Accounting Policies of Rajnandini Metal Ltd. Company

Mar 31, 2025

1 Material Accounting policies & Notes to the financial statements
A Corporate Information

Rajnandini Metal Limited (âthe Companyâ) is a public limited company incorporated and domiciled in India having its registered office at Plot
No. 344, Sector-3 Phase-II, IMT Bawal Rewari HR 123501 IN, India and is listed on the National Stock Exchange of India Limited. The
company engaged in the business of manufacturing, trading or otherwise deal in high-grade Copper Continuous Casting Rods and copper wires.

B Basis of preparation & Presentation of Financial Statements

a) Basis ofPreparation

These financial statements are prepared on going concern basis under the histoical cost convention on the accrual basis except for certain
financial instruments which are measured at fair value or amortized cost at the end of each reportingperiod. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction date. These financial statements comply with the provisions of the
Companies Act, 2013 (The Act), guidelines issued by the Securities & Exchange Board of India (SEBI) and accounting principles generally
accepted in India. All assets and Liabilities have been classified as Current and Non Current as per the Companies normal operating cycle. The
company has considered an operating cycle of 12 months based on the nature of the business.

b) Compliance with Ind AS

''the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of
the Act read with Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued there after.

c) Functional & Presentation Currency

The financial statements are presented in Indian Rupees which is the Company''s functational and presentation currency and all financial values
are rounded to the nearest Lakhs, except when otherwise indicated.

d) Use of Estimates ''

The preparation of financial statements in conformity with Ind AS requires management to make adjustments, estimates and assumptions that
may impact the application of accounting policies and the reported value of assets, liabilities, income, expense and related disclosure concerning
the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and underlying assumptions are reviewed on an
ongoing basis and revised if management became aware of changes in circumstances surrounding the estimates. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and, if material, their effects are disclosed in the notes to the financial
statements. Application of accounting policies that require critical accounting estimates involving complex and critical judgment is disclosed in
notes to accounts.

C Material accounting policies

i) Property, Plant & Equipment and Depreciation

'' Freehold Land is carried at historical cost. All other items of Property, Plant and equipment are stated at cost, less accumulated depreciation and
'' accumulated impairment losses, if any.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated '' ''
with these will flow to the company and the costs to the item can be measured reliably.

Depreciation on property, plant and equipment is calculated on prorata basis on straight-line method using the useful lives of the assets estimated
by management. The useful life is as follows:

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on
sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and
losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under ''Other
Income'' or ''Other Expenses'' as the case may be.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as
appropriate.

ii) Impairment of Assets

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carryingamount
may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis. In such cases, the recoverable amount is determined for the Cash Generating units
(CGU) to which the assets belongs . If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and
loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of asset..

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the
assets no longer exists or have decreased.

iii) Revenue Recognition

'' Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) is measured at fair value of the consideration

received or receivable. Ind AS 115, Revenue from contracts with customers, outlines a single comprehensive model of accounting for revenu e
'' arising from contracts with customers.

The Company recognises revenue from contracts with customers based on a five step model as set out in Ind AS 115:

Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights
and obligations and sets out the criteria for every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good
or service to the customer.

'' Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the Company expects to be entitled in

exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance
obligation, the Company allocates the transaction price to each performance obligation in an amount that depicts the amount of consideration
to which the Company expects to be entitled in exchange for satisfying each performance obligation.

Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.

Sale of Copper wir^ Rod

Revenue is recognised when control of copper products transfers to the customer in an amount that reflects the consideration the company expects to
'' be entitled to in exchange for those goods.Revenue from sale of copper rods and wires is recognised in accordance with Ind AS 115 upon transfer of
control to the customer. The transaction price reflects the expected consideration, net of trade discounts and GST.

, Interest Income from Letter of credit

'' Where sales are made under Letters of Credit (LC), and the Company discounts such LCs with banks, the corresponding trade receivables are
derecognized at the time of discounting, as the contractual rights to the cash flows are transferred to the bank without recourse, and substantially all
risks and rewards, including credit risk, are also transferred.Interest or charges recovered from customers for the deferred payment period are not
considered a significant financing component under Ind AS 115, and are accounted for separately. Such amounts are recognized as other income based
on the nature of the arrangement and contractual terms.

Other Income:

Any Other Income is recognised in the Statement of Profit and Loss Account as and when accrued.

iv) Inventories

Raw materials, Work-in-progress, finished goods, and stores and spares are valued at lower of cost or net realisable value. However, materials
and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost of raw materials, and stores and spares is determined on a Moving Weighted Average
Cost Method basis.

