Accounting Policies of SJP Ultrasonics Ltd. Company

Corporate Information

SJP Ultrasonics Limited Was originally incorporated as SJP Ultrasonics Private Limited as on January 27, 2012. The The object of the company is To carry on
the business of manufacturers of all types of Ultrasonic Plastic Welding Machine Accessories, Machine Tools, Vibration Welding Machine Fixtures, Hot Plate
Welding Machines Fixtures, manufacturers of all kinds of injection moulds, blow moulds, manufacturers of testing jigs, relation guages and fixtures,
manufacturers of ultrasonic cleaning machines and accessories, to carry on ultrasonic plastic welding job work activity, to provide service, support and
consultation for Automotive and related industries for Plastic Joining Technology, to provide complete solution for joining technology for plastics, metals, to
provide service as Automation System manufacturer, intregrater with Axis Robotics Solution, to provide Custom built system and machine manufacturer,
CNC Milling and CNC Lathe Machine Job working activity, including allied activities in the related field in India or abroad.2. To carry on the business of
manufacturing, buying, selling, trading, marketing, distributing, importing and exporting of all types of Laser marking machine, Laser welding machine, Laser
cutting machine, Laser source, continuously variable transmission (CVT) to support all this machine and all Spare of above mention machineries in India or
Abroad.

Note 1- Material Accounting Policies

This note provides a list of the material accounting policies adopted in the preparation of these financial statements (“financial statements”). These policies
have been consistently applied to the year presented, unless otherwise stated.

1.1 - Basis of Preparation

(i) Compliance with AS

These financial statements are prepared in accordance with Accounting Standards (AS) under the historical cost convention on the accrual basis except for
certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘Acf) (to the extent notified). The AS are
prescribed under Section 133 of the Act read with Rule 3 of the Companies (Accounting Standards) Rules, 2015 Amendments thereto. Accounting policies
have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use. The Company''s Financial Statements are presented in Indian Rupees (?), which is also its functional currency.
The Company follows indirect method for presentation of its cash flows. Previous year figures have been regrouped /rearranged wherever necessary.

(ii) Historical Cost Convention

These financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair values at the end
of each reporting period, as explained in the accounting policies below. 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.

1.2 - Property, Plant and Equipment

Property Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly attributable to the cost of bringing the asset to its working condition for the intended use.
Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing
asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and equipment, including day-to-day repair and
maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.
Gains or losses arising from de-recognition of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and loss when the asset is de-recognized. Depreciation on Property, Plant and Equipment is
provided on written down value method over the useful life of the assets as prescribed under Schedule II of the Companies Act 2013. No depreciation has
been provided on assets purchased but not put to use. Details of property, plant and equipment as mentioned in Note 10. The title deeds of all the immovable
properties, if any (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the
name of the company itself. Further, the company has not carried out revaluation of items of Property, Plant & Equipment during the year and accordingly
the disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and
Valuation) Rules, 2017 is not applicable

1.3 - Capital Work in Progress

Capital Work in Progress (CWIP) is capitalized until the asset reaches the "ready for use" stage, irrespective of whether it has been put into operation. At this
point, it is transferred to Property, Plant, and Equipment (PPE), and depreciation is applied in accordance with AS 10, ensuring accurate financial reporting
and compliance with accounting standards.

1.4 - Intangible Assets

Intangible assets purchased are measured at cost as of the date of acquisition less accumulated amortization and accumulated impairment, if any. The
Company follows the Cost Model of accounting and capitalises the Software developed by the Company in house at cost and the salary and related costs
pertaining to the dedicated team capitalised in the books of accounts.

1.5 - Tax on Income

The tax expenses for the period comprise of current tax and deferred tax. The Company exercises judgment in computation of current tax considering the
relevant rulings and reassesses the carrying amount of deferred tax assets at the end of each reporting period.

1.6 - Valuation of Inventories

Inventories of Finished Goods, Work-In-Progress and Raw Material and Consumables for Profit making Finished Goods are valued at lower of cost or net
releasable value.

For Raw Material and Consumables for Loss making Finished Goods, the inventory is valued at lower of Cost or Replacement Cost.

NRV refers to the price at which items can be sold in the Post Balance Sheet period.

Replacement cost refers to the cost required to replace an inventory item at the current market price.

1.7 - Current & Non Current Classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current classification considering an operating cycle of 12 months
being the time elapsed between deployment of resources and the realisation/ settlement in cash and cash equivalents there against.

1.8 - Financial Assets

Purchase and sale of Financial Assets are recognised using trade date accounting. Trade receivables that do not contain a significant financing component are
measured at transaction price. For Trade Receivables, the Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised
from initial recognition of the receivables.

1.9 - Financial Liabilities

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts are determined to approximate fair value due to the
short maturity of these instruments.