Accounting Policies of Ranjeet Mechatronics Ltd. Company

Mar 31, 2025

B.1 Accounting Convention

The financial statement has been prepared under the historical cost convention on the "Accrual
Concept" except for certain financial instruments which are measured at fair values and Going Concern
assumptions of accountancy in accordance with the accounting principles generally accepted in India
and comply with the accounting standards as prescribed by Companies (Accounting Standard) Rules,
2006 and with the relevant provisions of the Companies Act, 2013 and rules made there under.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. In
Lakh as per the requirement of division I of Schedule III, unless otherwise stated.

B.2 Use of Estimates and Judgements

The preparation of financial statements requires management to make estimates, judgements and
assumptions that affect the reported amount of assets and liabilities on the date of the financial
statement and the reported amount of revenues and expenses during the reporting period. The
application of accounting policies that require critical accounting estimates, which involve complex and
subjective judgments and the use of assumptions in these financial statements, have been disclosed in
notes. Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates and judgements are reflected in the
financial statements in the period in which changes are made and, if material, their effects are disclosed
in the notes to the financial statements.

B.3 Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s
Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting
date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least
twelve months after the reporting date.

All other assets and liabilities are classified as non-Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has
ascertained its operating cycle as twelve months. This is based on the nature of services and the time
between the acquisition of the assets or liabilities for processing and their realization in Cash and Cash
Equivalents.

C. Basis of Preparation

1) Presentation and Disclosure of Financial Statements

These financial statements have been prepared as per "Schedule - III" notified under the Companies Act,
2013. The Company has also reclassified / regrouped / restated the previous year figures in accordance
with the requirements applicable in the current year.

2) Property, Plant and Equipment

Property, Plant and Equitpment are stated at cost less accumulated depreciation and impairment losses,
if any. Cost comprises of all expenses incurred to bring the assets to its present location and condition.
Borrowing cost directly attributable to the acquisition /construction is included in the cost of fixed
assets. Adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

In case of new projects / expansion of existing projects, expenditure incurred during construction /
preoperative period including interest and finance charge on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same are allocated to the respective on
completion of construction / erection of the capital project / fixed assets.

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."

3) Depreciation

All fixed assets, except capital work in progress, are depreciated on WDV Method. Depreciation is
provided based on useful life of the assets and depreciation rates as prescribed in Schedule II to the
Companies Act, 2013. Depreciation on additions to/ deletions from fixed assets made during the period
is provided on pro-rata basis from/ up to the date of such addition/ deletion as the case may be.

4) Impairment of Assets

At each balance sheet date, the Company reviews the carrying amount of its fixed assets to determine
whether there is any indication that those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to determine the extent of
impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In
assessing value in use, the estimated future cash flows expected from the continuing use of the assets
and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks specific to the assets.

5) Inventories

Inventories consist of Raw Materials and Finished Goods are valued at Cost or Net Realizable Value,
whichever is lower.

6) Investments

Investments are classified into current investments and non-current investments. Current investments
i.e. investments that are readily realizable and intended to be held for not more than a year valued at
cost. Any permanent reduction in the carrying amount or any reversals of such, reductions are charged
or credited to the Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision for dimunintion in the value of these investments
is made only if such decline is other than temporary, in the opinion of the management.

7) Revenue Recognition

Revenue is recognized when it is probable that economic benefit associated with the transaction flows
to the Company in ordinary course of its activities and the amount of revenue can be measured reliably,
regardless of when the payment is being made. Revenue is measured at the fair value of consideration
received or receivable, taking into the account contractually defined terms of payments, net of its
returns, trade discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits on its own account. Amount collected on
behalf of third parties such as sales tax, value added tax and goods and service tax (GST) are excluded
from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales
tax, Vat, GST and Freight Charges if any. The revenue and expenditure are accounted on a going concern
basis.

The capital gains on sale of investment if any are recognized on completion of transaction. No notional
profits/losses are recognized on such investments.

