Accounting Policies of Universal Autofoundry Ltd. Company

Mar 31, 2025

2. Statement of Compliance and Basis of Preparation

2.1 Statement of Compliance and Basis of Preparation

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) under the historical cost
convention on accrual basis except for certain financial instruments which are measured at fairvalues, the provisions of the
Companies Act, 2013 (''''the Act'''') and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are
prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter.

Accounting policies have been consistently applied exceptwhere a newlyissued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The material
accounting policy information used in preparation of the audited condensed standalone interim financial statements have
been discussed in the respective notes.

As the year-to-date figures are taken from the source and rounded to the nearest digits, the figures reported for the
previous quarters might not always add up to the year-to-date figures reported in this statement.

The financial statements are presented in INR and all values are rounded to the nearest lakhs except when otherwise
indicated.

These IndAS financial statements have been approved bythe board of directors on 15.05.2025.

2.2 Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company''s functional currency. All amounts
disclosed in the Financial Statements and notes have been rounded off to the nearest lakhs (with two places of decimal) as
per the requirement of Schedule III, unless otherwise stated

2.3 Currentv/s Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is
treated as currentwhenitis: -

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realisedwithin twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period

All other assets are classified as non-current.

Aliabilityis currentwhen:

• It is expected to be settled in normal operating cycle

• It is held primarily forthe purpose of trading

• It is due to be settledwithin twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

2.4 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the

financial statements and reported amounts of revenues and expenses during the period. The application of accounting
policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions
in these financial statements have been disclosed in Note no. 2.4. Accounting estimates could change from period to
period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management
becomes aware of changes in circumstances surrounding the estimates. Changes in estimates and judgements are
reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in
the notes to the standalone financial statements.

3. MaterialAccounting Policies

A summary of the material accounting policies applied in the preparation of the financial statements are as given below.
These accounting policies have been applied consistently to all periods presented in the financial statements, unless
otherwise stated below.

3.1 Property, Plant and Equipment

3.1.1. Initial recognition and measurement

An item of property, plant and equipment''s recognized as an asset if and only if it is probable that future economic benefits
associatedwith the itemwill flowto the company and the cost of the item can be measured reliably.

Items of property, plant and equipment are initially recognized at cost. Subsequent measurement is done at cost less
accumulated depreciation/amortization (other than freehold land) and accumulated impairment losses. Cost includes
expenditure that is directly attributable to bringing the asset to the location and condition, inclusive of non-refundable
taxes & duties, necessary forit to be capable of operating in the manner intended by management.

When parts of an item of property, plant and equipment have different useful lives, they are recognized separately.

Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and
equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on
consumption.

3.1.2. Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future
economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured
reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Company and its cost can be
measured reliably. All other expenses on existing property, plant and equipment, including day-to- day repair and
maintenance expenditure and cost of replacing parts, are charged to profit and loss account for the period in which such
expense are incurred.

3.1.3. De-recognition

Property, plant and equipment is derecognized when no future economic benefits are expected from their use or upon
their disposal. Gains and losses on de-recognition of an item of property, plant and equipment are determined by
comparing the proceeds from disposal, if any, with the carrying amount of property, plant and equipment, and are
recognized in the statement of profit and loss.

3.1.4. Depreciation/amortization

Depreciation is recognised so as to amortise the cost of assets (other than freehold land and properties under construction)
less their residual values over their useful lives, using the written downvalue method.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in profit orloss.

The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each
financialyear end and adjusted prospectively, if appropriate.

3.2. Capitalwork-in-progress

The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable to
bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by
management and borrowing costs.

Expenses directly attributable to construction of property, plant and equipment incurred till they are ready for their
intended use are identified and allocated on a systematic basis on the cost of related assets.

Expenses such as salary, wages, rent etc. directly related to non-commercialized project is transferred to pre-operative
expenses under capital work in progress.

Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is
ready for its intended use.

Solar Project underwork in progress:

Project Overview

Solar project situated at Khasra No. 1277/2, Meen Bangarsar, Tehsil- Gajner, Bazzu, Bikaner, Rajasthan under development.
Detail of the project are as under:

5.0 MW Solar PV Power Plant Project Under Rajasthan Renewable Energy Policy, 2023 for the solar power project aims to
generate electricity using solar panels, reducing reliance on fossil fuels and lowering carbon emissions.

