Notes to Accounts of R M Drip and Sprinklers Systems Ltd.

Mar 31, 2025

p) Provisions and Contingent liabilities and asset

"A provision is recognized when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate
can be made. Provisions are not discounted to its present value (except retirement benefits) and are determined based
on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates. A disclosure for a contingent liability is made when there is a
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 in respect of which likelihood of outflow of resources is remote, no
provision or disclosure is made.

A Contingent Asset is neither recognized nor disclosed in the financial statements."

q) Events after Balance Sheet

Events occurring after the balance sheet date that indicate that an asset may have been impaired, or that a
liability may have existed, at the balance sheet date are, therefore, taken into account in identifying contingencies and
in determining the amounts at which such contingencies are included in financial statements.

r) The various figures of financial statement have been regrouped or reclassified wherever necessary.

H) Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts -

I) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

a) Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash. - Nil

b) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares - Nil

c) Aggregate number and class of shares bought back - Nil

J) terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting
from the farthest such date - Nil

K) Calls unpaid (showing aggregate value of calls unpaid by Directors and officers) - Nil

L) Forfeited shares (amount originally paid-up) - Nil

Note 30: Events occurring after Balance Sheet Date

There are no events subsequent to the balance sheet date, which require adjustment of, or disclosure in the
Financial statements.

Note 31: Segment Reporting

The Company is operating only in one segment i.e. Micro Irrigation Systems. Hence Segment Reporting is not
applicable.

Note 32: Provisions and Contingent Liabilities
Provisions

Provisions involving judgments and estimation in measurement of expenses 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.

(i) The Company’s E-Way Bill data and GSTR-3B returns reflect certain differences primarily due to timing
variations. Though company has provided explanations for such differences, the matter is still pending with GST

Not 33: Relationships with Struck- Off companies

During the year, the Company had no transactions with struck off companies.

Note 34: Recent Accounting Pronouncements

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under
section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2025.

Note 38 Other Statutory Information

a) The Company does not have any Benami property, where any proceeding has bee initiated or pending against the Company for holding any Benami property.

b) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year/period.

c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

d) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the
period/year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

The Company has not been declared a willful defaulter by any bank or other lender (as defined under the Companies Act, 2013), in accordance with the guidelines on

e)

willful defaulters.

f) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

The Company is in compliance with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act read with the Companies (Restriction on

g)

number of Layers) Rules, 2017.

As per our report of even date For RM Drip and Sprinklers Systems Limited

Chartered Accountant

Aakash Mehta Nivrutti Pandurang Kedar Somnath K. Date

Partner Managing Director Director

M. No. 165824 DIN: 06980548 DIN : 09843323

Place: Mumbai

Date:13.05.2025

UDIN: 25165824BMMGY8711

Kiran Ramdas Chavan Gracy Vijay Kale

Chief Financial Officer Company Secretary

M. No. A65551

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Mar 31, 2024

D) The rights, preferences and restrictions attached to each class of shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held. The dividend proposed (if any) by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

E) Details of shares held by its holding company in the Company - NIL

G) Terms and details of shares reserved for issue under options and contracts/commitments - Nil

H) Details of ordinary equity shares issued in immediately preceding five years as on the date of Balance sheet. : Nil

I) Terms if any securities convertible into equity/preferece share in decending order of conversion : Nil

J) Calls issued and unpaid : Nil

K) Paid Up value of Shares forfeited : Nil

5.1 Management has estimated the cost of meeting the warranty obligation regarding micro irrigation systems sold at 0.25% of the sale value. Accordingly every year an amount of 0.25% of sale of materials (total sales minus scrap sale and transport charges recorded in sales bills) is set aside as a provision by debiting the statement of profit and loss. Since the warranty period is 5 years, the provision is carried as a liability over a period of 5 years. Every year 1/5th of the liability diminishes which is debited to the provision and written back to statement of profit and loss. Out of total provision, the amount related to immediately following period of twelve months from the reporting date is identified as short term provision and balance amount is shown as long term provision.

31 Segment Reporting: -

The Company is operating only in one segment i.e. Micro Irrigation Systems. Hence segment reporting is not applicable.

