RMC Switchgears Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

2 Material Accounting Policies

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

(a) Basis of preparation

(i) Compliance with Ind AS

These financial statements of the compnay have been
prepared to comply in all material respects with the
Indian Accounting Standards (‘Ind AS'') notified under
section 133 of the Companies Act, 2013, read with the
Companies (Indian Accounting Standards) Rules 2015, as
amended from time to time by the Ministry of Corporate
Affairs (‘MCA'').

The said financial statements for the year ended March
31, 2026 are the first Ind AS financial statements of the
Company. The transition to Ind AS has been carried out
from accounting standards notified under Section 133 of
the Companies Act 2013, read together with paragraph
7 of the Companies (Accounts) Rules, 2014 (‘IGAAP''),
which is considered as the Previous GAAP, for purposes
of Ind AS 101.

Refer Note 34 for an explanation of how the transition
from previous GAAP to Ind AS has affected the Company''s
financial position, financial performance and cash flows.

The financial statements are based on the classification
provisions contained in Ind AS 1 ‘Presentation of
Financial Statements'' and division II of Schedule III of
the Companies Act 2013. Further, for the purpose of
clarity, various items are aggregated in the statement
of profit and loss and balance sheet. Nonetheless, these
items are disaggregated separately in the notes to the
financial statements, where applicable or required. All
the amounts included in the financial statements are
reported in lakhs of Indian Rupees (‘Rupees'' or ‘Rs.'')
and are rounded to the nearest lakhs with two decimals,
except per share data and unless stated otherwise.

(ii) Basis of Measurement

The financial statements have been prepared on a
historical cost basis, except for the following:

• Financial assets and liabilities are measured at fair
value or amortised cost

• Share-based payments (ESOP''s) are measured at
fair value

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

(b) Functional and Presentation Currency

Items included in the financial statements are measured
using the currency of the primary economic environment
in which the entity operates (‘the functional currency'').
The financial statements are presented in Indian Rupee
(Rs.), which is the Company''s functional and presentation
currency.

(c) Critical accounting estimates and judgements

I n preparing these financial statements, management
has made judgements, estimates and assumptions
that affect the application of accounting policies and
the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these
estimates.

Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised prospectively.

Information about significant areas of estimation/
uncertainty and judgements in applying accounting
policies that have the most significant effect on the
financial statements are as follows:

• measurement of defined benefit obligations: key
actuarial assumptions - refer notes 24

• measurement of useful life and residual values of
property, plant and equipment -refer note (i) below

(d) Revenue recognition

The Company recognizes revenue, whenever control over
distinct goods or services is transferred to the customer;
i.e. when the customer is able to direct the use of the
transferred goods or services and obtains substantially
all of the remaining benefits, provided a contract with
enforceable rights and obligations exists and amongst
others collectability of consideration is probable.
Revenue is the transaction price the Company expects to
be entitled to. In determining the transaction price, the
Company considers effects of variable consideration. The
Company considers whether there are other promises in
the contract that are separate performance obligations
to which the transaction price needs to be allocated.

Sale of goods

Revenue from the sale of goods is recognised when
the control of the goods passes to the buyer either at
the time of dispatch or delivery or when the risk of loss
transfers.

Revenue from sale of goods is net of taxes and recovery
of charges collected from customers like transport,
packing etc. Provision is made for returns when
appropriate. Revenue is measured at the fair value of
consideration received or receivable and is net of price
discounts, allowance for volume rebates and similar
items.

Claims / Refunds not ascertainable with reasonable
certainty are accounted for, on final settlement and are
recognized as revenue on certainty of receipt on prudent
basis.

Sale of services

Revenue from EPC and works contracts is recognized
over time in accordance with Ind AS 115, as the
Company''s performance creates or enhances an asset
that is controlled by the customer.

Revenue is measured at the transaction price agreed
under the contract and is recognized using the cost-to-
cost input method, based on the proportion of contract
costs incurred to date relative to the estimated total
contract costs, which best depicts the transfer of control
to the customer.

