Focus Lighting and Fixtures Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

Note 1: Significant Accounting Policies and Notes to Accounts
1A General Information

Focus Lighting and Fixtures Limited (‘the Company’) is an existing public limited company incorporated on
11th August 2005 under the provisions of the Companies Act, 1956 and exist within the purview of the
Companies Act, 2013, having its registered office at 1007-1010, Corporate Avenue, Wing A, Sonawala Lane,
Near Udyog Bhavan, Goregaon East, Mumbai 400 063.

The Company is in the business of Manufacturing and dealing in LED Lighting, Fixtures and Lighting
Solutions. The equity shares of the Company are listed on National Stock Exchange of India Limited (“NSE”).
The Standalone financial statements are presented in Indian Rupee (INR). The Standalone financial statements
have been recommended for approval by the audit committee and is approved and adopted by their Board in
their meeting held in Mumbai on May 29, 2025.

1B Significant Accounting Policies & Notes to Accounts

This note provides a list of the significant accounting policies adopted in the preparation of these standalone
financial statements. These policies have been consistently applied to all the years presented.

1.1 Basis of Preparation & Measurement:

The Standalone financial statements of the company have been prepared in accordance with Indian Accounting
standards (‘Ind AS’) notified by the Ministry of Corporate Affairs under section 133 of the Companies Act,
2013 (‘Act’) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and
the relevant provisions of the Act.

The Standalone financial statements are prepared under the historical cost convention except for the following:

• certain financial assets and liabilities (including derivative instruments) that are measured at fair value;
(Para 1.7)

• assets held for sale which are measured at lower of carrying value and fair value less cost to sell;

• defined benefit plans where plan assets are measured at fair value; (Para 1.12) and

• share-based payments at fair value as on the grant date of options given to employees.

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period All other assets are classified as non-current. A liability is current
when:

• It is expected to be settled in normal operating cycle,

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period All other liabilities as classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
and cash equivalents. The Company has identified twelve months as its operating cycle.

1.2 Key Accounting Estimates and Judgements

The preparation of financial statements in accordance with Ind AS requires management to make certain
judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates, with the differences
between the same being recognized in the period in which the results are known or materialize. Continuous
evaluation is done on the estimation and judgments based on historical experience and other factors, including
expectations of future events that are believed to be reasonable. Revisions to accounting estimates are
recognised prospectively.

Information about areas involving a higher degree of judgment or complexity or critical judgments in applying
accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying
amounts of assets and liabilities are included in the following notes:

(a) Measurement of defined benefit obligations;

(b) Measurement of Provisions and likelihood of occurrence of contingencies;

(c) Estimation of useful life;

(d) Fair value measurements and valuation processes;

1.3 Property Plant & Equipment:

(a) Initial Measurement & Recognition

Items of Property, plant and equipment are carried at cost less accumulated depreciation and impairment
losses, if any. The cost of an item of Property, plant and equipment comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the assets
to its working condition for its intended use with any trade discounts or rebates being deducted in arriving at
purchase price. Cost of the assets also includes interest on borrowings if any attributable to acquisition of
qualifying fixed assets incurred up to the date the asset is ready for its intended use.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of Property, plant and equipment. Cost of Items of
Property, plant and equipment not ready for intended use as on the balance sheet date, is disclosed as capital
work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each
balance sheet date are disclosed as Capital Advances under Other non-current Assets.

Any gain or loss on disposal of an item of property plant and equipment is recognised in statement of profit
and loss.

(b) Subsequent expenditure

Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in
the future benefits from such asset beyond its previously assessed standard of performance.

(c) First-time Adoption - Deemed Cost

Upon first-time adoption of Ind AS, the Company has elected to measure all its property, plant and equipment
at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e., 1 April 2020.

(d) Intangible assets

An intangible asset shall be recognised if, and only if:

(a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the
Company; and

(b) the cost of the asset can be measured reliably. Intangible assets are stated at cost less accumulated
amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis,
from the date that they are available for use.

1.4 Depreciation:

Depreciation is provided on the Written down value method based on estimated useful life prescribed under
Schedule II to the Companies Act, 2013. Depreciation on assets added/disposed off during the year is provided
on pro-rata basis from the date of addition or up to the date of disposal, as applicable.

The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at
each financial year end and adjusted prospectively, if appropriate.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year and adjusted prospectively, if appropriate

1.5 Impairment of non-financial assets:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss.

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount
and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is
reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the
impairment losses recognized for the asset no longer exist or have decreased.

1.6 Investments in Subsidiaries:

Investments in subsidiaries are carried at Cost as per INDAS 27.

Upon first-time adoption of Ind AS, the Company has elected to measure its investments in subsidiaries at Cost
on the date of transition to Ind AS i.e., 1st April, 2020.

1.7 Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the
instrument. On initial recognition, a financial asset is recognised at fair value, in case of financial assets
which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in
the statement of profit and loss. In other cases, the transaction cost is attributed to the acquisition value
of the financial asset.

