Note 2: Summary of Significant Accounting Policies

2.1 Basis of Preparation

The financial statements comply in all material aspects with Indian Accounting Standards ("Ind AS") notified
under Section 133 of the Companies Act, 2013 ("the Act") [Companies (Indian Accounting Standards) Rules,
2015] and other relevant provisions of the Act. The financial statements have been prepared on the historical
cost convention under accrual basis of accounting except for certain financial assets and liabilities (as per the
accounting policy below), which have been measured at fair value.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the
new pronouncements and based on its evaluation has determined that it does not have any significant impact
in its financial statements.

2.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that
affect the amounts reported in the financial statements and notes thereto. The management believes that
these estimates and assumptions are reasonable and prudent. However, actual results could differ from these
estimates. Any revision to accounting estimates is recognized prospectively in the current and future period.

2.3 Significant Estimates and Judgments

The areas involving critical estimates or judgments are:

• Estimation of fair value of financial assets and liabilities (Refer Note 34 to the Accounts)

• Estimation of useful life of Property, Plant and Equipment (Refer Note 2.7 below)

• Valuation of defined benefit obligations - (Refer Note 2.11 to the accounts)

• Estimation of income tax provision for the year.

The management has exercised its judgement in assessing whether a present obligation arising from the past
events would result in outflow of resources embodying economic benefits.

2.4 Revenue Recognition
Sale of Products

Revenue is recognized upon transfer of control of promised products or services to customers in an amount
that reflects the consideration we expect to receive in exchange for those products or services. The Company
considers indicators for assessing the transfer of control, including:

(a) The entity has a present right to payment for the assets.

(b) The customer has legal title to the asset.

(c) The entity has transferred physical possession of the asset.

(d) The customer has the significant risks and rewards of ownership of the asset

(e) The customer has accepted the asset.

The Company earns revenue primarily from sale of Camphor and allied products. Payment for the sale is made
as per the credit terms in the agreements with the customers. The credit period is generally short term, thus
there is no significant financing component. The Company's contracts with customers do not provide for any
right to returns, refunds or similar obligations.

Dividend, interest and other income

• Dividend income from investments is recognized when the right to receive payment has been established.

• Interest Income is recognized on a time proportion basis taking into account the amount outstanding and
the interest rate applicable in line with the effective interest rate method.

• Rental income is accounted on starting line basis over the term of the relevant lease.

• Insurance claims are accounted on the basis of claims admitted or expected to admitted and to the extent
that there is no uncertainty in receiving the claims.

• Export benefits are accounted in the year of exports based on eligibility and when there is no uncertainty in
receiving the same.

2.5 Property, Plant and Equipment

Freehold Land and all other items of Property, Plant and Equipment are stated at deemed cost on transition
IndAS or cost of acquisition, as applicable less accumulated depreciation / amortization and impairment, if any.
Cost includes purchase price, taxes and duties, labour cost and directly attributable overheads incurred upto
the date the asset is ready for its intended use. However, cost excludes Excise Duty, Value Added Tax and Service
Tax / GST, to the extent credit of the duty or tax is availed of.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate
asset is derecognized when replaced. All other repairs and maintenance are charged to Profit or Loss during
the reporting period in which they are incurred. Gains and losses on disposals are determined by comparing
proceeds with carrying amount and recognized in Statement of Profit and Loss.

2.6 Investment Property

Investment properties are measured at cost of acquisition less accumulated depreciation/ amortization
and impairment, if any. Cost includes purchase price, taxes and duties, labour cost and directly attributable
overheads incurred upto the date the asset is ready for its intended use. However, cost excludes Excise Duty,
Value Added Tax and Service Tax / GST, to the extent credit of the duty or tax is availed of.

Investment properties are properties held to earn rentals and/or capital appreciation. Depreciation on
investment property is calculated based on useful life estimated valuation report issued by a chartered engineer.

2.7 Depreciation and Amortization

Depreciation on tangible fixed assets is provided over the estimated useful life of the asset or part of the asset,
on straight line method, in accordance with Part A of Schedule II to the Companies Act, 2013. Residual value is
considered upto five per cent of the cost of assets.