(e) Other Income
(i) Interest income

Interest income is recognized on a time proportionate
basis taking into account the amounts invested and the
rate of interest. For all financial instruments measured
at amortised cost, interest income is recorded using the
Effective interest rate method to the net carrying amount
of the financial assets.

(f) Contract Balances:

Trade Receivables:

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

Contract liabilities:

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration is
due) from the customer. If a customer pays consideration
before the Company transfer goods and services to the
customer, a contract liability is recognised when the
paym ent i s m ade or the paym ent i s due, whichever i s
earlier. Contract liabilities are recognised as revenue
when the Company performs under the contract.

(g) Employee Benefits

(i) Short term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which
the employees render the related service are recognised
in respect of employees'' services up to the end of the

reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Post-employment obligations

The Company has provided following post-employment
plans:

• Defined benefit plans such a gratuity and

• Defined contribution plans such as Provident fund
& Superannuation fund

Defined Benefit Plan

The liability recognised in the balance sheet in respect
of defined benefit gratuity plan is the present value of
defined benefit obligations at the end of the reporting
period. The defined benefit obligations is calculated
annually by actuary through actuarial valuation using
the projected unit credit method.

The Company recognises the following changes in the
net defined benefit obligation as an expense in the
statement of profit and loss:

• Service costs comprising current service costs,
past-service costs, gains and losses on curtailment
and non-routine settlements; and

• Net interest expense or income

Re-measurement comprising of actuarial gains and
losses arising from

• Re-measurement of Actuarial(gains)/losses are
recognised in the period in which they occur
directly in Other Comprehensive Income. Re¬
measurement are not reclassified to profit or
loss in subsequent periods. Ind AS 19 requires
the exercise of judgment in relation to various
assumptions including future pay rises, inflation
and discount rates and employee and pensioner
demographics. The Company determines the
assumptions in conjunction with its actuaries,
and believes these assumptions to be in line with
best practice, but the application of different
assumptions could have a significant effect on the
amounts reflected in the income statement, other
comprehensive income and balance sheet. There
may be also interdependency between some of the
assumptions.

Defined Contribution Plan

Under defined contribution plans, provident fund, the
Company pays pre-defined amounts to separate funds
and does not have any legal or informal obligation
to pay additional sums. Defined Contribution plan
comprise of contributions to the employees'' provident
fund, superannuation fund and certain state plans. The
Company''s payments to the defined contribution plans
are recognised as expenses during the period in which
the employees perform the services.

(h) Taxes on Income

Income tax comprises current and deferred tax. Income
tax expense is recognized in the statement of profit
and loss except to the extent it relates to items directly
recognized in equity or in other comprehensive income.

Current tax is based on taxable profit for the year.
Taxable profit is different from accounting profit due
to temporary differences between accounting and tax
treatments, and due to items that are never taxable or
tax deductible. Tax provisions are included in current
liabilities. Interest and penalties on tax liabilities are
provided for in the tax charge. The Company offsets,
the current tax assets and liabilities (on a year on year
basis) where it has a legally enforceable right and where
it intends to settle such assets and liabilities on a net
basis or to realise the assets and liabilities on net basis.

The carrying amount of deferred income tax assets
is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred
income tax asset to be utilized. Deferred income tax
assets and liabilities are measured at the tax rates
that are expected to apply in the period when the asset
is realized or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.

(i) Borrowing Costs

Borrowing costs are expensed in the period in which they
are incurred.

