Alcokraft Distilleries Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

The financial statements of the company have been prepared under historical cost convention on accrual basis of
accounting & in accordance with generally accepted accounting principles in India (Indian GAAP) & the mandatory
accounting standards issued by ICAI. The company has prepared these financial statements to comply in all material
respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.

The financial statements are presented in India Rupees ‘INR'' which is also the Company''s functional currency, and
all values are rounded off to the nearest lakhs except when otherwise indicated. Whenever an amount is presented
as INR ‘0'' (zero), it construes amount less than Rs. 50,000/-.

The company has reclassified previous year figures in accordance with the requirements applicable in the current
year.

b Basis of Accounting

All the significant accounting policies adopted in the preparation and presentation of financial statements have
been disclosed, at one place & forms part of the financial statements. The accounting policies, in all material
respects, have been consistently applied by the Company. The change in the accounting policies - if any - which
has a material effect in the current period has been disclosed. In case of a change in accounting policies which has
a material effect in the current period or later period, the amount by which any item in the financial statements is
affected by such change has been ascertained and disclosed in Notes to Financial statements. Where such amount
is not ascertainable, wholly or in part, such fact has been indicated.

The fundamental accounting assumption of'' ''going concern'', ''consistency'', & ''accrual'', has been followed.
c Use of Estimates

The preparation of financial statements requires the management of the Company to make an estimate &
assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities
as at the date of financial statements & reported amounts of Income & Expenses during the year. Estimates &
assumptions used in the preparation of the financial statements are based upon management''s evaluation of the
relevant facts & circumstances as of the date of the financial statements, which may differ from the actual results at
a subsequent date. Difference between the actuals & estimates are recognised in the period in which the results are
known/materialised. Change in estimates is disclosed wherever required.

d Property, Plant and Equipment

For each class of property, plant and equipment, the company has opted for cost model. Property, Plant & Equipment
are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing
cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted
to the extent of GST credit available and exchange difference arising on translation / settlement of foreign currency
monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Property, Plant & Equipment, the difference between the carrying amount and disposal
proceeds is accounted as gain / loss in the Statement of Profit & Loss. Advances paid towards the acquisition of
property, plant & equipment, outstanding at each balance sheet date are shown under capital advances. The cost
of property, plant & equipment nor ready for its intended use on such date, is disclosed under CWIP."

e Intangible assets

Intangible Assets acquired separately & also internally generated are recognised at cost less accumulated
amortisation and impairment. Amortisation is done on straight line basis over estimated useful economic life and the
amortisation period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is
accounted as gain / loss in the Statement of Profit & Loss.

f Depreciation and amortization

The carrying amount of Property, Plant & equipment as on 31st March 2014 is depreciated over remaining useful
life of the assets after reassessing the useful life of the asset. The assets acquired on or after 01.04.2014 are

depreciated according to the useful life of such asset as specified in Schedule II of Companies Act, 2013. A residual
value of 5% of the cost of acquisition is considered while calculating the depreciation.

While accounting the Property, Plant & Equipment, the principle of component accounting is followed in case of
significant components of Property, Plant & Equipment and for depreciating the significant components, the useful
life of each significant component is considered separately apart from the remaining parts of the Property, Plant &
Equipment.

g Impairment of assets

The company assesses at each reporting date an indication about impairment of an asset. If any indication exists,
the company estimates the asset''s recoverable amount. The recoverable amount is determined for individual asset.
The recoverable amount is higher of the selling price & value in use of the asset. The value in use is estimated on
the basis of estimated future cash flows for next 5 years discounted to the present value by using pre-tax discount
rate that reflects time value of the money and the risk specific to the asset. Where the carrying amount of the asset
exceeds the recoverable amount, the asset is impaired & is written down to its recoverable value.

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised
carrying amount of the asset after impairment. If the previously recognised impairment losses do not exist or
have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the
recoverable amount.

h Leases

"As a Lessee: -

Finance leases, which effectively transfers to the Company substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the
leased property and present value of minimum lease payments. Lease payments are apportioned between the
finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are recognized as finance costs in the Profit and Loss Account. Lease
management fees, legal charges and other initial direct costs of lease are capitalized."

A leased asset is depreciated on a straight-line basis over the useful life of the asset assessed by the management.
However, if there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term,
the capitalized asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset.

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item,
are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss
Account on a straight-line basis over the lease term.

