Accounting Policies of Steelman Telecom Ltd. Company

Mar 31, 2025

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements

(a) The financial statements are prepared in accordance with Generally Accepted A» iminting Principles (Indian GAAP) under the historical cost convention on accrual basis and
on principles of going coin r-m. The accounting polu ies are consistently applied by the Company.

(b) The financial statements are prepared to comply in all material respects with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Ac* ounts) Rules, 2014 and provisions of Compani*»s Act, 2013.

(c) The preparation of the financial statements requires 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 the actual results and estimates are recognized in the
period in which the results are known / materialize.

- 1.2 Revenue Recognition

(a) The company generally follows the mercantile sy stem of accounting and recognizes Income & Expenditure on acciual basis.

(b) Sales are res ognized at the time o passage of the title that generally coincides with their deliveiy. Sales are net of GST and Trade discounts

(c) Machine and labour charges are recognized as per the job invoii es raised during the year.

(d) Interest in» ome is recognized on a time proportion basis taking into &* • ount the amount outstanding and the rate applicable.

1.3 Property, Plant & Equipment and Intangible Assets & Depreciation

(a) Fixed Assets are stated at Cost less accumulated depreciation The Company has capitalized all cost relating to the acquisition and installation of Fixed Assets.

(b) Depreciation is provided on Fi»ed Assets on Written down value Method on the basis of Useful Life as prescribed under Part C of Schedule - IT of the Companies Act, 2013.

(c) There are no Intangible Assets in the company.

1.4 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on intemal/extemal factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the asset’s net selling price and value in use,
which is determined by the present value of the estimated future cash flows.

1.5 Investments

Investments classified as long-term investments are stated at cost. Provision is made to reiognize any diminution other than temporary in the value of suih investments.
Current inveatments are carried at lower of cost and fair value.

1.6 Inventories

Inventories consisting of Tools & Consumables are valued at lower of cost and net realizable value. Cost of inventories comprises of material cost on FIFO basis and expenses
• incurred in bringing the inventories to their present loc a lion and condition.

1.7 Employee Benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the provident fund is charged to the statement of profit and loss for the
year when an employee renders the related services.

During the year gTatuity payable to employees are provided based upon actuarial valuation report.

Leave encashment to the employees are a»«nunled for as & when the same is claimed by eligible employees.

1.8 Borrowing Costs

(a) Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying
axxet is an a wt that run < s-»arily tak«*s suKianiial period of rime to gel ready for its intended use.

(b) Other Borrowing emts are ret ogni/ed as expense in the period in which they are incurred.

1.9 Taxes on Im ome

Tax e xpense compriv-s of current lax and deferred tax.

Current income tax is measured at the amount expec led to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

Deferred Tax ar ising on account of "timing different es" and which are capable of reversal in one or more subsequent periods is recognized, using the tax rates and tax laws that
are ena. led or substantively enacted. Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the same in future years as a
nwii<*r of prudence.

110 Eamines per Share (EPS)

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

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

1.11 - Prior Period Items

Prior Period and Extraordinary items and Changes in Accounting Polii ies having material impact on the financial affairs of the Company are disc losed in financial statements