Notes to Accounts of Rajoo Engineers Ltd.

Mar 31, 2025

L Provision and Contingent Liabilities

Provisions are recognised only when:

(I) the company has a present obligation (legal or constructive) as a result of a past event; and

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of
time value of money is material, the carrying amount of the provision is the present value of those cash flows.

Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is
virtually certain that the reimbursement will be received."

"Contingent liability is disclosed in case of:

(i) A possible obligation arising from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity; or

(ii) A present obligation arising from past events where:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or

• the amount of the obligation cannot be measured with sufficient reliability.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received under such contract, the present obligation under the contract is recognised and
measured as a provision for onerous contract/foreseeable losses."

M Employee Benefits

A. Defined Benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at each balance sheet date. Remeasurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan
assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised
in other comprehensive income in the period in which they occur. Past service cost, both vested and
unvested, is recognised as an expense at the earlier of (a) when the plan amendment or curtailment occurs;
and (b) when the entity recognises related restructuring costs or termination benefits.

The retirement benefit obligations recognised in the balance sheet represents the present value of the
defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this
calculation is limited to the present value of available refunds and reductions in future contributions to the
scheme. The benefit plans in relation to gratuity and leave encashment are maintained separately and
hence shown separately in the balance sheet.

The Company provides benefits such as gratuity and leave encashment to its employees which are treated
as defined benefit plans.

Defined Contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered
services entitling them to such benefits. The Company provides Provident Fund to its employees which is
treated as defined contribution plans.

Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are
recognised in the period in which the employee renders the related service. A liability is recognised for the
amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.

B. Gratuity and Leave Encashment

The company pays gratuity to the employees whoever has completed five years of service with the
company at the time of resignation as per the payment of Gratuity Act, 1972.

The Gratuity plan provides for a lump sum payment to vested employees on retirement (subject to
completion of five years of continuous employment) death, disability or termination of employment that are
based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are
determined by Actuarial valuation on the reporting date and the Company makes annual contribution to
the gratuity fund administered by Life Insurance Companies under their respective Group Gratuity Scheme.

N Foreign Currencies Transactions and Translation

(i) Transactions in currencies other than the company''s functional currency are recorded on initial
recognition using the exchange rate at the transaction date or a rate that approximates with it at the
transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the closing
spot rate. Non- monetary items that are measured in terms of historical cost in foreign currency are not
translated. Exchange differences that arise on settlement of monetary items or on reporting of monetary
items at each Balance Sheet date at the closing spot rate are recognised in the Statement of Profit and Loss
in the period in which they arise except for:

A. exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, are included in the cost of those assets when such exchange differences are regarded as
an adjustment to finance costs on those foreign currency borrowings; and

B. exchange differences on transactions entered into to hedge certain foreign currency risks.

(ii) Exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on
payment or receipt of advance consideration is used for initial recognition of related asset, liability, expense
or income.

O Revenue Recognition

The company earns revenue primarily from supply of extrusion machines. The revenue is recognized on
transfer of the promised products to the customers and when the company is certain to realize the
consideration related to the product.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume
discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified
in the contract with the customer. Revenue also excludes taxes collected from customers.

The Company''s contracts with customers could include promises to transfer multiple products and services
to a customer. The Company assesses the products / services promised in a contract and identifies distinct
performance obligations in the contract. Identification of distinct performance obligation involves
judgement to determine the deliverables and the ability of the customer to benefit independently from
such deliverables.

Judgement is also required to determine the transaction price for the contract and to ascribe the
transaction price to each distinct performance obligation. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as volume discounts,

service level credits, performance bonuses, price concessions and incentives. The transaction price is also
adjusted for the effects of the time value of money if the contract includes a significant financing
component. Any consideration payable to the customer is adjusted to the transaction price unless it is a
payment for a distinct product or service from the customer. The estimated amount of variable
consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant
reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each
reporting period. The Company allocates the elements of variable considerations to all the performance
obligations of the contract unless there is observable evidence that they pertain to one or more distinct
performance obligations.