"As a Lessor: -

Leases in which the Company transfers substantially all the risks and benefits of ownership of the asset are classified
as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the
net investment in the lease. After initial recognition, the Company apportions lease rentals between the principal
repayment and interest income so as to achieve a constant periodic rate of return on the net investment outstanding
in respect of the finance lease. The interest income is recognized in the Profit and Loss Account. Initial direct costs
such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account. "

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset
are classified as operating leases. Assets subject to operating leases are included in property, plant and equipment
assets. Lease income on an operating lease is recognized in the Profit and Loss Account on a straight-line basis over
the lease term. Costs, including depreciation, are recognized as an expense in the Profit and Loss Account. Initial
direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

i Investment

Investments which are readily realisable and intended to be held for not more than 1 year from the date on which
such investments are made are classified as current investments. All other investments are classified as Long-term
Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.

"Current investments are carried in the financial statements at lower of cost or fair value determined
on an individual investment basis. Long term investments are carried at cost. However, provision for
diminution in value is made to recognise a decline other than temporary in the value of investments.
On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the Statement of Profit and Loss. TDS on income from Investment is included in Advance taxes paid. "

j Inventories

Raw materials and Stores & Spares valued at lower of cost or net realizable value. However, these items are
considered to be realisable at replacement cost if the finished goods, in which they will be used, are expected to be
sold below cost.

"Cost of Inventories is computed on a Weighted Average basis. Cost includes purchase price, (excluding
those subsequently recoverable by the enterprise from the concerned revenue authorities), freight inwards
and other expenditure incurred in bringing such inventories to their present location and condition.
Work in progress and manufactured finished goods are valued at the lower of cost and net realisable value. Cost
of work in progress and manufactured finished goods is determined on the weighted average basis and comprises
direct material, Cost of conversion and other costs incurred in bringing these inventories to their present location
and condition. Cost of traded goods is determined on a weighted average basis."

Provision of obsolescence on inventories is considered on the basis of management''s estimate based on demand
and market of the inventories. Net realizable value is the estimated selling price in the ordinary course of business,
less the estimated cost of completion and the estimated costs necessary to make the sale. The comparison of cost
and net realizable value is made on item-by-item basis."

k Cash and cash equivalents

The Cash Flow Statement discloses the cash flows during the period classified by operating, investing and financing
activities in a manner which is most appropriate to the business of the company for each period for which financial
statements are presented. Reporting of cash flows from operating activities has been made by indirect method.

Extraordinary items: The cash flows associated with extraordinary items have been appropriately classified as
arising from operating, investing, or financing activities and separately disclosed. Interests and Dividends: Separate
disclosure of cash flows from interest and dividends received and paid has been made. Taxes on income: Cash flows
arising from taxes on income are separately disclosed & classified as cash flows from operating activities unless they
can be specifically identified with financing and investing activities."

The enterprise has disclosed the components of cash and cash equivalents together with a commentary by
management, the amount of significant cash and cash equivalent balances held by the enterprise that are not
available for use by it.

l Current assets, loans & advances

Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of
business.

m Investment Property

Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the
company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation
and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On
disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is
charged / credited to Statement of Profit and Loss.

n Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the
revenue can be reliably measured.

Sale of goods and services are recognized net of duties, taxes & Sales Returns. Expenditure & income are accounted
on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or
receivable during the year.

Sales of goods are recognised when property in goods has been transferred to the buyer for a price or all significant
risks and rewards of ownership have been transferred to the buyer and the seller retains no effective control of the
goods transferred to a degree usually associated with ownership.

The revenue from service is recognised as and when the services are rendered, based on the agreements/
arrangements with the concerned parties net of duties, taxes. Unearned revenue'' included in other current liabilities
represent billing in excess of revenue recognized. Rental Income is recognized on time proportionate basis over the
period of the rent.

Interest is recognized on a time proportion basis considering the amount outstanding and the applicable
interest rate. Dividend is recognised when the Company''s right to receive dividend is established.
In case of any pending resolution of significant uncertainties, the revenue recognition is postponed & is disclosed
separately in the notes. "

o Employee Benefits

Employee benefits include provident fund, employee state insurance, gratuity and leave encashment & bonus.