32 Impaired Assets: -

The Board is of the opinion that there is no impairment loss in the Carrying Amounts of all the assets of the company at the Balance Sheet date. Hence during the financial year company has not provided for impairment loss in the carrying amount of assets.

33 Provisions and Contingent Liabilities: -

Provisions involving judgments and estimation in measurement of expenses 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.

34 Contingent Liabilities: -

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

35 Relationships with Struck- Off companies

During the year, the Company had no transactions with struck off companies.

36 Recent Accounting Pronouncements

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

38 Books reconciliation with Statement sumbited to bank

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts

39 Other Statutory Information

_a) The Company and its Subsidiaries does not have any Benami property, where any proceeding has bee initiated or pending against the Company and its Subsidiaries for holding any Benami property.

b) The Company and its Subsidiaries has not traded or invested in Crypto Currency or Virtual Currency during the financial year/period.

c) The Company and its Subsidiaries does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

The Company and its Subsidiaries does not have any such transaction which is not recorded in the books of accounts that has been surrendered or

d) disclosed as income during the period/year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

. The Company has not been declared a willful defaulter by any bank or other lender (as defined under the Companies Act, 2013), in accordance

e)

with the guidelines on willful defaulters.

f) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

g) ^{The Company is in compliance with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act read with the Companies} (Restriction on number of Layers) Rules, 2017.

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Mar 31, 2023

A) The rights, preferences and restrictions attached to each class of shares -

Equity Shares : The company has only one class of equity share having par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. Further the ordinary equity Shares of the company have the rights and for one vote per share held. Further the ordinary equity Shares of the company have the rights and restrictions as prescribed in the Companies Act, 2013.

B) Details of shares held by its holding company in the Company - NIL

C) Details of Equity shares held by shareholders holding more than 5 % of aggregate shares in the

Company._

D) Terms and details of shares reserved for issue under options and contracts/commitments - Nil

E) Details of ordinary equity shares issued in immediately preceding five years as on the date of Balance sheet. : Nil

F) Terms if any securities convertible into equity/preferece share in decending order of conversion : Nil

G) Calls issued and unpaid : Nil

L) Paid Up value of Shares forfeited : Nil

M) Company''s disclosure of Shareholding of Promoters:

The company collects Security Deposits from Dealers through whom it transacts its business. These are refundable at the time of end of business with the dealers. Balances are subject to Confirmation & consequential adjustments, if any.

6.1 In respect of warranties given by the Company on sale of certain products, the estimated costs of these warranties are accrued at the time of sale. Management used to estimate the cost of meeting the warranty obligation, regarding Micro Irrigation Systems sold, at 0.25% of the sale value until FY 21-22.

The estimates for accounting of warranties are reviewed and revisions are made as required by the management of the company. Therefore, on review of the historical data on warranty, the Management has revised its warranty estimate of the cost of meeting the warranty obligation, regarding Micro Irrigation Systems sold, at 0.5% of the sale value. Hence, the warranty provision was rationalized during FY 22-23, based on the historical data.

8.1 During the current year, the company has not classified its creditors as Micro, Small and Medium Enterprises as required under Micro, Small and Medium Enterprises Development Act 2006. Information required to be reported under the Act could not therefore be compiled for verification by the Auditor.

8.2 Trade payables are subject to confirmation, reconciliation and consequential adjustments.

Gratuity expenses are not recognised in respect of employees, who are not governed by provisions of Payment of Gratuity Act, 1972. The estimates of future salary increase, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

28 Events occurring after Balance sheet date

There are no events subsequent to the balance sheet date, which require adjustment of, or disclosure in the Financial statements.

29 Segment Reporting

The Company is operating only in one segment i.e. Micro Irrigation Systems

32 Impaired Assets: -

The Board is of the opinion that there is no impairment loss in the Carrying Amounts of all the assets of the company at the Balance Sheet date. Hence during the financial year company has not provided for impairment loss in the carrying amount of assets.

33 Provisions and Contingent Liabilities: -

Provisions involving judgments and estimation in measurement of expenses 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.

34 Previous years figures have been re-grouped, rearranged and reclassified wherever necessary.