Saakshi Medtech & Panels Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

I. SIGNIFICANT ACCOUNTING POLICIES

A) BASIS OF PREPARATION OF FINANCIAL STATEMENT

The Financial Statements comprise financial statements of Saakshi Medtech and Panels
Limited as at March 31, 2025 and the Statement of Profit and Loss and Statements of Cash
Flow for the year ended March 31, 2025 and the annexure thereto (collectively, the “Financial
Statements”) have been extracted by the management, approved by the respective Board of
Directors.

These financial statements are prepared on a Going Concern Basis and 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 (‘the Act’) read with Rule 7 of the Companies
(Accounts) Rules, 2014, and the relevant provisions of the Act. The accounting policies
adopted in the preparation of financial statements have been consistently applied. 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 Companies Act, 2013. Based
on the nature of operations and time difference between the provision of services and
realization of cash and cash equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of assets and liabilities.

B) Basis of Measurement

The Financial Statements have been prepared on accrual basis and under historical cost
convention, except for certain financial assets and liabilities that are measured at fair value.

The financial statements have been prepared on a going concern basis. The accounting policies
are applied consistently to all the period presented in the financial statements except where a
newly issued accounting standard is initially adopted or a revision to an existing accounting
st&nfin&requires change in accounting policy previously used.

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The Functional and presentation currency of the company is Indian Rupees (“INR”) which is
the currency of the primary economic environment in which the Company operates.

C) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgements, estimates and assumptions that affect the reported amount
of assets and liabilities as at the Balance sheet date, reported amount of revenue and expenses
for the year and disclosures of contingent liabilities as at the Balance sheet date. The
judgements, estimates and assumptions used in the accompanying financial statements are
based upon the Management’s evaluation of the relevant facts and circumstances as at the date
of the financial statements. Actual results could differ from these judgements, estimates and
assumptions. Estimates and underlying assumptions are reviewed on annual basis. Revisions
to accounting estimates, if any, arc recognised in the period in which the estimates are revised
and in any future years affected.

Summary of Significant Accounting Policies

A) Revenue recognition

(i) Sale of goods

Revenue from sale of goods is recognised when the significant risks and rewards of
ownership have been transferred to the customer and there are no longer any unfulfilled
obligations. The performance obligations in our contracts are fulfilled at the time of dispatch,
delivery or upon formal customer acceptance depending on the terms agreed with customer.

Revenue is disclosed at fair value of the consideration received or receivable, after deducting
any trade discounts, volume rebates and any taxes or duties collected on behalf of the
government such as goods and services tax(GST), etc. Accumulated experience is used to
estimate the provision for such discounts and rebates. Revenue is recognised to the extent
that it is highly probable that significant reversal will not occur.

(ii) Income from services

Revenue from services is recognised when sendees have been rendered and there is no
uncertainty regarding consideration and its ultimate collection.

(iii) Interest Income

Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate.

(iv) Rental Income

Revenue is respect of rental income is recognized on an accrual basis, in accordance with the
terms of the respective contract as and when the Company satisfies performance obligations
by delivering the services as per contractual agreed terms.

(i) Property, plant and equipment

Property, Plant and Equipment are stated at cost of acquisition or construction less
accumulated depreciation/ amortization and accumulated impairment losses, if any.

Cost includes purchase price, taxes and duties, labour cost and directly attributable overhead
expenditure for self-constructed assets incurred up to the date the asset is ready for its
intended use. Borrowing cost incurred for qualifying assets is capitalized up to the date the
asset is ready for intended use, based on borrowings incurred specifically for financing the
asset or the weighted average rate of all other borrowings, if no specific borrowings have been
incurred for the asset.

Cost also includes the cost of replacing parts of the plant and equipment, if the recognition
criteria are met. When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful lives.
Likewise, w-hen a major inspection is performed, its cost is recognised in the carrying amount
of the plant and equipment as a replacement if the recognition criteria are satisfied. All other
repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred.

The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at regular intervals and adjusted prospectively, if appropriate.

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
Statement of Profit and Loss when the asset is derecognised.