(j) Earning Per Share

Basic earnings per shares are calculated by dividing the
net profit or loss after tax for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period. For
the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to the
equity shareholders and the weighted average number
of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.

j) Corporate Information

RMC Switchgears Limited is a public company domiciled in India. The company is primarily
engaged in the business of "Switchgear Engineering'', "ECI contracts for power distribution/
transmission sector¹.

ii) Basis of Accounting

The financial statements have been prepared to comply in all material respects with the
Generally AcceptedAccounting Principles (GAAP) in India under the historical cost convention on
an accrual basis pursuant to Section 133 of the Companies Act, 2013 ("the Act") read with the
Accounting Standards issued by the National Advisory Committee on Accounting Standards
(NACAS) and The Institute of Chartered Accountants of India (ICAI). Accounting policies have
been consistently applied by the company except where a newly issued Accounting Standard is
initially adopted or a revision to an existing Standard required a change in accounting policy
hitherto in use.

The preparation of financial statementsin conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the results of
operations during the reporting period. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could differ from these estimates.
The company''s financial statements are presented in Indian Rupees, which is its functional
currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

Classification of assets and liabilities into Current / Non-current.

All assets and liabilities have been classified as current or non-current as per the Company''s
normal operating cycle and other criteria set out in the revised Schedule III to the Act.

iii) Changes in Accounting Policies

The Company has reclassified/regrouped/rearranged the previous year figures,
wherevernecessary, to make them comparable with revised schedule III to the act applicable for
current year''s figures & groups.

iv) Assets and Depreciation

a) Property Plant & Equipment are stated at cost including attributable cost (net of GST
Creditavailed) of bringing the assets to its working condition for the intended use.

b) Depreciation on the assets has been provided as under:

1) Depreciation has been provided on the basis of useful lives of the tangible assets as
prescribed in Schedule II to the Companies Act, 2013byusing Straight-line method (SLM) of
depreciation.

2) Depreciation on intangible assets is provided in accordance with AS-26 over the period of 5
years.

3) Premium paid on Leasehold Landis amortized over the Lease term which is of 99 years.

4) Impairment of Tangible & Intangible Assets

The carrying amounts of assets are reviewed at each reporting date if there is any indication of
impairment based on internal / external factors. An impairment loss is recognized wherever the
carrying amount of asset exceeds its recoverable amount. The recoverable amount is the greater
of the assets'' net selling price and its value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using weighted average cost of capital.

Post impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.

v) Valuation of Inventory

Inventory of raw material, stores, spares, semi-finished goods and finished goods are valued at
lower of cost and net realizable value. Cost is determined on the basis of FIFO/Weighted
Average Method. Inventory of rejected material is valued at cost or net realizable value
whichever is lower. Work in process generally includes cost of direct material, labour cost and
other manufacturing overheads. Goods-in-Transit is valued at cost.

(vi) Income Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in
accordance with the provisions of the Income Tax Act, 1961 (the "Income Tax Act").The Company
has opted to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 as
introduced by the Taxation Laws (Amendment) Ordinance, 2019, for the financial year 2024-25.
Accordingly, the Company has recognised provision for income tax and computed deferred tax
based on the rate i.e. @ 25.17 % (Tax Rate 22% Plus Surcharge Plus cess) prescribed in the said
section.

Deferred tax is recognised on timing differences, being the differences between the taxable
income and the accounting income that originate in one period and are capable of reversal in
one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantively enacted as at the reporting date. Deferred tax assets are recognised for
timing differences of items other than unabsorbed depreciation and carry forward losses only to
the extent that reasonable certainty exists that sufficient future taxable income will be available
against which these can be realised. However, if there are unabsorbed depreciation and carry
forward of losses, deferred tax assets are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise the assets. Deferred tax assets and
liabilities are offset if such items relate to taxes on income levied by the same governing tax laws

and the Company has a legally enforceable right for such set-off. Deferred tax assets are
reviewed at each balance sheet date for theirreliability.

vil) Liquidated Damages:

Liquidated damages are provided based on contractual terms when thedelivery/commissioning
dates of an individual project have exceeded or are likely to exceed the delivery/commissioning
dates as per the respective contract. This expenditure is expected to be incurred over the
respective contractual terms upto closure of the contract.