The Company exercises judgement in determining whether the performance obligation is satisfied at a
point in time or over a period of time. The Company considers indicators such as how customer consumes
benefits as services are rendered or who controls the asset as it is being created or existence of enforceable
right to payment for performance to date and alternate use of such product or service, transfer of significant
risks and rewards to the customer, acceptance of delivery by the customer, etc.

Contract fulfilment costs are generally expensed as incurred. In accordance with Ind AS 37, the Company
recognises an onerous contract provision when the unavoidable costs of meeting the obligations under a
contract exceed the economic benefits to be received. Contracts are subject to modification to account
for changes in contract specification and requirements. The Company reviews modification to contract in
conjunction with the original contract, basis which the transaction price could be allocated to a new
performance obligation, or transaction price of an existing obligation could undergo a change. In the event
transaction price is revised for existing obligation, a cumulative adjustment is accounted for.

P Other Income

Interest income from a financial asset is recognized using effective interest rate method and dividend
income is recognized when the reight to receive dividend is established.

Q Cost Recognition

Costs and expenses are recognized when incurred and have been classified according to their nature. The
costs of the company are broadly categorized in employee benefit expenses, cost of materials, changes in
inventories, depreciation and amortization expense and other expense.

R Income Taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability
during the year. Current and deferred taxes are recognised in statement of profit and loss, except when they
relate to items that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in equity,
respectively.

Current income Taxes

The current tax expense represents the tax payable by the company in relation to its global income for the
current year being a domestic company. Advance taxes and provisions for current income taxes are
presented in the balance sheet after off-setting advance tax paid and income tax provision as the
company intends to settle the asset and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and
liabilities are recognised for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and affects neither
accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax credits
and unused tax losses can be utilized.

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 tax assets and liabilities are measured using substantively
enacted tax rates expected to apply to taxable income in the years in which the temporary differences are
expected to be received or settled.

S Financial Instruments

(i) Financial Assets

a Initial Recognition and Measurment

All Financial Assets are initially recognised at fair value. Transaction costs that are directly attributable to the
acquisition or issue of Financial Assets, which are not at Fair Value Through Profit or Loss, are adjusted to the
fair value on initial recognition. Purchase and sale of Financial Assets are recognised using trade date
accounting.

b Subsequent Measurement

Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise
to cash flows on specified dates that represent solely payments of principal and interest on the principal
amount outstanding.

Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling Financial Assets and the contractual terms of the
Financial Asset give rise on specified dates to cash flows that represents solely payments of principal and
interest on the principal amount outstanding.

Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in any of the above categories are measured at FVTPL. Financial
assets are reclassified subsequent to their recognition, if the Company changes its business model for
managing those financial assets. Changes in business model are made and applied prospectively from the

reclassification date which is the first day of immediately next reporting period following the changes in
business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.

c Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in Subsidiaries, associates and joint venture at cost less
impairment loss (if any). The investments in preference shares with the right of surplus assets which are in
nature of equity in accordance with Ind AS 32 are treated as separate category of investment and
measured at FVTOCI.

d Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value
changes in ''Other Comprehensive Income''. However, dividend on such equity investments are recognised
in Statement of Profit and loss when the Company''s right to receive payment is established.

e Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating
impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL).
Expected Credit Losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over
the life of the financial instrument).

For Trade Receivables the Company applies ''simplified approach'' which requires expected lifetime losses
to be recognised from initial recognition of the receivables. The Company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward-looking estimates are analysed. For other assets,
the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in
credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(ii) Financial Liabilities

a Initial Recognition and Measurement

All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly attributable cost.
Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

b Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

(iii) Derecognition of Financial Instruments

The Company derecognises a Financial Asset when the contractual rights to the cash flows from the
Financial Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS
109. A Financial liability (or a part of a Financial liability) is derecognised from the Company''s Balance Sheet
when the obligation specified in the contract is discharged or cancelled or expires.