Interst income is recognized on time proportion basis, when it is accured and due for payment.

Dividend from investments in shares / units is recognized when the Companies right to receive payment
is established.

Other items of Income are accounted as and when the right to receive arises.

8) Borrowing Cost

Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of
ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying property,
plants and equipment''s are capitalized as a part of cost of that property, plants and equipment''s. The
amount of borrowing costs eligible for capitalization is determined in accordance with the Accounting
Standards - 16 "Borrowing Costs". Other Borrowing Costs are recognized as expenses in the period in
which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from foreign currency
borrowings to the extent that they are regarded as adjustments to interest costs are recognized as
Borrowing Costs, and are capitalized as a part of cost of such property, plants and equipment''s if they
are directly attributable to their acquisition or charged to the Statement or Profit and Loss.

9) Employee Benefits

Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit
& loss account of the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the profit &
loss account for the year in which the liabilities are crystallized.

1. Disclosure under AS - 15 Employee Benefits:

The benefits payable under this plan are governed by "Gratuity Act 1972". Under the Act, employee who
has completed five years of service is entitled to specific benefit. The level of benefit provided depends
on the member''s length of services and salary at retirement age.

The following tables summaries the components of net benefit expense recognized in the summary
statement of profit or loss and the funded status and amounts recognized in the statement of assets and
liabilities for the respective plans:

10) Taxes on Income

Income tax expenses for the year comprises of current tax and deferred tax.

Current tax provision is determined on the basis of taxable income computed as per the provisions of
the Income Tax Act.

Deferred tax is recognized for all timing differences that are capable of reversal in one or more
subsequent periods subject to conditions of prudence and by applying tax rates that have been
substantively enacted by the balance sheet date.

11) Foreign Currency Transaction

i. There are no transactions denominated in foreign currencies that need to be recorded at the exchange
rate prevailing at the date of the transaction. There are no monetary assets and liabilities denominated
in foreign currencies at the year end that need to be restated at closing rate.

ii. There is no exchange difference on account of settlement of foreign currency transaction and
restatement of monetary assets and liabilities denominated in foreign currency that need to be
recognized in the statement of Profit & loss Account.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 BASIS OF ACCOUNTING:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting
Principles (GAAP) .GAAP Comprises of mandatory accounting standards as prescribed u/s 133 of the
Companies Act ,2013 (''the Act") read with rule 7 of the Companies (Accounts) Rules,2014,the
provisions of the Act ( to the extent notified).Accounting policies have been consistently applied
except where newly issued accounting standard is initially adopted or a revision to a existing
accounting standard requires a change in accounting policy hereto in use.

2.2 USE OF ESTIMATES:

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting
Principles (GAAP) requires the management to make estimates, judgments and assumptions. These
estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. The
application of accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these financial statements have been disclosed
in Note forming part of accounts. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in estimates are made as management
becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes are made and, if material, their
effects are disclosed in the notes to the financial statements

2.3 FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. The cost is inclusive of directly
attributable incidental expenditure, expenditure during construction period (including interest and
depreciation) allocated to the respective fixed assets on completion of construction period and is
adjusted for Cenvat / Input credit available / availed of. W.e.f. 1^st April, 2013, exchange difference
arising on translation/settlement of Long Term Foreign Currency Monetary Items relating to acquisition

of depreciable assets are adjusted to cost of the fixed assets and depreciated over the remaining
useful lives of the asset.

2.4 DEPRECIATION:

Depreciation is charged in the accounts on Fixed Assets on written down value method
“WDV”. Depreciation is provided based on useful life of the assets as prescribed in schedule II of
The Companies Act, 2013.

Depreciation on assets added/disposed off during the year is charged on pro-rata basis with reference
to the date of addition/disposal.

2.5 INVENTORIES:

''Inventories of raw materials including stores, spares and consumables, packing materials, work in
progress, semi-finished goods, finished goods and scrap are valued at the lower of the cost and
estimated net realisable value. Cost is determined on weighted average basis.