The Company provides for retirement benefits in the form of gratuity as per Payment of Gratuity Act, 1972. Benefits
payable to eligible employees with respect to gratuity, a defined benefit plan, is accounted for on the basis of
an actuarial valuation as at the Balance Sheet date. Leave encashment due is provided on the basis of actuarial
valuation.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement
of Profit and Loss on accrual basis. Bonus is provided in the books of accounts as per the provisions of Payment of
Bonus Act, 1965 (as amended).

p Borrowing Cost

Borrowing cost includes interest, amortisation of ancillary costs incurred in connection with the arrangement of
borrowing & exchange differences arriving from foreign currency borrowing to the extent they are regarded as an
adjustment to the interest cost.

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a
substantial period of time to get ready for its intended use are capitalised. All other borrowing costs are recognised
as expenditure in the period in which they are incurred.

q Related Party Transactions

"All related party transactions are reported irrespective of the fact whether such transactions have adversely affected
financial position and operating results of the company. The related parties are reported even when there are no
transactions with such parties.

Related parties include -

• Enterprises that are under common control - Directly or indirectly.

• Associates and JVs.

• Individuals having interest in voting power of the enterprise that gives them control and significant influence
over the enterprise and relatives of such individuals.

• Key management personnel (KMP) and their relatives having significant influence over the enterprise."

The transactions include -

• Sale and purchase of goods and fixed assets and services

• Agency arrangements

• Leased and hire purchase transactions.

• Transfer of R & D

• License agreements

• Financial transactions - Loans, equity, guarantee, collaterals

• Management contracts including deputation of employees.

The disclosures are given as per AS 18."

r Foreign currency transactions

Foreign Currency transactions are recorded in reporting currency at the exchange rate prevailing on the date of
transaction.

On the reporting date monetary items are retranslated by using the exchange rate prevailing on the reporting date.
Foreign exchange difference related to acquisition of Fixed Assets and loans related to it is adjusted in the carrying
amount of Fixed Asset and the loan amount.

Income or expenditure arising out of exchange fluctuation other than Fixed Assets and loans on such assets is
accounted for in the Statement of Profit and Loss.

s Taxes on Income

Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum
Alternate Tax (MAT) is not applicable since Company has opted Section 115BAA of Income tax Act 1961. Deferred
Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income
& the accounting income that originate in one period & are capable of reversal in one or more subsequent periods.
Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset
will be realized in future.

Indirect Taxes

The amounts of output liability & amounts claimed by the company as eligible input tax credit under the CGST
Act, SGST Act, IGST Act, as per the books of account of the company is subject to reconciliation & correction -
if any - which will be done while filing of the GST Annual return in Form GSTR 9 - to be filed before due date.

Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates
can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at
each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent
assets are neither accounted nor disclosed in the financial statements.

t Segment reporting

The segment reporting is done assuming two segments - Business segment as primary segment & geographical
segment as secondary segment. The segment reporting includes segment wise revenue, expenses, assets &
liabilities & accounting policies. Unallocated items include general corporate income and expense items, which are
not allocated to any business segment. The disclosures are given as per AS 17."

u Government Grants & Subsidies

Grants and subsidies from the Government are recognised only when there is reasonable assurance that it will be
received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit
and Loss and where the Grant relates to an asset, the same is reduced from the cost of the asset before charging
depreciation & when the subsidy is of capital nature but not attributable to any particular asset or group of assets,
the same is recognised as Capital reserve.

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Mar 31, 2024

2. Significant Accounting Policies:-a Basis of Preparation

The financial statements of the company have been prepared under historical cost convention on accrual basis of accounting & in accordance with generally accepted accounting principles in India (Indian GAAP) & the mandatory accounting standards issued by ICAI. The company has prepared these financial statements to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

The financial statements are presented in India Rupees ‘INR’ which is also the Company’s functional currency, and all values are rounded off to the nearest lakhs except when otherwise indicated. Whenever an amount is presented as INR ‘0’ (zero), it construes amount less than Rs. 50,000/-.

The company has reclassified previous year figures in accordance with the requirements applicable in the current year. b Basis of accounting

All the significant accounting policies adopted in the preparation and presentation of financial statements have been disclosed, at one place & forms part of the financial statements. The accounting policies, in all material respects, have been consistently applied by the Company. The change in the accounting policies - if any - which has a material effect in the current period has been disclosed. In case of a change in accounting policies which has a material effect in the current period or later period, the amount by which any item in the financial statements is affected by such change has been ascertained and disclosed in Notes to Financial statements. Where such amount is not ascertainable, wholly or in part, such fact has been indicated.

