Yash Highvoltage Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

A. (i) Property, Plant and Equipment & CWIP:
Recognition & Measurement

All items of property, plant and equipment held
for use in the production or supply of goods or
services or for administration purpose are stated at
acquisition cost net of accumulated depreciation
and accumulated impairment losses, if any except,
freehold land. Historical cost includes expenditure
that is directly attributable to the acquisition of the
items.

Subsequent costs are included in the carrying
amount of asset or recognized as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will
flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance
expenses are charged to the Statement of Profit and
Loss during the period in which they are incurred.

Spare parts, stand-by equipment and servicing
equipment are recognised as property, plant and
equipment if they are held for use in the production
or supply of goods or services, for rental to others, or
for administrative purposes and are expected to be
used during more than one period.

Property, plant and equipment which are not
ready for intended use as on the reporting date are
disclosed as ''Capital work-in-progress'' Depreciation
is not recorded on capital work-in-progress until
construction and installation is complete and the
asset is ready for its intended use.

Derecognition

Gains or losses arising from de-recognition of a
Property, Plant and Equipment are measured as the
difference between the net disposal proceeds and
the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is
de-recognised.

Capital work-in-progress

Property, Plant and Equipment (PPE) in the
course of construction for production, supply or
administrative purposes are carried out at cost, less
any recognized impairment loss. The cost of an asset
comprises its purchase price or its construction cost
(net of applicable tax credits) and any cost directly
attributable to bring the asset into the location and

condition necessary for it to be capable of operating
in the manner intended by the Management. It
includes professional fees and, for qualifying assets,
borrowing costs capitalized in accordance with
the Company''s accounting policy. Such properties
are classified to the appropriate categories of
property, plant and equipment when completed
and ready for intended use. Parts of an item of PPE
having different useful lives and material value
and subsequent expenditure on PPE arising on
account of capital improvement or other factors are
accounted for as separate components.

Advances paid towards the acquisition of PPE
outstanding at each Balance Sheet date are
classified as capital advances under "Other Non¬
current Assets" and the cost of assets not put to use
up to the year-end is disclosed under ''Capital work-
in-progress''

Depreciation/Amortization

Depreciation on Property, Plant and Equipment
is provided using written down value method
on depreciable amount, depreciation is provided
based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013. The residual
values, useful lives and methods of depreciation of
Property, Plant and Equipment are reviewed at each
financial year end and adjusted prospectively, if
appropriate.

(ii) Intangible Assets & Intangible Assets under
Development:

Intangible Assets:

Intangible assets having finite useful lives are
measured at cost less accumulated amortization
and any accumulated impairment losses. Intangible
asset having finite useful life is amortized over
their respective useful life. Intangible assets having

indefinite useful life is not amortized but tested for
impairment.

Intangible Assets under Development:

Expenditure, including eligible borrowing
cost if any, net of income earned, during the
construction/development period of an Intangible
Assets, is included under intangible assets under
development, and the same is attributed to the
respective assets when they are ready for intended
use.

B. Impairment of Assets
Non- Financial Assets

At each balance sheet date, the Company reviews the
carrying values of its property, plant and equipment
and intangible assets to determine whether there is any
indication that the carrying value of those assets may
not be recoverable through continuing use. If any such
indication exists, the recoverable amount of the asset is
reviewed in order to determine the extent of impairment
loss (if any). Where the asset does not generate cash flows
that are independent from other assets, the Company
estimates the recoverable amount of the cash generating
unit to which the asset belongs.

Recoverable amount is the higher of fair value less
costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time value of
money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
An impairment loss is recognised in the statement of
profit and loss as and when the carrying value of an asset
exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the
carrying value of the asset (or cash generating unit)
is increased to the revised estimate of its recoverable
amount so that the increased carrying value does
not exceed the carrying value that would have been
determined had no impairment loss been recognised for
the asset (or cash generating unit) in prior years. A reversal
of an impairment loss is recognized in the statement of
profit and loss immediately.

Financial Assets

At each balance sheet date, the Company assesses
whether a financial asset is to be impaired. Ind AS 109
requires the Company to apply expected credit loss
model for recognition and measurement of impairment

loss. In determining the allowances for doubtful trade
receivables, the Company has used a practical expedient
by computing the expected credit loss allowance for
trade receivables based on a provision matrix. The
provision matrix takes into account historical credit
loss experience and is adjusted for forward looking
information. The impairment loss is based on the ageing
of the receivables that are due and allowance rates used
in the provision matrix. For all other financial assets,
expected credit losses are measured at an amount equal
to the 12-months expected credit losses or at an amount
equal to the lifetime expected credit losses if the credit
risk on the financial asset has increased significantly since
initial recognition, as the case may be.

C. Revenue Recognition:

Sale of Goods and Services

Revenue from contracts with customers involving sale of
products is recognized at a point in time when control
of the product has been transferred at an amount that
reflects the consideration to which the Company expects
to be entitled in exchange for those goods or services, and
there are no unfulfilled obligation that could affect the
customer''s acceptance of the products and the Company
retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective
control over the product sold. At contract inception, the
Company assess the goods or services promised in a
contract with a customer and identify as a performance
obligation each promise to transfer to the customer.
Revenue from contracts with customers is recognized
when control of goods or services are transferred to
customers and the Company retains neither continuing
managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold.

