1 Corporate Information:

GOYAL ALUMINIUMS LIMITED (CIN L74999DL2017PLC314879) was Incorporated on March 22nd, 2017 under the Companies Act, 2013 with the Registrar of Companies. NCT of Delhi 8 Haryana. The company Is currently engaged in the business of trading of aluminium and other metals on wholesale,retail or commission basis. The Company Is listed on Bombay Stock Exchange (BSE) [Script code: GOYALALUM).

2 Significant Accounting Policies:

2.1 Statement of Compliance with Ind AS:

The Standalone financial statements of the Company have been prepared In accordance with the Indian Accounting Standards (Ind AS) specified under section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015. The Company has uniformly applied the accounting policies during the periods presented.

2.2 Basis for preparation of financial statements:

The Standalone financial statements have been prepared In historical cost basis except for certain financial Instruments which are measured at fair value or amortised cost at the end which is generally based on the fair value of consideration given in exchange for goods and services. All assets and liabilities have been classified as current and non-current as per the Company's normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation In cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.

2.3 Use of Estimates:

. The preparation of Standalone financial statements requires the management of the company to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of Income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

2.4 Significant Management judgement in applying accounting estimates:

2.4.1 Income taxes:

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

2.4.2 Impairment of Investments:

The carrying value of Investments is reviewed at cost annually, or more frequently whenever, there Is indication for impairment. If the recoverable amount is less than the carrying amount, the impairment loss is accounted for.

2.4.3 Provision:

Provisions are recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources wilt be required to settle the obligation, In respect of which a reliable estimate can be made. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

2.4.4 Recognition of Deferred Tax Assets:

The extent to which deferred tax assets can be recognised Is based on an assessment of the probability of the future taxable Income against which the deferred tax assets can be utilized.

2.5 Preliminary expenses

Expenditure incurred prior to incorporation of the company is treated as preliminary expenses. One fifth of the expenses is treated as revenue expense and therefore is being booked as revenue expenses in every year.

2.6 Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset up to the date of capitalization of such asset, are capitalized as a part of the cost of such assets. Any income earned on the temporary development /investment of those borrowings is deducted from the borrowing costs so incurred.

A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the statement of Profit and Loss.

2.7 Property, Plant and Equipment:

PPE aie stated at actual tost less accumulated depreciation and net of impairment. The actual cost capitalized includes material cost, freight, installation cost, duties and taxes, eligible borrowing costs and other incidental expenses incurred during the construction/ Installation stage.

The Company has chosen the cost model for recognition and this model is applied to all class of assets. After recognition as an asset, an Item of PPE Is carried at Its cost less any accumulated depreciation and any accumulated Impairment losses.

Depreciable amount of an asset Is the cost of an asset less Its estimated residual value.

Depreciation on PPE, Including assets taken on lease, other than freehold land Is charged based on Written Down Value method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013. The useful life of asset taken Into consideration as per Schedule II for the purpose of calculating depreciation Is as follows: -

An item of Property, Plant and Equipment is derecognized 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 are determined as a difference between the sale proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

At the end of each reporting period, the Company reviews the carrying amounts of tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

2.8 Revenue recognition:

Revenue Is recognized when the control over the goods or services promised in the contract are transferred to the customer. The amount of revenue recognized depicts the transfer of promised goods and services to customers for an amount that reflects the consideration to which the Company Is entitled to in exchange for the goods or services.

2.8.1 Sale of goods:

Revenue from sale of goods is recognised when control over such goods have been transferred, being when the goods are delivered to the customers. Delivery occurs when the products have been shipped or delivered to the specific location as the case may be, risks of loss have been transferred to the customers, and either the customer has accepted the goods in accordance with the sales contract or the acceptance provisions have lapsed or the Company has objective evidence that all criteria for acceptance have been satisfied. Revenue from these sales Is recognized based on the transaction price as agreed with the customer in consideration for sale of such goods.

2.8.2 Dividend and interest Income:

Dividend Income from Investments is recognfsed when the shareholders’ right to receive such amount has been established (provided that ft fs probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of Income can be measured reliably.

2.8.3 Other Income:

In respect of other heads of income in the Company's accounts the income shall be recognised on accrual basis.

2.9 Foreign currency transactions:

Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional and the foreign currency prevailing on date of transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the date of Balance Sheet. Exchange differences arising on monetary Items on settlement or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognized in the Statement of Profit and Loss in the year In which they arise.

2.10 Financial instruments:

2.10.1 Financial Assets: -

Recognition and Initial measurement: Ý

Financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the financial Instrument and are measured Initially at fair value adjusted for transaction cost.

Subsequent measurement: -

Equity instrument and Mutual Fund: - All equity Instrument and mutual funds within scope of IndAS 109 are measured at fair value. Equity instrument and Mutual fund which are held for trading are classified as at fair value through profit & loss (FVTPL). For all other equity instruments, the Company decided to classify them as at fair value through other comprehensive income (FVTOCi).

Debt Instrument: • A 'debt instrument' Is measured at the amortised cost If both the following conditions are met. The assets are held within a business model whose objective Is to hold assets for collecting contractual cash flows, and contractual terms of the assets given rise on specified dates to cash flows that are solely payments of principal and Interest on the principal amount outstanding. After Initial measurement, such Financial Assets are subsequently measured at amortised cost using the effective Interest rate (EIR) method.