The projects for various captive consumers are being developed by Cosine Power Private Limited and the power shall be
evacuated though common transmission line from pooling station to 132 /33 KVGSS of RVPNL underground transmission
line to evacuate the power from common pooling point to Bay at GSS and all the project activities shall be carried by our
developer Cosine Power Private Limited.

Cost of Project

Capital Expenditure (CapEx): The Total Cost of Project is 1860 lakh for Initial investment in solar panels, land and building,
inverters, furniture, and other equipment. Financing Costs: Company Own Source of Fund- 20% and Bank Finance-80%

The Project financed by the HDFC Bank. HDFC Bank financed to the project amount of Rs.1440 lakh at interest cost of 8.50%
p.a. for 84 months repayment tenure.

3.3. Intangible assets

3.3.1. Initial recognition and measurement

An intangible asset is recognized if and only if it is probable that the expected future economic benefits that are attributable
to the assetwill flow to the company and the cost of the asset can be measured reliably.

Intangible assets that are acquired by the Company, which have finite useful lives, are recognized at cost. Subsequent

measurement is done at cost less accumulated amortization and accumulated impairment losses. Cost includes any
directly attributable incidental expenses necessary to make the assets ready for its intended use.

3.3.2. Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future
economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured
reliably.

3.3.3 De-recognition

An intangible asset is derecognized when no future economic benefits are expected from their use or upon their disposal.
Gains & losses on de-recognition of an item of intangible assets are determined by comparing the proceeds from disposal,
if any, with the carrying amount of intangible assets and are recognized in the statement of profit and loss.

3.3.4.Amortization

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses.Amortisation is recognised on awritten downvalue basis overtheir estimated useful lives.
The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis. Cost of computer software capitalised is amortised over its
useful life which is estimated to be a period of three years.

3.4Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are
capitalized as part of cost of such asset until such time the assets are substantially ready for their intended use. Qualifying
assets are assets which necessarily take substantial period of time to get ready for their intended use orsale.

Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for
their intended uses are complete. Borrowing costs consist of (a) interest expense (b) finance charges and (c) exchange
differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is deducted
from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized as an expense in the year in which they are incurred.

3.5 Inventories

Raw materials, stores, work-in-progress and finished goods are stated at the lower of cost and net realizable value. Cost of
raw materials and stores comprises cost of purchases and other costs incurred in bringing the inventories to their present
location and condition. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an
appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal
operating capacity.

Costs of inventories also include all other costs incurred in bringing the inventories to their present location and condition.
Inventories are valued on the basis of FIFO method. Costs of purchased inventory are determined after deducting rebates
and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion and the estimated costs necessaryto make the sale.

3.6 Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes invalue.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash
management.

3.7 Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic
basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to
an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Company receives grants of nonmonetary assets, the asset and the grant are recorded at fair value amounts and
released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e.
by equal annual instalments.

Government grants such as sales tax incentive, export benefit schemes are recognized in the statement of Profit and Loss as
a part of other operating revenues whereas grants related to power incentives and interest subsidies are netted of from the

related expense.

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Mar 31, 2018

NOTE-1

SIGNIFiCANT ACCOUNTING POLICIES

A Corporate Information

Universal Autofoundry Limited (Formally Known as Universaf AutoFoundry Private Limited) incorporated under Companies Act, 1956. is carrying out business of Manufacturingj of C.I. Castings.

B Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance withi the Generally Accepted Accounting Principles in India (Indian GAAP) 10 comply with the Accounting Standards specified under Section 133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules. 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act}. The financial statements have been prepared on accrual basis under the historical cosl convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

C Use of Estimates

The preparation of the financial statements In conformity with Indian GAAP requires ma Management to make estimates arm assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Managemenl believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual resulls and the estimates are recognised: in the periods in which the results are known/materialise.

Raw Material. Consumables. Racking Material & Repair & Maintenance Parts are valued at Cost or NRV whichever is lower. WIP has been valued at Sale Price less estimated margin and cost to be incurred for the completion Cost of inventories comprises all costs of purchases, cost of conversion and other cosls incurred in bringing the inventories to their present location and condition, valuation of the Inventories has been certlfied by the management.

E Cash Flow Statement (AS-3)

Cash flows are raponed using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipls or payments. The cash flows from operating. investing and financing activities of the Company are segregated based on the available information. Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original) maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subjectl to insignificant risk at changes in value.

