Poojaa Precision Engg. Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

38.4 Revenue Recognition

Sales are net of sales tax, Goods & Service tax (GST), returns and trade discounts. The Company recognises revenue at the
point of dispatch of goods to customers.

38.5 Property, Plant and Equipment

Depreciation in respect of all the assets is provided on straight line method over the useful lives of assets estimated by
the Company. Depreciation for assets purchased / sold during the period is proportionately charged. Intangible assets
are amortised over their respective individual estimated useful lives on a straight line basis, commencing from the date
the asset is available to the Company for its use. The Company estimates the useful life of fixed assets as follows:

38 SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

38.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared and presented under the historical cost convention, on the accrual basis
of accounting in accordance with the accounting principles generally accepted in India (''Indian GAAP'') and comply with
the Accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply
under Section 133 of the Companies Act, 2013, (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014.

All the assets and liabilities have been classified as current or non current as per Company''s normal operation cycle and
other criteria set out in Revised Schedule III to the Companies Act, 2013.

Grouping of Accounts

Accounts & figures have been suitably grouped of income, expenses and other accounts which are in consonance with
generally accepted accounting practices.

38.2 Inventory Valuation

Inventory has been physically verified by at regular intervals by the company. The values in the Financial Statements are
taken based on stocks statements and reports prepared at the time of verification of stocks and inventory.

38.3 Cash Flow Statement

The above Cash Flow Statement has been prepared under the indirect method set out in AS-3 issued by ICAI, whereby
net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from regular revenue generating (operating activities), investing and
financing activities of the Company are segregated. Previous year figures have been regrouped and recast wherever
necessary to conform to current year classification.

The Company believes that the useful lives as given above best represent the useful life of these assets based on inter¬
nal assessment where necessary, which is different from the useful lives as prescribed under Part C of Schedule II of the
Companies Act, 2013.

Fixed Assets are stated at cost of acquisition inclusive of freight, duties, taxes, borrowing costs during construction or
before the asset is put into commercial use and other direct incidental expenses related to acquisition and installation.
Softwares which are expected to provide future benefits have been capitalized in the relevant year of installation.

38.6 Foreign Currency Translation

Transactions in Foreign Currency are initially recorded at the exchange rate at which the transactions are carried out.
Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the year-end are trans¬
lated at year end rate. Any income or expenses on account of exchange difference on settlement is recognized in State¬
ment of Profit and Loss.

38.7 Investments

All Investments are stated at cost of acquisition. Provision has been made in respect of diminution in the value of invest¬
ments if it is considered as permanent in nature by the management. The Profit / Loss on sale of investments is dealt with
at the time of actual sale.

38.8 Retirement and other employee benefits

In Compliance with Accounting Standard-15, issued by the Institute of Chartered Accountants of India, regarding provi¬
sion of retirement benefit, the company is required to make provision for gratuity and accrued leave encashment liability
in the future based on Actuarial Valuation.

As required under Section 4A of the Payment of Gratuity Act, 1972 and the applicable provisions of the Code on Social
Security, 2020 (effective from 21 November 2025), the Company has funded its gratuity obligations through a Group
Gratuity Scheme with the Life Insurance Corporation of India. The gratuity liability has been determined on the basis of
an actuarial valuation carried out by an independent actuary using employee data provided by the Company and has
been recognized in the Financial Statements accordingly. The valuation considers the applicable provisions relating to
gratuity under the Code on Social Security, 2020, including changes in the definition of wages and other relevant em¬
ployee benefit requirements.

38.9 Borrowing Costs

The borrowing cost has been treated in accordance with Accounting Standard on borrowing cost (AS 16) issued by The
Institute of Chartered Accountants of India. During the year, interest on borrowings attributable to qualifying assets have
been capitalized under the various heads.

38.10 Taxes On Income

In accordance with Accounting Standard AS 22 " Accounting for Taxes on Income" issued by the Institute of Chartered
Accountants of India, the deferred taxes for the time difference between book and tax profit for the year is accounted for
using tax rate and laws that have been enacted by the Balance Sheet date. Deferred tax assets arising from temporary
time difference are recognized to the extent there is reasonable certainty that the assets can be realized in future.

38.11 Impairment of Assets

No provision of impairment of assets of the Company has been made as in the opinion of the Management, realizable
value of all the assets taken as a whole will be at least the value at which they appear in the books of accounts in aggre¬
gate as required by Accounting Standards 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants
of India.