Revenue is measured at the amount of consideration
which the Company expects to be entitled to in exchange
for transferring distinct goods or services to a customer
as specified in the contract, excluding amounts collected
on behalf of third parties (for example taxes and duties
collected on behalf of the government), volume, rebates,
discounts etc.

Other Operating Revenue:

Export benefits under Duty Drawback benefits and
Remission of Duties and Taxes on Export Products
Scheme (RoDTEP) are accounted as revenue on accrual
basis as and when export of goods take place, where
there is a reasonable assurance that the benefits will

be received, and the Company will comply with all the
attached conditions.

Interest Income

Interest income or expense is recognised using the
effective interest method.

The''effective interest rate''is the rate that exactly discounts
estimated future cash payments or receipts through the
expected life of the financial instrument to:

- the gross carrying amount of the financial asset; or

- the amortized cost of the financial liability.

In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to
the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by
applying the effective interest rate to the amortised cost
of the financial asset.

D. Financial Instruments:
i) Financial Assets
Classification:

The Company classifies its financial assets in the
following measurement categories:

• Those to be measured subsequently at fair
value (either through other comprehensive
income, or through Statement of Profit and
Loss), and

• Those measured at amortized cost.

The classification depends on the Company''s
business model for managing the financial assets
and the contractual terms of the cash flows. For
assets measured at fair value, gains and losses will
either be recorded in Statement of Profit and Loss
or other comprehensive income. For investments
in debt instruments, this will depend on the
business model in which the investment is held. For
investments in equity instruments, this will depend
on whether the Company has made an irrevocable
election at the time of initial recognition to account
for the equity investment at fair value through other
comprehensive income.

The Company reclassifies debt or equity investments
when and only when its business model for
managing those assets changes.

Measurement:

At initial recognition, in the case of a financial asset
at fair value through profit and loss, the Company
measures a financial asset at its fair value plus,
transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through
Statement of Profit and Loss are expensed in
Statement of Profit and Loss.

(a) Amortized cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments
of principal and interest are measured at
amortized cost.

(b) Fair Value through Other Comprehensive
Income (FVOCI): Assets that are held for
collection of contractual cash flows and
for selling the financial assets, where the
assets cash flows represent solely payments
of principal and interest, are measured at
FVOCI. Movements in the carrying amount
are taken through Other Comprehensive
Income (OCI), except for the recognition of
impairment gains or losses, interest revenue
and foreign exchange gains and losses which
are recognized in Statement of Profit and Loss.
When the financial asset is derecognized, the
cumulative gain or loss previously recognized
in OCI is reclassified from equity to profit and
loss and recognized in other gains/ losses.
Interest income from these financial assets is
included in other income using the effective
interest rate method.

(c) Fair value through profit and loss: Assets that
do not meet the criteria for amortized cost
or FVOCI are measured at fair value through
Statement of Profit and Loss. Interest income
from these financial assets is included in other
income.

De-recognition:

The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial
asset and the transfer qualifies for de-recognition
under Ind AS 109.

ii) Financial Liabilities
Measurement:

The Company''s financial liabilities include trade and
other payables, loans and borrowings. All financial
liabilities are recognized initially at fair value and
in the case of loans, borrowings and payables
recognized net of directly attributable transaction
costs, if any.

Subsequent Measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial Liability at FVTPL

Financial liabilities are classified as at FVTPL when
the financial liability is held for trading or are
designated upon initial recognition as FVTPL. Gains
or losses on financial liabilities held for trading are
recognized in the Statement of Profit and Loss.

Other Financial Liability

i. Classification as debt or equity:

Financial liabilities and equity instruments
issued by the Company are classified
according to the substance of the contractual
arrangements entered into and the definitions
of a financial liability and an equity instrument.

ii. Initial recognition and measurement:

Financial liabilities are recognized when the
Company becomes a party to the contractual
provisions of the instrument. Financial
liabilities are initially measured at the fair
value.

iii. Subsequent measurement:

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

iv. De-recognition:

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

Equity Instruments:

The Company subsequently measures all equity
investments at fair value, as the case may be. Where

the Company''s management has elected to present
fair value gains and losses on equity investments
in OCI, there is no subsequent reclassification of
fair value gains and losses to Statement of Profit
and Loss. Dividends from such investments are
recognized in Statement of Profit and Loss as
other income when the Company''s right to receive
payment is established.

De-recognition:

A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires. Gains and losses are recognized
in Statement of Profit and Loss when the liabilities
are derecognized as well as through the Effective
Interest rate (EIR) amortization process.

OFF-SETTING FINANCIAL INSTRUMENTS

Financial assets and liabilities are offset and the net
amount is reported in the Balance Sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net
basis or realised the asset and settle the liability
simultaneously. The legally enforceable right must
not be contingent on future events and must be
enforceable in the normal course of business and
in the event of default, insolvency or bankruptcy of
the Company or the counterparty.

