1.1 COMPANY OVERVIEW:

Devine Impex Limited. CIN: L51110PB1995PLC017179. (The Company) is a Public Limited
Company incorporated under the provisions of Companies Act, 1956 on 18th October 1995
having its registered office at The Groove. C-157, ISt Floor Industrial Focal Point, Phase- 7,
Mohali, Punjab, 160059

1.2 BASIS OF PREPARATION OF ACCOUNTS

I. Statement of Compliances:

These financial statements have been prepared to comply with the Indian Accounting
Standards (Ind AS). The Ind AS are prescribed under Section 133 of the Act read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian
Accounting Standards) Amendment Rules, 2016.

The Ind AS financial statements are prepared on accrual basis under the historical cost
convention. The Ind As financial statements are presented in Indian rupees rounded off to
the nearest Lacs.

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 policies information used
in preparation of audited financial statements have been discussed in the respective notes.

The company follows accrual method of accounting.

II. Use of Estimates and Judgements

The preparation of the financial statements in conformity with Ind AS requires 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.

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 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.

1.3 FIXED ASSETS AND DEPRECIATION

i. Fixed Assets have been stated at original cost, inclusive of inward freight, incidental
expenses related to acquisition, financing cost till commencement of commercial
production and related pre-operative expenses, less depreciation, while arriving at
original cost.

ii. Depreciation is provided on straight line method based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.

1.4 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.
An impairment loss is charged to the Statement of Profit and Loss in the year in which asset is
identified as impaired. The impairment loss recognized in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.

1.5 ACCOUNTING FOR GOVERNMENT GRANTS

Government Grants related to specific fixed assets are accounted for on receipt basis. Grants
received are deducted from the gross value of fixed assets concerned in arriving at their book
value. Grants related to specific expense are booked on accrual basis and deducted from the
related expense.

1.6 BORROWING COSTS

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 other borrowing costs are
charged to the statement of Profit and Loss.

1.7 FOREIGN CURRENCY TRANSACTIONS

i) Initial Recognition

Investments in foreign entities are recorded at the exchange rate prevailing on the date of
making the investment. Transactions denominated in foreign currencies are recorded at
the exchange rates prevailing on the date of the transaction.

ii) Conversion

Monetary assets and liabilities denominated in foreign currencies, as at the balance sheet
date, not covered by forward exchange contracts, are translated at year end rates.

iii) Exchange Differences

Any income or expense on account of exchange difference either on settlement or translation
is recognized in the Profit & Loss Account.

1.8 INVENTORIES

Inventories are valued at cost or net realizable value whichever is lower, as certified by the
management. Cost of inventories comprises of cost of purchase, cost of conversion and other
costs including manufacturing overheads incurred in bringing them to their respective
present location and condition.

1.9 REVENUE RECOGNITION

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

Dividend income is recognized as and when the right to receive is established.

1.10 INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are
classified as current investments. All other Investments are classified as Long term
Investments. Current Investments are carried at lower of cost and fair value determined on an
individual investment basis. Long term investments are stated at cost, diminution in the value
of long term investments is provided only when decline is other than temporary, in the
opinion of the management.

1.11 ACCOUNTING FOR TAXES ON INCOME

Provision for current tax is made after taking into consideration benefits admissible under the
provisions of the Income Tax Act, 1961. Minimum alternate tax (MAT) paid in accordance
with the tax laws, which give rises to future economic benefits in the form of tax credit
against future income tax liability, is recognized as an asset in the Balance Sheet.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted by the balance sheet date. Deferred tax
assets are recognized only to the extent there is reasonable certainty that the assets can be
realized in future. Deferred tax assets and liabilities are reviewed at each balance sheet date
and are restated to reflect the amount that is reasonably certain to be released/ payable.
Deferred tax assets and deferred tax liabilities have been set off wherever the company has a
legally enforceable right to set off and the deferred tax assets and deferred tax liabilities levied
by same taxation authority.

1 12 LEASES

In accordance with Ind AS 116, a contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for
consideration. The Company has elected not to apply the requirements of Ind AS 116 Leases
to short-term leases of all assets that have a lease term of 12 months or less. The lease
payments associated with these leases are recognised as an expense on a straight-line basis

over the lease term.

1.13 EMPLOYEE BENEFITS

i) Short Term Employee Benefits:

Employee benefits payable fully within twelve months of rendering the service are classified
as short term employee benefit and are recognized in the period in which the employee
renders the related service.

ii) Pr»;r-Employment Benefits ( Defined Contribution Plans)

Contributions to the Provident Fund, which is a defined contribution scheme, is recognized as
an expense in the profit and loss account in the period in which the contribution is due.