Krupalu Metals Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

1. Basis of preparation:

The summary financial information has been prepared by applying necessary adjustments to the financial
statements (‘financial statements’) of the Company. The financial statements of the Company have been prepared
in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the
accounting standards specified under section 133 of the Companies Act, 2013, of the Companies (Accounts)
Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable and Securities
and Exchange Board of India (Issue of Capital and Disclosure Requirements) regulations 2018, as amended (the
"Regulations"). The financial statements have been prepared on accrual basis under the historical cost convention.
The accounting policies adopted in the preparation of the financial statements are consistently applied.

2. Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles requires
the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to contingent assets and liabilities as at the date of the financial statements and the reported
amounts of income and expenses during the year. Examples of such estimates include provisions for doubtful
debts, income taxes, post-sales customer support and the useful lives of Property Plant and equipment and
intangible assets.

3. Current versus non-current classification:

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

a) An asset is current when it is:

• Expected to be realized or intended to be sold or consumed in the normal operating cycle,

• Held primarily for the purpose of trading,

• 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.

b) A liability is current when:

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

• It is held primarily for the purpose of trading,

• 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 are classified as non-current.

c) Deferred tax assets and liabilities are classified as non-current assets and liabilities.

d) The operating cycle is the time between the acquisition of assets for processing and their realization
in cash and cash equivalents.

4. Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured in accordance with AS-9, Revenue Recognition. Sales are recognized on
accrual basis, and only after transfer of goods to the customer.

5. Other Income:

Other items of income and expenditure are recognized on accrual basis and as a going concern basis, and the
accounting policies are consistent with the generally accepted accounting policies.

6. Property Plant and Equipment including Intangible assets:

Property Plant and Equipments are stated at cost, less accumulated depreciation. Cost includes cost of acquisition
including material cost, freight, installation cost, duties and taxes, and other incidental expenses, incurred up to
the installation stage, related to such acquisition. Intangible assets that are acquired by the Company are measured
initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation
and any accumulated impairment loss.

7. Depreciation & Amortization:

The Company has applied the estimated useful lives as specified in Schedule II of the Companies Act 2013 and
calculated the depreciation as per the Straight-Line Method. Depreciation on new assets acquired during the year
is provided at the rates applicable from the date of acquisition to the end of the financial year. In respect of the
assets sold during the year, depreciation is provided from the beginning of the year till the date of its disposal.

Intangible assets are amortized on a straight-line basis over the estimated useful life as specified in Schedule II of
the Companies Act 2013. The amortization expense on intangible assets with finite lives is recognized in the
statement of profit and loss. In respect of the assets sold during the year, amortization is provided from the
beginning of the year till the date of its disposal.

The estimated useful lives of assets are as follows:

Category Useful life

Computer & Laptop 3 years

Furniture & Fittings 10 years

Office Equipment 10 years

Plant & Machinery 20 years

Building 30 years

8. Impairment of assets:

The Management periodically assesses using, external and internal sources, whether there is an indication that an
asset may be impaired. An impairment loss is recognised wherever the carrying value of an asset exceeds its
recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which
means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual
disposal. Reversal of impairment loss is recognised immediately as income in the profit and loss account.

9. Employee Benefits:

The company provides for the various benefits plans to the employees. These are categorised into Defined Benefits
Plans and Defined Contributions Plans. Defined contribution plans includes the amount paid by the company
towards the liability for the Provident fund to the employee’s provident fund organization and Employee State
Insurance fund in respect of ESI and defined benefits plans includes the retirement benefits, such as Leave
Encashment.

Liabilities for short term employee benefits are measured at an undiscounted amount of the benefits expected to
be paid and charged to Statement of Profit & Loss in the year in which the related service is rendered.

Contributions to secure retiral benefits in respect of provident fund, based on applicable rules/status, are charges
to revenue.

Gratuity:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity; a defined benefit
retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days (15/26) salary
payable to the respective employee''s salary for each completed year of service, with a maximum of 20,00,000.

Liabilities with regards to the plan are determined by actuarial valuation at each balance sheet date using the
projected unit cost method. The Company recognizes the net obligation of the gratuity plan in the balance sheet

as an asset or liability, respectively in accordance with Accounting Standard 15 (AS-15 Revised), "Employee
benefits".

10. Taxes on Income:

Income Tax expense is accounted for in accordance with AS-22 "Accounting for Taxes on Income" for both
Current Tax and Deferred Tax stated below:

A. Current Tax:

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

B. Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, as the tax effect of timing difference between
the taxable income and accounting income computed for the current accounting year using the tax rates and tax
laws that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty, except
arising from unabsorbed depreciation and carried forward losses, that sufficient future taxable income will be
available against which such deferred tax assets can be realised.

a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India
(''Indian GAAP’) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as
applicable, The financial statements have been prepared under the historical cost convention on accrual basis, except for
certain financial instruments which are measured at fair value.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the
financial statements and reported amounts of income and expense during the year. Examples of such estimates include
provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable Property, Plant and
Equipment and provision for impairment. Future results could differ due to changes in these estimates and the difference
between the actual result and the estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses
incurred to bring the asset to its present location and condition.

d Depreciation / amortisation

in respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired during the
year, depreciation/arnortisation is charged on a Straight Line Method.

e Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and
rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the
fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each
lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest
on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are
recognised as operating leases. Lease rentals under operating leases are recognised in the statement Df profit and loss on a
straight-line basis.

f Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating
unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the
higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected
from the continuing use of the asset and from Its disposal are discounted to their present value using a pre-tax discount
rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of
impairment loss is recognised as income in the statement of profit and loss.

g Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than
temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising
investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

h Revenue recognition

Revenue from the sale of agricultural goods are recognised upon delivery, which is when title passes to the customer.
Revenue is reported net of discounts.

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time proportion
basis taking into account the amount outstanding and the rate applicable.

i Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income
taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to
foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Minimum Alternative Tax [MAT] paid in accordance with the tax laws in India, which gives rise to future economic benefits
in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the
Company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset in the
balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with
it will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and
accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax
assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax
paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is
able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to
taxes on income levied by the same governing taxation laws.

j Foreign currency transactions

income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction.
Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are
translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the
statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an
enterprise’s net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve.

k inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis.
Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value.
Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the
Company are carried at lower of cost and net realisable value. Cost Includes direct material and labour cost and a
proportion of manufacturing overheads.