De- recognition of Financial Assets:-

A financial asset is primarily de recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its right to receive cash flow from the asset.

2.10.2 Financial Liabilities: -

Recognition and initial measurement: •

All financial liabilities are recognised Initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. Financial liabilities are classified as amortised cost.

Subsequent measurement: •

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest rate method.

De recognition of Financial liabilities:

A financial liability is derecognized when the obligation under the liability fs discharged or cancelled or expires. Consequently, write back of unsettled credit balances Is done on closure of the concerned project or earlier based on the previous experience of management and actual facts of each case and recognized in other operating revenues.

Further, when an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of existing liability are substantially mortified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference In the respective carrying amounts is recognized in the Statement of Profit and Loss.

2.10.3 Offsetting of financial Instrument: •

Financial Assets and Financial Liabilities are offset and the net amount is reported in the Balance Sheet if there is currently enforceable legal right to offset the recognized amounts and there is an intention to settle on net basis, to realize the assets and settle the liabilities simultaneously.

2.10.4 Impairment of Financial Assets

Equity Instruments. Debt Instruments and Mutual Fund: -

In accordance with Ind AS 109. the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for financial assets.

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with significant financing component is measured at an amount equal to 12-month ECL. For all other financial assets, expected credit losses are measured at an amount equal to the lifetime 12-month ECL, unless there has been a significant increase in credit risk from Initial recognition In which case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considers current and anticipated future economic conditions relating to Industries the Company deals with and the countries where It operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that Is required to be recorded is recognized as an impairment gain or loss In condensed consolidated statement of comprehensive Income.

Other Financial Assets: -

The Company determines whether there has been a significant Increase In the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.

2.11 Inventories

Inventories (other than quoted shares and securities) are valued at cost or net realisable value, whichever is lower. Cost is determined on FIFO and includes cost of purchase and other costs Incurred in bringing inventories to their present location and condition. Net realisable value is the estimated selling price In the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

2.12 Cash & Cash equivalents

Cash and cash equivalents In the Balance Sheet comprise of cash at bank 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.

2.13 Taxation

Tax expense recognised in Statement of Profit and Loss comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with Income Tax Act. 1961. Current and deferred tax are recognised in Statement of Profit and Loss, except when they relate to Items that are recognised in other comprehensive Income or directly in equity. In which case, the Income taxes are recognised in other comprehensive Income or directly in equity, respectively. Advance taxes and provisions for current income taxes are presented in the statement of financial position after offsetting advance tax paid and income tax provision.

Deferred tax is recognised on temporary differences arising between the carrying amount of assets and liabilities and the corresponding tax bases used in computation of taxable profit under Income Tax Act, 1961.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted. Deferred tax relating to items recognised outside Statement of Profit and Loss is recognised outside Statement of Profit and Loss (either in other comprehensive income or in equity).

2.14 Earnings per share:

Basic earnings/ (loss) 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 lire period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares fssued during the period and also after the Balance Sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings/ (loss) per share, the net profit/ (loss) for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all potentially dilutive equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless Issued at a later date.

2.15 Provision, Contingent Liabilities and Contingent Assets:

A provision is recognised when the company has a present obligation as a result of past event and It is probable that an outflow of resources will be required to settle the obligation, In respect of which reliable estimate can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent Assets and Contingent Liabilities are not recognized In the financial statements.

2.16 Retirement Benefits

Short- term Employee benefits payable wholly within twelve months of rendering the service such as salaries, performance, incentives, etc, are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss for the year In which the employee renders the related

service.

For defined benefits retirement schemes the cost of providing benefits Is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each year end balance sheet date. Re-measurement gains and losses of the net defined benefit liability/(asset) are recognised as an expense within employment costs.

Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognised, whichever is earlier. The retirement benefit obligation recognised in the balance sheet represents the present value of defined-benefit obligation as reduced by the fair value of olan assets, if anv.

2.17 Leases

The Company assesses at contract Inception whether a contract is, or contains, a lease. A contract Is, or contains, a lease If It conveys the right to control the use of an Identified asset for a period of time in exchange for consideration.

Company as a Lessee

Right-of-Use (ROU| assets are recognized at inception of a contract or arrangement for significant lease components at cost less lease incentives, if any. ROU assets are subsequently measured at cost less accumulated depreciation and impairment losses, if any. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct cost incurred and lease payments made at or before the lease commencement date. ROU assets are generally depreciated over the shorter of the lease term and estimated useful lives of the underlying assets on a straight line basis. Lease term is determined based on consideration of facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Lease payments associated with short-term leases and low value leases are charged to the Statement of Profit and Loss on a straight line basis over the term of the relevant lease.

The Company recognises lease liabilities measured at the present value of tease payments to be made on the date of recognition of the lease. Such lease liabilities do not include variable lease payments (that do not depend on an Index or a rate), which are recognised as expense in the periods In which they are Incurred. Interest on lease liability is recognised using the effective Interest method. Lease liabilities are subsequently Increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount of lease liabilities is also remeasured upon modification of lease arrangement or upon change in the assessment of the tease term. The effect of such remeasurements Is adjusted to the value of the ROU assets.

Company as a Lessor

Leases In which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Where the Company is a lessor under an operating lease, the asset is capitalised within property, plant and equipment or Investment property and depreciated over Its useful economic life. Payments received under operating leases are recognised in the Statement of Profit and Loss on a straight line basts over the term of the lease.