Financial assets are subsequently classified and measured at

• amortised cost

• fair value through other comprehensive income (FVOCI)

• fair value through profit and loss (FVTPL)

(a) Measured at amortised cost: Financial assets that are held within a business model whose
objective is to hold financial assets in order to collect contractual cash flows that are solely
payments of principal and interest, are subsequently measured at amortised cost using the effective
interest rate (‘EIR’) method less impairment, if any. The amortisation of EIR and loss arising from
impairment, if any is recognised in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income: Financial assets that are held
within a business model whose objective is achieved by both, selling financial assets and collecting
contractual cash flows that are solely payments of principal and interest, are subsequently measured
at fair value through other comprehensive income. Fair value movements are recognized in the
other comprehensive income (OCI). Interest income measured using the EIR method and
impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition,
cumulative gain or loss previously recognised in OCI is reclassified from the equity to ‘other
income’ in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial asset not classified as either amortised
cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all
changes in fair value, including interest income and dividend income if any, recognised as ‘other
income’ in the Statement of Profit and Loss.

Equity Instruments: All investments in equity instruments classified under financial assets are initially
measured at fair value. The Company has made an election to measure the same at fair value through
other comprehensive income (FVOCI) on an instrument-by-instrument basis.

Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in
OCI. Dividend income on the investments in equity instruments are recognised as ‘other income’ in the

Statement of Profit and Loss.

Derecognition: The Company derecognises a financial asset when the contractual rights to the cash
flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from
the asset.

Impairment of Financial Assets: In accordance with Ind AS 109-‘Financial instruments’, the
Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure: (a) Financial assets that are debt
instruments, and are measured at amortized cost e.g., loans, debt securities, deposits and bank balance.)

(c) Lease receivables under Ind AS 116. (e) Loan commitments which are not measured as at FVTPL.
For trade receivables and contract assets/unbilled revenue, the Company applies the simplified approach
required by Ind AS 109 Financial Instruments, which requires lifetime expected losses to be recognized
from initial recognition. For recognition of impairment loss on other financial assets and risk exposure
(other than purchased or originated credit impaired financial assets), the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognizing impairment loss allowance based on 12month ECL.
For purchased or originated credit impaired financial assets, a loss allowance is recognized for the
cumulative changes in lifetime expected credited losses since initial recognition.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument. Financial liabilities are initially measured at the amortised cost unless at initial
recognition, they are classified as fair value through profit and loss. In case of trade payables, they are
initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using the
effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair
value recognised in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged,
cancelled or expires.

1.8 Fair Value Measurement Disclosures

The Fair Values of Financial assets and liabilities are determined at the amount at which the same could be
sold or transferred in an orderly transaction between willing market participants at the measurement date.

Current Financial Assets & Liabilities

The Management has assessed that the fair Value of cash and short-term deposits, trade and other short-term
receivables, trade payables, other current liabilities, and other short-term financial instruments approximate
their carrying amounts largely due to the short-term maturities of these instruments

Advances to Subsidiaries

The Company has an exposure of Rs. 91.42 Lakhs as at March 31, 2025 and Rs. 119.90 Lakhs as at March 31,
2024 in respect of advances given to Subsidiaries. Such advances have been reclassified as non-current
financial asset. Interest is receivable on the same and the Management has assessed the fair value of the same
which approximates the carrying amount of the said advances

1.9 Inventories

a. Raw materials are valued at cost where costs are taken as weighted average costs of materials.

b. Work-in-process is valued at cost of material and other costs to bring the material to present stage
(including factory over-heads)

c. Finished goods are valued at lower of Cost where costs are measured at Weighted Average Cost
(including factory overheads and depreciation) or net realizable value.

d. Traded goods are valued at lower of cost calculated as Weighted Average Cost or net realizable value.

1.10 Revenue Recognition

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods
have passed to the buyer. In case of export sales, revenue is recognized as on the date of bill of lading, being
the effective date of dispatch. Revenue from the sale of goods is measured at the value of the consideration
received or receivable, net of returns and discounts and net of all taxes.

Interest income on financial asset is recognised using the effective interest rate method. The effective interest
rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial
asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the
Company estimates the expected cash flows by considering all the contractual terms of the financial
instruments.

The Company recognizes other income (including income from sale of scrap, income from claims received,
etc.) on accrual basis. However, where the ultimate collection of the same is uncertain, revenue recognition is
postponed to the extent of uncertainty. Rental income arising from operating leases is accounted for on a
straight-line basis over lease terms unless the receipts are structured to increase in line with expected general
inflation to compensate for the expected inflationary cost increases and is included in the Statement of profit or
loss due to its operating nature

1.11 Taxation:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of
Profit and Loss except to the extent it relates to a business combination or to an item which is recognised
directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax
rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Interest income/
expenses and penalties, if any, related to income tax are included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax is recognized using the tax rates enacted, or substantively enacted, by the end of the reporting period.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised. In case of unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized only to the extent there is virtual certainty that sufficient future taxable
profits will be available against which the assets can be realized. Deferred tax assets are reviewed at each
reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax
assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes
levied by the same taxation authority.

