Notes to Accounts of Ratnaveer Precision Engineering Ltd.

Mar 31, 2025

3.9 Provisions

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 embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of
the amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects current market assessments of the time
value of money and the risks specific to the liability.
When discounting is used, the increase in the
provision due to the passage of time is recognized as
a finance cost.

Provisions are not discounted to their present value
and are determined based on the best estimate
required to settle the obligation at the reporting date.
These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.

3.10 Contingent Liability

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control
of the company or a present obligation that is not
recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized
because it cannot be measured reliably. The company
does not recognize a contingent liability but discloses
its existence in the financial statements.

3.11 Contingent Asset

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the company. Contingent assets are neither
recognised nor disclosed in the financial statements.

3.12 Foreign Currency

(a) Initial recognition

Foreign currency transactions are recorded
in the functional currency, by applying to the
foreign currency amount the exchange rate
between the functional currency and the foreign
currency at the date of the transaction.

(b) Conversion

Foreign currency monetary items are
retranslated using the exchange rate prevailing
at the reporting date. Non-monetary items,
which are measured in terms of historical
cost denominated in a foreign currency, are
reported using the exchange rate at the date of
the transaction.

(c) Exchange difference

All exchange differences are recognized
as income or as expenses in the year in
which they arise.

3.13 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash
flow statement comprise cash at bank (including
demand deposits) and in hand and short-term,

highly liquid investments with original maturities of
three months or less that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.

3.14 Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the
year are adjusted for the effects of all dilutive
potential equity shares.

3.15 Inventories

Items of inventory are valued at cost or net realizable
value, whichever is lower. Cost for raw materials, traded
goods and stores and spares is determined on FIFO
basis. Cost includes all charges in bringing the goods
to their present location and condition. Net realizable
value is the estimated selling price in the ordinary course
of business less the estimated cost of completion and
the estimated costs necessary to make the sale.

3.16 Lease

(i) As a lessee

The Company assesses whether a contract, is,
or contains a lease, at inception of a contract.
A contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. To assess whether a contract
conveys the right to control the use of an
identified asset, the Company assesses whether:

- the contract involves the use of an
identified asset;

- the Company has substantially all of the
economic benefits from use of the asset
throughout the period of the lease and

- the Company has the right to direct the
use of the asset.

Leases in which a significant portion of the risks
and rewards of ownership are not transferred
to the Company as lessee are classified as
operating leases. Payments made under
operating leases (net of any incentives received

from the lessor) are charged to the Statement
of Profit and Loss on a straight-line basis over
the period of the lease unless the payments
are structured to increase in line with expected
general inflation to compensate for the lessor''s
expected inflationary cost increases.

(ii) As a lessor

Lease income from operating leases where the
Company is a lessor is recognised in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line
with expected general inflation to compensate
for the expected inflationary cost increases. The
respective leased assets are included in the
balance sheet based on their nature.

3.17 Segment Reporting

An operating segment is component of the company
that engages in the business activity from which the
company earns revenues and incurs expenses, for
which discrete financial information is available and
whose operating results are regularly reviewed by the
chief operating decision maker, in deciding about
resources to be allocated to the segment and assess
its performance. The company''s chief operating
decision maker is the managing Director.

Assets and liabilities that are directly attributable
or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities
are disclosed as un-allocable.

Revenue and expenses directly attributable to
segments are reported under each reportable
segment. All other expenses which are not
attributable or allocable to segments have been
disclosed as un-allocable expenses.

The company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of
the company as a whole.

3.18 Cash Flow Statement

Cash flows are reported using indirect method
whereby profit for the period is adjusted for the effects
of the transactions of non-cash nature, any deferrals
or accruals of past or future operating cash receipts
and payments and items of income or expenses
associated with investing and financing cash
flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

3.19 Events after reporting date

Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size
or nature are only disclosed.

4 Use of Estimates

The preparation of the financial statements in
conformity with Ind AS requires 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.

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.