(iv) Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet
when, and only when, the Company has a legally enforceable right to set off the amount and it intends,
either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

T Non-current Assets Held for Sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through
a sale transaction rather than through continuing use and sale is considered highly probable. A sale is
considered as highly probable when decision has been made to sell, assets are available for immediate
sale in its present condition, assets are being actively marketed and sale has been agreed or is expected to
be concluded within 12 months of the date of classification. Non-current assets held for sale are neither
depreciated nor amortised. Assets and liabilities classified as held for sale are measured at the lower of their
carrying amount and fair value less cost of disposal and are presented separately in the Balance Sheet.

U Earning per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the year adjusted for bonus element in equity share. Diluted earnings per
share adjusts the figures used in determination of basic earnings per share to take into account the
conversion of all dilutive potential equity shares.

V Key sources of estimation

The preparation of standalone financial statements in conformity with Ind AS requires that the management
of the company makes estimates and assumptions that affect the reported amounts of income and
expenses of the period, the reported balances of assets and liabilities and the disclosures relating to
contingent liabilities as of the date of the standalone financial statements. The estimates and underlying
assumptions made by the management are explained under respective policies. Revisions to accounting
estimates include useful life of property, plant and equipment & intangible assets, allowance for expected
credit loss, future obligations in respect of retirement benefit plans, expected cost of completion of
contracts, provision for rectification costs, fair value/recoverable amount measurement, tax provisions etc.
Difference, if any, between the actual results and estimates is recognised in the period in which the results are
known.

For, Rushabh R Shah And Co. For, RAJOO ENGINEERS LIMITED

Chartered Accountants
(FRN: 156419W)

Rushabh Shah Utsav K. Doshi Khushboo C. Doshi

Proprietor Joint Managing Director Managing Director

M. No.: 607585 DIN: 00174486 DIN: 00025581

UDIN : 25607585BMKPLV1181

Date :24^th April, 2025 Date : 24^th April, 2025

Place : Rajkot Place : Shapar (Veraval)

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Mar 31, 2024

J Provision

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Provision for Decommissioning Liability

The Company records a provision for decommissioning costs towards site restoration activity. Decommissioning costs are provided at the present value of future expenditure using a current pre-tax rate expected to be incurred to fulfil decommissioning obligations and are recognised as part of the cost of the underlying assets. Any change in the present value of the expenditure, other than unwinding of discount on the provision, is reflected as adjustment to the provision and the corresponding asset. The change in the provision due to the unwinding of discount is recognised in the Statement of Profit and Loss.

K Contingent Liabilities

Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of amount cannot be made.

L Employee Benefits

Defined Benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Past service cost, both vested and unvested, is recognised as an expense at the earlier of (a) when the plan amendment or curtailment occurs; and (b) when the entity recognises related restructuring costs or termination benefits.

The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme. The benefit plans in relation to gratuity and leave encashment are maintained separately and hence shown separately in the balance sheet.

The Company provides benefits such as gratuity and leave encashment to its employees which are treated as defined benefit plans.

STANDALONE FINANCIAL STATEMENTS

Defined Contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such benefits. The Company provides Provident Fund to its employees which is treated as defined contribution plans.

Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognised in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

B. Gratuity and Leave Encashment

"The company pays gratuity to the employees whoever has completed five years of service with the company at the time of resignation as per the payment of Gratuity Act, 1972.

The Gratuity plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment) death, disability or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by Actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Life Insurance Companies under their respective Group Gratuity Scheme. The company has not obtained a report from the actuary, but reliance is placed on the reports generated by the Life Insurance Corporation.

M Foreign Currencies Transactions and Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalised as cost of assets.

Additionally, exchange gains or losses on foreign currency borrowings taken prior to April 1, 2016 which are related to the acquisition or construction of qualifying assets are adjusted in the carrying cost of such assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured.

The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehensive Income or Statement of Profit and Loss, respectively). In case of an asset, expense or income where a non-monetary advance is paid/received, the date of transaction is the date on which the advance was initially recognised. If there were multiple payments or receipts in advance, multiple dates of transactions are determined for each payment or receipt of advance consideration.

STANDALONE FINANCIAL STATEMENTS

N Revenue Recognition

The company earns revenue primarily from supply of extrusion machines. The revenue is recognized on transfer of the promised products to the customers and when the company is certain to realize the consideration related to the product.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.