The fundamental accounting assumption of’ ‘going concern’, ‘consistency’, & ‘accrual’, has been followed. c Use of Estimates

The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. Estimates & assumptions used in the preparation of the financial statements are based upon management’s evaluation of the relevant facts & circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date. Difference between the actuals & estimates are recognised in the period in which the results are known/materialised. Change in estimates is disclosed wherever required.

d Property, Plant and Equipment

For each class of property, plant and equipment, the company has opted for cost model. Property, Plant & Equipment are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of gSt credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Property, Plant & Equipment, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

Advances paid towards the acquisition of property, plant & equipment, outstanding at each balance sheet date are shown under capital advances. The cost of property, plant & equipment nor ready for its intended use on such date, is disclosed under CWIP.

e Intangible assets

Intangible Assets acquired separately & also internally generated are recognised at cost less accumulated amortisation and impairment. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

f Depreciation and amortization

The carrying amount of Property, Plant & equipment as on 31st March 2014 is depreciated over remaining useful life of the assets after reassessing the useful life of the asset. The assets acquired on or after 01.04.2014 are depreciated according to the useful life of such asset as specified in Schedule II of Companies Act, 2013. A residual value of 5% of the cost of acquisition is considered while calculating the depreciation.

While accounting the Property, Plant & Equipment, the principle of component accounting is followed in case of significant components of Property, Plant & Equipment and for depreciating the significant components, the useful life of each significant component is considered separately apart from the remaining parts of the Property, Plant & Equipment.

g Impairment of assets

The company assesses at each reporting date an indication about impairment of an asset. If any indication exists, the company estimates the asset’s recoverable amount. The recoverable amount is determined for individual asset. The recoverable amount is higher of the selling price & value in use of the asset. The value in use is estimated on the basis of estimated future cash flows for next 5 years discounted to the present value by using pre-tax discount rate that reflects time value of the money and the risk specific to the asset. Where the carrying amount of the asset exceeds the recoverable amount, the asset is impaired & is written down to its recoverable value.

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment. If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h Leases

As a Lessee: -

Finance leases, which effectively transfers to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the leased property and present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the Profit and Loss Account. Lease management fees, legal charges and other initial direct costs of lease are capitalized.

A leased asset is depreciated on a straight-line basis over the useful life of the asset assessed by the management. However, if there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, the capitalized asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset.

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term.

As a Lessor: -

Leases in which the Company transfers substantially all the risks and benefits of ownership of the asset are classified as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment in the lease. After initial recognition, the Company apportions lease rentals between the principal repayment and interest income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of the finance lease. The interest income is recognized in the Profit and Loss Account. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in property, plant and equipment assets. Lease income on an operating lease is recognized in the Profit and Loss Account on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the Profit and Loss Account. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

i Investment

Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

“Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. TDS on income from Investment is included in Advance taxes paid. “

j Inventories -

Raw materials and Stores & Spares valued at lower of cost or net realizable value. However, these items are considered to be realisable at replacement cost if the finished goods, in which they will be used, are expected to be sold below cost.

“Cost of Inventories is computed on a Weighted Average basis. Cost includes purchase price, (excluding those subsequently recoverable by the enterprise from the concerned revenue authorities), freight inwards and other expenditure incurred in bringing such inventories to their present location and condition.

Work in progress and manufactured finished goods are valued at the lower of cost and net realisable value. Cost of work in progress and manufactured finished goods is determined on the weighted average basis and comprises direct material, Cost of conversion and other costs incurred in bringing these inventories to their present location and condition. Cost of traded goods is determined on a weighted average basis.”

“Provision of obsolescence on inventories is considered on the basis of management’s estimate based on demand and market of the inventories.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on item-by-item basis.”

k Cash and cash equivalents

The Cash Flow Statement discloses the cash flows during the period classified by operating, investing and financing activities in a manner which is most appropriate to the business of the company for each period for which financial statements are presented. Reporting of cash flows from operating activities has been made by indirect method.

Extraordinary items: The cash flows associated with extraordinary items have been appropriately classified as arising from operating, investing, or financing activities and separately disclosed.

Interests and Dividends: Separate disclosure of cash flows from interest and dividends received and paid has been made.

Taxes on income: Cash flows arising from taxes on income are separately disclosed & classified as cash flows from operating activities unless they can be specifically identified with financing and investing activities.