For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating to
amounts owed by related parties. The Company has no collateral in respect of these loans.

1.12. Employee Benefits and Retirement Benefits

A. Short Term Obligations

Liabilities for wages and salaries, 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
recognised in the same period in which the employees render the related service and are measured at the
amounts expected to be paid when the liabilities are settled.

Retirement benefit in the form of provident fund is a defined contribution plan. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognises contribution
payable to the provident fund scheme as an expense, when an employee renders the related services. If the
Contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the
contribution already paid. If the contribution already Paid exceeds the contribution due for services
received before the balance sheet date, then excess is recognised as an asset to the extent that the
prepayment will lead to a reduction in future payment or a cash refund.

B. Other long-term employee benefit obligations

The group has policy to allow the enjoyment of the leave accrued during the financial year and leave
remaining unutilized lapses at the end of financial year and group has not policy of allowing encashment of
leave remaining unutilized.

C. Post-employment obligations

The Company operates the following post-employment schemes (a) defined benefit plans - gratuity and
obligation towards shortfall of Provident Fund Trusts (b) defined contribution plans - Provident fund
(RPFC Contributions), superannuation and pension.

Defined benefit plans:

The liability or asset recognised in the Standalone balance sheet in respect of defined benefit plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets excluding non-qualifying asset (reimbursement right). The defined benefit obligation is calculated
annually by actuaries using the projected unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash outflows by reference to market yields at
the end of the reporting period on government bonds that have terms approximating to the terms of the
related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the Standalone statement of profit and loss. Remeasurement gains and losses arising from
experience adjustments and changes in actuarial assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They are included in retained earnings in the Standalone
statement of changes in equity and in the balance sheet.

Insurance policy held by the Group from insurers who are related parties are not qualifying insurance
policies and hence the right to reimbursement is recognised as a separate asset under other non-current
and/or current assets as the case may be.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in Standalone profit or loss as past service cost.

Defined contribution plans:

In respect of certain employees, the Company pays provident fund contributions to publicly administered
provident funds as per local regulations. The Company has no further payment obligations once the
contributions have been paid. Such contributions are accounted for as employee benefit expense when they
are due. Defined contribution to Employees Pension Scheme 1995 is made to Government Provident Fund
Authority

D. Employee Stock Option Plans (ESOPs)

General Description of the ESOP Scheme

The Company has established an Employee Stock Option Plan (ESOP Scheme) approved by shareholders
on December 28, 2019. The objective of this scheme is to attract, retain, and motivate eligible employees
by providing them with an opportunity to participate in the long-term growth and success of the Company.

The scheme is in compliance with the provisions of the Companies Act, 2013, and the SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021.

Under this scheme, eligible employees are granted options to acquire equity shares of the Company at a
predetermined exercise price. The options vest over a maximum period of 3 years from the date of grant,
with a minimum period of one year between the grant date and the first vesting. Options can be exercised
only after they are vested. The shares for this scheme are sourced through an ESOP Trust.

During the year ended March 31, 2025, there have been no variations in the terms of the options granted
under this ESOP scheme.

Accounting Policy

The Company accounts for its equity-settled share-based payment transactions in accordance with Ind AS
102, "Share-based Payment." The fair value of options granted is recognized as an employee expense with
a corresponding increase in a "Share Options Outstanding Account" within equity. The total expense is
recognized over the vesting period of the options. The fair value of the options is determined using the
Black-Scholes valuation model on the grant date, considering various inputs and
assumptions. Forfeitures are accounted for as they occur by reversing the related expense.

Movement in Share Options

The following table summarises the movement in outstanding options under the ESOP scheme for the year
ended March 31, 2025:

Note: During the year, the Company granted 37,500 stock options under its Employee Stock Option
Scheme to eligible employees. Simultaneously, 37,500 stock options granted in the previous year were
forfeited due to non-fulfilment of vesting conditions.

However, the financial impact of the grant and forfeiture of these options has not been recognized in the
Statement of Profit and Loss for the year ended March 31, 2025, through oversight.

The Company is in the process of evaluating the appropriate accounting treatment and shall recognize the
impact in the financial statements of the subsequent year in accordance with the applicable accounting
standards.

Impact

Estimated fair value of options granted: Rs 18.19 Lacs

Estimated reversal on forfeiture: Rs 23.90 Lacs

Net unrecognized impact on profit: Rs 5.71 Reversal of ESOP Compensation Expenses (not yet
recognized)

Valuation Assumptions

The fair value of ESOPs is calculated as on the date of grant based on the Black-Scholes valuation model.
Valuation assumptions for options granted in prior periods (which are vesting or exercised in the current
period) would have been used at their respective grant dates.

Impact on Financial Statements

• Employee Compensation Expense: During the year ended March 31, 2025, the total share-based
payment expense recognized in the Statement of Profit and Loss was INR 81.56 Lakhs. This expense
is primarily recognized under "Employee Benefits Expense."

