B, SIGNIFICANT ACCOUNTING POLICIES FOR PREPARATION OF
FINANCIAL STATEMENTS

B.1 Accounting Convention

The financial statement has been prepared under the historical cost convention on the
"Accrual Concept” except for certain financial instruments which are measured at fair
values and Going Concern assumptions of accountancy in accordance with the
accounting principles generally accepted in India and comply with the accounting
standards as prescribed by Companies ( Accounting Standard) Rules, 2021 and with the
relevant provisions of the Companies Act, 2013 and rules made there under

All amounts disclosed in the financial statements and notes have been rounded off to
the nearest Rs. In Lakh as per the requirement of division I of Schedule III, unless
otherwise stated.

B.2 Use of Estimates and Judgements

The preparation of financial statements requires management to make estimates,
judgements and assumptions that affect the reported amount of assets and liabilities on
the date of the financial statement and the reported amount of revenues and expenses
during the reporting period The application of accounting policies that require critical
accounting estimates, which involve complex and subjective judgments and the use of
assumptions in these financial statements, have been disclosed in notes. 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 financial statements.

B.3 Current and Nun - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following
criteria;

i. it is expected to be realized / settled, or is intended for sales or consumptions,
in the Company's Normal Operating Cycle,

ii. it is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the

end of reporting date;

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

All other assets and liabilities are classified as non Current.

for the purpose of Current / Non - Current classification of assets and liabilities, the
Company has ascertained its operating cycle as twelve months. This is based on the
nature of services and the time between the acquisition of the assets or liabilities for
processing and their realization in Cash and Cash Equivalents.

C Basis of Preparation

1) Presentation and Disclosure of Financial .Statements

These financial statements have been prepared as per “Schedule - 111" notified under the
Companies Act, 2013 The Company has also reclassified regrouped restated the previous
year figures in accordance with the requirements applicable in the current year.

2) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation and
impairment losses, if any Cost comprises of all expenses incurred to bring the assets to its
present location and condition. Borrowing cost directly attributable to the acquisition/
construction is included in the cost of fixed assets Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.

In case of new projects/ expansion of existing projects, expenditure incurred during
construction preoperative period including interest and finance charge on specific/ general
purpose loans, prior to commencement of commercial production are capitalized, the same
are allocated to the respective on completion of construction/ erection of the capital project
fixed. assets

Subsequent expenditures related to an item of tangible asset are added to its book value
only if they increase the future economic benefits from the existing asset beyond its
previously assessed standard of performance

Capital assets (including expenditure incurred during the construction period) under
erection / installation are stated in the Balance Sheet as "Capital Work in Progress."

3) Depreciation

All fixed assets; except capital work in progress, are depreciated on WDV Method.
Depreciation is provided based on useful life of the assets and depreciation rates as
prescribed in Schedule II to the Companies Act, 2013 Depreciation on additions to/
deletions from fixed assets made during the period is provided on pro-rata basis from/ up
to the date of such addition/ deletion as the case may be.

4) Impairment of Assets

At each balance shed date, the Company reviews the carrying amount of its fixed assets to
determine whether there is any indication that those assets suffered an impairment loss. if any such indication exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the higher of an asset's net
selling price and value in. use. In assessing value in use. the estimated future cash flows
expected from the continuing use of the assets and from its disposal are discounted to their
present value using a pre-tax discount rate that reflects the current market assessment of
time value of money and the risks specific to the assets

5) Inventories

Inventories consist of Raw Materials and Finished Goods arc valued at Cost or Net
Realizable Value, whichever is lower.

6) Investments

Investments are classified into current investments and non-current investments Current
investments i,e. investments that are readily realizable and intended to be held for not more
than a year valued at cost Any permanent reduction in the carrying amount or any reversals
of such, reductions are charged or credited to the Statement of Profit & loss Account

Non-current investments are stated at cost. Provision for diminution in the value of these
investments is made only if such decline is other than temporary, in the opinion of the
management.

Revenue includes only the gross inflows of economic benefits on its own account. Amount
collected on behalf of third parties such as sales tax, value added tax and goods and service
tax (GST) are excluded from the Revenue

Safe of goods is recognized at the point of dispatch of goods to customers, sales are
exclusive of Sales tax, Vat, GST and Freight Charges if any. The revenue and expenditure
are accounted on a going concern basis.

The capital gains on sale of investment if any are recognized on completion of transaction.
No notional profits, losses are recognized on such investments.

Inrerest income is recognized on time proportion basis, when it is accrued and due for
payment.

Dividend from investments in shares units is recognized when the Companies right to
receive payment is established.

Other items of Income are accounted as and when the right to receive arises.

8) Borrowing Cost

Borrowing Cost includes the interest, commitments charges on bank borrowings,
amortization of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying
property, plants and equipment's are capitalized as a part of cost of that property, plants
and equipment’s. The amount of borrowing costs eligible for capitalization is determined
in accordance with the Accounting Standards - 16 ''Borrowing Costs". Other Borrowing
Costs are recognized as expenses in the period in which they are incurred.

In accordance with the Accounting Standard 16. exchange differences arising from
foreign currency borrowings to the extent that they are regarded as adjustments to interest
costs are recognized as Borrowing Costs, and are capitalized as a part of cost of such
property, plants and equipment's if they are directly attributable to their acquisition or
charged to the Statement or Profit and Loss.

Employee Benefits

Short - term employee benefits are recognized as an expense at the undiscounted amount
in the profit & loss account of the year in which the related service is rendered

Post employment and other long term employee benefits are recognized as an expense in
the profit & loss account for the year in which the liabilities are crystallized

10) Taxes on Income

Income tax expanses for the year comprises of current tax and deferred tax.

Current tax provision is determined on the basis of taxable income computed as per the
provisions of the Income Tax Act.

Deferred tax is recognized for all timing differences that are capable of reversal in one or
more subsequent periods subject to conditions of prudence and by applying tax rates that
have been substantively enacted by the balance sheet date

11) Foreign Currency Transaction

i. Transactions denominated in foreign currencies are recorded at the exchange
rate prevailing at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the year-end are restated at closing rate.

ii. Any exchange difference on account of settlement of foreign currency

transaction and restatement of monetary assets and liabilities denominated in

foreign currency is recognised in the statement of Profit & loss Account