The enterprise has disclosed the components of cash and cash equivalents together with a commentary by management, the amount of significant cash and cash equivalent balances held by the enterprise that are not available for use by it.

l Current assets, loans & advances

Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business. m Investment Property

Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

n Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of goods and services are recognized net of duties, taxes & Sales Returns. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

Sales of goods are recognised when property in goods has been transferred to the buyer for a price or all significant risks and rewards of ownership have been transferred to the buyer and the seller retains no effective control of the goods transferred to a degree usually associated with ownership.

The revenue from service is recognised as and when the services are rendered, based on the agreements/ arrangements with the concerned parties net of duties, taxes. Unearned revenue’ included in other current liabilities represent billing in excess of revenue recognized. Rental Income is recognized on time proportionate basis over the period of the rent. “Interest is recognized on a time proportion basis considering the amount outstanding and the applicable interest rate. Dividend is recognised when the Company’s right to receive dividend is established.

In case of any pending resolution of significant uncertainties, the revenue recognition is postponed & is disclosed separately in the notes.

o Employee benefits

Employee benefits include provident fund, employee state insurance, gratuity and leave encashment & bonus.

The Company provides for retirement benefits in the form of gratuity as per Payment of Gratuity Act, 1972. Benefits payable to eligible employees with respect to gratuity, a defined benefit plan, is accounted for on the basis of an actuarial valuation as at the Balance Sheet date. Leave encashment due is provided on the basis of actuarial valuation.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Bonus is provided in the books of accounts as per the provisions of Payment of Bonus Act, 1965 (as amended)..

p Borrowing cost -

Borrowing cost includes interest, amortisation of ancillary costs incurred in connection with the arrangement of borrowing & exchange differences arriving from foreign currency borrowing to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to get ready for its intended use are capitalised. All other borrowing costs are recognised as expenditure in the period in which they are incurred.

q Related Party Disclosure

All related party transactions are reported irrespective of the fact whether such transactions have adversely affected financial position and operating results of the company. The related parties are reported even when there are no transactions with such parties.

Related parties include

• Enterprises that are under common control - Directly or indirectly.

• Associates and JVs.

• Individuals having interest in voting power of the enterprise that gives them control and significant influence over

the enterprise and relatives of such individuals.

• Key management personnel (KMP) and their relatives having significant influence over the enterprise.

The transactions include -

• Sale and purchase of goods and fixed assets and services

• Agency arrangements

• Leased and hire purchase transactions.

• Transfer of R & D

• License agreements

• Financial transactions - Loans, equity, guarantee, collaterals

• Management contracts including deputation of employees.

The disclosures are given as per AS 18.

r Foreign currency transactions As a Lessee: -

Foreign Currency transactions are recorded in reporting currency at the exchange rate prevailing on the date of transaction.

On the reporting date monetary items are retranslated by using the exchange rate prevailing on the reporting date. Foreign exchange difference related to acquisition of Fixed Assets and loans related to it is adjusted in the carrying amount of Fixed Asset and the loan amount.

Income or expenditure arising out of exchange fluctuation other than Fixed Assets and loans on such assets is accounted for in the Statement of Profit and Loss.

s Taxes on Income

Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) is not applicable since Company has opted Section 115BAA of Income tax Act 1961. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

Indirect Taxes

The amounts of output liability & amounts claimed by the company as eligible input tax credit under the CGST Act, SGST Act, IGST Act, as per the books of account of the company is subject to reconciliation & correction - if any -which will be done while filing of the GST Annual return in Form gStr 9 - to be filed before due date.

Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

t Segment reporting

The segment reporting is done assuming two segments - Business segment as primary segment & geographical segment as secondary segment. The segment reporting includes segment-wise revenue, expenses, assets & liabilities & accounting policies. Unallocated items include general corporate income and expense items, which are not allocated to any business segment. The disclosures are given as per AS 17.

u Government Grants & Subsidies

The existence and nature of the contingency is disclosed separately. In case where the potential loss to an enterprise can be reduced or avoided because a contingent liability is matched by a related counterclaim, the amount of the provision on account of contingent liability is determined after taking into account the probable counterclaim if no significant uncertainty as to its measurability or collectability exists.

The existence and amount of guarantees, obligations arising from discounted bills of exchange and similar obligations undertaken by an enterprise have been disclosed in financial statements by way of notes.

