Notes to Accounts of Storage Technologies & Automation Ltd.

Mar 31, 2025

Accounting of Lease (AS-19)

The Company as a lessee

The Company assesses whether a contract contains a lease in it''s financials audited and the same procures have been following for current financial year. 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:

1. The contract involves the use of an identified asset

2. The Company has substantially all of the economic benefits from use of the asset through the period of the lease and

3. The Company has the right to direct the use of the asset.

At the date of commencement of lease, the company has assessed the lease to be of low value and for a term of less than 12 months. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Earnings per Share (AS 20)

During the current reporting period, the Company has computed and disclosed Earnings per Share (EPS) in accordance with AS 20. Basic EPS 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. Diluted EPS is computed by adjusting the net profit or loss attributable to equity shareholders and the weighted average number of shares outstanding for the effects of all dilutive potential equity shares. During the current reporting period, no instruments having dilutive potential equity shares are outstanding, and accordingly, Basic and Diluted EPS are the same.

Accounting for Taxes on Income (AS 22)

Current Tax: Income taxes are accounted for in accordance with Accounting Standard (AS-22) -"Accounting for taxes on income", notified under Companies (Accounting Standard) Rules, 2014. Income tax comprises of both current and deferred tax. Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax: The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

Deferred tax liabilities are recognized for the taxable timing differences. Deferred tax assets including the unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized. The carrying amount of deferred tax assets/liabilities are reviewed at each reporting date and are adjusted for its appropriateness.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority. the Company has recognised current tax liabilities as per the Income-tax Act, 1961, and no material deferred tax assets/liabilities requiring additional disclosure have arisen. Intangible Assets (AS 26)

The Company has followed AS 26 for recognition, measurement, and amortisation of intangible assets. Intangible assets are recorded at cost of acquisition/implementation and are amortised over their estimated useful lives on a systematic basis. The Company reviews the useful lives and carrying values of intangible assets at each reporting date and makes adjustments, if required, in accordance with the Standard. During the current reporting period, the Company does not hold any intangible assets such as patents, trademarks, or software requiring disclosure under this Standard. Impairment of Assets (AS 28)

The Company has assessed the carrying amounts of its assets in accordance with AS 28 to determine whether there is any indication of impairment as at the reporting date. If any indication exists, the recoverable amount of the asset is estimated and compared with its carrying amount. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. Reversal of impairment losses is recognised when there is an indication that the impairment loss recognised in prior periods no longer exists or has decreased. During the current reporting period, the Company has not identified any indications of impairment in respect of its assets and accordingly no impairment loss has been recognised.

Provisions, Contingent Liabilities and Contingent Assets (AS 29)

The Company has evaluated all obligations in accordance with AS 29 to determine whether a provision should be recognised or a contingent liability should be disclosed. Provisions are recognised only when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Contingent liabilities are disclosed when there is a possible obligation depending on future uncertain events, or a present obligation where an outflow is not probable or the amount cannot be reliably estimated. Contingent assets are not recognised but disclosed where an inflow of economic benefits is probable.

Dividend

The board considered and recommend Dividend of Rs.0.30 (@3%) per equity share of face value of RS. 10 each for the Financial Year 2024-25, subject to the approval by the Shareholders of the company at the ensuing Annual General Meeting (AGM).

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Mar 31, 2024

Note: 1) Terms/Rights attached to Equity Shares: The company has only one class of Equity Shares having a par value of ? 10/- per share. Each holder of Equity share is entitled to one vote per share. In the event of liquidation of the Com pany, the holders of equity share will be entitled to receive remaining Assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the Share holders.

2) The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in terms of the provisions of the Companies Act, 2013.

3) Every member of the company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and on a show of hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of the company.

a) Increase in Authorised share capital

During the financial year 2023-24 ,The authorised capital of the company has been increased fromRs. 3 cores to Rs.15 crores with 1,20,00,000 equity shares ofRs.10 each w.e.f from 24.11.2023

b) Bonus Shares

During the year financial year 2023-24,The company has allotted 60,00,000 fully paidup shares of face value Rs.10 each by way of Bonus Issue, approved by the share holders at the Extra-Ordinarygeneral Meeting dated 10-01-2024. The bonus shares were issued by capitalization of profits transferred from the General Reserve. The ratio of Bonus Issue was 2:1 ( two bonus equity shares for every one equity share). The bonus shares once allotted shall rank pari passu in all respects and carry the same rights as the existing equity share holders and shall be entitled to participate in full, in any dividend and other corporate action, recommended and declared after the new equity shares are allotted.

C) Public Issue of Share

During the financial year 2023-24, the Company came out with an Initial Public Offer in BSE SME Startup Platform turning it into a Listed Company but the public issue has been taken place in Financial Year 2024-25.

1) Gratuity

The gratuity benefit payable to the employees of the Company is as per the provisions of the Payment of Gratuity Act, 1972, as amended. Under the gratuity plan, every employee who has completed at least 5 years of service gets gratuity on separation or at the time of superannuation calculated for equivalent to 15 days salary for each completed year of service calculated on last drawn basic salary.The Company does not have a funded plan for gratuity liability.

1. Company Overview

Storage Technologies and Automation Private Limited is a Private Limited Company in India and Incorporated under the provisions of the Companies Act, 1956. It came into existence on 19^th Mar 2010 vide CIN: U74900KA2010PTC052918.

The Company has been converted from Private Company to Public Company w.e.f. 12^th October 2023 and the name of the said Company is changed to "STORAGE TECHNOLOGIES AND AUTOMATION LIMITED" vide CIN: U74900KA2010PLC052918. The Company was listed in BSE SME Startup platform on 08^th MAY 2024.

The Company is mainly carrying out the business of Manufacturing, Trading and services of Iron Racks. Within its short span of operation, the company has achieved many milestones in the above-mentioned fields. The address of its registered office is Storage Technologies and Automation Pvt Ltd No.10, Survey No.21/6A, 21/7A, 21/7B and 21/8 Singanayakanahalli, Yelahanka, Bangalore, Bangalore, Karnataka, India, 560064.

These Financial Statements were authorized for issue by the Board of Directors on 30^th May 2024