Notes to Accounts of Ranjeet Mechatronics Ltd.

Mar 31, 2025

12) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement 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.
Contingent liabilities of the company as on March 31, 2025 are as follows:

13) Accounting for Leases

A lease is classified at the inception date as finance lease or an operating lease. A lease that transfers
substantially all the risk and rewards incidental to the ownership to the Company is classified as a
finance lease.

The Company as a lessee:

i. Operating Lease: - Rental payable under the operating lease are charged to the Statement of Profit and
Loss on a Straight-line basis over the term of the relevant lease.

ii. Finance Lease: - Finance lease is capitalized at the commencement of the lease, at the lower of the fair
value of the property or the present value of the minimum lease payments. The corresponding liability
to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are
apportioned between finance charges and the reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged directly
against the income over the period of the lease.

14) Cashflow

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

15) Earnings Per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Accounting
Standard 20, "Earnings per Share". Basic EPS is computed by dividing the Net Profit or Loss attributable
to the Equity Shareholders for the year by the weighted average number of equity shares outstanding
during the year. Diluted EPS is computed by dividing the Net Profit or Loss attributable to the Equity
Shareholders for the year by the weighted average number of Equity Shares outstanding during the
year as adjusted for the effects of all potential Equity Shares, except where the results are Anti -
Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for events
such a Bonus Issue, Bonus elements in right issue, share splits, and reverse share split (consolidation of
shares) that have changed the number of Equity Shares outstanding, without a corresponding change
in resources.

16) Discontinuing Operations

During the year the company has not discontinued any of its operations.

17) Event after Reporting Date

Material events occurring after the balance sheet are considered up to the date of approval of the
accounts by the board of directors.

18) The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary.
Amounts and other disclosures for the preceding year are included as an integral part of the current
annual financial statements and are to be read in relation to the amounts and other disclosures relating
to the current financial year.

19) Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances
are subject to confirmation and therefore the effect of the same on profit could not be ascertained.

20) Balances of Trade Payables, Trade Receivable and Loans and Advances are subject to confirmations and
reconciliation if any, by the respective parties or by the company.

21) The account balances existing at the beginning of the period have been relied upon the audited
financial statements.

22) Amounts are in lakhs except units are in actual numbers wherever required considered accordingly for
respective computations.

23) Segment Reporting

The company is engaged in dealing for Pumps, Valves, Motors, Engines and Fire Safety Equipment &
System Integrator. Company doesn''t have separate parts of the business that focus on specific
products or services, each with its own risks and rewards.

24) Statement of Management

i. The current assets, loans and advances are good and recoverable and are approximately of the values,
if realized in the ordinary courses of business unless and to the extent stated otherwise in the
Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably
necessary.

ii. Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with Notes to the
accounts thereon, are drawn up so as to disclose the information required under the Companies Act,
2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the
year and results of the Company for the year under review.

25) Related Party Disclosure (AS 18)

Related party transactions are reported as per AS-18 of Companies (Accounting Standards) Rules, 2006,
as amended.

26) Tittle deeds of immovable property: -

According to the information and explanations given to us, the records examined by us, the title deed /
lease deed of immovable properties included in Property Plant and Equipment are held in the name of
company.

27) Revaluation of property, plants and equipment''s: -

28) Loans or Advances in the nature of loans: -

No Loans or Advances in loans are granted to promoters, directors, KMPs and the related parties
except one of Associate Concern of the company.

29) Notes forming part of accounts in relation to Micro and small enterprise

Based on information available with the company, on the status of the suppliers being Micro or small
enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to the
Companies Act, 2013 with regard to the payments made/due to Micro and small Enterprises are given
below:

The company has initiated the process of obtaining the confirmation from suppliers who have
registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act, 2006) but has not received the same in totality. The above information is compiled based
on the extent of responses received by the company from its suppliers.

30) Intangible assets under development: -

There are no Intangible assets under development in the current year.

31) Details of Benami property held

The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988
and the rules there made under. Hence any proceeding has not been initiated or pending against the
company for holding any benami property under the Benami Transaction (prohibition) act, 1988 and
rules made there under.