viii) Foreign Currency:

a) Transactions in Foreign Currency entered into by the Company are accounted at the Exchange
Rates prevailing the date of the transaction. Foreign Currency monetary items ofthecompany,
outstanding on the Balance Sheet date are restated at the year-end rates. Non- monetary items
of the company are carried at historical costs.

b) Exchange Difference arising on settlement / restatement of short term foreign currencymonetary
assets & liabilities of the company are recognized as expense in the statement ofProfit& Loss or
capitalized if such differences pertain to creation of Fixed Assets.

i) Corporate Information

RMC Switchgears Limited is a public company domiciled in India. Having CIN L25111RJ1994PLC008698 & its registered office & works situated at 7 km from chaksu kotkhawada road village Badodiya Tehsil chaksu Tonk Road Jaipur. The company is primarily engaged in the business of ''Switchgear Engineering'', '' EPC contracts for power distribution/ transmission sector''.

ii) Basis of Accounting

The financial statements have been prepared to comply in all material respects with the Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on an accrual basis pursuant to Section 133 of the Companies Act, 2013 ("the Act”) read with the Accounting Standards issued by the National Advisory Committee on Accounting Standards (NACAS) and The Institute of Chartered Accountants of India (ICAI). Accounting policies have been consistently applied by the company except where a newly issued Accounting Standard is initially adopted or a revision to an existing Standard required a change in accounting policy hitherto in use.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. The company''s financial statements are presented in Indian Rupees, which is its functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

Classification of assets and liabilities into Current / Noncurrent.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule III to the Act.

iii) Changes in Accounting Policies

The Company has reclassified/regrouped/rearranged the previous year figures, wherever necessary, to make them comparable with revised schedule III to the act applicable for current year''s figures & groups.

iv) Assets and Depreciation

a) Property Plant & Equipment are stated at cost

including attributable cost (net of GST Credit availed) of bringing the assets to its working condition for the intended use.

b) Depreciation on the assets has been provided as under:

1) Depreciation has been provided on the basis of useful lives of the tangible assets as prescribed in Schedule II to the Companies Act, 2013 by using Straight-line method (SLM) of depreciation.

2) Depreciation on intangible assets is provided in accordance with AS-26 over the period of 5 years.

3) Premium paid on Leasehold Landis amortized over the Lease term which is of 99 years.

4) Impairment of Tangible & Intangible Assets

The carrying amounts of assets are reviewed at each reporting date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of asset exceeds its recoverable amount. The recoverable amount is the greater of the assets'' net selling price and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using weighted average cost of capital.

Post impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

v) Valuation of Inventory

Inventory of raw material, stores, spares, semi-finished goods and finished goods are valued at lower of cost and net realizable value. Cost is determined on the basis of FIFO/Weighted Average Method. Inventory of rejected material is valued at cost or net realizable value whichever is lower. Work in process generally includes cost of direct material, labour cost and other manufacturing overheads. Goods-in-Transit is valued at cost.

(vi) Income Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961 (the "Income Tax Act"). The Company has opted to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019, for the financial year 2023-24. Accordingly, the Company has recognised provision for income tax and computed deferred tax based on the rate i.e. @ 25.17 % (Tax Rate 22% Plus Surcharge Plus cess) prescribed in the said section.

Deferred tax is recognised on timing differences, being

the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set-off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

vii) Liquidated Damages:

Liquidated damages are provided based on contractual terms when thedelivery/commissioning dates of an individual project have exceeded or are likely to exceed the delivery/commissioning dates as per the respective contract. This expenditure is expected to be incurred over the respective contractual terms upto closure of the contract.

viii) Foreign Currency:

a) Transactions in Foreign Currency entered into by the Company are accounted at the Exchange Rates prevailing the date of the transaction. Foreign Currency monetary items ofthecompany, outstanding on the Balance Sheet date are restated at the year-end rates. Non- monetary items of the company are carried at historical costs.

