Accounting Policies of Readymix Construction Machinery Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES:

NOTE 1: OVERVIEW

CORPORATE INFORMATION:

The Company READYMIX CONSTRUCTION
MACHINERY LIMITED [CIN:

L29248PN2012PLC142045] (“the Company”),
is registered under The Companies Act, having
the registered office at Pune, Maharashtra,
India. The company is an engineering-
led company, offering fully integrated
engineering solutions from conceptualization,
development, manufacturing and validation
to implementation and installation of various
plant & machineries along with related
equipment''s like Dry Mix Mortar Plant, Support
equipment for Readymix Concrete Plant, High-
capacity Silos, Sand Plants (Crusher), Wall
Putty Plants, Other Customized Projects such
as Customized Batching Plants, Customized
Bulk filling Terminals, etc., catering to
industrial requirements of various industries
like cement, concrete, crushing, construction
and building materials etc.

BASIS OF PREPARATION OF FINANCIAL
STATEMENTS:

The accompanying interim Financial
Statements have been prepared under the
historical cost convention and on accrual
basis of accounting, in accordance with the
relevant provisions of the Companies Act,
2013 and comply with Accounting Standards
issued by the Institute of Chartered
Accountants of India to the extent applicable.

All assets and liabilities have been classified
as current or non-current as per the Company''s
normal operating cycle and other criteria set
out in Schedule III to the Companies Act, 2013.
Based on the nature of products and the time
between acquisition of assets for processing
and their realization in cash and cash
equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose
of current/ non-current classification of

assets and liabilities.

USE OF ESTIMATES:

The preparation of financial statements
requires the management to make estimates
and assumptions that affect the reported
amounts of assets & liabilities, the disclosure
of contingent assets and liabilities on the
date of the financial statements and reported
amounts of revenues and expenses during
the year reported. Actual results could differ
from those estimated.

OTHERS:

The Financial Statements for the year have
been prepared in the revised Schedule III
format as notified by the Companies Act.
Data as available has been duly presented in
the notified format to the extent possible. The
financial numbers have been reported in “Rs.
In Hundreds”

NOTE 2: SIGNIFICANT ACCOUNTING
POLICIES

i. Property, Plant and Equipment

Property, Plant and Equipment are stated at
cost less accumulated depreciation. Cost
includes purchase price, labour cost and
directly attributable overhead expenditure
for self-constructed assets incurred up to the
date the asset is ready for its intended use.

The costs include all the expenses incurred
to bring the asset to its present location and
condition. The cost of the assets excludes
the Goods and Service Tax Benefit which has
been claimed on the cost of the Assets.

As per Accounting Standard 10 on Property,
Plant and Equipment issued by the I.C.A.I., the
company follows disclosure of Gross Block
Values at Cost less accumulated depreciation
on Property, Plant and Equipment.

There are no Immovable Properties in the
name of the Company.

ii. Intangible Assets

Intangible assets are stated at cost less
accumulated amortization and impairments.
Intangible assets are amortized over their
respective individual estimated useful lives on
a straight-line basis with retrospective effect,
from the date that they are available for use.
The estimated useful life of an identifiable
intangible asset is based on a number of
factors including the effects of obsolescence,
demand, competition and other economic
factors (such as the stability of the industry
and known technological advances) and the
level of maintenance expenditures required
to obtain the expected future cash flows from
the asset.

Intangible assets are recorded at the
consideration paid for acquisition of
such assets and are carried at cost less
accumulated amortization and impairment.

The Company has incurred costs in Product
Development, purchased some software''s
and developed its website during the year, the
same has been capitalized. The said assets
have an estimated useful life of 5 years.

iii. Depreciation:

As per Schedule II of Companies Act, 2013,
depreciation on tangible assets is to be
provided on the basis of useful life of assets.
The policy is stated below:

1. Depreciation rates are calculated based on
the useful life of the asset.

2. Depreciation on tangible assets is
calculated using the written down value
method.

3. Useful life used by the Company to compute
depreciation is similar to the life prescribed
under Schedule II of Companies Act, 2013.
The details of useful life as prescribed are as
follows.

during the year is provided proportionately
from the date the assets are put to use. In
case the assets are sold, depreciation is
provided on the same up to the date of sale.

5. Intangible Assets are amortized using the
Straight-Line Method considering the useful
life of 05 years.

iv. Revenue Recognition:

Expenses and Income considered payable,
and receivable respectively are accounted for
on accrual basis. Revenue is recognized to
the extent that is probable that the economic
benefit will flow to the Company and the
revenue can be reliably measured.

