Accounting Policies of Harig Crankshafts Ltd. Company

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES

a. Basis of preparation

These statements are prepared complying in all material respects with the notified Accounting standards by the Companies (Indian
Accounting Standards) Rules, 2015 as amended from time to time and the relevant provisions of the Companies Act, 2013 and in
accordance with the generally accepted accounting principles in lndia.

In absence of requisite inputs, classification of assets and liablities as current or noncurrent as per the Company''s normal operating cycle
and other criteria set out in the Schedule III to the Act has not been done. Subject to adjusments in accordance with the generally accepted
accounting principles and applicable accounting standards (Including Indian Accounting Standard), all assets and liabilities have been
carried on in the financial statement as they were appearing in the finacial statement of preceeding year.

Date of approval of financial statement in the Board is 29th May, 2025.

b. Basis of classification of Current and Non-Current

Assets and Liabilities in the Balance Sheet have been classified as either current or non-current.

An asset has been classified as current if:-

• It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle; or

• I t is held primarily for the purpose of being traded; or

• It is expected to be realized within twelve months after the reporting date; or

• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting date.

All other assets have been classified as non-current.

A liability has been classified as current when

• It is expected to be settled in the Company''s normal operating cycle; or
•I t is held primarily for the purpose of being traded; or

• It is due to be settled within twelve months after the reporting date; or

•The Company does not have an unconditional right to defer settlement of the liability for atleast twelve months after the reporting date.

All other liabilities have been classified as non-current.

c. Revenue recognition

Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to
which the Company expects to be entitled in exchange for those goods or services. Revenue is recognized when the five-step model under
Ind AS 115 is satisfied. Revenue is measured net of returns, trade discounts, and other indirect taxes such as GST.

In the current year, no revenue from operations has been recognized, as the Company did not enter into any contracts with customers that
meet the recognition criteria under Ind AS 115.

Other income, such as interest income is recognized on a time-proportion basis using the Effective Interest Rate (EIR) method in
accordance with Ind AS 109 - Financial Instruments.

d. Expenditure

In absence of requisite inputs, all expenses have been recognised based on the substance of the transaction only.

e. Property, Plant & Equipment

In absence of requisite inputs, all tangible assets have been reported at the historical cost since inception.

Save as otherwise stated, depreciation is provided on a pro-rata basis on the Written Down Value method. In the absense of required input
with regard to remaining useful life of the tangible assets, the rate of depreciation has been kept unchanged and has been charged as
follows:

Property, Plant & Equipments: 4.75%

Building : 3.34%

Computes: 63.16%

Leasehold Land is amortized over the period of Lease.

f. Impairment of Non-financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or
when annual impairment testing for an asset is required the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.

In assessing value which is in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of
disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is

g. Inventories

Inventories are measured at the lower of cost and net realizable value after providing for obsolescence, if any. Cost of finished goods and
work-in-progress include all costs of purchases, conversion costs and other costs incurred in bringing the inventories to their present
location and condition. The net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and estimated costs necessary to make the sale.

h. Borrowing Costs

Borrowing costs that are directly 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 Statement of Profit and Loss in the period in which they are incurred.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation

These statements are prepared complying in all material respects with the notified Accounting standards by the Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time and the relevant provisions of the Companies Act, 2013 and in accordance with the generally accepted
accounting principles in lndia.

In absence of requisite inputs, classification of assets and liablities as current or noncurrent as per the Company’s normal operating cycle and other criteria
set out in the Schedule III to the Act has not been done. Subject to adjusments in accordance with the generally accepted accounting principles and
applicable accounting standards (Including Indian Accounting Standard), all assets and liabilities have been carried on in the financial statement as they
were appearing in the finacial statement of preceeding year.

Date of approval of financial statement in the Board is 6th Dec, 2024.

b. Basis of classification of Current and Non-Current

Assets and Liabilities in the Balance Sheet have been classified as either current or non-current.

An asset has been classified as current if:-

• I t is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle; or

• I t is held primarily for the purpose of being traded; or

• I t is expected to be realized within twelve months after the reporting date; or

• I t is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets have been classified as non-current.

A liability has been classified as current when

• I t is expected to be settled in the Company’s normal operating cycle; or

• I t is held primarily for the purpose of being traded; or

• I t is due to be settled within twelve months after the reporting date; or

•The Company does not have an unconditional right to defer settlement of the liability for atleast twelve months after the reporting date.

All other liabilities have been classified as non-current.

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

c. Revenue recognition

In absence of requisite inputs, revenue have been recognised based on the substance of the transaction only.

d. Expenditure

In absence of requisite inputs, all expenses have been recognised based on the substance of the transaction only.

e. Property, Plant & Equipment

In absence of requisite inputs, all tangible assets have been reported at the value net of depreciation.

Save as otherwise stated, depreciation is provided on a pro-rata basis on the Written Down Value method as per the Companies Act, 2013. In the absense
of required input with regard to remaining useful life of the tangiable assets, the rate of depreciation has been kept unchanged.

f. Impairment

As per Indian Accounting Standard 36, assessment for impairment is required to be done at each Balance Sheet date as to whether there is any indication

g. Inventories

As per Indian Accounting Standard 2, inventories are required to be valued at the lower of cost and net realizable value.

In absence of required inputs, inventories have been carried on at the book value without any adjustments towards reduction in realizable value.

h. Trade receivables and Loans and advances

T rade receivables and loans and advances are not confirmed. In absence of requiste inputs they have been carried on at the book value without