Universal Autofoundry Ltd. कंपली की लेखा नीति

Mar 31, 2026

1. Corporate information

Universal Autofoundry Limited (the "Company") is a public limited Company incorporated in India with its registered office is B-307, Road No. 16, VKI Area, Jaipur-302013, Rajasthan, India. The Company is listed on BSE. The Company is engaged in business of manufacturing & sales of C.I. Castings. The Company has three manufacturing plants located in India at Jaipur & Sikar both in the State of Rajasthan.

These Financial Statements were approved and adopted by Board of Directors of the Company in their meeting held on May 27, 2026.

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 fair values, 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 except where a newly issued 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 Ind AS financial statements have been approved by the board of directors on 27.05.2026.

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 Current v/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 current when it is: -

• 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 realised within 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.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

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

• The Company does not have a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

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. Material Accounting 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 associated with the item will flow to 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 for it 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 down value 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 or loss.

The residual values, useful lives and methods of depreciation of Property, year end and adjusted prospectively, if appropriate.	Plant and Equipment are reviewed at each
Following are the useful lives as per Schedule of Companies act 2013
Asset Class	Useful Life
Factory Building	30 years
Building (Other than factory building)	60 Years
Solar	25 Years
Plant and Machinery	15 Years
Electric Installations	10 years
Furniture and Fixtures	10 Years
Office Equipment	5 Years
Vehicles	8 Years
Computer & Software	3 Years

3.2. Capital work-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 under work in progress:

Project Overview

Solar project situated at village Gharsisar, Tehsil-Sardarshahar, District Churu, Rajasthan under development. Detail of the project are as under:

6.5 MWp DC (4.7MW AC) 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 KV GSS 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 2435 lakh (excluding taxes) for Initial investment in solar panels, land and building, inverters, furniture, and other equipment. Financing Costs: Company Own Source of Fund- 10% and Bank Finance-90%.

The Project financed by the HDFC Bank. HDFC Bank financed to the project amount of Rs. 2250 lakh at interest cost of 7.75% p.a. for 84 months repayment tenure.

Other Detail of the Project

Project Capacity: - 6.5 MW Per Year Estimated Revenue after completion:	Unit Production Per MW Per Year: -	16,80,000.00
	Total Units Production Per Year : -	1,09,20,000.00
	Revenue Rate Per unit (in Rs.) : -	5.50
	Revenue Per Year: -	6,00,60,000.00

Operating Expenditure: Ongoing costs, including maintenance, repair, and insurance, ONM Cost Per MW Per Year 5,25,000.00. Total ONM Cost Per Year 34,12,500.00 (For 6.5 MW)

Project Lifecycle: - 25 Years Project Payback Period: -4-5 Years

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 asset will 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 a written down value basis over their 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.

3.4 Borrowing 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 or sale.

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 necessary to 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 in value.

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.

3.8 Provisions, Contingent Liabilities & Contingent Assets

3.8.1 Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

3.8.2 Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

3.8.3 Contingent Assets

A contingent asset is not recognized in the standalone financial statements. However, it is disclosed, where an inflow of economic benefits is probable. When the realization of income is virtually certain, then the asset is no longer a contingent asset, and is recognized as an asset.

3.8.4 Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

3.9 Foreign Currency Transactions

The Company’s financial statements are presented in INR, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company at INR spot rate at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

3.10 Revenue from contract with customers

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the customer.

3.10.1 Sale of Goods

Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated in determining the transaction price for the sale of goods, the Company considers the effects of variable consideration, and consideration payable to the customer (if any).

3.10.2 Variable Consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Some contracts for the sale provide customers with discounts. The discounts give rise to variable consideration.

i) Contract balances

a. Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

b. Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

c. Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

3.10.3 Other Income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Income from the sale of import licenses is recognized upon transfer of control of such licenses to the buyer, in accordance with Ind AS 115, provided there is no significant uncertainty regarding measurability and collectability.

Exchange differences arising from trade receivables or payables denominated in foreign currency are accounted for under Ind AS 21 and are presented as part of revenue or other income depending on the nature of the underlying transaction.

The gain or loss arising on disposal of property, plant and equipment is recognized in the Statement of Profit and Loss under Other Income, determined as the difference between the net disposal proceeds and the carrying amount of the asset.

3.11 Employee Benefits

3.11.1 Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit and this is shown under current provision in the Balance Sheet. 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.