The cost of work-in-progress, semi finished goods and finished goods include the cost of material,
labour and manufacturing overheads. Net realisable values are determined by management using
technical estimates.

2.6 REVENUE RECOGNITION (SALE OF SERVICES):

Revenue form sales of goods is recognised when significant risks and rewards in respect of ownership
of the goods are transferred to the customers, as per the terms of the respective sales order. Sales are
recorded exclusive of GST as applicable and recoveries in the nature of octroi, freight etc. Sales are
inclusive of income from services, excise duty, export incentives and exchange fluctuations on export
receivables and net of trade discount.

Revenue form services is recognised as per contract terms and does not include recoveries in the
nature of service tax. Estimated effort is a critical estimate to determine revenues from fixed price
contracts and liability for onerous obligations. This estimate has a high inherent uncertainty as it
requires consideration of progress of the contract, efforts incurred till date and efforts required to
complete the remaining contract performance obligations .

Interest income is recognized on time proportion basis taking into account the amount outstanding
and the applicable interest rate.

Interest income is included under the head “other income” in the statement of profit and loss.

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Mar 31, 2023

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 BASIS OF ACCOUNTING:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting
Principles (GAAP) .GAAP Comprises of mandatory accounting standards as prescribed u/s 133 of the
Companies Act ,2013 (''the Act") read with rule 7 of the Companies (Accounts) Rules,2014,the
provisions of the Act ( to the extent notified).Accounting policies have been consistently applied
except where newly issued accounting standard is initially adopted or a revision to a existing
accounting standard requires a change in accounting policy hereto in use.

2.2 USE OF ESTIMATES:

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting
Principles (GAAP) requires the management to make estimates, judgments and assumptions. These
estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. The
application of accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these financial statements have been disclosed
in Note forming part of accounts. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in estimates are made as
management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial statements

2.3 FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. The cost is inclusive of directly
attributable incidental expenditure, expenditure during construction period (including interest and
depreciation) allocated to the respective fixed assets on completion of construction period and is
adjusted for Cenvat / Input credit available / availed of. W.e.f. 1^st April, 2013, exchange difference
arising on translation/settlement of Long Term Foreign Currency Monetary Items relating to
acquisition of depreciable assets are adjusted to cost of the fixed assets and depreciated over the
remaining useful lives of the asset.

2.4 DEPRECIATION:

Depreciation is charged in the accounts on Fixed Assets on written down value method "WDV".
Depreciation is provided based on useful life of the assets as prescribed in schedule I I of The
Companies Act, 2013.

Depreciation on assets added/disposed off during the year is charged on pro-rata basis with
reference to the date of addition/disposal.

2.5 INVENTORIES:

''Inventories of raw materials including stores, spares and consumables, packing materials, work in
progress, semi-finished goods, finished goods and scrap are valued at the lower of the cost and
estimated net realisable value. Cost is determined on weighted average basis.

The cost of work-in-progress, semi finished goods and finished goods include the cost of material,
labour and manufacturing overheads. Net realisable values are determined by management using
technical estimates.

2.6 REVENUE RECOGNITION (SALE OF SERVICES):

Revenue form sales of goods is recognised when significant risks and rewards in respect of
ownership of the goods are transferred to the customers, as per the terms of the respective sales
order. Sales are recorded exclusive of GST as applicable and recoveries in the nature of octroi,
freight etc. Sales are inclusive of income from services, excise duty, export incentives and exchange
fluctuations on export receivables and net of trade discount.

Revenue form services is recognised as per contract terms and does not include recoveries in the
nature of service tax. Estimated effort is a critical estimate to determine revenues from fixed price
contracts and liability for onerous obligations. This estimate has a high inherent uncertainty as it
requires consideration of progress of the contract, efforts incurred till date and efforts required to
complete the remaining contract performance obligations.

Interest income is recognized on time proportion basis taking into account the amount outstanding
and the applicable interest rate.

Interest income is included under the head "other income" in the statement of profit and loss.