• Impact on Diluted Earnings Per Share (EPS): The issuance of shares pursuant to ESOPs has a
dilutive effect on the Company''s Earnings Per Share. For the year ended March 31, 2025, the diluted
EPS decreased by INR 0.01. (Refer Note 1.14 for EPS details).

• Employee Compensation

ESOP Trust

The Company has an Employee Welfare Trust, FLFL Employee Welfare Trust, which administers the
ESOP scheme.

Amount of loan disbursed by the Company to the Trust during the year: INR 122.53 Lakhs
Amount of loan outstanding (repayable to the Company) as at March 31, 2025: INR 68.02 Lakhs

Brief details of transactions in shares by the Trust:

Shares held by the Trust at the beginning of the year: 333750
Shares acquired by the Trust during the year: 972500
Shares transferred to employees by the Trust during the year: 762896
Shares held by the Trust at the end of the year: 543354

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Mar 31, 2024

1. Significant Accounting Policies and Notes to Accounts 1A General Information

Focus Lighting and Fixtures Limited (''the Company*) is an existing public limited company incorporated on 11th August 2005 under the provisions of the Companies Act, 1956 and exist within the purview of the Companies Act, 2013, having its registered office at 1007-1010, Corporate Avenue, Wing A, Sonawala Lane, Near Udyog Bhavan, Goregaon East Mumbai 400 063,

The Company is in the business of Manufacturing and dealing in LED Lighting, Fixtures and Lighting Solutions. The equity shares of the Company are listed on National 5toek Exchange of Tndla Limited (“N5E"). The Standalone financial statements are presented in Indian Rupee (INR). The Standalone financial statements have been recommended by the audit committee and is approved and adopted by their Board in their meeting held in Mumbai on 24^th May 2024.

IB Significant Accounting Policies & Notes to Accounts

This note provides a list of the significant accounting policies adopted in the preparation of these standalone financial statements. These policies have been consistently applied to all the years presented,

1.1 Basis Of Preparation & Measurement:

The Standalone financial statements of the company have been prepared in accordance with Indian Accounting standards (’Ind AS’) notified by the Ministry of Corporate Affairs under section 133 of the Companies Act, 2013 (''Act*) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the relevant provisions of the Act

The Standalone financial statements are prepared under the historical cost convention except for the following:

• certain financial assets and liabilities (including derivative instruments) that are measured at fair value; (Para

1-7) '' ''

* assets held for sale which are measured at lower of carrying value and fair value less cost to sell;

• defined benefit plans where plan assets are measured at fair value; (Para 1.12) and

* share-based payments at fair value as on the grant date of options given to employees.

Estimates, judgements and assumptions used in the preparation of the Standalone financial statements and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of the Standalone financial statements, which may differ from the actual results at a subsequent date, The key estimates, judgements and assumptions are presented in note 1.2 below. The Company presents assets and liabilities in the balance sheet based on current and non-current classification. Deferred tax assets and liabilities are classified as non-current The company has prepared the Standalone financial statements on the basis that it will continue to operate as a going concern. An asset is treated as current when it is:

* Expected to be realised or intended to be sold or consumed in normal operating cycle

* Expected to be realised within twelve months after the reporting period, or

¦ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when:

¦ it is expected to be settled in normal operating cycle,

* It is due to be settled within twelve months after the reporting period, or

* There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities as classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle,

12 Key Accounting Estimates and Judgements

The preparation of financial statements in accordance with ind AS requires management to make certain judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses, Actual results may differ from these estimates, with the differences between the

same being recognized in the period in which the results are known or materialize. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

Information about areas involving a higher degree of judgment or complexity or critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities are included in the following notes:

(a) Measurement of defined benefit obligations;

(b} Measurement of Provisions and likelihood of occurrence of contingencies;

(c) Estimation of useful life;

(d) Fair value measurements and valuation processes;

1.3 Property PI ant & Equipment:

{a) Initial Measurement & Recognition

Items of Property, plant and equipment are carried at cost less accumulated depredation and impairment losses, if any. The cost of an item of Property, plant and equipment comprises its purchase price, including import duties and other non-refund able taxes or levies and any directly attributable tost of bringing the assets to its working condition for its intended use with any trade discounts or rebates being deducted in arriving at purchase price. Cost of the assets also includes interest on borrowings if any attributable to acquisition of qualifying fixed assets incurred up to the date the asset is ready for its intended use.

If significant parts of an Item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of Property, plant and equipment

Cost of Items of Property, plant and equipment not ready for intended use as on the balance sheet date, is disclosed as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each balance sheet date are disclosed as Capital Advances under Other non-current Assets,

Any gain or loss on disposal of an item of property plant and equipment is recognised in statement of profit and loss.

[b) S ubse q tie nt ex p end i tu re

Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance,

[c) First-time Adoption - Deemed Cost

Upon first-time adoption of Jnd AS, the Company has elected to measure all Its property, plant and equipment at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e., 1 April 2020.

[d) Intangible assets

An intangible asset shall be recognised if, and only if:

(a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company; and

(b) the cost of the asset can be measured reliably. Intangible assets are stated at cost less accumulated amortization and impairment

Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use.