F Fixed Assets (Tangible & Intangible) (AS-10)

Fixed assets are carried on Cost less accumulaled depreciation. The cost of fixed assets includes purchase price, taxes, duties, freight and other Incidental expenses related to the acquisition or installation of respective assets. Borrowing costs directly attrlbutable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. All other expenses on existing fixed assets, including day-today repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred- Gains or Losses arising from de-recognition of fixed assels are measured as the difference between net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized. Capital Work in Progress

Prefect under which assets are not ready lor their independent use and other capital work in progress are carried at cost, comprising direct cost and related incidental expenses.

G Depreciation and amortization (AS-6)

The Depreciation on fixed assets rs provided using Written Down Value Method over the useful life of the assets as prescribed in Schedule II to the Companies Act. 2013.

H Revenue Recognition (AS-9 & AS-4)

Sale and operating income include Sale of products, income From job work services, export incentives and other income etc.Sale of goods are recognised, net of returns, and trade discounts, on transfer of significant risks and rewards of ownership to the buyer. Excise Duty deducted from turnover (gross) are the amount that is is included in the amount of turnover (gross} and not the entire amount of liability accruing during the year. The Company collects Sates Tax and VAT on behalf of Government and therefore, these are not economic; benefits flowing to the Company. Hence, these are excluded from the revenue. Revenue from job work services is recognised based on the services rendered in accordance with the terms of contracts. export benefits are accounted for in the year of exports based on eiigibility and when there is no uncertainly in receiving the same.There is no any Import Entitlement Licence in hand at the end of the year. I Foreign Currency Transactions (AS -11)

Initial Recognition of the transaction. Translations:

Monetary items denominated in foreign currencies at the year end are restated at year end rates. The exchange rate used for conversion of above items is RBI reference rate.

Exchange Rate Difference

Any income or expense on account of exchange difference either on settlement or.on restatement is recognised in the Profit tand Loss Statement as income or expense in the Statement of Profit and Loss, J Investments (A-13)

During the year company has acquire 20% equity shares of M/s Indian Melalfoundry Institute Private Limited. K Employee Benefits (AS-15) Employee benefits include Provident Fund, Employee State insurance Scheme and compensated absences. L Defined Contribution Plans

Defined Benefit Plans

D inventories (A-2) expense based on the amount of contribution required to be made and when services are rendered by the employees.

For defined benefit plans In the form of Gratuity Fund, the cost of providing benefits is determined wlth actuarlaf valuations carry out at Balance Sheet data. The post-employment benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation. Short-Term Employes Benefits

Short Term benefits to employees have been charged as expense in the profit and loss account of the year in which respective services are rendered by the employee Bonus has been calculated as per Payment of Bonus Act 1965.

L Borrowing Cost (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is. one that necessarily takes substantial period of time to get ready for its Intended use. All otter borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

M Development Expense

Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are changed to the Profit and Loss Statement unless a products technological feasibility has been established, in which case, such expenditure is capitalised,

N Earnings per share (AS-20)

Basic I Diluted: earnings per share is computed by dividing the profil I (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Last year earning. per share has been resisted due to bonus issue of equity share.

O Provisions & Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the- obligation in respect of which a reliable estimate can be made. Provisions {excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet dale. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements. P Taxes on Income

Current tax is the provision made for income tax liability on the profits for the year in accordance with the applicable tax laws,

Deferred tax is recognised on timing differances, being the differences. between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the lax laws enapcted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of Msol items other than unabsorbed: depreciation and carry forward losses only to the extent that reasonable certainly exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses, deferred tax assets are

Deferred tax assets and liabilities. are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability. Deferred tax liability {Asset) is measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.

Q Pending Litigations

Sun Wizard Brass Ind. had filled a case against the company in 2001 for claim of Rs. 2,01.551/- which is continue & decision of court is pending. Board of Directors state that. It Is not possible to certain the liability In given case.

R Pendlng Case lncome Tax

There is a case in scrutiny in Income tax Experiment for the A -Y. 2016-17.

S Associate Company

Company hold 20% equity share of M/s Indian Metaffoundry Institute Pvt. Ltd., therefore M/s Indian Melalfoundry Institute Pvt. Ltd. is associate company of M/s Universal Autofoundry Ltd.

T Other Disclosures all other expenditures are accounted for on accrual basis.

Figures of the Previous Year have been rearranged where necessary and have been rounded of to the nearest rupee.

In the opinion of the Board of Directors of the Company the current assets and loans & advances have a value on realization in the ordinary course of the business approximately the amount at which they are staled. but confirmation is pending till audit date.