The Company''s contracts with customers could include promises to transfer multiple products and services to a customer. The Company assesses the products / services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves judgement to determine the deliverables and the ability of the customer to benefit independently from such deliverables.

Judgement is also required to determine the transaction price for the contract and to ascribe the transaction price to each distinct performance obligation. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as volume discounts, service level credits, performance bonuses, price concessions and incentives. The transaction price is also adjusted for the effects of the time value of money if the contract includes a significant financing component. Any consideration payable to the customer is adjusted to the transaction price unless it is a payment for a distinct product or service from the customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each reporting period. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they pertain to one or more distinct performance obligations.

The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.

"Contract fulfilment costs are generally expensed as incurred. In accordance with Ind AS 37, the Company recognises an onerous contract provision when the unavoidable costs of meeting the obligations under a contract exceed the economic benefits to be received. Contracts are subject to modification to account for changes in contract specification and requirements. The Company reviews modification to contract in conjunction with the original contract, basis which the transaction price could be allocated to a new performance obligation, or transaction price of an existing obligation could undergo a change. In the event transaction price is revised for existing obligation, a cumulative adjustment is accounted for.

O Other Income

Interest income from a financial asset is recognized using effective interest rate method and dividend income is recognized when the reight to receive dividend is established.

P Cost Recognition

Costs and expenses are recognized when incurred and have been classified according to their nature. The

STANDALONE FINANCIAL STATEMENTS

costs of the company are broadly categorized in employee benefit expenses, cost of materials, changes in inventories, depreciation and amortization expense and other expense.

Q Income Taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.

Current income Taxes

The current tax expense represents the tax payable by the company in relation to its global income for the current year being a domestic company. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision as the company intends to settle the asset and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized.

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 tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

R Financial Instruments

(i) Financial Assets

A Initial Recognition and Measurement

All Financial Assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of Financial Assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial recognition. Purchase and sale of Financial Assets are recognised using trade date accounting.

STANDALONE FINANCIAL STATEMENTS

B Subsequent Measurement

(a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise to cash flows on specified dates that represent solely payments of principal and interest on the principal amount outstanding.

(b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the principal amount outstanding.

(c ) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in any of the above categories are measured at FVTPL. Financial assets are reclassified subsequent to their recognition, if the Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.

C Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in Subsidiaries, associates and joint venture at cost less impairment loss (if any). The investments in preference shares with the right of surplus assets which are in nature of equity in accordance with Ind AS 32 are treated as separate category of investment and measured at FVTOCI.

D Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''. However, dividend on such equity investments are recognised in Statement of Profit and loss when the Company''s right to receive payment is established.

E Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL). Expected Credit Losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

STANDALONE FINANCIAL STATEMENTS

For Trade Receivables the Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed. For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(ii) Financial Liabilities

A Initial Recognition and Measurement

All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(iii) Derecognition of Financial Instruments

The Company derecognises a Financial Asset when the contractual rights to the cash flows from the Financial Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A Financial liability (or a part of a Financial liability) is derecognised from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

(iv) Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

S Non-current Assets Held for Sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and sale is considered highly probable. A sale is considered as highly probable when decision has been made to sell, assets are available for immediate sale in its present condition, assets are being actively marketed and sale has been agreed or is expected to be concluded within 12 months of the date of classification. Non-current assets held for sale are neither depreciated nor amortised. Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and fair value less cost of disposal and are presented separately in the Balance Sheet.

T Earning per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year adjusted for bonus element in equity share. Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of all dilutive potential equity shares.

For, Rushabh R Shah And Co. For, RAJOO ENGINEERS LIMITED

Chartered Accountants

(FRN: 156419W) Utsav K. Doshi Khushboo C. Doshi

Joint Managing Director Managing Director

Rushabh Shah DIN: 00174486 DIN: 00025581

Proprietor

_M. _No._{: 607585} Prakash Daga Rohit Sojitra

UDIN: 24607585BKDFMM5444 ^{Chief Financial Officer} Company Secretary

PAN: ADSPP7140D M No.: A53623

Date : 15^th April, 2024 Date : 15^th April, 2024

Place : Rajkot Place : Shapar (Veraval)

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Mar 31, 2023

The Company''s objective for capital management is to maximize shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.

II. Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Re. 1 each. Each shareholder is eligible for one vote per share held and carry a right to dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

28 Financial Instrument Valuation

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a. The fair value of investment in quoted Equity Shares is measured at quoted price or NAV.

b. All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,

either directly or indirectly

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that are derived directly from its operations.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments, and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at reporting date. The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item and equity is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31,2023 and March 31,2022.

Foreign Currency Risk

The following table shows foreign currency exposures in USD and EURO on financial instruments at the end of the reporting period. The exposure to foreign currency for all other currencies are not material.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from company''s activities in investments, dealing in derivatives and outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to customers on credit are generally secured through Letters of Credit and advance payments.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

30 Corporate Social Responsibility (CSR)

CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs. 24,43,050 (Previous Year Rs. 17,16,000)

Expenditure related to Corporate Social Responsibility is Rs. 25,58,640 (Previous Year Rs. 25,65,000).

Variance Justification

1. Debt Equity Ratio - There is rise in this ratio on account of rise in overall debt during current year

2. Debt Service Coverage Ratio - There is rise in this ratio on account of increase in cash flows for service of debt

3. Return on Equity Ratio - There is fall in this ratio due to fall in net profit during the year

4. Trade Receivable Turnover Ratio - There is fall in this ratio due to fall in turnover during the year

5. Net capital Turnover Ratio - There is fall in this ratio due to fall in turnover during the year

6. Net Profit Ratio - There is fall in this ratio due to lower profit for the current year

7. Return on Capital Employed - There is fall in this ratio due to reduction in profit for the current year B. Additional Regulatory Information

"1. The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs or the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, repayable on demand or without specifying any terms or period of repayment.

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

3. The Company is not declared willful defaulter by any bank or financials institution or lender during the year.

4. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

5. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

6. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

7. There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

8. 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.

9. 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.

10. 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).

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

12. As per the information and explanation given to us, the records examined by us and based on the examination of the conveyance deeds/ registered sale deed provided to us We report that the title deeds comprising all the Immovable Properties of building which are freehold and are held in the name of the Company as at the Balance Sheet date.

13. The Company has not revalued its Property, Plant and Equipments during the year.

14. The Company does not have any Intangible Assets under development as at the Balance Sheet Date.

15. The company has borrowings from banks or financial institutions on the basis of security of current assets and quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts.

16. The Previous period figures have been re-grouped/ re-classified wherever required to confirm to current year classification.

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Mar 31, 2018

A Corporate Information

Rajoo Engineers Ltd. (The Company) is a public limited Company incorporated in India. The Companys shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipment. The company caters to both domestic and international markets.

B Critical Accounting Judgements and Key Sources of Estimation Uncertainty

B.l Useful lives and residual values of property, plant and equipment

Property, plant and equipment represent a material portion of the Companys asset base. The periodic charge of depreciation is derived after estimating useful life of an asset and expected residual value at the end of its useful life. The useful lives and residual values of assets are estimated bythe management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on various external and internal factors including historical experience, relative efficiency and operating costs and change in technology.

B.2 Incometaxes

The Companys tax jurisdiction is India. Significant judgments are involved in determining the provision for income taxes including amounts to be recovered or paid for uncertain tax positions. Management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits.

B.3 Defined benefit obligations

Defined benefit obligations are measured at fair value for financial reporting purposes. Fair value determined by actuary is based on actuarial assumptions. Management judgement is required to determine such actuarial assumptions. Such assumptions are reviewed annually using the best information available with the Management.

B.4 Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystalizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

C FirstTimeAdoption of IND AS

The Company has adopted Ind AS with effect from 1st April 2016 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2015. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

C.l Exemptions from retrospective application

C.1.1 Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business Combinations” to business combinations consummated prior to April 1,2015 (the “Transition Date”), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAR The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated priortotheTransition Date.

C.l. 2 Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date.

C.1.3 Investments in subsidiaries, joint ventures and associates

The Company has elected to measure investment in joint venture at cost.