Work-in-progress and finished goods, are valued at lower of cost or net realisable value. Cost includes direct materials as aforesaid and allocated
production overheads.

The stock of scrap materials have been valued at net realisable value.

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

v) Taxation
(a) Current Tax

Current tax expense is recognized in statement of profit and loss based on current tax rate in accordance with the provisions of Income Tax Act,

. '' 1961. _

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date,
''and any adjustment to tax payable in respect of previous years.

Current income taxes are recognized under âincome tax payableâ net of payments on account, or under âtax receivablesâ where there is a credit
balance.'' ''

(b) Deferred Tax

Deferred tax is provided in full using the balance sheet method on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial
recognition of goodwill.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(i) When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

(ii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the
timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred
tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable
^ profit will be available against which the temporary differences can be utilised.

'' The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reÂ¬
assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered. ''''

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside the statement of profit and loss is recognized outside the statement of profit and loss (either
in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or direct
^ in equity.

Mar 31, 2024

26 Significant Accounting policies & Notes to the financial statements A Corporate Information

Rajnandini Metal Limited (âthe Companyâ) is a public limited company incorporated and domiciled in India having its registered office at Plot No. 344, Sector-3 Phase-II, IMT Bawal Rewari HR 123501 IN, India and is listed on the National Stock Exchange of India Limited. The company engaged in the business of manufacturing, trading or otherwise deal in high-grade Copper Continuous Casting Rods and copper wires.

B Basis of preparation & Presentation of Financial Statements

a) Basis ofPreparation

These financial statements are prepared on going concern basis under the histoical cost convention on the accrual basis except for certain financial instruments which are measured at fair value or amortized cost at the end of each reportingperiod. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction date. These financial statements comply with the provisions of the Companies Act, 2013 (The Act), guidelines issued by the Securities & Exchange Board of India (SEBI) and accounting principles generally accepted in India. All assets and Liabilities have been classified as Current and Non Current as per the Companies normal operating cycle. The company has considered an operating cycle of 12 months based on the nature of the business.

b) Compliance with Ind AS ''

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the _ '' accrual basis except for certain financial instruments which are measured at fairvalues, the provisions of the Companies Act, 2013 (the Act) (to

'' .the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of '' the Act read with Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued there after.

c) Functional & Presentation Currency ''

The financial statements are presented in Indian Rupees which is the Company''s functational and presentation currency and all financial values are rounded to the nearest Lakhs, except when otherwise indicated.

d) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make adjustments, estimates and assumptions that '' may impact the application of accounting policies and the reported value of assets, liabilities, income, expense and related disclosure concerning the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and underlying assumptions are reviewed on an '' ongoing basis and revised if management became aware of changes in circumstances surrounding the estimates. Revisions to accounting estimates are recognized in the period in which the estimates are revised and, if material, their effects are disclosed in the notes to the financial statements. Application of accounting policies that require critical accounting estimates involving complex and critical judgment is disclosed in notes to accounts.

C Significant accounting policies

i) Property, Plant & Equipment and Depreciation

Freehold Land is carried at historical cost. All other items of Property, Plant and equipment are stated at cost, less accumulated depreciation and '' accumulated impairment losses, if any.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated '' with these will flow to the company and the costs to the item can be measured reliably.

Depreciation on property, plant and equipment is calculated on prorata basis on straight-line method using the useful lives of the assets estimated by management. The useful life is as follows:

Property, plant and equipment	Useful Life of Asset ( In year) as adopted ''
Plant & Equipment	15 to 30
Vehicle	6 to 8
Office Equipment	5
Computer	3

Based on the technical experts assessment of useful life, certain items of property plant and equipment and motor vehicles are being depreciated over useful lives different from the prescribed useful lives under Schedule II to the Companies Act, 2013. Management believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under ''Other Income'' or ''Other Expenses'' as the case may be.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as appropriate.

ii) Impairment of Assets

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis. In such cases, the recoverable amount is determined for the Cash Generating units (CGU) to which the assets belongs . If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of asset.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exists or have decreased.

iii) Revenue Recognition _

_ Sale of Products:

Â¦ '' Revenue arising from sale of products is recognized when significant risks and rewards of ownership have passed to the buyer under the terms of

. contract and the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will

flow to the Company.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods provided in the normal course of business, net of discounts, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. Any retrospective revision in prices is accounted for in the year of such revision.