b) Exchange Difference arising on settlement /

restatement of short term foreign currency

monetary assets & liabilities of the company are recognized as expense in the statement ofProfit & Loss or capitalized if such differences pertain to creation of Fixed Assets.

ix) Revenue Recognition:

a) Sales Revenue is recognized when the risk

and rewards of ownership are passed on to the customers, which is generally on dispatch.

b) Revenue from turnkey contracts is recognized based on the stage of completion determined with reference to the costs incurred on contracts and their estimated total costs. Provision for

foreseeable losses/ construction contingencies on turnkey contracts is made on the basis of technical assessments of costs to be incurred and revenue to be accounted for.

c) Price Escalation and other claims or variations in the contract work are included in contract revenue only when:

i) Negotiations have reached to an advanced stage such that it is probable that customer will accept the claim: and

ii) The amount that is probable will be accepted by the customer and can be measured reliably.

x) Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. The difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

xi) Borrowing Costs

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets as Pre-operative Expenses. All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred. Interest Capitalised during the year is NIL (Previous year '' 398031/-)

xii) Employees Benefits:

a) Defined Contribution Plans:

Employees'' own and Employer''s contribution to Provident Funds are contributed by company monthly at a determined rate. These contributions are remitted to theEmployees'' Provident Fund Organization, India and is charged to Profit and LossAccount on accrual basis.

b) Defined Benefits Plans:

Gratuity: The company provides for gratuity, a defined benefit retirement plan, for its employees. The plan provides for lump sum payments to the eligible employees at retirement, death, while in employment, or on termination of employment or otherwise as per the provisions the Payment of Gratuity Act, 1972. The company accounts for liability of future gratuity benefits based on an external actuarial valuation on projected unit credit method carried out annually for assessing liability as at the balance sheet date.

xiii) Segment Reporting :

a) Primary Segment:

Company is engaged in ''Switch Gear Engineering''and ''Construction contracts for power distribution / transmission sector'' which relate to one primary segment i.e. Power.

b) Secondary Segment:

The Company operates predominantly within the geographical limits of India and accordingly secondary segments have not been considered.

xiv) Deferred Revenue Expenditure:

Deferred Revenue Expenditure incurred is being written off over the period of 5 years in installment, beginning from 202021.

xv) Earnings per Share

Basic earnings per share are calculated by dividing the net profit/ loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The Board of Directors in their meeting held on Tuesday, 17^th October, 2023, has approved the allotment of 34,36,100 Bonus Equity Shares of '' 10/- each in the ratio of 1:2 i.e. 1 New Equity Shares of '' 10/- each for every 2 existing Equity Shares of '' 10/- each to the eligible Shareholders whose names appeared in the Register of Members/list of beneficial owners as on 13^th October, 2023, being the record date fixed for this purpose. Post-bonus issue, the paid-up capital has increased to '' 1030.83 Lacs from 17^th October, 2023 onwards. Accordingly, the basic and diluted earning per share have been adjusted for previous year also for the bonus shares in accordance with AS-20-Earnings per Share.

i) Corporate Information

RMC Switchgears Limited is a public company domiciled in India. The company is primarily engaged in the business of ''Switchgear Engineering'', ''ECI contracts for power distribution/ transmission sector''.

ii) Basis of Accounting

The financial statements have been prepared to comply in all material respects with the Generally Accepted Accounting Principles in India under the historical cost convention on an accrual basis pursuant to Section 133 of the Companies Act, 2013 ("the Act") read with the Accounting Standards issued by the National Advisory Committee on Accounting Standards (NACAS) and The Institute of Chartered Accountants of India (ICAI). Accounting policies have been consistently applied by the company except where a newly issued Accounting Standard is initially adopted or a revision to an existing Standard required a change in accounting policy hitherto in use.