The assets residual values, estimated useful lives and depreciation method are reviewed at the end of each
reporting period.

Gains and losses on disposal are determined by comparing proceeds with carrying amount and are credited/
debited to the Statement of Profit and loss.

Residual values and useful lives are reviewed and adjusted, if appropriate, for each reporting period.

On assets added / disposed during the year, depreciation is charged on pro-rata basis from the date of addition
/ till the date of disposal.

2.8 Intangible Assets

Intangible assets acquired are recorded at their acquisition cost and are amortized on straight line basis over its
useful life of 3 years.

2.9 Inventories

a) Raw materials, stores and spares are valued at cost under First-In-First-Out (FIFO) method or net realizable
value whichever is lower.

b) Finished goods are valued at cost (including applicable overheads) or net realizable value, whichever is lower

c) Work-in-progress is valued at lower of cost and net-realizable value. Cost is calculated as material cost plus
appropriate portion of overheads.

2.10 Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs
of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash inflows and are largely independent of the cash inflows from
other assets or groups of assets (cash-generating units).

2.11 Employee Benefits

(i) Short term obligations:

Liabilities for wages, salaries and bonuses, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related
service are recognized in respect of employees' services upto the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented
as current liabilities in the balance sheet.

(ii) Post-employment obligations:

a) Provident Fund and pension:

Provident Fund and pension benefits are defined contribution plans under which the Company pays
fixed contribution into funds established under the Employees' Provident Fund and Miscellaneous
Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions
after the payment of the fixed contribution. Contributions due to the provident fund are recognized
as an expense on monthly basis.

b) Gratuity:

The Company has a defined benefit gratuity plan funded with Life Insurance Corporation of India,
covering eligible employees. The scheme provides for lump sum payment to vested employees at
retirement, death while in employment or in termination of employment. The company obligation
towards gratuity is valued at the date of each balance sheet with the help of an actuary using
projected unit credit method and considered accordingly in the books of accounts.

(iii) Other long-term employee benefit obligations:
a) Leave encashment:

The company allows accumulation of leave and encashment thereof based on its policy for eligible
employees. The company's obligation towards leaves that could be carried over by employees beyond
12 months from the date of the balance sheet is valued on with the help of an actuary using the
projected unit credit method and considered accordingly in the books of accounts.

2.12 Taxes on Income

Income tax expense represents the sum of the current tax and deferred tax.

a) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before
tax' as reported in the statement of profit and loss because of items of income or expense that are taxable
or deductible in other years and items that are never taxable or deductible. The Company's current tax is
calculated using tax rates that are enacted and applicable for the reporting period. The company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis or to realize the assets and settle the liability
simultaneously.

b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will

be available against which those deductible temporary differences can be utilized. Such deferred tax assets
and liabilities are not recognized if the temporary difference arises from the initial recognition (other than
in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities. Accordingly, the deferred tax assets and liabilities that were
recognized during the previous reporting periods are remeasured using the tax rates enacted or substantively
enacted as at the reporting date.

c) Current and deferred tax for the year

Current and deferred tax are recognized in the Statement of Profit and loss, except when they relate to
items that are recognized in other comprehensive income or directly in equity, in which case, the current
and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

2.13 Leases

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
predominantly include the net present value of the fixed lease payments and other components of lease
payments where applicable.

Lease payments to be made under reasonably certain extension options are also included in the measurement
of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate
cannot be readily determined, which is generally the case for leases in the Company, the lessee's incremental
borrowing rate is used.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

• any initial direct costs, and

• restoration costs

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a
straight-line basis.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognized on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

2.14 Functional and presentation currency and Foreign Currency Transactions

Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which these entities operate (i.e. the "functional currency"). The financial statements
are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

In preparing the financial statements of the Company, transactions in currencies other than the entity's
functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated
in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

2.15 Earnings per Share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is calculated
by dividing the profit or loss attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive
potential equity shares.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker. The Company is principally engaged in the following business segments, viz.,
(i) Manufacture of Camphor and allied products and (ii) Real Estate.