C.1.4 Classification and measurement of Financial Assets

The Company has classified and measured the financial assets on the basis of facts and circumstances that exist at the date of transition to Ind As.

The Remaining mandatory exceptions either do not apply or are not relevant to the company.

1.1 Deposits held with banks to the extent Rs. 3666890 held as margin money

1.2 Deposits held with banks Rs. 87359873 with maturity more than 3 Months but less than 12 Months

2.1 Terms/rights attached to Equity Shares

- The Company has only one class of issued Equity Shares having a par value of Rs. 1 per share. Each shareholder is eligible for one vote per share held.

- In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the company after distribution of all preferential amounts, in proportion of their shareholding.

2.2 In the Period of five years immediately preceding 31st March, 2018

The Company has not issued Bonus shares and bought back any equity shares during the period of five years immediately preceding the Balance sheet date. However, the Company has allotted 21318000 equity shares for consideration other than cash pursuant to the scheme of amalgamation during F.Y. 2013-14

2.3 Proposed Dividend

The Board of Director have recommended the payment of Dividend of Rs. 0.25 per fully paid up equity shares (31St March, 2017 Rs. 0.25 Per share). The proposed Dividend is subject to the approval of shares holders in the ensuing Annual General Meeting.

Note :

(Secured against pari pasu charge over entire movable fixed Assets by way of hypothecation and equitable mortgage of Factory Land & Building at Manavadar and Veraval (Shapar), Rajkot and also extention of hypothecation of current assets both present and future)

Note :

(Secured against pari pasu charge over entire Current Assets, both present and future, secured by way of hypothecation and equitable mortgage of Factory Land & Building at Manavadar and Veraval (Shapar), Rajkot. Further, Secured by way of hypothecation of plant & machinery of the Company both present and future.)

3. DISCLOSURE PURSUANT TO IND AS-19 “EMPLOYEE BENEFITS”

Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes

4. CORPORATE SOCIAL RESPONSIBILITY (CSR)

a. CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with ScheduleVII thereof bythe Company during the year is Rs. 1632614 (Previous Year Rs. 1326727)

b. Expenditure related to Corporate Social Responsibility is Rs. 1622706 (Previous Year Rs. 1205665).

c. Details of Amount spent towards CSR given below:

5. RELATED PARTIES DISCLOSURES

As per Ind AS 24, the disclosures of transactions with the related parties are given below:

a. List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

6. FINANCIAL INSTRUMENTS Valuation

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a. The fair value of investment in quoted Equity Shares is measured at quoted price or NAV.

b. All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date. funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior Management. Management monitors the Companys net liquidity position through rolling forecasts on the basis of expected cash flows.

Financing arrangements

The Company had access to following Financing arrangement facilities at end of reporting period:

Commodity Price Risk

Since the companies product is tailor maid and capital goods industries, such risk is not anticipated.

7. As per Ind AS 108- “Operating Segment”, segment information has been provided under the Notes to Consolidated Financial Statements.

8. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of 0.25 per fully paid up equity share of Re. 1/- each, aggregating to Rs.18544644, including Rs.3161956 dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on March 31,2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

9. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on May 27,2018.

9A. The Previous period figures have been re-grouped/ re-classified wherever required to confirm to current year classification.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities: and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Foreign Currency Risk

The following table shows foreign currency exposures in USD and EURO on financial instruments at the end of the reporting period. The exposure to foreign currencyfor all other currencies are not material.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from companys activities in investments, dealing in derivatives and outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to customers on credit are generally secured through Letters of Credit and advance payments.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Companys treasury department is responsible for liquidity,

- Fair valuation for Financial Assets:

The Company has valued financial assets (other than Investment in subsidiaries, associate and joint ventures which are accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognized in opening reserves and changes thereafter are recognized in Statement of Profit and Loss or Other Comprehensive Income, as the case may be.

- Deferred Tax

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.

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Mar 31, 2016

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). 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, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. The Method of Accounting, Significant Accounting Policies and Compliance with various Applicable Accounting Standards are displayed below:-

4. Disclosure of Accounting Policies:

(i) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring adjustment to carrying amounts of assets or liabilities in future periods. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

4. Inventories:

Items of inventories are measured at lower of cost or net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present condition and location. Cost of Raw Material including components, Testing Materials, Scrap and consumable stores are determined on FIFO basis.