1.4 Depreciation;

Depreciation is provided on the Written down value method based on estimated useful life prescribed under Schedule ll to the Companies Act, 2013. Depreciation on assets added/disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable,

The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at each financial year end and adjusted prospectively, if appropriate.

The residual values, useful Jives and methods of depreciation oFproperty, plant and equipment are reviewed at each financial year and adjusted prospectively, if appropriate

1.5 Impairment of non-financial assets:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment Joss* If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and ioss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment Josses recognized in the prior years is recorded when there is an indication that the impairment Losses recognized for the asset no longer exist or have decreased.

1.6 Investments In Subsidl arle s:

Investments in subsidiaries are carried at Cost as per IN DAS 27,

Upon first-time adoption of Ind AS, the Company has elected to measure its investments in subsidiaries at Cost on the date of transition to Jnd AS i.e., 1st April, 2020.

1.7 Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets arc recognised when the Company becomes a party to the contractual provisions of the instrument On initial recognition, a financial asset is recognised at fair value, in case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and ioss. In other cases, the transaction cost is attributed to the acquisition value of the financial asset.

Financial assets are subsequently classified and measured at

• amortised cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income (FVOC1)

(a) Measured at amortised cost:

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised cost using the effective interest rate (''EIR’J method less impairment, if any. The amortisation of EIR and loss arising from impairment, if any is recognised in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive Income:

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income* Fair value movements are recognized in the other comprehensive income (GCI). Interest income measured using the EfR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCl is reclassified from the equity to''other income'' in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial asset not classified as either amortised cost or FV0C1, is classified as FVTPL. Such financial assets are measured at fair value with ail changes in fair value, including interest income and dividend income if any, recognised as ‘other income’ in the Statement of Profit and Loss

Equity Instruments!

All investments in equity instruments classified under financial assets are initially measured at fair value. The Company has made an election to measure the same at fair value through other comprehensive income (FVOC1) on an instrument''bydnstrument basis,

Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Dividend income on the investments in equity instruments are recognised as ''other income'' in the Statement of Profit and Loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Impairment of Financial Assets

in accordance with Ind AS 109-''Financial instruments’, the Company applies expected credit Joss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure: fa) Financial assets that are debt Instruments, and are measured at amortized cost e g,, loans, debt securities, deposits and bank balance,) fc) Lease receivables under Ind AS 116. fe) Loan commitments which are not measured as at FVTPL For trade receivables and contract assets/unhilled revenue, the Company applies the simplified approach required by Ind AS 109 Financial Instruments, which requires lifetime expected Josses to derecognized from initial recognition. For recognition of impairment loss on other financial assets and risk exposure (other than purchased or originated credit impafred financial assets), the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-mo nth ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the Instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12month ECL For purchased or originated credit impaired financial assets, a loss allowance is recognized for the cumulative changes in lifetime expected credited losses since initial recognition.

(B) Financial Liabilities!

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument Financial liabilities are initially measured at the amortised cost unless at initial recognition, they arc classified as fair value through profit and loss. In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through profit or loss arc measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the obligation specified in the contract Is discharged, cancelled or expires. U8 Fair Value Measurement Disclosures

The Fair Values of Financial assets and liabilities are determined at the amount at which the same could be sold or transferred in an orderly transaction between wiliing market participants at the measurement date.

Current Financial Assets & Liabilities

The Management has assessed that the fair Value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, and other short-term financial instruments approximate their carrying amounts largely due to the short-term maturities of these instruments

Advances to Subsidiaries

The Company has an exposure of Rs. 119.90 as at 31^st March 2024 Rs. 113.17 Lakhs as at 31st March 2023 in respect of advances given to Subsidiaries, Such advances have been reclassified as non-current financial asset Interest is receivable on the same and the Management has assessed the fair value of the same which approximates the carrying amount of the said advances

1.9 Inventories

A- Raw materials are valued at cost where costs are taken as weighted average costs of materials.

B. Work-in-process is valued at cost of material and other costs to bring the material to present stage (including factory over-heads)

C Finished goods are valued at lower of Cost where costs are measured at Weighted Average Cost (including factory overheads and depreciation) ornet realizable value.

D. lYaded goods are valued at lower of cost calculated as Weighted Average Cost or net realizable value.

1.10 Revenue Recognition

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch. Revenue from the sale of goods is measured at the value of the consideration received or receivable, net of returns and discounts and net of all taxes.

Interest income on financial asset is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the financial asset When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instruments.

The Company recognises other income (including income from sale of scrap, income from claims received, etc.) on accrual basis. However, where the ultimate collection of the same is uncertain, revenue recognition is postponed to the extent of uncertainty. RentaJ income arising from operating leases is accounted for on a straight-line basis over lease terms unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases and is included in the Statement of profit or loss due to its operating nature

1.11 Taxation:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised In the Statement of Profit and Loss except to the extent it relates to a business combination or to an item which is recognised directly in equity or in other comprehensive income.

