Accounting Policies of Tankup Engineers Ltd. Company

Mar 31, 2025

1 COMPANY OVERVIEW

The Company is engaged in the business of Designing and Manufacturing of mobility and storage solutions for special-
purpose applications.

2 SIGNIFICANT ACCOUNTING POLICIES

a) General

The financial statements have been prepared to comply in all material respects with the mandatory Accounting
Standards applicable under Rule 2 of Companies (Accounting Standards) Rules, 2021 to the extent applicable and the
relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting
policies have been consistently applied by the Company and except for the changes in accounting policy discussed more
fully below, are consistent with those used in the previous year

b) Contingent Liabilities: -

As per the Accounting Standard 29 (Provisions, Contingent liabilities and Contingent Assets) notified under the
Companies (Accounting Standards) Rules, 2021 which are applicable on the company in terms of Rule 2 of the
Companies (Indian Accounting Standards) Rules 2021 notified under Companies Act, 2013 the company recognize
provisions only when it has a present obligation 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 when a reasonable estimate of the amount of
the obligation can be made. Contingent Liabilities have been disclosed by way of notes in Notes on Account here below.
Contingent Assets are not recognized in the financial statements.

c) Use of Estimates:-

The preparation of the financial statements in conformity with the GAAP requires management to make estimates and
assumptions that affect the reported balances of assets and liabilities as at the date of the financial statements and
reported amount of income and expenses for the period. Examples of such estimates include provisions for doubtful
debts, future obligations under employee retirement benefit plans, Income tax and the useful lives of fixed assets.

Management periodically assesses using external and internal sources whether there is an indication that an asset may
be impaired. Impairment occurs when the carrying value exceeds the present value of future cash flows expected to
arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as
the excess of the carrying amount over the higher of the assets net sale price or present as determined above.
Contingencies are recorded when it is probable that the liability will be incurred, and the amount can be reasonably
estimated. Actual results could differ from those estimates

d) Revenue Recognition

a. Revenue from sale of goods is recognised when the significant risk and rewards of ownership of goods are transferred
to the buyer and are recorded exclusive of duties and taxes and adjusted for discounts (net) and returns.

b. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the firm and the revenue
can be reliably measured.

c. Revenue from services is recognised pro-rata over the period of the contract as and when services are rendered and
the collectability is reasonably assured. The revenue is recognised net of Goods and service tax.

d. Interest- Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate
applicable.

^e) Property, Plant & Equipment & Depreciation

i) Fixed assets are stated at cost (or revalued amounts, as the case may be); less accumulated depreciation and
impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they
relate to the period till such assets are ready to be put to use in accordance with Account Standard 16.

At the end of each year, the company determines whether a provision should be made for impairment of loss on its fixed
assets by considering the indications that an impairment loss may have occurred in accordance with Accounting
Standard (AS 28 "Impairment of Asset") notified under the Companies (Accounting Standards) Rules, 2006 which are
applicable on the company in terms of Rule 2 of the Companies (Indian Accounting Standards) Rules 2015 notified under
Companies Act, 2013, where the recoverable amount of any fixed asset is lower than it''s carrying amount. There exists
no indication for the management to conclude that any of its cash generating units are impaired and accordingly no
provision for impairment has been made in the financial statements

ii) The depreciation has been charged on Written down value method as per the rates derived from useful lives prescribed
in schedule II of the Companies Act. 2013. The Depreciation on the additions during the year has been charged on pro
rata basis. As mandated in Para 7 of the Schedule II of the Companies, Act, 2013 a) the carrying amount of the assets as
on 1st April 2014 is being depreciated over the remaining useful life of the assets as per Schedule-ll b) where the
remaining useful life of the assets is nil, after retaining the residual value the carrying amount has been recognised in the
opening balance of retained earnings.

Assets costing up to Rs. 5,000 are depreciated fully in the year of purchase.

iii) No amount has been written off in respect of premium of Lease Hold Land

iv) Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership
of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the
inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges
and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against
income. Lease management fees, legal charges and other initial direct costs are capitalized

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are
classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a
straight-line basis over the lease term

f) Employee Retirement Benefits

i) Incremental liability in respect of Gratuity payable to employees has been provided for on all employees who have put in
one year of service.

ii) Provident &. other funds liability is determined on the basis of contributions as required under statutes.

g) Borrowing Cost

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 intended
use. All other borrowing costs are charged to revenue.

h) Income Tax

Income Tax expenses is accrued in accordance with AS 22 -"Accounting for taxes on income" which includes current
taxes and deferred tax. Deferred Income Tax reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax assets are
recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be taxable.
Deferred tax and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently
enacted by the balance sheet date.