Application of accounting policies that require
critical accounting estimates involving complex and
subjective judgments and the use of assumptions in
these financial statements are:

Useful lives of Property, plant and equipment

• Valuation of financial instruments

• Provisions and contingencies

• Income tax and deferred tax

• Measurement of defined employee

benefit obligations

• Export Incentive

• Provision for Loss Allowance using Expected
Credit Loss Model in respect of Trade Receivables

4.1 Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. The Ministry
of Corporate Affairs vide notification dated 9
September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards)
Second Amendment Rules, 2024 and Companies
(Indian Accounting Standards) Third Amendment
Rules, 2024, respectively, which amended/notified
certain accounting standards (see below), and are
effective for annual reporting periods beginning on
or after 1 April 2024:

• Insurance contracts - Ind AS 117; and

• Lease Liability in Sale and Leaseback -
Amendments to Ind AS 116

These amendments did not have any impact on the
amounts recognised in current or prior period. Further,
On May 9, 2025, MCA notifies the amendments to
Ind AS 21 - Effects of Changes in Foreign Exchange
Rates. These amendments aim to provide clearer
guidance on assessing currency exchangeability
and estimating exchange rates when currencies
are not readily exchangeable. The amendments are
effective for annual periods beginning on or after
April 1, 2025. The Company is currently assessing
the probable impact of these amendments on its
financial statements.

BANDHAN BANK : Term Loan secured against second charge with existing credit facility and personal gaurantee
of Shri Vijay Sanghvi. Repayment Schedule for 1st Term Loan 60 monthly installments of Rs 618750 including 12
month moratorium period (commencing from 31.10.2022) @9.25% p.a and 2st Term Loan 60 monthly installments
Rs 589600 including 12 month moratorium period. ( commencing from 31-10-2022)

YES BANK Ltd: Secured against hypothecation of FORK LIFT to be purchased under the agreement and also
secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule
:84 Monthly installments of Rs19950/- (including interest ) commencing from 20.02.2023) @9.50%

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also
secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule
:60 Monthly installments of Rs22834/- (including interest ) @9% commencing from 07.06.2023)

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also
secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule
:60 Monthly installments of Rs. 62,083/- (including interest ) @8.50% commencing from 07.01.2024)

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also
secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule
:60 Monthly installments of Rs. 24261/- (including interest ) @9.10% commencing from 05.05.2024)

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also
secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule
:84 Monthly installments of Rs24781/- (including interest ) @9% commencing from 07.10.2022)

YES BANK LTD: Secured against hypothecation of FORK LIFT to be purchased under the agreement and also
secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule
:84 Monthly installments of Rs19950/- (including interest ) commencing from 20.02.2023) @9.50%

BANDHAN BANK : Term Loan for proposed brownfield project for enhancing the capacity levels for existing
product as project expansion loan secured against hypothecation charges on movable properties and asstes
including plant and machinery , machinery speares , furnitures , fixures, Vehicles and all other movable asstes
relating to proposed expansion projcet. Repayment Schedule for 1st Term Loan 84 monthly installments of Rs
3928571 (commencing from 01.05.2025)

Note No: 19.1 Refer note no 52 and 53 for utilized of borrowed fund

Working Capital: Secured against the Hypo. Of Company''s Stock & Raw material, Work-in-progress and finished
goods & Book debts,and further Secured against Second charge over Company''s Land, Building and other
immovable assets located at E-77,120 GIDC-Savli (Manjusar), Dist Baroda and First charge over Company''s Stock &
Raw material, Work-in-progress and finished goods & Book debts. Also, secured against first charge of residential
property of Director Shri Vijay Sanghvi located at 20,21 Vijay Society-I, New Khanderao Road, Vadodara.& also
Secured by way of Hypothecation of Key man Insurance of Shri Vijay Sanghvi & also Personal Guarantee of Shri
Vijay Sanghvi )

(ii) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities applicable, in its financial statements. The company
does not expect the outcomes of these proceedings to have materially adverse affect on its financial results.

36. Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the achievement of long¬
term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long-term
and short-term strategic investment and expansion plans. The funding needs are met through equity, cash generated
from operations, long-term and short-term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company.

Net debt includes interest bearing borrowings including lease obligations less cash and cash equivalents,
other bank balances.

37.3 The company is responsible for the governance of the plan.

37.4 Risk to the Plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

A Interest rate risk:

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets
depending on the duration of asset.

B Salary Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of member.
As such,an increase in the salary of the members more than assumed level will increase the plan''s liability.

C Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined
by reference to market yields at the end of the reporting period on government bonds. If the return on plan
asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced
mix of investments in government securities, and other debt instruments.