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Mar 31, 2023

3. Significant Accounting Policies: -

3.1 Basis of accounting

All the significant accounting policies adopted in the preparation and presentation of financial statements have been
disclosed, at one place & forms part of the financial statements. The accounting policies, in all material respects, have
been consistently applied by the Company. The change in the accounting policies - if any - which has a material effect
in the current period has been disclosed. In the case of a change in accounting policies which has a material effect in
the current period or later period, the amount by which any item in the financial statements is affected by such change
has been ascertained and disclosed in Notes to Financial statements. Where such amount is not ascertainable, wholly
or in part, such fact has been indicated.

The fundamental accounting assumption of’ ‘going concern’, ‘consistency’, & ‘accrual’, has been followed.

3.2 Use of Estimates -

The preparation of financial statements requires the management of the Company to make an estimate & assumptions
that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of
financial statements & reported amounts of Income & Expenses during the year. Estimates & assumptions used in the
preparation of the financial statements are based upon management’s evaluation of the relevant facts & circumstances
as of the date of the financial statements, which may differ from the actual results at a subsequent date. Difference
between the actuals & estimates are recognised in the period in which the results are known/materialised. Change in
estimates is disclosed wherever required.

3.3 Cash Flow Statement -

The Cash Flow Statement discloses the cash flows during the period classified by operating, investing and financing
activities in a manner which is most appropriate to the business of the company for each period for which financial
statements are presented. Reporting of cash flows from operating activities has been made by indirect method.
Extraordinary items: The cash flows associated with extraordinary items have been appropriately classified as arising
from operating, investing, or financing activities and separately disclosed.

Interests and Dividends: Separate disclosure of cash flows from interest and dividends received and paid has been
made.

Taxes on income: Cash flows arising from taxes on income are separately disclosed & classified as cash flows from
operating activities unless they can be specifically identified with financing and investing activities.

The enterprise has disclosed the components of cash and cash equivalents together with a commentary by management,
the amount of significant cash and cash equivalent balances held by the enterprise that are not available for use by it.

3.4 Revenue Recognition -

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the
revenue can be reliably measured.

Sale of goods and services are recognized net of duties, taxes & Sales Returns. Expenditure & income are accounted on
accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable
during the year.

Sales of goods are recognised when property in goods has been transferred to the buyer for a price or all significant
risks and rewards of ownership have been transferred to the buyer and the seller retains no effective control of the
goods transferred to a degree usually associated with ownership.

The revenue from service is recognised as and when the services are rendered, based on the agreements/ arrangements
with the concerned parties net of duties, taxes. Unearned revenue’ included in other current liabilities represent billing in
excess of revenue recognized. Rental Income is recognized on time proportionate basis over the period of the rent.

Interest is recognized on a time proportion basis considering the amount outstanding and the applicable interest rate.
Dividend is recognised when the Company’s right to receive dividend is established.

In case of any pending resolution of significant uncertainties, the revenue recognition is postponed & is disclosed
separately in the notes.

3.5 Property, Plant & Equipment -

For each class of property, plant and equipment, the company has opted for cost model. Property, Plant & Equipment
are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost
and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the
extent of gSt credit available and exchange difference arising on translation / settlement of foreign currency monetary
items pertaining to the acquisition of depreciable asset.

In case of derecognition of Property, Plant & Equipment, the difference between the carrying amount and disposal
proceeds is accounted as gain / loss in the Statement of Profit & Loss.

Advances paid towards the acquisition of property, plant & equipment, outstanding at each balance sheet date are
shown under capital advances. The cost of property, plant & equipment nor ready for its intended use on such date, is
disclosed under CWIP.

3.6 Depreciation on Property, Plant & Equipment -

The carrying amount of Property, Plant & equipment as on 31st March 2014 is depreciated over remaining useful life
of the assets after reassessing the useful life of the asset. The assets acquired on or after 01.04.2014 are depreciated
according to the useful life of such asset as specified in Schedule II of Companies Act, 2013. A residual value of 5% of
the cost of acquisition is considered while calculating the depreciation.

While accounting the Property, Plant & Equipment, the principle of component accounting is followed in case of
significant components of Property, Plant & Equipment and for depreciating the significant components, the useful life of
each significant component is considered separately apart from the remaining parts of the Property, Plant & Equipment.

3.7 Intangible Assets -

Intangible Assets acquired separately & also internally generated are recognised at cost less accumulated amortisation
and impairment. Amortisation is done on straight line basis over estimated useful economic life and the amortisation
period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is
accounted as gain / loss in the Statement of Profit & Loss.