(ii) Depreciation

All tangible asset, except capital work in progress, are depreciated on a diminishing value
method. Depreciation is provided based on useful life of the asset as prescribed in schedule II
to the companies Act, 2013. Depreciation on additions/deletions from property, plant and
equipment made during the year is provided on pro- rata basis to extent of depreciable amount
on diminishing value method from/up to the date of such addition/deletion as the case may
be.

D) Intangible Assets

Intangible assets are non-physical Assets such as patent, license agreement, copyright,
software. Intangible Assets must be amortized over their useful life, if possible, sum assets,
such as Brand Name have indefinite life and cannot be capitalize or amortized, other intangible
assets such as license agreement have useful life determined in the license agreement, item
with a defined useful life must be amortized. Intangible assets purchased are measured at cost
or fair value as on the date of acquisition less accumulated amortisation and accumulated
impairment, if any.

Amortisation is provided on a diminishing value basis over estimated useful lives of the
intangible assets. The amortisation period for intangible assets with finite useful lives is
reviewed at least at each year-end. Changes in expected useful lives are treated as changes in
accounting estimate.

E) Impairment

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. An
impairment loss for an asset is reversed if, and only if, the reversal can be related objectively^^
to aire^nt occurring after the impairment loss was recognized. The carrying amount

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asset is increased to its revised recoverable amount, provided that this amount does not exceed
the carrying amount that would have been determined (net of any accumulated amortization
or depreciation) had no impairment loss been recognized for the asset in prior years.

F) Inventories

Raw material. Work in Progress and finished goods

Raw materials, Stores and Spare Parts and packing materials are valued at lower of cost and
net realisable value. Cost includes purchase price (excluding those subsequently recoverable
by the enterprise from the concerned revenue authorities), freight inwards and other
expenditure incurred in bringing such inventories to their present location and condition. In
determining the cost, the weighted average method is used.

Manufactured finished goods and work in progress are valued at the lower of cost and net
realisable value. The cost of manufactured finished goods comprises direct material, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter
being allocated on the basis of normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated cost of completion and the estimated costs necessary'' to make the sale.

Goods in transit

Goods in transit are stated at actual purchase cost.

G) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of
an asset that requires a substantial period to prepare for its intended use or sale are capitalised
as part of the asset''s cost.

Costs incurred in obtaining funds are amortized evenly over the period during which the funds
are utilised. All other borrowing costs are expensed in the fiscal year they are incurred.

H) Employee Benefits
Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Company has a present legal or
constructive obligation due to past employee service, estimable reliably.

Post-Employment Benefits

a. Defined Contribution Plans (ESIC/PF)

A defined contribution plan is a post-employment benefit plans where the Company pays fixed
coiitribution into a separate entity without further legal or constructive obligations.

Obligations for contributions to defined contribution plans arc expensed as the services are
provided. Prepaid contributions are recognised as an asset to the extent of potential refunds
or future payment reductions.

b. Defined Benefit Plans (Gratuity'')

Employees with continuous sendee exceeding 5 years are eligible for gratuity.

Company contributes the Premium to approved gratuity fund of Life Insurance Corporation
based on the present liability of future gratuity payments.

Accordingly, Plan asset are recognised in the Balance Sheet under ‘Other current assets’ and
liabilities under ‘Short/Long term provisions’.

According to AS 15, detailed actuarial valuation of defined benefit obligations’ present value is
conducted at intervals not exceeding three years. The company recently valued defined benefit
obligations from 1# April, 2022 to 31^st March, 2023.

Since the valuation date upto 31^st March, 2025 balance sheet date, no significant transactions
or changes (Including changes in interest rates) have occurred. Therefore, the provision of
gratuity as of 31^st March, 2025 is based on estimates.

I) Foreign Exchange Transactions

Foreign-currency denominated monetary assets and liabilities if any are translated at
exchange rates prevailing at the Balance Sheet date. The gains or losses resulting from the
transactions relating to purchase of current assets (e.g. Raw’ Materials) are included in the
Statement of Profit and Loss. Revenue, expense and cash-flow items denominated in foreign
currencies are translated using the exchange rate in effect on the transaction date.