32) Borrowings from bank or financial institution on the basis of current assets

The Company has borrowings from banks on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks are in agreement with the
books of accounts.

33) Wilful Defaulter

The company has not been declared as wilful defaulter by any bank or financial institution or
government or government authority during the year reporting period.

34) Relationship with struck off companies: -

The company does not have transaction with the struck off under section 248 of companies act, 2013
or section 560 of companies act, 1956.

35) Registration of charges or satisfaction with Registrar of companies: -

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

36) Compliance with number of layers of companies: -

The company is in compliance with the number of layers prescribed under clause (87) of section 2 of
company''s act read with companies (restriction on number of layers) Rules, 2017.

37) Compliance with approved scheme of Arrangements: -

Company does not have made any arrangements in terms of section 230 to 237 of company''s act 2013,
and hence there is no deviation to be disclosed.

38) Utilization of borrowed funds and share premium: -

During the year ended on March 31, 2025, the Company has not advanced or loaned or invested funds
(either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding (whether recorded in writing or
otherwise) that the Intermediary shall

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

During the year ended on March 31, 2025, the Company has not received any fund from any person(s)
or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in
writing or otherwise) that the Company shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security, or the like on behalf of the ultimate beneficiaries

39) Corporate social responsibility (CSR).

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs
to spend at least 2% of its average net profit for the immediately preceding three financial years on
corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education,
promoting gender equality by empowering women, healthcare, environment sustainability, art and
culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and rural development
projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily
utilized through the year on these activities which are specified in Schedule VII of the Companies Act,
2013. The provisions of Corporate Social Responsibility (CSR) are not applicable for the company.

40) Details of crypto currency and virtual currency.

The company has not traded or invested in crypto currency or virtual currency during the financial year.

41) Undisclosed income

The company has no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the years 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), unless
there is immunity for disclosure under any scheme.

As per our Report of Even Date attached

For, ABHISHEK KUMAR & ASSOCIATES For & on behalf of Board of Directors

CHARTERED ACCOUNTANTS RANJEET MECHATRONICS LIMITED

Firm Registration Number: 130052W

CA ABHISHEK AGARWAL Rakesh V. Swadia Devarshi R. Swadia

Proprietor Managing Director Whole-time Director

Membership No.: 132305 DIN: 356657 DIN: 356752

UDIN: 25132305BMHVWJ5674

Date: May 13, 2025 Ankita S Jain Ujjal Dutta

Place: Ahmedabad Company Secretary CFO

---

Mar 31, 2024

2.7 PROVISIONS AND CONTINGENT LIABILITIES:

i) Provisions in respect of present obligations arising out of past events are made in the accounts
when reliable estimates can be made of the amount of the obligation.

ii) Contingent liabilities are disclosed by way of a note to financial statement, after careful evaluation
by the management of the facts and legal aspects of the matter involved.

2.8 BORROWING COST:

Borrowing cost that are attributable to the acquisition and construction of assets of a qualifying asset
are capitalised as part of the cost of such assets until such time as the asset is ready for its intended
use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for
its intended use. All other Borrowing costs are recognised as an expense in the period in which they
are incurred.

2.9 CUSTOM DUTY:

Liabilities on account of Custom Duty on imported materials in transit or in bonded warehouse are
accounted only in the year in which the goods are cleared from the customs.

2.10 OPERATING LEASE:

Assets taken on lease under which all significant risks and rewards of ownership are effectively
retained by the lessor are classified as operating leases. Lease payments made under Operating
Leases are recognised as expenditure in accordance with respective Lease Agreements.

