a) Sales Revenue is recognized when the risk and rewards of ownership are passed on to the
customers, which is generally on dispatch.

b) Revenue from turnkey contracts is recognized based on the stage of completion determined
with reference to the costs incurred on contracts and their estimated total costs. Provision for
foreseeable losses/ construction contingencies on turnkey contracts is made on the basis of
technical assessments of costs to be incurred and revenue to be accounted for.

c) Price Escalation and other claims or variations in the contract work are included in contract
revenue only when:

i) Negotiations have reached to an advanced stage such that it is probable that customer will
accept the claim: and

ii) The amount that is probable will be accepted by the customer and can be measured reliably,
x) Use of Estimates:

The preparation of financial statements requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, as of the date of financial
statements and the reported amount of revenue and expenses of the year. Actual results could
differ from these estimates. The difference between the actual results and estimates are
recognized in the period in which the results are known/materialized.

xi) Borrowing Costs

Borrowing costs attributable to the acquisition, construction or production of qualifying assets
are added to the cost of those assets as Pre-operative Expenses.AII other borrowing costs are
recognized in Statement of Profit and Loss in the period in which they are incurred. Interest
Capitalized during the year is NIL (Previous year Rs. Nil/-)

Xii Employees Benefits:

a) Defined Contribution Plans:

Employees' own and Employer's contribution to Provident Funds are contributed bycompany
monthly at a determined rate. These contributions are remitted to theEmployees' Provident
Fund Organization, India and is charged to Profit and LossAccount on accrual basis.

b) Defined Benefits Plans:

Gratuity: The company provides for gratuity, a defined benefit retirement plan, for its
employees. The plan provides for lump sum payments to the eligible employees at retirement,
death, while in employment, or on termination of employment or otherwise as per the
provisionsof the Payment of Gratuity Act, 1972. The company accounts forliability of future
gratuity benefits based on an external actuarial valuation on projected unit credit method carried
out annually for assessing liability as at the balance sheet date.

xiii) Segment Reporting :

a) Primary Segment:

Company is engaged in "Switch Gear Engineering' and "EPC contracts for power distribution /
transmission sector’ which relate to one primary segment i.e. Power.

b) Secondary Segment:

The Company operates predominantly within the geographical limits of India and accordingly
secondary segments have not been considered.

xiv) Deferred Revenue Expenditure:

Deferred Revenue Expenditure incurred is being written off over the period of 5 years

xv) Earnings per Share

Basic earnings per share are calculated by dividing the net profit/ loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.

During the financial year, the Company has allotted 2,18,500 equity shares on a preferential
basis on 06th December 2024 at an issue price of Rs. 687/- per share, aggregating to a total
consideration of Rs. 15,01,09,500 (Rupees Fifteen Crore One Lakh Nine Thousand and Five
Hundred only).

Further, the Company has allotted 25,000 equity shares under the Employee Stock Purchase
Scheme (ESPS), 2023 to eligible employees during the year.

xvi) Corresponding Figures of previous year have been reclassified/regrouped or rearranged to
make them comparable with the current year figures.

xvii) Disclosures pursuant to Section 186(4) of the Companies Act, 2013:

xvi) Other statutory information:

1. The Company does not have any benami property, where any proceeding has been initiated or
pending against the Company for holding any benami property.

2. The Company has not traded or invested in Crypto currency or Virtual Currency during the

financial year.

3. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security.or the like to or on behalf of the ultimate beneficiaries

4. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise) that the
Companyshall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

5. The Company does not have any such transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act,1961 (such as, search or survey or any other relevant provisions of the Income Tax
Act,1961.

6. The Company has complied with the number of layers prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

7. The Company is not declared willful defaulter by and bank or financial institution or lender during
the year.

8. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

9. Summary of reconciliation of quarterly returns filed by the company with banks & books of
accounts:

The discrepancies are as a result of our practice of submitting statement on monthly basis within
15 days from the close of each month. These statements are necessary to ensure timely
submission while adhering to regularly deadlines. However, it is important to emphasize that
these discrepancies have not led to any undue advantage or access to excess credit facilities from
the banks. Our commitment to transparency and compliance remains steadfast.

10. The Company has used the borrowings from banks and financial institutions for the specific
purpose for which it was obtained.

11. The title deeds of all the immovable properties, (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the Company)
disclosed in the financial statements included in property, plant and equipment and capital work-
in-progress are held in the name of the Company as at the balance sheet date.

12. The Company does not have any transactions with companies which are struck off.

13. Expenditure incurred on Corporate Social Responsibility(CSR) activities:

For & on behalf of the Board of

As per our separate report of even date Directors

For Rakesh Ashok & Company RMC Switchgears Limited

Chartered Accountants y |

FRN 011273C

ft Ashok Kumar Agrawal

/vvt\J I ^ (• [FRN - D1t273pj'* I Chairman Cum Managing Director

l ^v \q\ jaIpub/)%] .

--- \ 1/ / (DIN: 00793152)

r„r^up,a i

Membership Number : 407189 4fkit Agarwal

UDIN: CEO cum Whole Time Director

Place: Jaipur (DIN: 00793035)

Dated: 20th May, 2025