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

5. Depreciation:

Depreciation on tangible assets and intangible assets is provided on the straight line method over the useful lives of assets prescribed under Part C of Schedule II of the Companies Act, 2013.

6. Revenue Recognition:

In appropriate circumstances, Revenue income is recognized when no significant uncertainty as to determination or realization exists. Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

7. Fixed Assets:

Tangible fixed assets are stated at cost net of recoverable taxes less accumulated depreciation.

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated depreciation.

8. Foreign Currency Transactions:

(i) Transactions dominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

(ii) Monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contracts.

(iii) In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transactions. Branch monetary assets and liabilities are restated at the yearend rates.

(iv) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the profit or loss account.

9. Retirement Benefit:

i) Provident fund:

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

ii) Gratuity:

The company has established the employees Group Gratuity-Cum-Life Assurance Scheme with Life Insurance Corporation of India through employees trust. The cost of providing benefit under the scheme are determined on the basis of actuarial valuation at each year end and contribution for the year is charged to the statement of profit and loss for the year.

iii) Leave Encashment:

The company measures the expected cost that it expects to pay as a result of unused entitlement that has accumulated at the reporting date and the earned leave amount for the current reporting period is charged to the statement of profit and loss for the year. The company presents the entire leave as current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

10. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of assets are capitalized as part of cost of such assets. All other borrowing costs are charged to revenue.

11. Related Parties Disclosures:

As required by Accounting Standard (AS) - 18 "Related Party Disclosures" is made as under:

(i) List of related parties where control exits and related parties with whom transactions have taken place and relationship. Names of the related party and description of relationship with whom there were transactions during the year.

3.10 Lease:

During the year, Land and Building of Unit - V, Fabrication Division of the Company at Veraval (Shapar), Rajkot is Leased to M/s. Shruti Engineer for a monthly rent of Rs. 37500/-.

12. Provision for Current and Deferred Tax:

Provision for Current tax is based on the assessable income under the provisions of the Income-tax Act, 1961.

Deferred tax is recognized on timing difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. Deferred tax resulting from "timing differences" is accounted for using tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable / virtual certainty that the asset will be realized in future.

13 Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to statement of profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

14. Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are not recognized but are disclosed as under.

Contingent assets are neither recognized nor disclosed in the Financial Statements.

15. Segment Reporting:

As the company''s business activity falls within a single business segment viz. Plastic Processing Machineries and post extrusion equipments, the disclosure requirements of Accounting standard (AS) 17 "Segment reporting" issued by the Institute of Chartered Accountants of India is not applicable.

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Mar 31, 2015

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). 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, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. The Method of Accounting, Significant Accounting Policies and Compliance with various Applicable Accounting Standards are displayed below:-

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Mar 31, 2013

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the accounting standards notified under the companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the companies Act,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

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Mar 31, 2012

1. Corporate Information

Rajoo Engineers Ltd. (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company's shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipments. The company caters to both domestic and international markets.

2. Basis of Preparations of Financial Statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in Indian (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the accounting standards notified under the companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the companies Act,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

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Mar 31, 2011

1. The previous year's figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

2. In the opinion of the Board of Directors, the current assets and loans & advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. In due compliance of the Companies (Particulars of Employees) Amendment Rules, 2011 vide notification No. 2/29/1998-CLV dated 31.03.2011 issued by Ministry of Corporate Affairs, Government of India, we hereby state that there are no employees who were employed through out the year at a remuneration aggregating to at least Rs.60,00,000/- per annum or who were employed for a part of the year at a remuneration at least Rs.5,00,000/- per month.

4. The company has followed applicable accounting standards as prescribed under section 211 (3C) of the Companies Act, 1956 in the preparation of annual accounts of the year and there is no material departure from the accounting standards statutorily prescribed under the Companies Act.

5. The company has made adequate provisions for gratuity, leave encashment and ESIC in the books of accounts as per accounting standards (AS) -15.