2.11 INCOME TAX:

i) The Provision for income tax (including fringe benefit tax) is made on the basis of estimated
taxable income for the current accounting year in accordance with the income Tax Act, 1961. The
deferred tax for the timing differences, (which are capable of reversal in subsequent period)
between the book and tax profits for the year is accounted for, using the tax rates and laws that
have been substantively enacted as of the balance sheet date. Deferred tax assets arising from
timing differences are recognised subject to consideration of prudence.

ii) MAT Credit if any is recognised 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. In accordance
with the recommendations contained in Guidance Note issued by the ICAI, the said asset is
created by way of a credit to the Profit and Loss account and shown as MAT Credit Entitlement.
The Company reviews the same at each balance sheet date.

2.12 FOREIGN CURRENCY TRANSACTION / TRANSLATION:

i) Transaction in foreign currency is initially recorded at a rate, which closely approximates the
exchange rate prevailing on the date of transaction.

ii) Year-end balances of monetary items denominated in foreign currency are translated at the year-
end rates. The exchange rate difference arising there from and the settlement is recognised as
income / expenditure in the respective accounts in the statement of profit and loss for the year.

2.13 INPUT GST CREDIT:

GST Input credits available, as per law, on input materials/ input services / capital goods are
deducted from the respective item cost.

2.14 EMPLOYEES BENEFITS:

Gratuity

The Company provides for gratuity, a defined benefit retirement plan (as the Gratuity Plana)

covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount
based on the respective employee''s salary and the tenure of employment with the Company.
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an
independent actuary, at each Balance Sheet date using the projected unit credit method.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an
asset or liability Gains and losses through remeasurements of the net defined benefit liability /
(asset) are recognized in other comprehensive income. The actual return of the portfolio of plan
assets, in excess of the yields computed by applying the discount rate used to measure the
defined benefit obligation is recognized in other comprehensive income. The effect of any plan
amendments are recognized in net profit in the Statement of Profit and Loss.

Defined Contribution Plans

The Company makes specified monthly contributions towards Provident Fund and ESIC Fund. The
Company''''s contribution is recognised as an expense in the Profit and Loss Statement during the
period in which the employee renders the related service.

Leave encashment

Accumulated leave of employees during a period of 12 months or as the end of the financial year
as the case may be is paid to employees and recognised as an expense in the Statement of Profit
and loss.

2.15 RELATED PARTY TRANSACTION:

Disclosure of transactions with Related Parties, as required by ‘’Accounting Standard 18- Related
Party Disclosure” has been set out in the Notes on Accounts. Related Parties have been identified on
the basis of representations made by key managerial personnel and information available with the
company.

2.16 IMPAIRMENT OF ASSETS:

The Carrying amounts of tangible fixed assets are reviewed for impairment, if events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If there are
indicators of impairment, an assessment is made to determine whether the asset’s carrying value
exceeds its recoverable amount. Whenever the carrying value of an asset exceeds its recoverable
amount, impairment is charged to the profit & loss account. Recoverable amounts are estimated for
individual assets where feasible, otherwise to the relevant cash generating unit.

30 Additional information to the financial statements
A Undisclosed Income

The Company has no transaction that is not recorded in the books of accounts that has been surrendered or disclosed
as income during the 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)

B Expenditure on Corporate Social Responsibility Activities:

The Company is not covered under section 135 of the Companies Act, Disclosure with regard to CSR activities are not
applicable to the company.

C Details of Crypto Currency or Virtual Currency:

The company has not traded or invested in Crypto currency or Virtual Currency.

D Registration Of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory
period.

F Discrepancy In Utilization Of Borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was
taken at the standalone balance sheet date. There are no discrepancy in utilisation of borrowings.

G Relationship With Struck Off Companies

The Company has not identified any transactions or balances in any reporting periods with companies whose name is
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

H Compliance With Number Of Layers Of Companies

The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the
Act read with the Companies (Restriction on number of Layers) Rules, 2017.

I Wilful defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of
Standalone Balance Sheet.

J Compliance with approved scheme of arrangement

There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013.

K Details of Benami property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.

L Previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year''s
presentation.

---

Mar 31, 2023

2.7 PROVISIONS AND CONTINGENT LIABILITIES:

i) Provisions in respect of present obligations arising out of past events are made in the accounts
when reliable estimates can be made of the amount of the obligation.

ii) Contingent liabilities are disclosed by way of a note to financial statement, after careful
evaluation by the management of the facts and legal aspects of the matter involved.