1. Domestic Sales:

Revenue generated from domestic sales is
recognized when significant risk and rewards
of ownership of goods have been passed to the
buyer, which generally coincides with dispatch
of goods to customers and are net of sales
returns and taxes. No revenue is recognized if
there are significant uncertainties regarding
collectability.

2. Export sales:

Export sales are recognized on the date of the
shipping of goods.

3. Revenue from Sale of Services:

Revenue from Sale of services is recognized
as per the terms of sale. Revenue from

Labour Charges is recognized when the work
is completed.

4. Sale of Scrap:

The sale of scrap is recognized on actual sale
of scrap or receipt whichever is earlier.

5. Interest income:

Interest income is recognized on a time
proportion basis taking into account the
amounts invested and the rate of interest.

v. Current and Deferred Tax:

1. Deferred taxation:

As required by Accounting Standard (AS 22)
“TAXES ON INCOME” issued by The Institute of
Chartered Accountants of India, the company
has recognized provision for deferred taxes
asset.

Deferred tax is recognised, subject to
the consideration of prudence, on timing
differences, being the difference between
taxable incomes and accounting income
that originate in one year and are capable of
reversal in one or more subsequent years.

Deferred tax assets are measured using
the tax rates that have been enacted or
substantively enacted by the Balance Sheet
date.

Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set off assets against liabilities
representing current tax and where the
deferred tax assets and deferred tax liabilities
relate to taxes on income levied by the same
governing taxation laws.

Deferred taxes for the year ended 31st
March''25 have been calculated at 25.168%

Deferred Tax Calculation has been given in
Note No. 12.

2. Income Tax:

The Current tax on the Income has been
provided as per the provisions of the Income
Tax Act 1961.

vi. Inventories:

Inventories Comprise of Raw Materials,
Finished Goods and Work in Progress. The
same are valued at Cost or Estimated Net
Realizable Value whichever is lower.

Work in Progress comprises of the Items
being sold by the Company which are not
ready to dispatch on the Balance Sheet date.

vii. Borrowing costs:

Borrowing costs that are specifically
identified to the acquisition or production,
or construction of qualifying assets are
channelized as part of such asset, up to the
date the asset is put to use. Other costs are
charged to the Statement of Profit & Loss in
the year in which they are incurred.

viii. Impairment of Asset:

If the carrying amount of Property, Plant and
Equipment exceeds the recoverable amount
on the reporting date, the carrying amount
is reduced to the recoverable amount. The
recoverable amount is measured as the higher
of the net selling price and the value in use
determined by the present value of estimated
future cash flows. The management is of the
view that in the current year, impairment of
assets is not necessary.

ix. Retirement benefits for employees:

1. Provisions for PF & ESIC:

The provisions pertaining to the Employee
and Employer Contributions towards PF &
ESIC have been duly complied with by the
Management during the year.

2. Other Employee Benefits:

Expenses in respect of other benefits are
recognized based on the amount paid or
payable for the year during which services are
rendered by the employees.

3. Gratuity Provisions:

The provision for Gratuity payable has been
duly provided for using the actuarial valuation
report.

x. Earnings Per Share:

In determining earnings per share, the
Company considers the net profit after tax
and extraordinary and exceptional items. The
number of shares used in computing basic
earnings per share is the weighted average
number of shares outstanding during the year.
The Company has not issued any potential
equity shares and accordingly basic earnings
per share and diluted earnings per share are
the same.

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Mar 31, 2024

i. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation. Cost includes
purchase price, labour cost and directly attributable overhead expenditure for self-
constructed assets incurred up to the date the asset is ready for its intended use.

The costs include all the expenses incurred to bring the asset to its present location and
condition. The cost of the assets excludes the Goods and Service Tax Benefit which has been
claimed on the cost of the Assets.

As per Accounting Standard 10 on Property, Plant and Equipment issued by the I.C.A.I., the
company follows disclosure of Gross Block Values at Cost less accumulated depreciation on
Property, Plant and Equipment.

There are no Immovable Properties in the name of the Company.

ii. Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairments. Intangible
assets are amortized over their respective individual estimated useful lives on a straight-line
basis with retrospective effect, from the date that they are available for use. The estimated
useful life of an identifiable intangible asset is based on a number of factors including the
effects of obsolescence, demand, competition and other economic factors (such as the
stability of the industry and known technological advances) and the level of maintenance
expenditures required to obtain the expected future cash flows from the asset.

Intangible assets are recorded at the consideration paid for acquisition of such assets and are
carried at cost less accumulated amortization and impairment.

The Company has incurred costs in Product Development and purchased some software''s
during the year, the same has been capitalized. The said assets have an estimated useful life
of ¹ years.