6. Amount of borrowing costs capitalized as per Accounting Standard (AS) -16 during the year was Rs.Nil (Previous year Rs.Nil).

7. The company has complied with Accounting Standard (AS)-19 relating to Accounting for Leases during the year.

8. As the company's business activity falls within a single business segments viz. Plastic Processing Machineries and post extrusion equipments and as Nashik Unit do not affect predominantly risk and return of the enterprise on account of substantially lower turnover of Nashik Unit in relation to total turnover of the enterprise, the disclosure requirements of Accounting standard (AS) 17 "Segment reporting" issued by the Institute of Chartered Accountants of India is not applicable.

9. The Board of Directors, Members, Creditors and BSE have approved/Consented for scheme of merger of Hitesh Engineers Pvt. Ltd., Shruti Engineers Pvt. Ltd. and Vishwakarma Fabricators Pvt. Ltd. (Transferor Companies) with Rajoo Engineers Ltd. (Transferee Company) and petitions filed before Hon'ble High Court of Gujarat are pending for approval.

10. The Company has acquired on lease Factory of Wonderpack Industries Private Limited at Nashik (Maharashtra) w.e.f. 21.09.2010 and commenced operation of manufacturing Plastic Processing Machineries.

11. The company has transferred all movable assets of Manavadar Unit to Rajkot Shapar (veraval) Unit as on 01.04.2010 anddiscontinued the manufacturing operations of Manavadar Unit.

b) Names of the related party and description of relationship with whom there were transactions during the year.

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Mar 31, 2010

1. The previous years figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

2. During the year, the company has changed the method of accounting for purchase and sales. Earlier, the company was accounting purchase including Central Excise Duty and Central Sales Tax and sales were accounted including Central Excise Duty, During the current financial year, purchases are accounted excluding Central Excise Duty and Central Sales Tax and Sales is accounted excluding Central Excise Duty and Central Sales Tax.

3. In the opinion of the Board of Directors, the current assets and loans & advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4. The company has followed applicable accounting standards as prescribed under section 211 (3C) of the Companies Act, 1956 in the preparation of annual accounts of the year and there is no material departure from the accounting standards statutorily prescribed under the Companies Act.

5. The company has made adequate provisions for gratuity and leave encashment in the books of accounts as per accounting standards (AS)-15.

6. Amount of borrowing costs capitalized as per Accounting Standard (AS) -1 during the year was Rs. Nil (Previous year Rs. Nil),

7. There are no lease transactions during the year.

8. As the companys business activity falls within a single business segments viz. Plastic Processing Machineries and post extrusion equipments, the disclosure requirements of Accounting standard (AS) 17 "Segment reporting" issued by the Institute of Chartered Accountants of India is not applicable,

9. As required by Accounting Standard (AS)-18 "Related Party Disclosures" is made as under:

a) Name of the related party and description of relationship with whom there were no transactions during the year - REL International Pvt. Ltd. - Associate Concern Names of the related party and description of relationship with whom there were transactions during the year.

Sr. no. Name Designation Relationship

1 C. N. Doshi Chairman Key Management Personnel

2 R. N. Doshi Managing Director Key Management Personnel

3 J. R Aghera Whole Time Director Key Management Personnel

4 K. R Aghera Whole Time director Key Management Personnel

5 Sunil B Jain International Operations Key Management Personnel

6 Rajoo Cotex Limited Associate Concern

7 REL Finance Pvt. Ltd. Associate Concern



Note

(1) The disputed liabilities for A. Y. 2003-04 & 2004-05 is on accouni of DEPB income not considered for deduction u/s. 80 HHC Of I.T. Act, 1961.

B. Other Contingent Liabilities

As per Information and Explanation provided by the management, there is no Contingent liabilities

ii. Installed Capacity:

In view of considerable number of items, having diverse nature, it is not possible to determine the installed capacity.

Note: Installed capacity is as certified by the Management.

10. Quantitative information in respect of Opening Stock, Purchase, Sales, Closing Stock and Raw Material Consumed.

Note: As the raw material consists of large number of items having diverse nature of measurement, it is not possible to submit the quantitative information of raw material.