Interest Income:

¹ Interest income is recognised on time proportion basis.

. Other Income:

Any Other Income is recognised in the Statement of Profit and Loss Account as and when accrued.

iv) Inventories

(i) Inventories are valued on FIFO basis at lower of cost or estimated net realisable value. However, materials and other items held for use in the

production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at cost or above cost. _

(ii) Cost of Work in progress includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

(iii) Cost of finished goods and work in progress include all costs of purchases, conversion costs and other costs incurred in bringing the inventories to their present location and condition. The net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.

v) Taxation ''

(a) Current Tax

Current tax expense is recognized in statement of profit and loss based on current tax rate in accordance with the provisions of Income Tax Act, 1961.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Current income taxes are recognized under âincome tax payableâ net of payments on account, or under âtax receivablesâ where there is a credit balance.

(b) Deferred Tax

Deferred tax is provided in full using the balance sheet method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(i) When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

(ii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except: .

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred '' tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable . . profit will be available against which the temporary differences can be utilised.

.Th^carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that ''

sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re. assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax

asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is ,, settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside the statement of profit and loss is recognized outside the statement of profit and loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or direct in equity.

vi) Provisions, Contingent Liabilities and Contingent Assets

Disclosure of contingencies as required by the Indian accounting standard is furnished in the Notes on accounts.

. Provisions are made when (a) the Company has a present obligation as a result of past events; (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation.

'' Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an ''

outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is recognized as an asset. Information on contingent liabilities is disclosed in the notes to the financial statement. A contingent asset is disclosed where an inflow of economic benefits is probable.

vii) Financial Instruments

(a) Financial Assets ,

Initial recognition and measurement

The company recognizes financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition. Purchase and sale of financial assets are accounted for at trade date.

Subsequent Measurement : Non-derivative financial instruments Financial assets carried at amortized cost (AC)

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(b) Financial liabilities

Initial recognition and measurement

The Companyâs financial liabilities include trade and other payables, loans and borrowings etc. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs, if any.

Offsetting of Financial Liabilities ''

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Derecognition of financial instruments ''

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

viii) Operating Cycle

(a) The Company presents its assets and liabilities in the balance sheet based on current/noncurrent classification which is based upon the Company''s operating cycle. The Company has identified twelve months as its operating cycle.

(b) An asset is treated as current when it is:

(i) Expected to be realized or intended to be sold or consumed in normal operating cycle;

'' (ii) Held primarily for the purpose of trading;

(iii) Expected to be realized within twelve months after the reporting period; or

(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting

'' period. ''

(i) It is expected to be settled in normal operating cycle;

. (ii) It is held primarily for the purpose of trading;

(iii) It is due to be settled within twelve months after the reporting period, or

(iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

'' (d) Deferred tax assets and liabilities are classified as non-current assets and liabilities.

ix) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in , which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

x) Cash and cash equivalents ''

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits.

xi) Cash Flow Statement

Cash flows are reported using indirect method as per Ind AS 7, 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.

xii) Earning Per Share

Basic earnings (loss) per share are 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.

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 are adjusted for the effects of all dilutive potential equity shares.

xiii) Segment Reporting

Company is in the business of manufacturing of copper rods and copper wires. The company has single primary business segment and their is no seprate reportable segment.

xiv) Fair Value Measurement

The Company measures financial instruments at fair value at each balance sheet date. _

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

. The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability,

assuming that market participants act in their economic best interest. .''

A fair value measurement of a non- financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair . . value, maximising the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is material to the fair value measurement as a whole:

Level 1 - Quoted(unadjusted) market prices in active markets for identical assets or liabilities

Level 2- Valuation techniques for which the lowest level input that is material to the fair value measurement is directly or indirectly observable Level 3- Valuation techniques for which the lowest level input that is material to the fair value measurement is unobservable

. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reass ssing categorization (based on the lowest level input that is material to fair value measurement as a whole) at the end of each reporting period.

'' '' For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Mar 31, 2023

Significant Accounting policies & Notes to the financial statements

A Corporate Information

Rajnandini Metal Limited (âthe Companyâ) is a public limited company incorporated and domiciled in India having its registered office at Plot No. 344, Sector-3 Phase-II, IMT Bawal Rewari HR 123501 IN, India and is listed on the National Stock Exchange of India Limited. The company engaged in the business of manufacturing, trading or otherwise deal in high-grade Copper Continuous Casting Rods and copper wires.

