A Corporate Information

Rajoo Engineers Ltd. (The Company) is a public limited Company incorporated in India. The Companys shares are listed on Bombay stock exchange in India. The company is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipment. The company caters to both domestic and international markets.

B Critical Accounting Judgements and Key Sources of Estimation Uncertainty

B.l Useful lives and residual values of property, plant and equipment

Property, plant and equipment represent a material portion of the Companys asset base. The periodic charge of depreciation is derived after estimating useful life of an asset and expected residual value at the end of its useful life. The useful lives and residual values of assets are estimated bythe management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on various external and internal factors including historical experience, relative efficiency and operating costs and change in technology.

B.2 Incometaxes

The Companys tax jurisdiction is India. Significant judgments are involved in determining the provision for income taxes including amounts to be recovered or paid for uncertain tax positions. Management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits.

B.3 Defined benefit obligations

Defined benefit obligations are measured at fair value for financial reporting purposes. Fair value determined by actuary is based on actuarial assumptions. Management judgement is required to determine such actuarial assumptions. Such assumptions are reviewed annually using the best information available with the Management.

B.4 Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystalizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

C FirstTimeAdoption of IND AS

The Company has adopted Ind AS with effect from 1st April 2016 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2015. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

C.l Exemptions from retrospective application

C.1.1 Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business Combinations” to business combinations consummated prior to April 1,2015 (the “Transition Date”), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAR The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated priortotheTransition Date.

C.l. 2 Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date.

C.1.3 Investments in subsidiaries, joint ventures and associates

The Company has elected to measure investment in joint venture at cost.

C.1.4 Classification and measurement of Financial Assets

The Company has classified and measured the financial assets on the basis of facts and circumstances that exist at the date of transition to Ind As.

The Remaining mandatory exceptions either do not apply or are not relevant to the company.

1.1 Deposits held with banks to the extent Rs. 3666890 held as margin money

1.2 Deposits held with banks Rs. 87359873 with maturity more than 3 Months but less than 12 Months

2.1 Terms/rights attached to Equity Shares

- The Company has only one class of issued Equity Shares having a par value of Rs. 1 per share. Each shareholder is eligible for one vote per share held.

- In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the company after distribution of all preferential amounts, in proportion of their shareholding.

2.2 In the Period of five years immediately preceding 31st March, 2018

The Company has not issued Bonus shares and bought back any equity shares during the period of five years immediately preceding the Balance sheet date. However, the Company has allotted 21318000 equity shares for consideration other than cash pursuant to the scheme of amalgamation during F.Y. 2013-14

2.3 Proposed Dividend

The Board of Director have recommended the payment of Dividend of Rs. 0.25 per fully paid up equity shares (31St March, 2017 Rs. 0.25 Per share). The proposed Dividend is subject to the approval of shares holders in the ensuing Annual General Meeting.

Note :

(Secured against pari pasu charge over entire movable fixed Assets by way of hypothecation and equitable mortgage of Factory Land & Building at Manavadar and Veraval (Shapar), Rajkot and also extention of hypothecation of current assets both present and future)

Note :

(Secured against pari pasu charge over entire Current Assets, both present and future, secured by way of hypothecation and equitable mortgage of Factory Land & Building at Manavadar and Veraval (Shapar), Rajkot. Further, Secured by way of hypothecation of plant & machinery of the Company both present and future.)

3. DISCLOSURE PURSUANT TO IND AS-19 “EMPLOYEE BENEFITS”

Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes

4. CORPORATE SOCIAL RESPONSIBILITY (CSR)

a. CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with ScheduleVII thereof bythe Company during the year is Rs. 1632614 (Previous Year Rs. 1326727)

b. Expenditure related to Corporate Social Responsibility is Rs. 1622706 (Previous Year Rs. 1205665).

c. Details of Amount spent towards CSR given below:

5. RELATED PARTIES DISCLOSURES

As per Ind AS 24, the disclosures of transactions with the related parties are given below:

a. List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

6. FINANCIAL INSTRUMENTS Valuation

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a. The fair value of investment in quoted Equity Shares is measured at quoted price or NAV.

b. All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date. funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior Management. Management monitors the Companys net liquidity position through rolling forecasts on the basis of expected cash flows.

Financing arrangements

The Company had access to following Financing arrangement facilities at end of reporting period:

Commodity Price Risk

Since the companies product is tailor maid and capital goods industries, such risk is not anticipated.

7. As per Ind AS 108- “Operating Segment”, segment information has been provided under the Notes to Consolidated Financial Statements.

8. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of 0.25 per fully paid up equity share of Re. 1/- each, aggregating to Rs.18544644, including Rs.3161956 dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on March 31,2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

9. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on May 27,2018.

9A. The Previous period figures have been re-grouped/ re-classified wherever required to confirm to current year classification.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities: and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Foreign Currency Risk

The following table shows foreign currency exposures in USD and EURO on financial instruments at the end of the reporting period. The exposure to foreign currencyfor all other currencies are not material.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from companys activities in investments, dealing in derivatives and outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to customers on credit are generally secured through Letters of Credit and advance payments.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Companys treasury department is responsible for liquidity,

- Fair valuation for Financial Assets:

The Company has valued financial assets (other than Investment in subsidiaries, associate and joint ventures which are accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognized in opening reserves and changes thereafter are recognized in Statement of Profit and Loss or Other Comprehensive Income, as the case may be.

- Deferred Tax

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.