Current tax is the expected tax pay able/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Interest income/ expenses and penalties, if any, related to income tax are included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is recognized using the tax rates enacted, or substantively enacted, by the end of the reporting period.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised, in case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty that sufficient future taxable profits will be available against which the assets can be realized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an Intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

For the year ended 31st March, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. The Company has no collateral in respect ofthese loans.

1.12 Employee Benefits and Retirement Benefits

A. Short Term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are 112expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in the same period in which the employees render the related sendee and are measured at the amounts ejected to be paid when the liabilities are settied

Retirement benefit in the form of provident fund is a defined contribution plan. The Company has no obligation, Other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related services. If the Contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already Paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the prepayment will lead to a reduction in future payment or a cash refund.

B. Other long term employee benefit obligations

The group has policy to allow the enjoyment of the leave accrued during the financial year and leave remaining unutilized lapses at the end of financial year and group has not policy of allowing encashment of leave remaining unutilized.

C. Post-employment obligations

The Company operates the following post-employment schemes (a) defined benefit plans - gratuity and obligation towards shortfall of Provident Fund Trusts (b) defined contribution plans - Provident fund (RPFC Contributions), superannuation and pension.

Defined benefit plans:

The liability or asset recognised in the Standalone balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets excluding non-qualifying asset (reimbursement right). The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Standalone statement of profit and loss. Remeasurement gains and Losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Standalone statement of changes in equity and in the balance sheet.

Insurance policy held by the Group from insurers who are related parties are not qualifying insurance policies and hence the right to reimbursement is recognised as a separate asset under other non-current and/or current assets as the case may be,

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Standalone profit or loss as past service cost.

Defined contribution plans:

In respect of certain employees, the Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. Such contributions are accounted for as employee benefit expense when they are due. Defined contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority

The Company has made provision for gratuity for the year under review as certified. Disclosures as per 1ND AS 19 are given below:

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Mar 31, 2023

Note 1 Significant Accounting Policies and Notes to Accounts

1A General Information

Focus Lighting and Fixtures Limited (''the Company'') is an existing public limited company incorporated on 11th August 2005 under the provisions of the Companies Act, 1956 and exist within the purview of the Companies Act, 2013, having its registered office at 1007-1010, Corporate Avenue, Wing A, Sonawala Lane, Near Udyog Bhavan, Goregaon East, Mumbai 400 063.

The Company is in the business of Manufacturing and dealing in LED Lighting, Fixtures and Lighting Solutions. The equity shares of the Company are listed on National Stock Exchange of India Limited (“NSE”). The Standalone financial statements are presented in Indian Rupee (INR). The Standalone financial statements have been recommended for approval by the audit committee and is approved and adopted by their Board in their meeting held in Mumbai on 3^rd May 2023.

1B Significant Accounting Policies & Notes to Accounts

This note provides a list of the significant accounting policies adopted in the preparation of these standalone financial statements. These policies have been consistently applied to all the years presented.

1.1 Basis Of Preparation & Measurement:

The Standalone financial statements of the company have been prepared in accordance with Indian Accounting standards (''Ind AS'') notified by the Ministry of Corporate Affairs under section 133 of the Companies Act, 2013 (''Act'') read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the relevant provisions of the Act.

The Standalone financial statements are prepared under the historical cost convention except for the following:

• certain financial assets and liabilities (including derivative instruments) that are measured at fair value; (Para 1.7)

• assets held for sale which are measured at lower of carrying value and fair value less cost to sell;

• defined benefit plans where plan assets are measured at fair value; (Para 1.12) and

• share-based payments at fair value as on the grant date of options given to employees.

Estimates, judgements and assumptions used in the preparation of the Standalone financial statements and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of the Standalone financial statements, which may differ from the actual results at a subsequent date. The key estimates, judgements and assumptions are presented in note 1.2 below. The Company presents assets and liabilities in the balance sheet based on current and non-current classification. Deferred tax assets and liabilities are classified as non-current. The company has prepared the Standalone financial statements on the basis that it will continue to operate as a going concern. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as noncurrent. A liability is current when:

• It is expected to be settled in normal operating cycle,

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities as classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

1.2 Key Accounting Estimates and Judgements

The preparation of financial statements in accordance with Ind AS requires management to make certain judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates, with the differences between the same being recognized in the period in which the results are known or materialize. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

Information about areas involving a higher degree of judgment or complexity or critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities are included in the following notes:

(a) Measurement of defined benefit obligations;

(b) Measurement of Provisions and likelihood of occurrence of contingencies;

(c) Estimation of useful life;

(d) Fair value measurements and valuation processes;

1.3 Property Plant & Equipment:

(a) Initial Measurement & Recognition

Items of Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of an item of Property, plant and equipment comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the assets to its working condition for its intended use with any trade discounts or rebates being deducted in arriving at purchase price. Cost of the assets also includes interest on borrowings if any attributable to acquisition of qualifying fixed assets incurred up to the date the asset is ready for its intended use.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of Property, plant and equipment.