D Asset Liability Matching Risk:

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

E Mortality risk:

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does
not have any longevity risk.

F Concentration Risk:

Plan is having a concentration risk as all the assets are invested with the insurance company

38. Financial Risk Management

The company''s activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company''s
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Board of Directors has established a risk management policy to identify and analyze the
risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities.
The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews
the risk management framework.

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises interest rate risk and currency risk.

i Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Interest risk arises to the Company mainly from borrowings with variable
rates. The Company measures risk through sensitivity analysis. The banks are now finance at variable rate only,
which is the inherent business risk.

C Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of
credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and other
financial assets.

In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing
credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit
terms in the normal course of business. The Company ensures that sales of products are made to customers with
appropriate creditworthiness. All trade receivables are also reviewed and assessed for default on a regular basis.

Credit risk arising from cash and cash equivalent and other financial assets is limited due to sound receivable
management of the Company.

The maximum exposure to the credit risk at the reporting date from trade recievables after the provision of
Allowance for Credit Loss is as under :

40. Fair Value Measurement of Financial Asset and Financial Liabilities

The Fair value of current financial assets and current financial liabilities measured at amortised cost, are considered to be
the same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given for the same.

The carrying amount of non - current financial assets and non - current financial liabilities measured at amortised cost
are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

Fair Value Hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within
the fair value hierarchy. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair
value that are either observable or unobservable and consists of the following three levels:

Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - inputs are other than quoted prices included within level 1 that are observable for the asset or liability either
directly (i.e. as prices) or indirectly (i.e. derived prices)

Level 3 - inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole
or in part using a valuation model based on assumption that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data.

44. Segment Information
44.1 Primary Segment

The Operating Segments have been reported in a manner consistent with the internal reporting provided to the
Board of directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and
assessing the performance of operating segments. Accordingly, the reportable segment is only one segment i.e.
manufacture and exporting of Stainless Steel Washers, Sheet Metal Products, Stainless Tube & Pipe and Stainless
Steel Finished Steel segment segment.

48. The company has sought balance confirmations from trade receivables and trade payables, wherever such balance
confirmations are received by the Company, the same are reconciled and appropriate adjustments if required, are made
in the books of account.

49. Certain Quantity of Stock of Stores & Spares and Packing Material are slow Moving /Non Moving however in view of
the Management same is realizable And hence no provision for the same is made.

50. Undisclosed Transactions

As stated & confirmed by the Board of Directors, 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 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.

51. Benami Transactions

As stated & confirmed by the Board of Directors ,The Company does not have any Benami property, where any proceeding
has been initiated or pending against the Group for holding any Benami property.

52. Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

53. Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

54. Working Capital

As stated and confirmed by the Board of Directors, The Company has been sanctioned working capital facilities during
the year under review and inventory records submitted with the banks are in confirmity with books of accounts.

55. Willful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank
during the year under review.

56. Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding
balance with the company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

57. Satisfaction of Charge

As stated and confirmed by the Board of Directors, the company has complied with the number of layer prescribed
under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

58. Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or
Virtual Currency.

59. Maintenance of books of accounts

The audit trail feature was not enabled at the database level for accounting software Tally to log any direct data changes,
used for maintenance of all accounting records by the Holding Company. Accounting software administration guide
states that enabling the same all the time consumes storage space on the disk and can impact database performance
significantly. audit trail (edit log) is enabled at the application level. In the meanwhile, the Company continues to ensure
that direct write access to the database is granted only via an approved change management process

60. Significant Events After the Reporting Date

There were no significant Adjusting events that occurred subsequent to the reporting period

61. Research & Development
Introduction:

Global competition encourages companies to seek for a more innovative way to survive. More and more complex R&D
-based activities are introduced and the managerial approch is extermely important, while R&D by its nature requires
special managerial attitude. The benifitrs include closing the gap between theory and technology.

Problem Statement

In our Single cavity production process we are facing low productivity,higher process cost and low production end of the
day.And also not able to meet coutomers delivery requirements.