3.8 Impairment of Property, Plant & Equipment & Intangible Assets -

The company assesses at each reporting date an indication about impairment of an asset. If any indication exists,
the company estimates the asset’s recoverable amount. The recoverable amount is determined for individual asset.
The recoverable amount is higher of the selling price & value in use of the asset. The value in use is estimated on the
basis of estimated future cash flows for next 5 years discounted to the present value by using pre-tax discount rate that
reflects time value of the money and the risk specific to the asset. Where the carrying amount of the asset exceeds the
recoverable amount, the asset is impaired & is written down to its recoverable value.

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised
carrying amount of the asset after impairment. If the previously recognised impairment losses do not exist or have
decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable
amount.

3.9 Inventories -

Raw materials and Stores & Spares valued at lower of cost or net realizable value. However, these items are considered
to be realisable at replacement cost if the finished goods, in which they will be used, are expected to be sold below cost.

Cost of Inventories is computed on a Weighted Average basis. Cost includes purchase price, (excluding those
subsequently recoverable by the enterprise from the concerned revenue authorities), freight inwards and other
expenditure incurred in bringing such inventories to their present location and condition.

Work in progress and manufactured finished goods are valued at the lower of cost and net realisable value. Cost
of work in progress and manufactured finished goods is determined on the weighted average basis and comprises
direct material, Cost of conversion and other costs incurred in bringing these inventories to their present location and
condition. Cost of traded goods is determined on a weighted average basis.

Provision of obsolescence on inventories is considered on the basis of management’s estimate based on demand and
market of the inventories.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion
and the estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on item-
by-item basis.

3.10 Current assets, loans & advances -

Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

3.11 Foreign currency transactions -

Foreign Currency transactions are recorded in reporting currency at the exchange rate prevailing on the date of transaction.
On the reporting date monetary items are retranslated by using the exchange rate prevailing on the reporting date.
Foreign exchange difference related to acquisition of Fixed Assets and loans related to it is adjusted in the carrying
amount of Fixed Asset and the loan amount.

Income or expenditure arising out of exchange fluctuation other than Fixed Assets and loans on such assets is accounted
for in the Statement of Profit and Loss.

3.12 Government Grants & Subsidies -

Grants and subsidies from the Government are recognised only when there is reasonable assurance that it will be
received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit
and Loss and where the Grant relates to an asset, the same is reduced from the cost of the asset before charging
depreciation & when the subsidy is of capital nature but not attributable to any particular asset or group of assets, the
same is recognised as Capital reserve.

3.13 Investments -

Investments which are readily realisable and intended to be held for not more than 1 year from the date on which
such investments are made are classified as current investments. All other investments are classified as Long-term
Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable
acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual
investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to
recognise a decline other than temporary in the value of investments.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the Statement of Profit and Loss. TDS on income from Investment is included in Advance taxes paid.

3.14 Investment Property -

Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the
company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation
and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal
of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged /
credited to Statement of Profit and Loss.

3.15 Employee benefits -

Employee benefits include provident fund, employee state insurance, gratuity and leave encashment & bonus.

The Company provides for retirement benefits in the form of gratuity. Benefits payable to eligible employees with
respect to gratuity, a defined benefit plan, is accounted for on the basis of an actuarial valuation as at the Balance Sheet
date. Leave encashment due is provided on the basis of actuarial valuation.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of
Profit and Loss on accrual basis. Bonus is provided in the books of accounts as per the provisions of Code on Wages
2019.

3.16 Borrowing cost -

Borrowing cost includes interest, amortisation of ancillary costs incurred in connection with the arrangement of borrowing
& exchange differences arriving from foreign currency borrowing to the extent they are regarded as an adjustment to the
interest cost.

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a
substantial period of time to get ready for its intended use are capitalised. All other borrowing costs are recognised as
expenditure in the period in which they are incurred.

3.17 Segment Reporting

The segment reporting is done assuming two segments - Business segment as primary segment & geographical
segment as secondary segment. The segment reporting includes segment-wise revenue, expenses, assets & liabilities
& accounting policies. Unallocated items include general corporate income and expense items, which are not allocated
to any business segment.

The disclosures are given as per AS 17.

3.18 Related Party Disclosure

All related party transactions are reported irrespective of the fact whether such transactions have adversely affected
financial position and operating results of the company. The related parties are reported even when there are no
transactions with such parties.