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iii. Depreciation:

As per Schedule II of Companies Act, 2013, depreciation on tangible assets is to be provided
on the basis of useful life of assets. The policy is stated below:

1. Depreciation rates are calculated based on the useful life of the asset.

2. Depreciation on tangible assets is calculated using the written down value method.

3. Useful life used by the Company to compute depreciation is similar to the life prescribed
under Schedule II of Companies Act, 2013. The details of useful life as prescribed are as
follows.

4. Depreciation on assets purchased or sold during the financial year is provided
proportionately from the date the assets are put to use. In case the assets are sold,
depreciation is provided on the same up to the date of sale. ¹

2. Export sales:

Export sales are recognized on the date of the shipping of goods.

3. Revenue from Sale of Services:

Revenue from Sale of services is recognized as per the terms of sale. Revenue from Labour
Charges is recognized when the work is completed.

4. Sale of Scrap:

The sale of scrap is recognized on actual sale of scrap or receipt whichever is earlier.

5. Interest income:

Interest income is recognized on a time proportion basis taking into account the amounts
invested and the rate of interest.

v. Current and Deferred Tax:

1. Deferred taxation:

As required by Accounting Standard (AS 22) "TAXES ON INCOME" issued by The Institute of
Chartered Accountants of India, the company has recognized provision for deferred taxes
asset.

Deferred tax is recognised, subject to the consideration of prudence, on timing differences,
being the difference between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are measured using the tax rates that have been enacted or
substantively enacted by the Balance Sheet date.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable
right to set off assets against liabilities representing current tax and where the deferred tax
assets and deferred tax liabilities relate to taxes on income levied by the same governing
taxation laws.

Deferred taxes for the Financial Year 2023-24 have been calculated at 25.168%

Deferred Tax Calculation has been given in Note No. 12.

2. Income Tax:

The Current tax on the Income has been provided as per the provisiop^flb^ljTCome Tax
Act 1961.

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vi. Inventories:

Inventories Comprise of Raw Materials, Finished Goods and Work in Progress. The same are
valued at Cost or Estimated Net Realizable Value whichever is lower.

Work in Progress comprises of the Items being sold by the Company which are not ready to
dispatch on the Balance Sheet date.

vii. Borrowing costs:

Borrowing costs that are specifically identified to the acquisition or production, or construction
of qualifying assets are channelized as part of such asset, up to the date the asset is put to use.
Other costs are charged to the Statement of Profit & Loss in the year in which they are
incurred.

viii. Impairment of Asset:

If the carrying amount of Property, Plant and Equipment exceeds the recoverable amount on
the reporting date, the carrying amount is reduced to the recoverable amount. The
recoverable amount is measured as the higher of the net selling price and the value in use
determined by the present value of estimated future cash flows. The management is of the
view that in the current financial year, impairment of assets is not necessary.

ix. Retirement benefits for employees:

1. Provisions for PF & ESIC:

The provisions pertainingtothe Employee and Employer Contributions towards PF & ESIC have
been duly complied with by the Management during the year.

2. Other Employee Benefits:

Expenses in respect of other benefits are recognized based on the amount paid or payable for
the period during which services are rendered by the employees.

3. Gratuity Provisions:

The provision for Gratuity payable has been duly provided for using the actuarial valuation
report.

x. Earnings Per Share:

In determining earnings per share, the Company considers the net profit after tax and
extraordinary and exceptional items. The number of shares used in computing basic earnings
per share is the number of shares outstanding during the period. The Company has not issued
any poteolialequity shares and accordingly basic earnings per share and dilut^^fmmfevper

share are the same. The Company has issued 16 Bonus Shares for every 1 share held pursuant
to the board meeting dated 25^th May''2024, thus as per AS-20, effect of the same has been
considered while deriving the earnings per share.

1

Intangible Assets were amortized in the previous year under using WDV method and
considering the useful life of 05 years, however during the year, the Company has changed
the said policy and have decided to amortize the Intangible Assets on Straight Line Method
considering the useful life of 05 years only. The effect of change in policy for earlier period
has been separately disclosed in the Intangible Asset''s schedule.

iv. Revenue Recognition:

Expenses and Income considered payable, and receivable respectively are accounted for on
accrual basis. Revenue is recognized to the extent that is probable that the economic benefit
will flow to the Company and the revenue can be reliably measured.

1. Domestic Sales:

Revenue generated from domestic sales is recognized when significant risk and rewards of
ownership of goods have been passed to the buyer, which generally coincides with
dispatch of goods to customers and are net of sales returns and taxes. No revenue is
recognized if there are significant uncertainties regarding collectability.

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