J) Cash Flow Statement

Cash flows are reported using the indirect method in accordance with Accounting Standard
-3 (Cash Flow Statement), Under this method, net profit before tax is adjusted for non-cash
transactions as well as for any deferrals or accruals of past or future cash receipts or
payments. Additionally, it includes items of income or expenses associated with investing or
financing cash flows, ''flic cash flows from regular revenue generating activities (operating
activities), investing and financing activities of the Company are presented separately.

K) Taxes on Income

The Company''s income tax accounting follows Accounting Standard 22 (AS-22) ''Accounting
for Taxes on Income''. Income Tax provision includes both current tax, computed based on
taxable income as per the Income Tax Act, 1961, and deferred tax.

Deferred tax is recognized for all timing differences, between the taxable income and
accounting income that are capable of reversal subsequent periods, using substantively
enacted tax rates by the balance sheet.

Deferred tax assets and liabilities are reviewed at each balance sheet date, with adjustments
made accordingly.

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Mar 31, 2024

I. SIGNIFICANT ACCOUNTING POLICIES

A) BASIS OF PREPARATION OF FINANCIAL STATEMENT

The Financial Statements comprise financial statements of Saakshi Medtech and Panels Limited as at March 31, 2024 and the Statement of Profit and Loss and Statements of Cash Flow for the same period mentioned above and the annexure thereto (collectively, the “Financial Statements”) have been extracted by the management, approved by the respective Board of Directors.

These financial statements are prepared on a Going Concern Basis and 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 (‘the Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, and the relevant provisions of the Act. The accounting policies ^EjfgjSjf^the preparation of financial statements have been consistently applied. 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 Companies Act, 2013. Based on the nature of operations and time difference between the provision of services and realization of cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

B) Basis of Measurement

The Financial Statements have been prepared on accrual basis and under historical cost convention, except for certain financial assets and liabilities that are measured at fair value.

The financial statements have been prepared on a going concern basis. The accounting policies are applied consistently to all the period presented in the financial statements except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires change in accounting policy previously used.

The Functional and presentation currency of the company is Indian Rupees (“INR”) which is the currency of the primary economic environment in which the Company operates.

C) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amount of assets and liabilities as at the Balance sheet date, reported amount of revenue and expenses for the period and disclosures of contingent liabilities as at the Balance sheet date. The judgements, estimates and assumptions used in the accompanying financial statements are based upon the Management’s evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these judgements, estimates and assumptions. Estimates and underlying assumptions are reviewed on annual basis. Revisions to accounting estimates, if any, are recognised in the period in which the estimates are revised and in any future years affected.

Summary of Significant Accounting Policies

A) Revenue recognition

i) Sale of goods

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the customer and there are no longer any unfulfilled obligations. The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on the terms agreed with customer.

Revenue is disclosed at fair value of the consideration received or receivable, after deducting any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as goods and services tax(GST), etc. Accumulated experience is used to estimate the provision for such discounts and rebates. Revenue is recognised to the extent that it is highly probable that significant reversal will not occur,

(ii) Income from services

Revenue from sendees is recognised when sendees have been rendered and there is no uncertainty regarding consideration and its ultimate collection.

(iii) Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

B) Property, plant and equipments

Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation/ amortization and accumulated impairment losses, if any.

Cost includes purchase price, taxes and duties, labour cost and directly attributable overhead expenditure for self-constructed assets incurred up to the date the asset is ready for its intended use. Borrowing cost incurred for qualifying assets is capitalized up to the date the asset is ready for intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.

Cost also includes the cost of replacing parts of the plant and equipment, if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at regular intervals and adjusted prospectively, if appropriate.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.

C) Depreciation

All tangible asset, except capital work in progress, are depreciated on a diminishing value method. Depreciation is provided based on useful life of the asset as prescribed in schedule II to the companies Act, 2013. Depreciation on additions/deletions from property, plant and equipment made during the period is provided on pro- rata basis to extent of depreciable amount on diminishing value method from/up to the date of such addition/deletion as the case may be.