Related parties include -

• Enterprises that are under common control - Directly or indirectly.

• Associates and JVs.

• Individuals having interest in voting power of the enterprise that gives them control and significant influence over
the enterprise and relatives of such individuals.

• Key management personnel (KMP) and their relatives having significant influence over the enterprise.

The transactions include -

• Sale and purchase of goods and fixed assets and services

• Agency arrangements

• Leased and hire purchase transactions.

• Transfer of R & D

• License agreements

• Financial transactions - Loans, equity, guarantee, collaterals

• Management contracts including deputation of employees.

The disclosures are given as per AS 18.

3.19 Leases

As a Lessee: -

Finance leases, which effectively transfers to the Company substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the
leased property and present value of minimum lease payments. Lease payments are apportioned between the finance
charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are recognized as finance costs in the Profit and Loss Account. Lease management fees, legal
charges and other initial direct costs of lease are capitalized.

A leased asset is depreciated on a straight-line basis over the useful life of the asset assessed by the management.
However, if there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term,
the capitalized asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset.

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are
classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account
on a straight-line basis over the lease term.

As a Lessor: -

Leases in which the Company transfers substantially all the risks and benefits of ownership of the asset are classified
as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net
investment in the lease. After initial recognition, the Company apportions lease rentals between the principal repayment
and interest income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of
the finance lease. The interest income is recognized in the Profit and Loss Account. Initial direct costs such as legal
costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Assets subject to operating leases are included in property, plant and equipment assets.
Lease income on an operating lease is recognized in the Profit and Loss Account on a straight-line basis over the lease
term. Costs, including depreciation, are recognized as an expense in the Profit and Loss Account. Initial direct costs
such as legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Account.

3.20 Earnings per share -

The earnings considered in ascertaining the Company’s earnings per share are net profit after tax. The number of
shares is considered on weighted average basis. Partly paid equity shares are treated as fraction of equity share to the
extent they are entitled to participate in dividends. For the purpose of calculating dilutive EPS, the net profit attributable
to equity shareholders and weighted average number of shares are adjusted for the effect of Dilutive Potential Equity
shares.

3.21 Taxes on Income -

Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum
Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred
Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the
accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred
tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized
in future.

3.22 Indirect Taxes -

The amounts of output liability & amounts claimed by the company as eligible input tax credit under the CGST Act,
SGST Act, IGST Act, as per the books of account of the company is subject to reconciliation & correction - if any -
which will be done while filing of the GST Annual return in Form gStr 9 - to be filed before due date.

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Mar 31, 2018

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, on the basis of going concern assumption in accordance with Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

C. Fixed Assets

Fixed Assets are stated at cost net recoverable taxes including any cost directly attributable for bringing the assets to its working condition for its intended use less accumulated depreciation.

Projects under which assets are not ready for their intended use are disclosed under Capital Work in Progress.

D. Depreciation

Depreciation has been charged on fixed assets on Straight-Line Method basis. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

E. Investments

Current Investments are carried at lower of cost and fair value. Non-Current Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

F. Inventories

Item of Inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. The cost of work in progress and finished goods is determined on absorption cost price which comprises of cost of purchase, cost of conversion, and other manufacturing overheads incurred in bringing them to their respective present location and condition.

G. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue on sale of goods is recognized on passing of title to customers, Sales are excluding of VAT, Excise duty and adjustment for rate difference.

H .Employee Benefits

Defined Contribution Plan

The company makes contributions towards provident fund and superannuation fund to a defined contribution retirement benefit plan for qualifying employees. The Provident fund plan is operated by the Regional Provident Fund Commissioner. Under the schemes, the company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

Defined Benefit Plan

Company''s liabilities towards gratuity, leave encashment of unavailed leave on retirement are determined on basis of valuations approved by management.

I. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part 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 Profit & Loss account.

J. Earning Per Share

Basic Earning per share is computed by dividing the net profit attributable to Equity Shareholders for the year, by weighted average number of equity shares outstanding during the year. Diluted earning per share is computed using weighted average number of equity shares outstanding at year-end.

K. Provision for Current & Deferred Tax

Provision for current tax is made after taking into account benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from “Timing Difference" between taxable incomes& accounting income is accounted for using the tax rates and laws that are enacted or substantially enacted as on the balance sheet date.

L. Provisions, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.