concern’ concept under the historical cost convention on accrual basis and in accordance with the mandatory Accounting Standards issued by the Institute of Chartered Accountants in India.

AS 2: INVENTORIES

Raw Materials, Stores and Spares are valued at cost. Work-in-Progress is valued at cost applying weighted average method. Cost includes cost of Materials, Labour and other appropriate overheads. Finished Goods are valued at lower of cost and realizable value.

AS 6: DEPRECIATION

Depreciation on fixed assets has been charged on written down value basis, as per the useful life of assets notified in Schedule II of the Companies Act, 2013. Depreciation on Assets is charged from the date they are put to use.

AS 9: REVENUE RECOGNITION

Domestic sales are recognized on the basis of sales invoices raised. Sales are recognized at net of GST, Sales Return and Trade Discounts

AS 10: PROPERTY, PLANT & EQUIPMENT

Items of Property, Plant & Equipment are accounted at cost of acquisition.

AS 11: FOREIGN CURRENCY TRANSACTIONS

The transactions in foreign currency are recorded at the rate of exchange in force at the time the transactions are effected. Gains / Losses arising out of fluctuations in the exchange rate are recognized as Income / Expense in the period in which they arise.

The employees of the Company are entitled to receive benefits in respect of provident fund, in which both employees and the Company makes monthly contributions at a specified percentage as per the provisions of EPF Act, of the employees'' salary. The Company makes contribution to the employees’ health scheme for those employees governed by the ESI Act.

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn asic salary per month computed proportionately for 15 days salary mu tip le for the number of years of service.