Concept of the Project

To research and develop automatic / semi-automatic process set up to solve above problams. Our main object is:-

1. To increase productivity

2. To save labour cost

3. To reduce process cost

4. To reduce process time

Note No. 1 to 64 forming Part of Standalone Financial Statements

As per our report of even date attached for and on behalf of Board of Directors of

For Pankaj R Shah & Associates RATNAVEER PRECISION ENGINEERING LIMITED

Chartered Accountants ( Formerly Known As RATNAVEER METALS LIMITED )

Firm Regn. No. 107361W CIN: L27108GJ2002PLC040488

CA Nilesh Shah B. S. Chaplot Vijay R Sanghavi

Partner Whole Time Director Managing Director& CFO

Membership No. - 107414 DIN: 03539750 DIN: 00495922

UDIN : 25107414BMGITU5209
Ahmedabad

Date: 14-05-2025 Umang Lalpurwala

Company Secretary
Membership No. A38420
Place: Vadodara
Date: 14-05-2025

---

Mar 31, 2024

3.9 Provisions

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 embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

3.10 Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

3.11 Contingent Asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.

3.12 Foreign Currency

(a) Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.

(b) Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

(c) Exchange difference

All exchange differences are recognized as income or as expenses in the year in which they arise.

3.13 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank (including demand deposits) and in hand and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

3.14 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

3.15 Inventories

Items of inventory are valued at cost or net realizable value, whichever is lower. Cost for raw materials, traded goods and stores and spares is determined on FIFO basis. Cost includes all charges in bringing the goods to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.

3.16 Lease

(i) As a lessee

The Company assesses whether a contract, is, or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

- the contract involves the use of an identified asset;

- the Company has substantially all of the economic benefits from use of the asset throughout the period of the lease and

- the Company has the right to direct the use of the asset.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

(ii) As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

3.17 Segment Reporting

An operating segment is component of the company that engages in the business activity from which the company earns revenues and incurs expenses, for which discrete financial information is available and whose operating results are regularly reviewed by the chief operating decision maker, in deciding about resources to be allocated to the segment and assess its performance. The company''s chief operating decision maker is the managing Director.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un-allocable.

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

3.18 Cash Flow Statement

Cash flows are reported using indirect method whereby profit for the period is adjusted for the effects of the transactions of non-cash nature, any deferrals

or accruals of past or future operating cash receipts and payments and items of income or expenses associated with investing and financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

3.19 Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

4 Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires 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.

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.

Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements are:

Useful lives of Property, plant and equipment

• Valuation of financial instruments

• Provisions and contingencies

• Income tax and deferred tax

• Measurement of defined employee benefit obligations

• Export Incentive

• Provision for Loss Allowance using Expected Credit Loss Model in respect of Trade Receivables

17.1 Preference Shares

Preference Share alloted shall be for tenure up to 20 years from date of allotment and company has right to redeem said share before expairy of 20 years its own or request from share holders

17.2 Nature of security, Rate of Interest and Terms of Repayment

UCO BANK:Term Loan secured against second charge with existing credit facility and personal gaurantee of Shri Vijay R Sanghvi. Repayment Schedule for 1^st Term Loan 24 monthly installments of Rs 2100000 including 6 month moratorium period (commencing from 30.11.2020) and 2^st Term Loan 72 monthly installments Rs 452084 including 24 month moratorium period. ( commencing from 31-03-2024)@8.95% p.a

BANDHAN BANK: Term Loan secured against second charge with existing credit facility and personal gaurantee of Shri Vijay R Sanghvi. Repayment Schedule for 1^st Term Loan 60 monthly installments of Rs 618750 including 12 month moratorium period (commencing from 31.10.2022) @9.25% p.a and 2^st Term Loan 60 monthly installments Rs 589600 including 12 month moratorium period. ( commencing from 31-10-2022)

YES BANK Ltd: Secured against hypothecation of FORK LIFT to be purchased under the agreement and also secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule :84 Monthly installments of Rs19950/- (including interest ) commencing from 20.02.2023) @9.50%

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule :60 Monthly installments of Rs22834/- (including interest ) @9% commencing from 07.06.2023)

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule :60 Monthly installments of H 62,083/- (including interest ) @8.50% commencing from 07.01.2024)

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule :60 Monthly installments of H 24261/- (including interest ) @9.10% commencing from 05.05.2024)

HDFC BANK LTD: Secured against hypothecation of Motor Car to be purchased under the agreement and also secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule :84 Monthly installments of Rs24781/- (including interest ) @9% commencing from 07.10.2022)

YES BANK LTD: Secured against hypothecation of FORK LIFT to be purchased under the agreement and also secured by way of Personal Gaurantee of the Directors of the company Shri Vijay R Sanghvi . Repayment Schedule :84 Monthly installments of Rs19950/- (including interest ) commencing from 20.02.2023) @9.50%

36 Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the achievement of longterm and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short-term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations, long-term and short-term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Net debt includes interest bearing borrowings including lease obligations less cash and cash equivalents, other bank balances.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

37.4 Risk to the Plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

A Interest rate risk:

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

B Salary Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of member. As such,an increase in the salary of the members more than assumed level will increase the plan''s liability.

C Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

D Asset Liability Matching Risk:

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

E Mortality risk:

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

F Concentration Risk:

Plan is having a concentration risk as all the assets are invested with the insurance company.

38 Financial Risk Management

The company''s activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews the risk management framework.

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk and currency risk.

i Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Interest risk arises to the Company mainly from borrowings with variable rates. The Company measures risk through sensitivity analysis. The banks are now finance at variable rate only, which is the inherent business risk.

C Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and other financial assets.

In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company ensures that sales of products are made to customers with appropriate creditworthiness. All trade receivables are also reviewed and assessed for default on a regular basis.

Credit risk arising from cash and cash equivalent and other financial assets is limited due to sound receivable management of the Company.

The maximum exposure to the credit risk at the reporting date from trade recievables after the provision of Allowance for Credit Loss is as under:

40 Fair Value Measurement of Financial Asset and Financial Liabilities

The Fair value of current financial assets and current financial liabilities measured at amortised cost, are considered to be the same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given for the same.

The carrying amount of non - current financial assets and non - current financial liabilities measured at amortised cost are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair Value Hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - inputs are other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived prices)

Level 3 - inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

48 The company has sought balance confirmations from trade receivables and trade payables, wherever such balance confirmations are received by the Company, the same are reconciled and appropriate adjustments if required, are made in the books of account.

49 Certain Quantity of Stock of Stores & Spares and Packing Material are slow Moving /Non Moving however in view of the Management same is realizable And hence no provision for the same is made.

50 Undisclosed Transactions

As stated & confirmed by the Board of Directors, 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 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, 196.

51 Benami Transactions

As stated & confirmed by the Board of Directors ,The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

52 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

53 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

54 Working Capital

As stated and confirmed by the Board of Directors, The Company has been sanctioned working capital facilities during the year under review and inventory records submitted with the banks are in confirmity with books of accounts.

55 Willful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank during the year under review.

56 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding balance with the company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

57 Satisfaction of Charge

As stated & Confirmed by the Board of Directors ,The compnay does not have any pending registration or satisfaction of charges with ROC beyond the statutory period.

58 Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or Virtual Currency.

59 Maintenance of books of accounts

The Company has defined process to take daily automatic back-up of books of account maintained electronically and complied with the provisions of The Companies (Accounts) Rules, 2014 (as amended). As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, for the financial year commencing April 1, 2023,every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The interpretation and guidance on what level edit log and audit trail needs to be maintained, evolved during the year and continues to evolve. In the company, for maintenance of books of accounts and relevant transactions the audit trail is enabled as on the reporting date of the financial statement.

60 Research & Development Introduction:

Global competition encourages companies to seek for a more innovative way to survive. More and more complex R&D - based activities are introduced and the managerial approch is extermely important, while R&D by its nature requires special managerial attitude. The benifitrs include closing the gap between theory and technology.

Problem Statement

In our Single cavity production process we are facing low productivity,higher process cost and low production end of the day.And also not able to meet coutomers delivery requirements.

As per our report of even date attached for and on behalf of Board of Directors of

For Pankaj R Shah & Associates RATNAVEER PRECISION ENGINEERING LIMITED

Chartered Accountants (Formerly Known As RATNAVEER METALS LIMITED)

Firm Regn. No. 107361W CIN: L27108GJ2002PLC040488

CA Nilesh Shah B. S. Chaplot Vijay R Sanghavi

Partner Whole Time Director Managing Director& CFO

Membership No. - 107414 DIN: 03539750 DIN: 00495922

UDIN:24107414BJZXCA6186 Place: Ahmedabad

Date: 22.05.2024 Swati Sharda

Company Secretary Membership No. - A31278 Place: Vadodara Date: 22.05.2024