The deposits and advances are subject to confirmations from respective parties.

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Mar 31, 2016

A CORPORATEINFORMATION_

Universal Autofoundary Limited (Formarly Known as Universal Autofoundary Private Limited) was a private limited company incorporated under Companied Act, 1956. Now The company has been converted into Public Limited company. The company is carrying out Manufacturing of C.I. Castings.

B Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”) / Companies Act, 1956 (“the 1956 Act”), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

C Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

D Inventories (AS-2)

Raw Material, Consumables, Packing Material & Repair & Maintenance Parts are valued at Cost. WIP has been valued at Sale Price less estimated margin and cost to be incurred for the completion. Cost of inventories comprises all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Valuation of the inventories has been certified by the management.

E Cash Flow Statement (AS-3)

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

F Fixed Assets (Tangible & Intangible) (AS-10)

Fixed assets are carried on Cost less accumulated depreciation. The cost of fixed assets includes purchase price, non refundable taxes, duties, freight and other incidental expenses related to the acquisition or installation of respective assets. Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred. Gains or Losses arising from de recognition of fixed assets are measured as the difference between net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

Capital Work in Progress

Project under which assets are not ready for their intendment use and other capital work in progress are carried at cost, comprising direct cost and related incidental expenses.

G Depreciation and amortization (AS-6)

The Depreciation on fixed assets is provided using Written Down Value Method over the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

The premiliminary expenses have been fully written off during the year against security premium reserve according to section 52 of the companies act, 2013.

H Revenue Recognition (AS-9)

Sale and operating income includes Sale of products, income from job work services, export incentives and other income etc.

Sale of goods are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer. Excise Duty deducted from turnover (gross) are the amount that is included in the amount of turnover (gross) and not the entire amount of liability accruing during the year. The Company collects Sales Tax and VAT on behalf of Government and therefore, these are not economic benefits flowing to the Company. Hence, these are excluded from the revenue.

Revenue from job work services is recognized based on the services rendered in accordance with the terms of contracts. export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Export sale of Rs. 28,05,152/- to a foreign customer on FOB basis, this goods was at port as on 31.03.2016. This sale has been taken as good at port under sale head of Note No. 19. Value of the goods has been taken as per sale invoice.

There is no any Import Entitlement License in hand at the end of the year.

I Foreigh Currency Transactions (AS-11)

Initial Recognition

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that the actual rate at the date of the transaction.

Translations:

Monetary items denominated in foreign currencies at the year end are restated at year end rates. The exchange rate used for conversion of above items is RBI reference rate.

Exchange Rate Difference

Any income or expense on account of exchange difference either on settlement or on restatement is recognized in the Profit and Loss Statement as income or expense in the Statement of Profit and Loss.

Outstanding Foreign Currency Term Loan at the end of the year taken for Plant & Machinery has been restated at closing exchange rate.

As per section 43A of the Income Tax Act 1961 any gain/loss on repayment of Term Loan for Imported Plant & Machinery has been add/less with Cost of Plant & Machinery for calculation of depreciation as per Income Tax Act, 1961.

J Investments (AS-13)

There is no any Investment at the end of the year.

K Employee Benefits (AS-15)

Employee benefits include Provident Fund, Employee State Insurance Scheme and compensated absences.

Defined Contribution Plans

The Company''s contribution to provident Fund and Employee State Insurance Scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined Benefit Plans

For defined benefit plans in the form of Gratuity Fund, the cost of providing benefits is determined with actuarial valuations carry out at Balance Sheet date. The post employment benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation.

Short-Term Employee Benefits

Short Term benefits to employees have been charged as expense in the profit and loss account of the year in which respective services are rendered by the employee Bonus has been calculated as per Payment of Bonus Act 1965.

L Borrowing Cost (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

M Development Expenses

Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are charged to the Profit and Loss Statement unless a product''s technological feasibility has been established, in which case such expenditure is capitalized.

N Earnings per share (AS-20)

Basic / Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Last year earning per share has been restated due to bonus issue of equity share.

O Provisions & Contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

P Taxes on income

Current tax is the provision made for income tax liability on the profits for the year in accordance with the applicable tax laws.

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

Deferred tax liability (Assets)is measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.

Q Pending Litigations

Sun Wizard Brass Ind. had filled a case against the company in 2001 for claim of Rs. 2,01,551/- which is continue & decision of court is pending. Board of Directors state that, it is not possible to certain the liability in given case.

