Accounting Policies of Rhetan TMT Ltd. Company

Mar 31, 2025

• Significant Accounting Policies

• Company Overview

Rhetan TMT Limited ("the company") is a listed company domiciled in India and incorporated under the provisions of
the Companies Act, 2013. The company is engaged in the business of Manufacturing of TMT Bar. The company is listed
on BSE Limited.

• Statement of Compliance

The Financial Statements comply, in all material aspects, with Indian Accounting Standards (''Ind AS'') notified under
Section 133 of the Companies Act, 2013 (''the Act'') read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and other relevant provisions of the Act.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31 March
2025, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year
ended as on that date, and accounting policies and other explanatory information.

• Basis for Preparation and Presentation

The Financial Statements have been prepared on the historical cost basis, except for certain financial instruments and
defined benefit plans which are measured at fair value at the end of each reporting period. Historical cost is generally
based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

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 the Schedule III to the Act.

• Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is
classified as current when it satisfies any of the following criteria:

- It is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating
cycle. it is held primarily for the purpose of being traded;

- it is expected to be realised within 12 months after the reporting date; or

- It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

- it is expected to be settled in the Company''s normal operating cycle;

- it is held primarily for the purpose of being traded;

- it is due to be settled within 12 months after the reporting date; or the Company does not have an
unconditional right to defer settlement of the liability for at least 12 months after the reporting date

Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

• Property Plant and Equipment

Property, plant and equipment are stated at acquisition cost net of tax / duty credit availed, less accumulated
depreciation and accumulated impairment losses, if any. Properties in the course of construction are carried at cost, less
any recognized impairment losses. All costs, including borrowing costs incurred up to the date the asset is ready for its
intended use, is capitalized along with respective asset.

Depreciation is recognized based on the cost of assets less their residual values over their useful lives, using the straight¬
line method. The useful life of property, plant and equipment is considered based on life prescribed in schedule II to the
Companies Act, 2013 for year 2023-24 and for year 2024-25.

Asset Useful Life

Office equipment 5 Years

Furniture 10 Years

Office Premise 60 Years

Vehicle 10 Years

Plant & Machinery 15 Years

• Financial Instruments

Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of
the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

• Financial Assets

♦ Classification

The Company classifies its financial assets in the following measurement categories:

1. Those to be measured subsequently at fair value (either through OCI, or through profit or loss), and

2. those measured at amortised cost.

3. those measured at carrying cost for equity instruments of subsidiaries and joint ventures.

♦ Initial recognition and measurement

All financial assets, are recognized initially at fair value

• Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of
the contractual arrangement. An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds
received, net of direct issue costs.

Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company''s management has
elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to the Standalone Statement of Profit and Loss. When the financial asset is derecognized, the
cumulative gain or loss previously recognised in OCI is reclassified to equity. Dividends from such investments are
recognised in the Standalone Statement of Profit and Loss within other income when the Company''s right to receive
payments is established. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVTOCI are not reported separately from other changes in fair value.

Financial liabilities

The Company''s financial liabilities comprise borrowings, trade payables and other liabilities. These are initially
measured at fair value, net of transaction costs, and are subsequently measured at amortised cost using the EIR
method. The EIR is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period at effective interest rate. The effective interest rate is the rate that exactly discounts estimated
future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Financial liabilities at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost at
the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured
at amortized cost are determined based on the effective interest method. Interest expense that is not capitalized as part
of costs of an asset is included in the ''Finance costs'' line item.

Trade and other payables are recognized at the transaction cost, which is its fair value.

• Fair value measurement

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

- In the principal market, or

- In the absence of a principal market, in the most advantageous market

The principal or the most advantageous market must be accessible by the Company. A fair value measurement of a non¬
financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its
highest and best use.

• Revenue recognition

The Company has adopted Ind AS 115 from 1st April, 2018 and opted for modified retrospective application with the
cumulative effect of initially applying this standard recognised at the date of initial application. The standard has been
applied to all open contracts as on 1st April, 2018, and subsequent contracts with customers from that date.
Performance obligation :

The revenue is recognized on fulfillment of performance obligation.

• Sale of product

The Company earns revenue primarily from sale of Steel Product and Trading of goods. Payment for the sale is made as
per the credit terms in the agreements with the customers. The credit period is generally short term, thus there is no
significant financing component. The Company''s contracts with customers do not provide for any right to returns,
refunds or similar obligations. The Company''s obligation to repair or replace faulty products under standard warranty
terms is recognised as a provision.

Revenue is recognised when the performance obligations are satisfied and the control of the product is transferred,
being when the goods are delivered as per the relevant terms of the contract at which point in time the Company has a
right to payment for the asset, customer has possession and legal title to the asset, customer bears significant risk and
rewards of ownership and the customer has accepted the asset or the Company has objective evidence that all criteria
for acceptance have been satisfied.

• Borrowing costs

Borrowing costs are interest and ancillary costs incurred in connection with the arrangement of borrowings. General
and specific borrowing costs attributable to acquisition and construction of qualifying assets is added to the cost of the
assets up to the date the asset is ready for its intended use. Capitalization of borrowing costs is suspended and charged
to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is
interrupted. All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are
incurred.

• Taxation

Tax expense for the year comprises current and deferred tax. The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the Statement of Profit and Loss because it excludes items of
income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or
deductible. The Group''s liability for current tax is calculated using tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and
there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

• Current tax

Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed
in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

• Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
Standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit.

In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of
goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting year and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

• Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic earnings per share is
computed by dividing the profit or loss after tax by the weighted average number of equity shares outstanding during
the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares,
bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split.

Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share and the weighted average
number of equity shares which could have been issued on the conversion of all dilutive potential equity shares including
the treasury shares held by the Company to satisfy the exercise of the share options by the employees

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Mar 31, 2024

26. SIGNIFICANT ACCOUNTING POLICIES

Company Overview

Rhetan TMT Limited ("the company") is a listed company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The company is engaged in the business of Manufacturing of TMT Bars. The company is listed on BSE Limited (SME Platform).

1. BASIS OF PREPARATION :

These financial statements have been prepared in accordance with accounting principles Generally Accepted in India (Indian GAAP) the accounting standard notified under the relevant provisions of the Companies Act,2013. The Financial Statements are prepared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts and other claims /refunds, which due to uncertainty in realization are accounted for on actual receipt basis.

2. USE OF ESTIMATES :

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

3. FIXED ASSETS :

Fixed assets are stated at its revalued amount or at cost of acquisition or construction less depreciation. Cost comprises purchase price and other attribute costs/expenses related thereto.

4. DEPRECIATION :

Depreciation on assets has been provided on Straight Line Method on the basis of useful life Specified in Part C of Schedule II of the Companies Act 2013. Depreciation for assets purchased / sold during the year is charged proportionately.

5. INVENTORIES :

The inventories as at year end have been taken, valued & certified by the Directors of the company. As informed by the Management, the valuation of the inventories has been made at Cost (FIFO Method).

6. REVENUE RECOGNITION :

Revenue on sale of products is recognized when the products are dispatched to customers. Sales are stated net of trade discount and sales return.

7. EXPENDITURE :

Expenses are accounted for on accrual basis and the provision is made for all known losses and liabilities.

8. TAX ON INCOME :

Income tax expenses comprise current tax and deferred tax charge or credit.

• Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

• Deferred tax

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

Company Overview

Rhetan TMT Limited ("the company") is a listed company domiciled in India and incorporated under the provisions of the Companies Act, 2013. The company is engaged in the business of Manufacturing of TMT Bars. The company is listed on BSE Limited (SME Platform).

1. BASIS OF PREPARATION :

These financial statements have been prepared in accordance with accounting principles Generally Accepted in India (Indian GAAP) the accounting standard notified under the relevant provisions of the Companies Act,2013. The Financial Statements are prepared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts and other claims /refunds, which due to uncertainty in realization are accounted for on actual receipt basis.

2. USE OF ESTIMATES :

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

3. FIXED ASSETS :

Fixed assets are stated at its revalued amount or at cost of acquisition or construction less depreciation. Cost comprises purchase price and other attribute costs/expenses related thereto.

4. DEPRECIATION :

Depreciation on assets has been provided on Straight Line Method on the basis of useful life Specified in Part C of Schedule II of the Companies Act 2013. Depreciation for assets purchased / sold during the year is charged proportionately.

5. INVENTORIES :

The inventories as at year end have been taken, valued & certified by the Directors of the company. As informed by the Management, the valuation of the inventories has been made at Cost (FIFO Method).

6. REVENUE RECOGNITION :

Revenue on sale of products is recognized when the products are dispatched to customers. Sales are stated net of trade discount and sales return.

7. EXPENDITURE :

Expenses are accounted for on accrual basis and the provision is made for all known losses and liabilities.

8. TAX ON INCOME :

Income tax expenses comprise current tax and deferred tax charge or credit.

• Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

• Deferred tax

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

9. PROVISION AND CONTINGENT LIABILITIES :

Provisions 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 to settle the obligation that can be reliably estimated. contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed.

10. PRIOR PERIOD ADJUSTMENTS :

Expense and income pertaining to earlier/previous years are accounted as prior period item.

11. INVESTMENTS :

Investment is stated at cost being long term Investment.

12. EARNING PER SHARE

Basic earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, if any.

13. TREATMENT OF RETIREMENT BENEFITS

• Provident Fund: The Company contributes towards provident fund which is administered by the Central Government and are charged against revenue every year.

• The company makes payment of gratuity as and when the liability for the payment arises

• Company''s contribution paid / payable for the year to defined contribution retirement benefit scheme is dragged to the profit and loss account.

14. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which assets is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount.

15. NOTES FORMING PART OF ACCOUNTS

a) In the opinion of the Board of Directors, the value of Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which, they are stated in the Balance Sheet.

b) Balances under Sundry Debtors, Sundry Creditors, Loans& Advances are subject to confirmation and reconciliation with the respective parties/ concerns. Necessary adjustment if any, thereon having an importance of revenue nature, will be made in the year of such confirmation / reconciliation.

c) Wherever sufficient supporting are not available, we have relied upon the vouchers and explanations given by the Management.

d) Current Liability related to Small Scale Industrial Undertakings:

Based on the information available with the Company regarding the status of the supplier as defined under the interest on Delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1993, there are no amounts due to small scale and/or ancillary industrial suppliers on account of principal and/or interest as the close of the year which is outstanding for more than 30 days as at 31^st March,2023.

Figures are rounded off to the nearest rupee. Previously year figures have been regrouped and / or rearranged whenever necessary to correspond with the current year''s figures. Financial Data has been provided to the extent applicable to the Company.

e) The Deferred Tax Liabilities (Asset) comprise of the tax effect of timing difference are as under.

(in Lakhs)
Particulars	F.Y. 2022-23	F.Y. 2021-22
Deferred Tax Liability
Opening Balance	76.15	73.16
on account of : Depreciation & C/F Losses	2.70	2.99
Closing Balance	78.85	76.15