2.8 BORROWING COST:

Borrowing cost that are attributable to the acquisition and construction of assets of a qualifying
asset are capitalised as part of the cost of such assets until such time as the asset is ready for its
intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to
get ready for its intended use. All other Borrowing costs are recognised as an expense in the period
in which they are incurred.

2.9 CUSTOM DUTY:

Liabilities on account of Custom Duty on imported materials in transit or in bonded warehouse are
accounted only in the year in which the goods are cleared from the customs.

2.10 OPERATING LEASE:

Assets taken on lease under which all significant risks and rewards of ownership are effectively
retained by the lessor are classified as operating leases. Lease payments made under Operating
Leases are recognised as expenditure in accordance with respective Lease Agreements.

2.11 INCOME TAX:

i) The Provision for income tax (including fringe benefit tax) is made on the basis of estimated
taxable income for the current accounting year in accordance with the income Tax Act, 1961. The
deferred tax for the timing differences, (which are capable of reversal in subsequent period)
between the book and tax profits for the year is accounted for, using the tax rates and laws that
have been substantively enacted as of the balance sheet date. Deferred tax assets arising from
timing differences are recognised subject to consideration of prudence.

ii) MAT Credit if any is recognised 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. In
accordance with the recommendations contained in Guidance Note issued by the ICAI, the said
asset is created by way of a credit to the Profit and Loss account and shown as MAT Credit
Entitlement. The Company reviews the same at each balance sheet date.

2.12 FOREIGN CURRENCY TRANSACTION / TRANSLATION:

i) Transaction in foreign currency is initially recorded at a rate, which closely approximates the
exchange rate prevailing on the date of transaction.

ii) Year-end balances of monetary items denominated in foreign currency are translated at the
year-end rates. The exchange rate difference arising there from and the settlement is recognised
as income / expenditure in the respective accounts in the statement of profit and loss for the
year..

2.13 INPUT TIDERC TSG:

GST Input credits available, as per law, on input materials/ input services / capital goods are
deducted from the respective item cost.

2.14 EMPLOYEES BENEFITS:

Gratuity

The Company provides for gratuity, a defined benefit retirement plan (as the Gratuity Plana)
covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount
based on the respective employee''s salary and the tenure of employment with the Company.
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by
an independent actuary, at each Balance Sheet date using the projected unit credit method.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an
asset or liability Gains and losses through remeasurements of the net defined benefit liability /
(asset) are recognized in other comprehensive income. The actual return of the portfolio of plan
assets, in excess of the yields computed by applying the discount rate used to measure the
defined benefit obligation is recognized in other comprehensive income. The effect of any plan
amendments are recognized in net profit in the Statement of Profit and Loss.

Defined Contribution Plans

The Company makes specified monthly contributions towards Provident Fund and ESIC Fund.
The Company''''s contribution is recognised as an expense in the Profit and Loss Statement
during the period in which the employee renders the related service.

Leave encashment

Accumulated leave of employees during a period of 12 months or as the end of the financial
year as the case may be is paid to employees and recognised as an expense in the Statement of
Profit and loss.

2.1 5 RELATED PARTY TRANSACTION:

Disclosure of transactions with Related Parties, as required by "Accounting Standard 18- Related
Party Disclosure" has been set out in the Notes on Accounts. Related Parties have been identified on
the basis of representations made by key managerial personnel and information available with the
company.

2. 1 6 IMPAIRMENT OF ASSETS:

The Carrying amounts of tangible fixed assets are reviewed for impairment, if events or changes in
circumstances indicate that the carrying value of an asset may not be recoverable. If there are
indicators of impairment, an assessment is made to determine whether the asset''s carrying value

exceeds its recoverable amount. Whenever the carrying value of an asset exceeds its recoverable
amount, impairment is charged to the profit & loss account. Recoverable amounts are estimated for
individual assets where feasible, otherwise to the relevant cash generating unit.