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Mar 31, 2024

COMPANY OVERVIEW solutions for special-purpose

The Company is engaged in the business of designing and manufacturing of mobility an storag

applications,

₂ SIGNIFICANT ACCOUNTING POLICIES

a) 6eneral . _e f^gnjatory Accounting Standards

" The financial statements have been prepared to comply in all material respects wi ,_{he relevant} provisions of

applicable under Rule 2 of Companies (Accounting Standards) Rules, 2021 to the ex en PP _{cQnvention on an} accrual basis the Companies Act, 2013. The financial statements have been prepared under the his ,_{p accountmg} policy discussed

The accounting policies have been consistently applied by the Company and excep o more fully below, are consistent with those used in the previous year

The Company is a Small and Medium sized Company (SMC) as defined in the Companies^^“Sndards as applicable to a notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting

Small and Medium Sized Company.

b) Contingent Liabilities: - ,_{nnrinapnt Asse},_s) notified under the Companies

As per the Accounting Standard 29 (Provisions, Contingent liabilities and anting ^ _{Cpmpames (},_ndpan Accounting

(Accounting Standards) Rules, 2021 which are applicable on the company in ^,er™ _{of)| when it has a} present obligation

Standards) Rules 2021 notified under Companies Act, 2013 the company'' r«g P^^ _{wi|l be} required to settle the

as a result of a past event it is probable that an outflow of resources em V ^ _{be made Contingent} Liabilities have been

obligation and when a reasonable estimate of the amount o B recognized in the financial statements

disclosed by way of notes in Notes on Account here below. Contingent Assets are not recog

c) Use of Estimates:- _{|res manage}ment to make estimates and

The preparation of the financial statements in conformity with _j^ the financial statements and reported

assumptions that affect the reported balances of assets and lab t _{jndude provisions for} doubtful debts, future

amount of income and expenses for the peno . *a^mP _{useful |jves of fl)(ed asse}ts. Management periodically

obligations under employee retirement benefit plans, ncome ^ _{an asset may be impa}ired Impairment occurs

assesses using external and internal sources w et er ere i _{e[ted t0 arjse from} the continuing use of the asset and

when the carrying value exceeds the present va ue o u u ^ ^ _{(he extess pf} ,_{he carrv}|_ng amount over the higher of

its eventual disposal. The impairment loss to be expen _recorded when it is probable that the liability will be

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b. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the firm and the revenue can be

f_Rtl7eTom services is recognised pro-rata over the period of the contract as and when services are rendered and the collectability is reasonably assured. The revenue is recognised net of Goods and service ta .

i) Fixed assets are stated at co ( attributable cost of bringing the asset to its working condition for its intended use.

to be put to use in accordance with Account Standard 16.

A, the end of each year, the company determines whether a provision should be made for impairment of loss on ''Mixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standa.d (AS 28 "Impairment of Asset") notified under the Companies (Accounting Standards) Rules, 2006 which are applicable on the company . terms of Rule 2 of the Companies (Indian Accounting Standards) Rules 2015 notified under Companies Act, 2013, where the recoverable amount of any fixed asset is lower than it''s carrying amount. There exists no indication for the management conclude that any of its cash generating units are impaired and accordingly no provision for impairment has been made in the

financial statements.

li) The depreciation has been charged on Written down value method as per the rates derived from useful lives prescribed in schedule II of the Companies Act. 2013. The Depreciation on the additions during the year has been charged on pro rata ^

mandated in Para 7 of the Schedule II of the Companies, Act, 2013 a) the carrying amount of the assets as on 1st Apri *

being depreciated over the remaining useful life of the assets as per Schedule-ll b) where the remaining useful li e o t e ass nil, after retaining the residual value the carrying amount has been recognised in the opening balance of retained earning

iii) No amount has been written off in respect of premium of Lease Hold Land

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to^ ₀fthe leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at ^ _re(J(j(._{t|0n of (he} lease term and disclosed as leased assets. Lease payments are apportioned between the finance c ^ar^_s^aeⁿmanagemen, _fees lease liability based on the implicit rate of return. Finance charges are charged directly against income^ **'' „ _{the risks anc}j

legal charges and other initial direct costs are capitalized. Leases where the lessor effectively retains su _rec0gm_Zed as an

benefits of ownership of the leased term, are classified as operating leases. Operating lease paym expense in the Profit and Loss account on a straight-line basis over the lease term

f) Employee Retirement Benefits emoloyees who have put in one year

i) Incremental liability in respect of Gratuity payable to employees has been provide

of service.

ii) Provident & other funds liability is determined on the basis of contributions as required un er sta u e

g) Borrowing Cost . ranitalized as part of the cost of

Borrowing costs that are attributable to the acquisition or construction of quahfying a P _{use A}|| other

such assets. A qualifying asset is one that necessarily takes substantial period of time to get reaay

borrowing costs are charged to revenue.

h) Income Tax inmmp" which includes current taxes and

Income Tax expenses is accrued in accordance with AS 22 - ^Accou"^tir^ _{d|fferences betwe}en taxable income and accounting deferred tax. Deferred Income Tax reflects the impact of curren ye 8 ^ _recognlzecj only to the extent that

income for the year and reversal of timing difference of ear «r veant. liabilities are measured using

there is reasonable certainty that sufficient future taxable income will be taxable. Dererreo the tax rites and tax laws that have been enacted or subsequently enacted by the balance sheet date.

3	NOTES FORMING PART OF THE FINANCIAL STATEMENTS
a)	Contingent Liabilities and commitments (to the extent not provided for)	NIL Rs 49,40,037/ NIL
	i) Claims against the company not acknowledged as debt: ii) Guarantees: Outstanding guarantees with Central Bank of India
	iii) Other Money for which the company is contingently liable:
	Commitments:- i) Estimated amount of contracts remaining to be executed on capital account and	NIL
	not provided for:	NIL Mil
	ii) uncalled liability on shares and other investment partly paid:
	iii) other commitments (specific nature):	Ini 1