3.11.2 Post-employment benefits

3.11.2.1 Defined Contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee State Insurance are Defined Contribution Plans in which the company pays a fixed contribution and will have no further obligation.

3.11.2.2 Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Company pays Gratuity as per provisions of the Gratuity Act, 1972. The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Company''s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a liability to the company, the present value of liability is recognized as provision for employee benefit. Any actuarial gains or losses are recognized in Other Comprehensive Income ("OCI") in the period in which they arise.

3.11.3 New Labour Code

The Government of India has enacted the Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020, and the Code on Social Security, 2020 (collectively referred to as the “Labour Codes”), replacing the existing central labour legislations. The Labour Codes have been brought into effect from November 21, 2025. Further, the Ministry of Labour and Employment has issued draft/final rules under the Labour Codes for operationalization of the said Codes.

Further, as labour is a concurrent subject under the Constitution of India, implementation of the Labour Codes also requires notification of state-specific rules by respective State Governments. In this regard, the Government of Rajasthan has issued draft rules, including the Draft Code on Wages (Rajasthan) Rules, 2026, which are currently under public consultation and are yet to be formally notified.

The Company has undertaken a preliminary assessment of the impact of the Labour Codes and the rules notified/issued thereunder. Based on the current evaluation and provisions presently in force, management believes that there is no material impact on the financial statements of the Company. The Company will continue to monitor regulatory developments and assess the impact, if any, arising from the finalization and implementation of the remaining state-specific rules and related provisions.

3.12 Income Tax

3.12.1 Current Tax

Tax expense comprises current tax and deferred tax. Current tax expense is recognized in the statement of profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized

in OCI or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years. Current taxes are recognized under ''Income tax payable''.

3.12.2 Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be utilised.

3.12.3 Minimum Alternate Tax

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year.

The deferred tax asset is recognised for MAT credit available only to the extent that it is probable that the concerned company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset, it is created by way of credit to the statement of profit and loss as credit in current tax expense and shown as part of deferred tax asset. The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.

3.13 Earnings per Share

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

3.14 Statement of Cash Flows

Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS 7 ''Statement of Cash Flows'' for operating activities.

3.15 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

3.15.1 Financial Assets

a. Initial Recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

b. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial Assets at amortised cost

• Financial Assets at fair value through other comprehensive income (FVTOCI)

• Financial Assets including derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

c. Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

d. Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily derecognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

e. Impairment of Financial Instrument

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure.

a. Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b. Financial assets that are equity instruments and are measured as at FVTOCI

c. Lease receivables under Ind AS 116

d. Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:

• Trade receivables

• All lease receivables resulting from transactions within the scope of Ind AS 116

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

3.15.2 Financial Liabilities

a. Initial Recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

b. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at Fair Value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the profit or loss. The Company has not designated any financial liability as at fair value through profit and loss

c. Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

d. Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is

treated as the derecognition of the original liability and the recognition of a new liability. The difference in

the respective carrying amounts is recognised in the statement of profit or loss.

3.16 Fair Value Measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or

In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the

asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as properties and significant liabilities, such as contingent consideration.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.17 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 units (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 company 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.

3.18 Segment Reporting

The main business of the Company is of manufacturing and sales of C.I. Castings. All other activities of the Company revolve around the main business. There is only one reportable segment. Hence, disclosures pursuant to Ind AS 108 Operating Segments are not applicable.

3.19 Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities current and noncurrent.

4 Major Estimates made in preparing Financial Statements

4.1 Useful life of property, plant and equipment and intangible assets

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Useful life of the assets other than Plant and machinery are accordance with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are adjusted prospectively, if appropriate. Intangible assets are amortized over a period of estimated useful life as determined by the management.

4.2. post-employment benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that assumptions used to measure its obligations are appropriate late and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.

4.3. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter.

4A Recent Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules, as issued from time to time. During the year ended March 31, 2026, MCA notified amendments to certain existing Indian Accounting Standards, inter alia, relating to Ind AS 1 - Presentation of Financial Statements, Ind AS 7 -Statement of Cash Flows, Ind AS 12 - Income Taxes, Ind AS 21 - The Effects of Changes in Foreign Exchange Rates and Ind AS 107 -Financial Instruments: Disclosures.

The Company has evaluated the applicability of the aforesaid amendments. Based on such evaluation, management is of the view that these amendments do not have any material impact on the recognition, measurement, presentation and disclosure of transactions in the financial statements of the Company, except to the extent of additional disclosures, wherever applicable.

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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.