Patil Automation Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

1 Significant Accounting Policies:

A Basis of accounting and preparation of financial statements

The standalone financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) under historical cost convention on the accrual basis. Indian GAAP
comprises mandotory accounting standards as prescribed under section 133 of the Companies Act, 2013 (''Act") read
with rule 7 of Companies (Accounts) Rules, 2014, the provisions of the act (to the extent notified and applicable). The
accounting policies, in all material respects, have been consistently applied by the Company and are consistent with
those used in the previous year.

B Use of estimates

The preparation of the standalone 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 standalone 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 recognised in the periods in
which the results are known / materialise.

C Accounting Convention

The Company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis.
The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to
specifically otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these financial
statements:

"1 Revenue recognition

Income from sale of goods are recognised and accounted on accrual basis . Where the ability to assess the ultimate
collection with reasonable certainty is lacking at the time of raising any claim,revenue recognition is postponed to the
extent of uncertainty involved.

Income from rendering of services are recognised and accounted on accrual basis . Where the ability to assess the
ultimate collection with reasonable certainty is lacking at the time of raising any claim,revenue recognition is postponed
to the extent of uncertainty involved.

Interest income is recognised on accrual basis and based on time proportion, amount involved and applicable rate.

2 Property, Plant and Equipment and Depreciation

Property, Plant and Equipment are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment,
if any;

Costs directly attributable to acquisition are capitalized until the Property, Plant and Equipment are ready for use, as
intended by the management

Subsequent expenditures relating to Property, Plant and Equipment are capitalized only when it is probable that future
economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.
Repairs & maintenance costs are recognized in the Statement of profit & Loss when incurred;

The cost and related accumulated depreciated are eliminated from the standalone standalone financial statements
upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss.
Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell

Depreciation on fixed assets will be calculated using the Written Down Value (WDV) method, which involves applying
depreciation rates prescribed under Schedule II to the Companies Act 2013. to the carrying amount of the asset. The
carrying amount is reduced each year by the amount of depreciation charged.

Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year en

3 Intangible Assets and Amortization

Intangible assets are recognized when it is probable that the future economic benefits attributable to the asset will flow
to the Company and the cost of the asset can be measured reliably. Intangible assets are initially recorded at cost of
acquisition, including taxes, duties and other directly attributable costs incurred for bringing the asset to its working
condition for its intended use.

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any.

The Company recognizes computer software, licenses, technical know-how and other identifiable non-monetary
assets without physical substance as intangible assets where the recognition criteria prescribed under Accounting
Standard (AS) 26, "Intangible Assets", are satisfied.

Expenditure incurred on research activities is charged to the Statement of Profit and Loss as incurred. Development
expenditure is capitalized only when the recognition criteria specified under AS 26 are met. Expenditure incurred on
maintenance of intangible assets is charged to revenue in the period in which it is incurred.

Intangible assets having finite useful lives are amortized on a straight-line basis over their estimated useful economic
lives. The amortization period and method are reviewed periodically and revised prospectively, where appropriate.

Computer software is amortized over its estimated useful life of three years on a Straight-Line Method basis from the
date the asset is available for use. Other intangible assets are amortized over the period during which the economic
benefits are expected to accrue to the Company.

The carrying amount of intangible assets is reviewed at each balance sheet date for any indication of impairment. If
any such indication exists, the asset is tested for impairment and an impairment loss is recognized whenever the
carrying amount exceeds its recoverable amount.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition is recognized in the Statement of Profit and Loss in the year of
derecognition.

4 Impairment

The Management periodically assesses, using external and internal sources, whether there is an indication that an
asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable
amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present
value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An
impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after
the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount,
provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated
amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

5 InventoriesRaw Material, Store & Spares etc.

Stock of materials, etc. has been valued at lower of cost ot net realisable value. The Cost is determined on First in First
Out (FIFO) basis method. The cost includes all cost of purchase and incidental expenses to bring the inventory in
present condition and present location. This cost also excludes the GST credit which is already availed.

Work in Progress

Work in progress are valued at lower of cost or net realisable value. Cost includes the Direct Material, Labour cost &
proportion of manufacturing overheads based on the normal operating capacity.

6 Employee benefit expenses
Defined Contribution Plans

All short-term employee benefits are accounted on undiscounted basis during the accounting period based on
services rendered by employees.

The Company''s contribution to Provident Fund is determined based on a fixed percentage of the eligible employees''
salary and charged to the Statement of Profit and Loss on accrual basis.

Defined Benefit Plans

The Company provides for gratuity to the employees who have completed five years of service with the Company at the
time of resignation/superannuation. The gratuity is paid @15 days basic salary for every completed year of service as
per the Payment of Gratuity Act, 1972.

7 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as long-term
investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties.

Current investments are carried in the standalone financial statements at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at cost.

However, provision for diminution in value is made to recognize a decline other than temporary nature in value of
investment.

8 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the
lessor are recognized as operating leases. Lease rentals under operating leases are recognized as an expense in
the Statement of Profit and Loss on a straight-line basis over the lease term unless another systematic basis is more
representative of the time pattern of the user''s benefit.

Lease arrangements where substantially all the risks and rewards incidental to ownership of an asset are transferred
to the Company are classified as finance leases. Assets acquired under finance leases are recognized at the lower of
the fair value of the leased asset and the present value of the minimum lease payments at the inception of the lease.
The corresponding lease obligation is recorded as a liability.

Lease payments made under finance leases are apportioned between finance charges and reduction of the outstanding
lease liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability. Finance
charges are recognized in the Statement of Profit and Loss over the lease term.

Assets acquired under finance leases are depreciated over the useful life of the asset or the lease term, whichever is
shorter, unless there is reasonable certainty that the Company will obtain ownership of the asset by the end of the
lease term.

Initial direct costs incurred in connection with lease arrangements are recognized in the Statement of Profit and Loss
over the lease term or capitalized as part of the cost of the leased asset, as appropriate.

Lease income from operating leases, where the Company acts as a lessor, is recognized on a straight-line basis over
the lease term.

9 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as
part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that
necessarily takes a substantial period of time to get ready for its intended use. Costs incurred in raising funds are
amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to profit and
loss account.

10 Foreign exchange transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing at the date of transaction. Any gain/
loss on account of the fluctuation in the rate of exchange is recognized in the statement of Profit and Loss..

Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currencies outstanding at the
close of the year are converted in Indian currency at the appropriate rates of exchange prevailing on the date of Balance
Sheet. Resultant gain or loss on account of the fluctuation in the rate of exchange is recognized in the statement of
Profit and Loss.