Accounting Policies of Thaai Casting Ltd. Company

Mar 31, 2025

Note: 2 Significant Accounting Policies

1 Basis of Preparation:

The Statement of Assets and Liabilities of the Company as on March 31, 2025, and the Statement of Profit and
Loss and Statements of Cash Flows for the financial year ended on March 31, 2025 and the annexure thereto
(collectively, the "Financial Statements") have been compiled by the management from the Financial Statements
of the Company for the financial year ended on March 31, 2025.

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles
(GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting
standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies
(Accounts) Rules, 2021.

2 Revenue Recognition:

Revenue is measured at the amount of consideration received or receivable and represents the gross inflow of
economic benefits arising from the ordinary activities of the business, net of trade discounts and sales-related

taxes. Revenue from the sale of goods relates to the sale of dies and casts. Revenue is recognised once the
performance obligation has been met. This is deemed to be when the goods and services have been collected
by, or delivered to, the customer in accordance with the agreed delivery terms.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured in accordance with AS-9, Revenue Recognition as prescribed by ICAI. Sales
are recognized on accrual basis, and only after transfer of services to the customer.

Interest Income: Interest Income is recognized on accrual basis after taking into account the amount outstanding
and the rate applicable.

Dividend Income: Dividend Income is recognized when the owner''s right to receive payment is established. No
dividend income was recognized during the financial year 2024-25, as no such income was received.

Other Income: Other items of income and expenditure are recognized on accrual basis and as a going concern
basis, and the accounting policies are consistent with the generally accepted accounting policies.

3 Property, Plant and Equipment Including Intangible Assets:

Property, Plant and Equipments are stated at cost, less accumulated depreciation. Cost includes cost of acquisition
including material cost, freight, installation cost, duties and taxes, and other incidental expenses, incurred up to
the installation stage, related to such acquisition. Property, Plant and Equipments purchased in India by foreign
currency are recorded in Rupees, converted at the exchange rate prevailed on the date of purchase, any gains
or losses on the said transactions are recognised either as forex gain/ loss.

Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an
intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss.

4 Depreciation & Amortisation:

The Company has applied the estimated useful lives as specified in Schedule II of the Companies Act, 2013 and
calculated the depreciation as per the Straight Line Value (SLM) method. Depreciation on new assets acquired
during the year is provided from the date of acquisition to the end of the financial year. In respect of the assets
sold during the year, depreciation is provided from the beginning of the year till the date of its disposal.

Intangible assets are amortised on a straight-line basis over the estimated useful life as specified in Schedule II
of the Companies Act, 2013. The amortisation expense on intangible assets with finite lives is recognised in the
statement of profit and loss. In respect of the assets sold during the year, amortisation is provided from the
beginning of the year till the date of its disposal.

Capital work in-progress represents expenditure incurred in respect of assets which are yet to be brought to
it working condition for its intended use and are carried at cost. Cost includes related acquisition expenses,
construction or development cost, borrowing costs capitalised and other direct expenditure.

5 Impairment of Assets:

The Management periodically assesses using, external and internal sources, whether there is an indication that
an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds
its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use,
which means the present value of future cash flows expected to arise from the continuing use of the asset and
its eventual disposal. Reversal of impairment loss is recognized immediately as income in the profit and loss
account.

6 Use of Estimates:

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles requires
the Management to make estimates and assumptions that affect the reported balances of assets and liabilities
and disclosures relating to contingent assets and liabilities as at the date of the financial statements and the
reported amounts of income and expenses during the year. Examples of such estimates include provisions
for doubtful debts, income taxes, post - sales customer support and the useful lives of Property, Plant and
Equipments and intangible assets.

7 Inventories:

Inventory of consumables/spares and loose tools, moulds, dies are valued at lower of cost and net realisable
value. Cost comprises the cost of purchases and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined using the first-in, first-out (FIFO) method.

8 Trade Receivables:

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the
passage of time is required before payment of the consideration is due).

9 Foreign Currency Transactions:

Domestic Operation:

I. Initial Recognition :

A foreign currency transactions are recorded, on initial recognition in the reporting currency, by applying to
the foreign currency amount the exchange rate between the reporting currency and the foreign currency at
the date of the transaction.

II. Measurement :

Foreign currency monetary items are reported using the closing rate.

Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are
reported using the exchange rate at the date of the transaction.

Non-monetary items which are carried at fair value or other similar valuation denominated in a foreign
currency are reported using the exchange rates that existed when the values were determined.

III. Treatment of Foreign Exchange :

Exchange differences arising on settlement/ restatement of foreign currency monetary assets and liabilities
of the Company are recognized as income or expenses in the Statement of Profit and Loss.

10 Employee Benefits:

Employee benefits are all forms of consideration given by the company in exchange for service rendered by
employees.

A. Post-Employment Benefits:

Defined Benefit Plan:

Gratuity liability is a defined benefit obligation and is unfunded. The Company accounts for liability for
future gratuity benefits based on the actuarial valuation using Projected Unit Credit Method carried out as
at the end of each financial year.