Cost of Items of Property, plant and equipment not ready for intended use as on the balance sheet date, is disclosed as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each balance sheet date are disclosed as Capital Advances under Other non-current Assets.

Any gain or loss on disposal of an item of property plant and equipment is recognised in statement of profit and loss.

(b) Subsequent expenditure

Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

(c ) First-time Adoption - Deemed Cost

Upon first-time adoption of Ind AS, the Company has elected to measure all its property, plant and equipment at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e., 1 April 2020.

(d) Intangible assets

An intangible asset shall be recognised if, and only if:

(a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company; and

(b) the cost of the asset can be measured reliably. Intangible assets are stated at cost less accumulated amortization and impairment.

Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use.

1.4 Depreciation:

Depreciation is provided on the Written down value method based on estimated useful life prescribed under Schedule II to the Companies Act, 2013. Depreciation on assets added/disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable.

The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at each financial year end and adjusted prospectively, if appropriate.

Useful life of asset is as given below:

Asset block	Useful Lives (in years)
Building - Office	30 Years
Ownership Premises	60 Years
Plant & Machinery	15 Years
Furniture & Fixtures	10 Years
Electric Installations	10 Years
Office Equipment	5 Years
Vehicles	10 Years
Dies & Jigs	15 Years
IT hardware	3 Years
Laboratory Equipment	15 years

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year and adjusted prospectively, if appropriate

1.5 Impairment of non-financial assets:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in the prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

1.6 Investments in Subsidiaries:

Investments in subsidiaries are carried at Cost as per INDAS 27.

Upon first-time adoption of Ind AS, the Company has elected to measure its investments in subsidiaries at Cost on the date of transition to Ind AS i.e., 1st April, 2020.

1.7 Financial Instruments:

(A) Financial Assets

Recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument. On initial recognition, a financial asset is recognised at fair value, in case of Financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases, the transaction cost is attributed to the acquisition value of the financial asset.

Financial assets are subsequently classified and measured at

• amortised cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income (FVOCI)

(a) Measured at amortised cost:

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised cost using the effective interest rate (''EIR'') method less impairment, if any. The amortisation of EIR and loss arising from impairment, if any is recognised in the Statement of Profit and Loss.

(b) Measured at fair value through other comprehensive income:

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to'' other income'' in the Statement of Profit and Loss.

(c) Measured at fair value through profit or loss:

A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised as ''other income'' in the Statement of Profit and Loss

Equity Instruments:

All investments in equity instruments classified under financial assets are initially measured at fair value. The Company has made an election to measure the same at fair value through other comprehensive income (FVOCI) on an instrument-by-instrument basis.

Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Dividend income on the investments in equity instruments are recognised as ''other income'' in the Statement of Profit and Loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Impairment of Financial Assets

In accordance with Ind AS 109-''Financial instruments'', the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure: (a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits and bank balance.) (c) Lease receivables under Ind AS 116. (e) Loan commitments which are not measured as at FVTPL. For trade receivables and contract assets/ unbilled revenue, the Company applies the simplified approach required by Ind AS 109 Financial Instruments, which requires lifetime expected losses to be recognized from initial recognition. For recognition of impairment loss on other financial assets and risk exposure (other than purchased or originated credit impaired financial assets), the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment

loss allowance based on 12month ECL. For purchased or originated credit impaired financial assets, a loss allowance is recognized for the cumulative changes in lifetime expected credited losses since initial recognition.

(B) Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss. In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

1.8 Fair Value Measurement Disclosures

The Fair Values of Financial assets and liabilities are determined at the amount at which the same could be sold or transferred in an orderly transaction between willing market participants at the measurement date.

Current Financial Assets & Liabilities

The Management has assessed that the fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, and other short-term financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments

Advances to Subsidiaries

The Company has an exposure of Rs.113.66 as at 31^st Rs. 107.07 Lacs as at 31st March 2022 ( Rs. 101.65 Lacs : 31st March 2021; Rs. 54.89 Lacs : 1st April 2020) in respect of advances given to Subsidiaries. Such advances have been reclassified as non-current financial asset. Interest is receivable on the same and the Management has assessed the fair value of the same which approximates the carrying amount of the said advances

1.9 Inventories

A. Raw materials are valued at cost where costs are taken as weighted average costs of materials.

B. Work-in-process is valued at cost of material and other costs to bring the material to present stage (including factory over-heads)

C. Finished goods are valued at lower of Cost where costs are measured at Weighted Average Cost (including factory overheads and depreciation) or net realizable value.

D. Traded goods are valued at lower of cost calculated as Weighted Average Cost or net realizable value.

1.10 Revenue Recognition

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. In case of export sales, revenue is recognized as on the date of bill of lading, being the effective date of dispatch. Revenue from the sale of goods is measured at the value of the consideration received or receivable, net of returns and discounts and net of all taxes.

Interest income on financial asset is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through

the expected life of the financial asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instruments.