B Basis of preparation ''

a) Compliance with Ind AS

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (the Act) (to the extent notified) and guidelines issued by the Securities and Exchange Board ofIndia (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued there after.

b) Use of Estimates

the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and underlying assumptions are reviewed on an ongoing basis and revised if management became aware of changes in circumstances surrounding the estimates. Revisions to accounting '' estimates are recognized in the period in which the estimates are revised and, if material, their effects are disclosed in the notes to the financial statements. Application of accounting policies that require critical accounting estimates involving complex and critical judgment is disclosed in

C Significant accounting policies

i) Property, Plant & Equipment and Depreciation ''

. Property, plant and equipment are stated at original cost net of tax/duty credit availed, less accumulated depreciation and accumulated

₍ impairment losses, if any.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated ''. with these will flow to the company and the costs to the item can be measured reliably.

Depreciation on Building, Plant & Machinery and Computer is being provided on Straight Line Method.

Property, plant and equipment	Useful Life of Asset ( In year) as per Schedule-II	Useful Life of Asset ( In year) as adopted
Plant & Equipment	15 to 30	15 to 30.
Vehicle	8	6 to 8 ''
Office Equipment	10	5
Computer	3	3

Based on the technical experts assessment of useful life, certain items of property plant and equipment are being depreciated over useful lives different from the prescribed useful lives under Schedule II to the Companies Act, 2013. Management believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement ofProfit and Loss under ''Other Income'' or ''Other Expenses'' as the case may be.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as

ii) Impairment of Assets

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis. In such cases, the recoverable amount is determined for the Cash Generating units (CGU) to which the assets belongs . If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of asset.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exists or have decreased.

iii) Revenue Recognition Sale of Products:

Revenue arising from sale of products is recognized when significant risks and rewards of ownership have passed to the buyer under the terms of contract and the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Company.

on behalf of the government. Any retrospective revision in prices is accounted for in the year of such revision.

Interest Income:

Interest income is recognised on time proportion basis.

Other Income:

Any Other Income is recognised in the Statement of Profit and Loss Account as and when accrued.

iv) Inventories ''

(i) Inventories are valued on FIFO basis at lower of cost or estimated net realisable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at cost or above cost.

, (ii) Cost of Work in progress includes direct materials and labour and a proportion of manufacturing overheads based on normal operating

capacity.

(iii) Cost of finished goods and work in progress include all costs of purchases, conversion costs and other costs incurred in bringing the '' inventories to their present location and condition. The net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.

v) Taxation

(a) Current Tax . ,

Current tax expense is recognized in statement of profit and loss based on current tax rate in accordance with the provisions of Income Tax Act,

1961.

Current income taxes are recognized under âincome tax payableâ net of payments on account, or under âtax receivablesâ where there is a credit balance.

(b) Deferred Tax

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

Deferred tax is recognized in statement of profit and loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in other comprehensive income or equity.,

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. .

vi) Provisions, Contingent Liabilities and Contingent Assets

Disclosure of contingencies as required by the Indian accounting standard is furnished in the Notes on accounts.

.Provisions are made when (a) the Company has a present obligation as a result of past events; (b) it is probable that an outflow of resources '' embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation. ''

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes. Contingent . assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and

is recognized as an asset. Information on contingent liabilities is disclosed in the notes to the financial statement. A contingent asset is disclosed . . where an inflow of economic benefits is probable. .

vii) Financial Instruments

(a) Financial Assets ''

Initial recognition and measurement

The company recognizes financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. All financial . assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or , ₍ loss are added to the fair value on initial recognition. Purchase and sale of financial assets are accounted for at trade date.

Subsequent Measurement : Non-derivative financial instruments Financial assets carried at amortized cost (AC)

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(b) Financial liabilities

Initial recognition and measurement

Offsetting of Financial Liabilities

Derecognition of financial instruments

viii) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

ix) Cash and cash equivalents

. Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve . '' months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash

. equivalents consist of cash and short-term deposits.

x) Cash Flow Statement

xi) Earning Per Share "

xii) Segment Reporting

Company is in the business of manufacturing of copper rods and copper wires. The company has single primary business segment and their is no seprate reportable segment. ''

xiii) Fair Value Measurement

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

For the purpose offair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy. â

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