Defined Contribution Plan:

The company makes provident fund and employee state insurance scheme contributions which are defined
contribution plans, for qualifying employees. Under these schemes, both the employee and the employer
make monthly contributions. The employer contribution is charged off to Profit & Loss Account as an
expense.

11 Taxes on Income:

Income Tax expense is accounted for in accordance with AS-22 "Accounting for Taxes on Income" for both
Current Tax and Deferred Tax stated below:

A. Current Tax:

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

B. Deferred Tax:

Deferred tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference
between the taxable income and accounting income computed for the current accounting year using the
tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty,
except arising from unabsorbed depreciation and carried forward losses, that sufficient future taxable
income will be available against which such deferred tax assets can be realised.

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Mar 31, 2024

Note: 2 Significant Accounting Policies

1 Basis of Preparation:

The Statement of Assets and Liabilities of the Company as on March 31, 2024, and the Statement of Profit and Loss and Statements of Cash Flows for the financial year ended on March 31, 2024 and the annexure thereto (collectively, the “Financial Statements”) have been compiled by the management from the

Financial Statements of the Company for the financial year ended on March 31, 2024.

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2021

2 Revenue Recognition:

Revenue is measured Based On consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and other sales-related taxes. Revenue from the sale of goods relates to the sale of dies and casts. Revenue is recognised once the performance obligation has been met. This is deemed to be when the goods and services have been collected by, or delivered to, the customer in accordance with the agreed delivery terms.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured in accordance with AS-9, Revenue Recognition as prescribed by ICAI.Sales are recognized on accrual basis, and only after transfer of services to the customer.

Interest Income: Interest Income is recognized on accrual basis after taking into account the amount outstanding and the rate applicable.

Dividend Income: Dividend Income is recognised when the owners right to receive payment is established.

Other Income: Other items of income and expenditure are recognized on accrual basis and as a going concern basis, and the accounting policies are consistent with the generally accepted accounting policies.

3 Property, Plant and Equipment Including Intangible Assets:

Property, Plant and Equipments are stated at cost, less accumulated depreciation. Cost includes cost of acquisition including material cost, freight, installation cost, duties and taxes, and other incidental expenses, incurred up to the installation stage, related to such acquisition. Property, Plant and Equipments purchased in India by foreign currency are recorded in Rupees, converted at the exchange rate prevailed on the date of purchase, any gains or losses on the said transaction are recognized either as forex gain/loss. Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss.

4 Depreciation & Amortisation:

The Company has applied the estimated useful lives as specified in Schedule II of the Companies Act 2013 and calculated the depreciation as per the Straight Line Value (SLM) method.Depreciation on new assets acquired during the year is provided from the date of acquisition to the end of the financial year. In respect of the assets sold during the year, depreciation is provided from the beginning of the year till the date of its disposal.

Intangible assets are amortised on a straight-line basis over the estimated useful life as specified in Schedule II of the Companies Act 2013. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss. In respect of the assets sold during the year, amortisation is provided from the beginning of the year till the date of its disposal.

Capital work in-progress represents expenditure incurred in respect of assets which are yet to be brought to it working condition for its intended use and are carried at cost. Cost includes related acquisition expenses, construction or development cost, borrowing costs capitalised and other direct

5 Impairment of Assets:

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset’s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

6 Use of Estimates:

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Examples of such estimates include provisions for doubtful debts, income taxes, post - sales customer support and the useful lives of Property, Plant and Equipments and intangible assets.

7 Inventories:

Inventory of consumables/spares and loose tools, moulds, dies are valued at lower of cost and net realisable value. The cost is calculated at purchase price and expenditure directly attributable to the acquisition of such inventories for bringing them to their present location.

i Trade Receivables:

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

) Foreign Currency Transactions:

Domestic Operation:

I. Initial Recognition :

A foreign currency transactions are recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

II. Measurement :

Foreign currency monetary items are reported using the closing rate.

Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

Non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

III. Treatment of Foreign Exchange :

Exchange differences arising on settlement/ restatement of foreign currency monetary assets and liabilities of the Company are recognized as

income or expenses in the Statement of Profit and Loss.

10 Employee Benefits:

A. Post-Employment Benefits:

Defined Benefit Plan:

Gratuity liability is a defined benefit obligation and is unfunded. The Company accounts for liability for future gratuity benefits based on the actuarial valuation using Projected Unit Credit Method carried out as at the end of each financial year.

Defined Contribution Plan:

Provident Fund: Eligible employees receive benefit from provident fund covered under the Provident Fund Act. Both the employee and the company make monthly contributions. The employer contribution is charged off to Profit & Loss Account as an expense.

11 Taxes on Income:

Income Tax expense is accounted for in accordance with AS-22 “Accounting for Taxes on Income” for both Current Tax and Deferred Tax stated below:

A. Current Tax:

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

B. Deferred Tax:

Deferred tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year using the tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognized and carried

forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carried forward losses, that sufficient future taxable income will be available against which such deferred tax assets can be realised.