D) Intangible Assets

Intangible assets are non-physical Assets such as patent, license agreement, copyright, software. Intangible Assets must be amortized over their useful life, if possible, sum assets, such as Brand Name have indefinite life and cannot be capitalize or amortized, other intangible assets such as license agreement have useful life determined in the license agreement, item with a defined useful life must be amortized. Intangible assets purchased are measured at cost or fair value as on the date of acquisition less accumulated amortisation and accumulated impairment, if any.

Amortisation is provided on a diminishing value basis over estimated useful lives of the intangible assets. The amortisation period for intangible assets with finite useful lives is reviewed at least at each year-end. Changes in expected useful lives are treated as changes in accounting estimate.

E) Impairment

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. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

F) Inventories

Raw material. Work in Progress and finished goods

Raw materials, Stores and Spare Parts and packing materials are valued at lower of cost and net realisable value. Cost includes purchase price (excluding those subsequently recoverable by the enterprise from the concerned revenue authorities), freight inwards and other expenditure incurred in bringing such inventories to their present location and condition. In determining the cost, the weighted average method is used.

Manufactured finished goods and work in progress are valued at the lower of cost and net realisable value. The cost of manufactured finished goods comprises direct material, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary¹ to make the sale.

Traded Goods

Traded goods are valued at Lower of cost and net realisation values.

Goods in transit

Goods in transit are stated at actual purchase cost.

G) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of an asset that requires a substantial period to prepare for its intended use or sale are capitalised as part of the asset''s cost.

Costs incurred in obtaining funds are amortized evenly over the period during which the funds are utilised. All other borrowing costs are expensed in the fiscal year they are incurred.

H) Employee Benefits Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation due to past employee sendee, estimable reliably.

Post-Employment Benefits

a. Defined Contribution Plans (BSIC/PF)

A defined contribution plan is a post-employment benefit plans where the Company pays fixed contribution into a separate entity wdthout further legal or constructive obligations.

Obligations for contributions to defined contribution plans are expensed as the sendees are provided. Prepaid contributions are recognised as an asset to the extent of potential refunds or future payment reductions.

b. Defined Benefit Plans (Gratuity)

Employees with continuous service exceeding 5 years are eligible for gratuity.

Company contributes the Premium to approved gratuity fund of Life Insurance Corporation based on the present liability of future gratuity payments.

Accordingly, Plan asset are recognised in the Balance Sheet under ‘Other current assets’ and liabilities under ‘Short/Long term provisions’.

According to AS 15, detailed actuarial valuation of defined benefit obligations’ present value is conducted at intervals not exceeding three years. The company recently valued defined benefit obligations from 1^st April, 2022 to 31^st March, 2023.

Since the valuation date upto 31^st March, 2024 balance sheet date, no significant transactions or changes (Including changes in interest rates) have occurred. Therefore, the provision of gratuity as of 31^st March, 2024 is based on estimates.

I) Foreign Exchange Transactions

Foreign-currency denominated monetary assets and liabilities if any are translated at exchange rates prevailing at the Balance Sheet date. The gains or losses resulting from the transactions relating to purchase of current assets (e.g. Raw Materials) are included in the Statement of Profit and Loss. Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the transaction date.

J) Cash Flow Statement

Cash flows are reported using the indirect method in accordance with Accounting Standard -3 (Cash Flow Statement), Under this method, net profit before tax is adjusted for non cash transactions as well as for any deferrals or accruals of past or future cash receipts or payments. Additionally, it includes items of income or expenses associated with investing or financing cash flows. The cash flows from regular revenue generating activities (operating activities), investing and financing activities of the Company are presented separately.

K) Taxes on Income

The Company''s income tax accounting follows Accounting Standard 22 (AS-22) ''Accounting for Taxes on Income''. Income Tax provision includes both c urrent tax, computed based on taxable income as per the Income Tax Act, 1961, and deferred tax.

Deffered tax is recognized for all timing differences, between the taxable income and accounting income that are capable of reversal subsequent periods .using substantively enacted tax rates by the balance sheet.

Deferred tax assets and liabilities are reviewed at each balance sheet date, with adjustments made accordingly.