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. The company''s financial statements are presented in Indian Rupees, which is its functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

Classification of assets and liabilities into Current / Non-current.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule III to the Act.

iii) Changes in Accounting policies

The Company has reclassified/regrouped/rearranged the previous year figures, wherever necessary, to make them comparable with revised schedule III to the act applicable for current year''s figures & groups.

iv) Assets and Depreciation

a) Property Plant & Equipment are stated at cost including attributable cost (net of cenvat/vat credit /GST Credit availed) of bringing the assets to its working condition for the intended use.

b) Depreciation on the assets has been provided as under:

losses, deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set-off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

vii) Liquidated Damages:

Liquidated damages are provided based on contractual terms when the delivery/commissioning dates of an individual project have exceeded or are likely to exceed the delivery/commissioning dates as per the respective contract. This expenditure is expected to be incurred over the respective contractual terms upto closure of the contract.

viii) Foreign Currency:

a) Transactions in Foreign Currency entered into by the Company are accounted at the Exchange Rates prevailing the date of the transaction. Foreign Currency monetary items of the company, outstanding on the Balance Sheet date are restated at the year-end rates. Non- monetary items of the company are carried at historical costs.

b) Exchange Difference arising on settlement / restatement of short term foreign currency monetary assets & liabilities of the company are recognized as expense in the statement of Profit & Loss or capitalized if such differences pertain to creation of Fixed Assets.

ix) Revenue Recognition:

a) Sales Revenue is recognized when the risk and rewards of ownership are passed on to the customers, which is generally on dispatch.

b) Revenue from turnkey contracts is recognized based on the stage of completion determined with reference to the costs incurred on contracts and their estimated total costs. Provision for foreseeable losses/ construction contingencies on turnkey contracts is made on the basis of technical assessments of costs to be incurred and revenue to be accounted for.

c) Price Escalation and other claims or variations in the contract work are included in contract revenue only when:

i) Negotiations have reached to an advanced stage such that it is probable that customer will accept the claim: and

ii) The amount that is probable will be accepted by the customer and can be measured reliably.

x) use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. The difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

xi) Borrowing Costs

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets as Pre-operative Expenses. All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred. Interest Capitalised during the year is '' 398031/- (Previous year NIL)

xii) Employees Benefits:

a) Defined Contribution Plans:

Employees'' own and Employer''s contribution to Provident Funds are contributed by company monthly at a determined rate. These contributions are remitted to the Employees'' Provident Fund Organization, India and is charged to Profit and Loss Account on accrual basis.

b) Defined Benefits Plans:

Gratuity: The company provides for gratuity, a defined benefit retirement plan, for its employees. The plan provides for lump sum payments to the eligible employees at retirement, death, while in employment, or on termination of employment or otherwise as per the provisions the Payment of Gratuity Act, 1972. The company accounts for liability of future gratuity benefits based on an external actual valuation on projected unit credit method carried out annually for assessing liability as at the balance sheet date.

xiii) Segment Reporting :

a) primary Segment:

Company is engaged in ''Switch Gear Engineering'' and ''Construction contracts for power distribution / transmission sector'' which relate to one primary segment i.e. Power.

b) Secondary Segment:

The Company operates predominantly within the geographical limits of India and accordingly secondary segments have not been considered.

xiv) Deferred Revenue Expenditure:

Deferred Revenue Expenditure incurred is being written off over the period of 5 years in installment, beginning from 2020-21.

xv) Corresponding Figures of previous year have been reclassified/regrouped or rearranged to make them comparable with the current year figures.

xvi) Other statutory information:

1. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

2. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year. ''

3. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

4. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

5. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income

during the year in the tax assessments under the Income Tax Act,1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

6. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

7. The Company is not declared willful defaulter by and bank or financial institution or lender during the year.

8. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

9. Periodical returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

10. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

11. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in-progress are held in the name of the Company as at the balance sheet date.

12. The Company does not have any transactions with companies which are struck off.

13. Company is not covered by the Section 135 of the Companies Act, 2013, dealing with the ''Corporate Social Responsibility'' during the FY 2022-23.

The accompanying notes are an integral part of the financial statements