The Company recognises other income (including income from sale of scrap, income from claims received, etc.) on accrual basis. However, where the ultimate collection of the same is uncertain, revenue recognition is postponed to the extent of uncertainty. Rental income arising from operating leases is accounted for on a straight-line basis over lease terms unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases and is included in the Statement of profit or loss due to its operating nature

1.11. Taxation:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss except to the extent it relates to a business combination or to an item which is recognised directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. Interest income/ expenses and penalties, if any, related to income tax are included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is recognized using the tax rates enacted, or substantively enacted, by the end of the reporting period.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. In case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty that sufficient future taxable profits will be available against which the assets can be realized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

For the year ended 31st March, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. The Company has no collateral in respect of these loans.

Deferred Tax Assets comprises and computed as follows:

Rs in Lacs
Particulars of Timing Difference	Deferred Tax Assets	Deferred Tax Liability
Difference in Depreciation and Amortisation	112.80	Nil
Section 43B ; Gratuity, Leave Encashment, Finance cost ROU	40.28	Nil
Provisions for RDD	61.17	Nil
Finance Cost	13.44	Nil
Closing Balance Deferred Tax Asset	227.69	Nil
Opening Balance Deferred Tax Asset	263.61	Nil
Provision of Deferred Tax Expense	35.94	Nil

1.12. Employee Benefits and Retirement Benefits

A. Short Term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are 112expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in the same period in which the employees render the related service and are measured at the amounts expected to be paid when the liabilities are settled.

Retirement benefit in the form of provident fund is a defined contribution plan. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related services. If the Contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already Paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the prepayment will lead to a reduction in future payment or a cash refund.

B. Other long-term employee benefit obligations

The group has policy to allow the enjoyment of the leave accrued during the financial year and leave remaining unutilized lapses at the end of financial year and group has not policy of allowing encashment of leave remaining unutilized.

C. Post-employment obligations

The Company operates the following post-employment schemes (a) defined benefit plans -gratuity and obligation towards shortfall of Provident Fund Trusts (b) defined contribution plans - Provident fund (RPFC Contributions), superannuation and pension.

Defined benefit plans :

The liability or asset recognised in the Standalone balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets excluding non-qualifying asset (reimbursement right). The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Standalone statement of profit and loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Standalone statement of changes in equity and in the balance sheet.

Insurance policy held by the Group from insurers who are related parties are not qualifying insurance policies and hence the right to reimbursement is recognised as a separate assets under other non-current and/or current assets as the case may be.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Standalone profit or loss as past service cost.

Defined contribution plans :

In respect of certain employees, the Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. Such contributions are accounted for as employee benefit expense when they are due. Defined contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority

The Company has made provision for gratuity for the year under review as certified. Disclosures as per IND aS 19 are given below:

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Mar 31, 2015

Has the assessed entered into any international transaction(s) in respect of purchase, No sale, transfer, lease or use of intangible property including transactions specified in Explanation (i)(b) below section 92B{2)?

If ''yes'' provide the following details in respect of each associated enterprise and each category of intangible property :

Has the assessed entered into any international transaction(s) in respect of Services No including transactions as specified in Explanation (i)(d) below section 92B(2)?

If yes provide the following details in respect of each associated enterprise and each category of service :

14 Particulars in respect of lending or borrowing of money :

Has the assessed entered into any international transactions) in respect of lending or No borrowing of money including any type of advance, payments, deferred payments, receivable, non-convertible preference shares/ debentures or any other debt arising during the course of business as specified in Explanation (i)(c) below section 92B (2)?

Particulars in respect of mutual agreement or arrangement:

Has the assessed entered into any international transaction with an associated No enterprise or enterprises by way of a mutual agreement or arrangement for the allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or facility provided or to be provided to any one or more of such enterprises?

18 Particulars in respect of international transactions arising out/ being restructuring or reorganizations:

Has the assessed entered into any international transactions) arising out/being part Know of any business restructuring or reorganization entered into by it with the associated enterprise or enterprises as specified in Explanation (i) (e) below section 92B (2) and which has not been specifically referred to above,?

19 Particulars in respect of any other transaction including the transaction having a bearing on the profits, income, losses or assets of the assessed:

Has the assessed entered into any other international transaction(s) including a No transaction having a bearing on the profits, income, losses or asset, but not specifically referred to above, with associated enterprise?

If yes'' provide the following details in respect of each associated enterprise and each transaction :

20 Particulars of deemed international transactions:

Has the assessed entered into any transaction with a person other than an AE in No pursuance of a prior agreement in relation to the relevant transaction between such other person and the associated enterprise?

Has the assessed entered into any specified domestic transaction (s) being any No expenditure in respect of which payment has or is to be made to any . person referred to in section 40A(2)(b)?

If yes , provide the following details in respect-of’each of such person and each '' transaction or class of transaction: La, 1344G3

24 Particulars in respect of specified domestic transaction in the nature of any business transacted:

Has the assessed entered into any specified domestic transaction(s) with any No associated enterprise which has resulted in more than ordinary profits to an eligible business to which section 801 A(10) or section 10AA applies?