R Pending Case in Income Tax

There is a scrutiny case in Income Tax Department for the A.Y. 2014-15, which is pending.

S Other Disclosures

All other expenditures are accounted for on accrual basis.

Figures of the Previous Year have been rearranged where necessary and have been rounded of to the nearest rupee.

In the opinion of the Board of Directors of the Company the current assets and loans & advances have a value on realization in the ordinary course of the business approximately the amount at which they are stated.

Balances of Sundry Creditors & sundry Debtors are subject to confirmation as management of the company has sent account statement to parties, but confirmation is pending till audit date.

The deposits and advances are subject to confirmations from respective parties.

T Bonus Issue & Public Issue

Company has issued 42,50,000 Equity Bonus Shares of Rs. 10 face value each during the year at a ratio of 5:2 (i.e. 5 equity share for every two equity share held) by capitalization of surplus.

The company has got itself listed with BSE Limited (SME Exchange). In terms of Chapter XB of the SEBI (ICDR) Regulations, 2009, as amended.

The company has made an initial public issue of 21,60,000 Equity Shares of face value of Rs. 10 each during the year at a price of Rs. 15 per equity shares (including a share premium of Rs. 5 per equity shares).

As per object state in prospectus, fund raised from IPO of Rs. 324 lacs to be utilized for plant & machinery cost and share issue expenses. Company has used Rs. 288.67 lacs as per object clause of prospectus. Balance amount of Rs. 35.33 lacs in bank balance & FDR.

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Mar 31, 2013

A CORPORATE INFORMATION

Universal Autofoundary Private Limited is a private limited company incorporated under Companied Act, 1956. The company is carrying out Manufacturing of C.l. Castings.

B Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply 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 accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous

C Use of Estimates

The preparation of financial statements are in conformity with Indian GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year.

D Inventories

Raw Material, Consumables & Packing Material are valued at Cost and WIP are valued at Estimated at the stage of completion. Cost of inventories comprises all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Valuation of the inventories has been certified by the management.

E Fixed Assets

Fixed assets are carried on Cost less accumulated depreciation. The cost of fixed assets includes purchase price, non refundable taxes, duties, freight and other incidental expenses related to the acquisition or installation of respective assets. Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred. Gains or Losses arising from de- recognition of fixed assets are measured as the difference between net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

F Depreciation and amortization

The Depreciation on fixed assets is provided using Written Down Value Method over the useful lives envisaged by the management, which are equivalent to the rates prescribed in the Schedule XIV of The Companies Act, 1956.

The premiliminary expenses have been written off over a period of 5 years as per section 35D of The Income Tax Act, 1961.

G Revenue Recognition

Sales and operating income includes sale of products, services, income from Job work services and export incentives etc. Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer. Excise Duty deducted from turnover (gross) are the amount that is included in the amount of turnover (gross) and not the entire amount of liability accruing during the year. The Company collects Sales Tax and VAT on behalf of Government and therefore, these are not economic benefits flowing to the Company. Hence, these are excluded from the revenue.

H Employee Benefits

Short Term benefits to employees have been charged as expense in the profit and loss account of the year in which respective services are rendered by the employee Provident fund contribution and ESI contribution by the employer and deduction made from the employees are remitted to respective departments of which funds are managed by Central Government. Employer's contribution is charged to the Profit and Loss account of the respective year.

I Earnings per share

Basic / Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) and after reducing the dividend obligation (including Dividend Distribution Tax) on Preference Shares by the weighted average number of equity shares outstanding during the year.

j Taxes on income

The tax expense is the aggregate of current year tax and deferred tax charged or credited to the Profit & Loss Statement for the year.

Current tax is the provision made for income tax liability on the profits for the year in accordance with the applicable tax laws.

Deferred tax is recognized on timing differences, being the differences resulting from the recognition of items in the financial statements.and in estimating its current income tax provisions.

Deferred tax liability is measured using the tax rates and the tax Saws that have been enacted or substantially enacted at the balance sheet date.

K Other Disclosures

All cither expenditures are accounted for on accrual basis.

Figures of the Previous Year have been rearranged where necessary and have been rounded of to the nearest rupee.

in the opinion of the Board of Directors of the Company the current assets and ioans & advances have a value on realization in the ordinary course of the business approximately the amount at which they are stated.

The balances of banks, sundry debtors, sundry creditors, deposits and advances and secured and unsecured loans are subject to confirmations/reconciliation from respective parties.