ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Ravita Engineering Services Ltd.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES_

A. BASIS FOR ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statement 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 the Companies Act, 2013, read with Rule 7 of the
Companies Accounting Rules, 2014 and the relevant provisions of the Companies Act (‘the 2013 Act"), 2013. 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.

All assets and liabilities have been classified as current and non-current as per normal operating cycle of the Company and other criteria
set out in the Schedule III of the Companies Act, 2013.

The financial statements are presented in Indian Rupees (INR) except share and per share data, unless otherwise stated. Due to rounding
off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect
the absolute figures.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
ludgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of
contingent liabilities at the date of financial statements and the results of operations during the reporting year end. Although these
estimates are based upon the management''s best knowledge of current events and actions uncertainty about these assumptions and
estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets and liabilities in future periods.

i) Revenue Recognition

The Company recognises revenue from contracts with customers when it satisfies a performance obligation by transferring promised
good or service to a customer The revenue is recognised to the extent of transaction price allocated to the performance obligation
satisfied Performance obligation is satisfied over time when the transfer of control of asset (good or service) to a customer is done over
time and in other cases, performance obligation is satisfied at a point in time For performance obligation satisfied over time, the revenue
recognition Is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in
terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation. Transaction
price is the amount of consideration to which the Company expects to be entitled in exchange for transferring good or service to a
customer excluding amounts collected on behalf of a third party

Significant [udgmgms a re used in:

1. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is
done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a
proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

2. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total
contract cost as at the reporting date.

Services charges income has been recognized as and when the services are rendered to the customers and when there is a reasonable
certainty of its ultimate realisation/coHection.

iij [PROPERTY, PLANT & EQUIPMENT

Property. Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any Cost comprises the
purchase price and any attributable cost of bringing the asset to Its working condition for its intended use and initial estimate of
decommissioning, restoring and similar liabilities, if any. Any trade discount and rebates are deducted in arriving at the purchase price
Such cost includes the cost of replacing pan of the plant and equipment. When significant parts of plant and equipment are required to
be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection
is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Gains or losses arising from de-recognition of Property, Plant and Equipment are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and arc recognised in the Statement of Profit and loss when the asset is de recognised
The company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which is
significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset

iii) Intangible Assets

intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are earned
at cost less accumulated amortization and impairment losses, if any.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the 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.

»v) Depreciation on Property, Plant and Equipment and Amortization on intangible assets

Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount on the written down value method.
Depreciation is provided based on useful life of the assets as prescribed In Schedule II to the Companies Act 2013.which is given below

The Intangible assets are amortized using straight line method uvei their estimated useful lives of 5 Years. The estimated useful life is
reviewed annually by the management

Depreciation is not recorded on capital work-in progress until construction and installation is completed and the asset is for intended use

v) Inventories

Materials, components and stores & spares to be used in contracts are valued at lower of cost, or net realizable value. Cost is determined
on weighted average basis Net Realizable Value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated cost necessary to make the sale.

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

vi) Investments

Current investments are earned at the lower of cost and fair value long-term investments, including investments in subsidiaries joint
ventures and associates, are carried at cost less provision for diminution, other than temporary, wherever considered necessary

vii) Taxes on Income

The accounting treatment for the Income Tan in respect of the Company''s income is based on the Accounting Standard on Accounting for
Taxes on Income (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for
Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions
available under the Income Tax Act, 1961.

Deferred tax is recognized for all timing differences, being the differences between the taxable income and accounting income that
originate in one oeriod and are capable of reversal in one or more subsequent periods. Such deferred tax is Quantified using the tax rates
and laws enacted or substantively enacted as on the Balance Sheet date The carrying amount of deferred tax asset/liability is reviewed at
each Balance Sheet date and consequential adjustments are carried out. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available against which the temporary differences can be utilised.

viii) Retirement and other employees benefits

a) Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the
contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an
expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the
contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet
date, then excess is recognized as an asset to the extent that the pre payment will lead to a reduction in future payment or a cash refund

b) Gratuity liability being a defined benefit obligation is provided for on the basis of actuarial valuation on projected unit credit method at
the end of each fmancal year Actuarial gams / losses are recognized in full in the period in which they occur in the Statement of Profit
and Loss and as on the date no employee is eligible for gratuity.

c) Short term compensated absences are provided for based on estimates Accumulated leave, which is expected to be utilized within the
next 12 months, is treated as short-term employee benefit. The company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date

ix) Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statement comprise of cash at bank and Cash / Cheque on hand and short term investments
made in fixed deposits of three months or less.

x) Earnings Per Share

Basic Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.

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

xi) Borrowing costs

Borrowing cost includes interest and amortization of ancillary costs incurred m connection with the arrangement of borrowings

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as pari of the cost of the respect-ve asset All other borrowing costs are
expensed in the period they occur