10. Provisions, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is
a present obligation as a result of past events and it is probable that there will be an outflow of
resources. Contingent liabilities are not recognised in the books of accounts but are disclosed in the
Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statement.

11. Impairment of Assets

An Assets is treated as impaired when the carrying amount of assets exceeds its recoverable value.
An impairment loss is charged for when an asset is identified as impaired.

12. Foreign Currency Transaction

Foreign currency transactions during the year were recorded at the rate of exchange prevailing on
the date of transaction. Foreign currency assets and liabilities, other than those related to fixed
assets was revalued at the close of year on the basis of exchange rate prevailing on that date and
exchange difference arising there from were charged to the profit & loss account. Exchange
differences in respect of liabilities incurred to acquire fixed assets are adjusted to the carrying
amount of such assets. (as per Para 46 of AS - 11).

13. Taxes on Income

Tax expenses comprises of current and deferred tax.

a. Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted. At the reporting dates. Current
income tax relating to items recognised directly in the statement of profit & loss. Management
periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

b. Deferred Tax

Deferred tax is provided on temporary difference between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purpose at the reporting date.

Deferred Tax assets are recognised for all deductible temporary difference, the carry
forwards of unused tax credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary difference, and the carry forward of unused tax credits and unused
tax losses can be utilized.

The carrying amount of deferred tax assets are 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 tax assets to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are measured based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.

14. Borrowing Cost

Borrowing costs that are allocated to the acquisition or construction of qualified assets are
capitalized as part of cost of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other borrowing costs are charges to
revenue.

15. Earnings per share

Basic earnings per share are computed in accordance with Accounting Standards - 20, Earning per
Share. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares outstanding during the period is
adjusted for events of bonus issue, bonus element in a right issue to existing shareholders,
share split and consideration of share, if any.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the
period are adjusted for the effect of all dilutive potential equity shares.

16. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand
and short-term deposits, which are subject to an insignificant risk of changes in value.

17. Governments Grants

Grants and subsidies from the Government are recognized when there is reasonable assurance that
the grant/subsidy are received and all attached conditions will be complied with. Grant related
to specific fixed assets are presented in the Balance Sheet by showing such grants as deduction from
the fixed assets concerned.

The grant that is received as a compensation for expenses or losses incurred or for the purpose of
giving immediate financial support, shall be recognized as income of the period in which it is
received.

a. Terms / Rights attached to equity shares

The Company has only one class of equity shares having a par value of- Rs.10/- per share. Each holder
of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian
rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General meeting. In the event of liquidation of company, the
holders of equity shares will be entitled to receive remaining assets of the company, after distribution
of all preferential amounts. The distribution will be in the proportion to the number of equity shares
held by the shareholders.

e. Segmental Reporting

1) Based on guiding principles given in the Accounting Standard on Segment Reporting (AS-17) issued
by the "The Institute of Chartered Accountants of India', the Company has chosen Manufacturing of
Components as its primary segments.

Revenue, Expenses, Assets & Liabilities directly attributable to segment is reported under each
reportable segment.

Revenue from other business activity is not more than 10% of total revenue so the accounting standard
for segment reporting is not applicable during the audit.

2) There is no secondary segment.
f. Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

g) Excess funds available to the company has been given as short term loans and advances to generate
higher returns.

h) Company has not borrowed fund from banks or financial institutions on the basis of security of
current assets, hence disclosure relating to quarterly statement of current assets filed by the
company with the bank or financial Institutions is not applicable.

i) Since the company is listed on the SME platform, it is exempted from preparing its financial statements

as per the Indian Accounting Standards (lndAS).

J) Certain Sundry Debtors are subject to confirmation and reconciliation. However, in view of the
management the adjustments, if any, arising out of the reconciliation will not be materials and hence,
no provisions is considered necessary.

k) Corporate Social Responsibility (CSR) is not applicable to the company as per provision of Section -
135 of the Companies Act, 2013.

l) GST liabilities for the year have been taken as per books of accounts. Change in liability, if any, after
audit under the provisions of GST Laws be accounted for in the year in which the audit is completed.
In the opinion of the management/assessee there will be no significant change in the liability and will
not impact significantly the profitability or the financial position of the company/ assessee.

m) the Company has paid/provided for managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.