1. CORPORATE INFORMATION

Kotyark Industries Limited (the Company) was originally
incorporated as private limited Company on December 30,
2016. The Company was converted to public limited Company
w.e.f. August 05, 2021. The Company in the business of bio¬
diesel manufacturing and other by products. The equity shares
of the Company are listed on NSE Emerge Platform of National
Stock Exchange of India Limited.

2. BASIS OF PREPARATION OF FINANCIAL
STATEMENTS

2.1 Basis of preparation:

The accompanying Standalone Financial Statements have
been prepared and presented under the historical cost
convention on the accrual basis of accounting and comply
with the requirements of Accounting Standards as specified
under Section 133 of the Companies Act, 2013(Act), read
with the Companies (Accounting Standards) Rules, 2021 and
other accounting principles generally accepted in India. The
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 hereto in use.

2.2 System of Accounting:

The Standalone Financial Statements are prepared on historical
cost basis. The Company follows the mercantile system of
accounting and recognizes income and expenditure on the
accrual basis.

2.3 Use of Estimates:

The preparation of Financial Information requires the management
of the Company to make estimates and assumptions that affect
the balances of assets and liabilities and disclosures relating to
the contingent liability as at the date of the financial information
and reported amounts of income and expenses like useful lives
of property, plant and equipment, provision for taxation, etc.,
during the year. Management believes the estimates used in
the preparation of the financial information are prudent and
reasonable. Future results may vary from these estimates.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Property, Plant and Equipment:

"Property, plant and equipment and Intangible Assets are stated
at their cost of acquisition less accumulated depreciation. The
cost of acquisition includes freight, installation cost, duties,
taxes and other incidental expenses, identifiable with the asset,
incurred during the installation/construction stage in order to
bring the assets to their working condition for intended use,
including borrowing costs capitalized, if any, but are net of Input
Tax Credits availed for the relevant element in the Cost.

Property, plant and equipment include Lease hold Land, which
is amortized equally over the tenure of Lease. The value of
Lease hold Land includes cost of premium and other expenses

incurred in order to meet the condition of lease agreement and
get the Land on Lease. Intangible assets comprise of Trademark.

An item of property, plant and equipment is derecognised 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 is determined as the difference between
the sales proceeds and the carrying amount of the asset and is
recognised in statement of profit & loss.

3.2 Depreciation and Amortisation:

Depreciation on assets is provided on the Written down Value
(WDV) Method over the estimated useful life of the assets
according to the classification and as per useful life specified
in Schedule II to the Companies Act, 2013 except in following
cases, in whose case the life of the assets has been assessed
based on technical advice, taking into account the nature of
the asset, the estimated usage of the asset, the operating
conditions of the asset, past history of replacement, anticipated
technological changes, etc. Lease hold Land is amortised over a
tenure of Lease on straight line basis.

On the additions/disposal during the year, depreciation is
provided pro-rata on the basis of number of days for which the
asset was used during the year. Intangible assets are amortised
over a period of 5 Years on straight line basis.

3.3 Operating expenses:

Operating expenses are accounted in financial statements on
accrual basis.

3.4 Inventories:

Inventories of raw material and finished goods are valued at
lower of the cost or net realizable value. Obsolete, defective and
unserviceable Inventory, if any, are duly provided for.

3.5 Revenue Recognition:

Revenue from sale of products are recognised when the risk
and rewards of ownership of products are passed on to the
customers. Revenue is recorded exclusive of GST and net of
trade and quantity discounts or rebates granted.

Income from Services rendered are booked based on
agreements/arrangements with the concerned parties.

Interest is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend income is recognised if the right to receive payment is
established by the Balance Sheet date.

3.6 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition of
qualifying assets are to be capitalized for the year until the asset
is ready for its intended use. A qualifying asset being, an asset
that necessarily takes a substantial period of time to get ready
for its intended use. Other borrowing costs are to be recognized
as an expense in the year in which they are incurred.

3.7 Employee Benefits:

(a) Short term benefits

All employee benefits payable wholly within twelve months of
rendering the service are classified as short-term employee
benefits. These benefits include compensated absences
such as privilege leave and sickness leave. The undiscounted
amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees is recognized
during the period.

(b) Post-employment benefits - Defined contribution
plan

The Company’s provident fund scheme is defined contribution
plan. The Company’s contribution paid/payable under the
schemes is recognised as expense in the statement of Profit
and Loss during the period in which the employee renders the
related service.

3.8 Accounting for Taxes on Income:

(a) Income tax expense comprises current tax (i.e. amount of
tax for the year determined in accordance with the Income
Tax Act, 1961) and deferred tax charge or credit (reflecting
the tax effects of timing differences between accounting
income and taxable income for the year).

(b) The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognised using the
rates and laws that have been enacted or substantively
enacted at the balance sheet date. Deferred tax assets are
recognised only to the extent there is reasonable certainty
the assets can be realised in future; however, where there
is unabsorbed depreciation and carry forward loss under
taxation laws, deferred tax assets are recognised only
if there is a virtual certainty of realisation of such assets.
Deferred tax assets are reviewed at each balance sheet
date and written down or written up to reflect the amount
that is reasonably/virtually certain (as the case may be) to
be realised.

3.9 Impairment of Assets:

The Company assesses at each balance sheet date whether
there is any indication that an asset may be impaired. If any such
indication exists, the Company estimates the recoverable amount
of the asset. The recoverable amount is the greater of the net
selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value
based on an appropriate discount factor. If such recoverable
amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and