E. Cash and Cash Equivalents:

Cash and cash equivalents in the balance sheet comprise
cash at banks and on hand and highly liquid investments
with a maturity of three months or less, which are subject
to an insignificant risk of changes in value.

Cash Flow Statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from the operating, investing and financing activities of
the company segregated.

In the Cash-flow statement, cash and cash equivalents are
shown net of bank overdrafts if any, which are included as
current borrowings in liabilities on the balance sheet, as
the case may be.

F. Inventories:

Raw Materials and Consumables are valued at Cost or NRV

whichever is lower. The cost arrived on FIFO basis. ''Cost''
includes all duties, taxes (other than those subsequently
recoverable by the enterprise from the taxing authorities)
and other expenses incurred to bring the inventories to
their present location and condition.

Finished products are valued at lower of cost or net
realizable value.

The Stock of Work in Progress have been valued at Raw
Material cost increased by a proportion of overheads in
consonance with the stage of completion as certified by
the management.

The Stock of Scrap is valued at Realizable Value.

The Goods in transit are valued at Actual Cost.

Net Realizable value is the estimated selling price in the
ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make
the sale.

G. Income tax:

The income tax expense or credit for the period is the tax
payable on the current period''s taxable income based
on the applicable income tax rate adjusted by changes
in deferred tax assets and liabilities attributable to
temporary differences.

Current Tax

The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at
the end of the reporting period in India. Management
periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid
to the tax authorities.

Deferred Tax

Deferred tax assets and liabilities are recognized using
the balance sheet approach for all temporary differences
arising between the tax bases of assets and liabilities
and their carrying amounts in the standalone financial
statements.

Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized.

Deferred tax assets and liabilities are measured using tax
rates and tax laws that have been enacted or substantively
enacted at the balance sheet date and are expected

to apply to taxable income in the year in which those
temporary differences are expected to be recovered or
settled.

Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognized to the extent that it is probable hat taxable
profit will be available against which the deductible
temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized.

Unrecognized deferred tax assets are re-assessed at each
reporting date and are recognized to the extent that it
has become probable that future taxable profits will
allow the deferred tax asset to be recovered.

Deferred tax relating to items recognized outside profit
or loss is recognized outside profit or loss (either in
other comprehensive income or in equity). Deferred tax
items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation
authority.

significant accounting policies and explanatory notes to financial statements

A Company Overview:

Yash Highvoltage Limited (“the company”) was originally incorporated in name of M/s Yash Highvoltage Insulators Private Limited in 2002 by technocrats to engage in the business of manufacturing of high end transformer bushings.

The Company has been delivering innovative and highly efficient transformer bushings to the industry ranging from RIP, HV-OIP, LV High Current, HV RIP Condenser Bushings and FRP Cylinders since many years. It has spread its wings to numerous countries and created a brand name for itself. With continued patronage of its discerning customers, most of whom are domestic and global giants of the industry, clubbed with international collaborations, YASH today is synonymous with high-performance and world-class quality solutions at competitive value and has carved out a distinct niche for itself. It has a distinct track record of growth which is expected to only get better going forward.

With the vision of creating a global large scale enterprise, the present promotors have decided to take the next step whereby, the Company has been converted to a Limited Company and the name of the Company was changed to Yash Highvoltage Limited, approval to which was accorded by the Registrar of Companies on 07.03.2018.

B Basis of Preparation of Financial Statement:

The Financial Statements are prepared on accrual basis of accounting, following historical cost convention, in accordance with the provisions of the Companies Act, 2013 (‘the Act’), accounting principles generally accepted in India and it comply the accounting standards specified under Section 133 of the Act, read with relevant applicable rules, as amended from time to time. Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The accounting policies applied are consitent with those in the previous year unless otherwise stated.

C Use of Estimate

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statement and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current

events and actions, actual results could differ from these estimates. Estimates and underlying assumptions are reviewed at each balance sheet date.

D Property Plant & Equipment:

a. Property, Plant & Equipment are stated at their cost of acquisition less any subsidy / grant received less accumulated depreciation. The cost of acquisition includes freight, installation cost, duties & taxes for which no credit is available and other incidental expenses, identifiable with the asset, incurred during the installation / acquition /construction stage in order to bring the assets to their working condition for intended use.

b. Internally generated Intangible assets have been stated at cost of generation as per Accounting Standard 26 “Intangible Assets” less accumulated amortization. Other Intangible assets are stated at direct cost incurred and other costs identified as incurred towards the same less any subsidy / grant received less accumulated amortization.

c. Any Property, Plant & Equipment under construction as at the Balance Sheet date are shown as Capital Work in Progress.

d. Depreciation on assets is being provided on the Written Down Value Method on the basis of useful lives specified in Part C of Schedule II to the Companies Act, 2013 except in respect of Server & mould where the useful life have been determined by the management to be 3 years in line with that of regular computer units & 5 years respectively based on technical assessment. Estimated useful lives of the assets are as follows:

e. On addition / disposals during the year, depreciation has been provided on pro-rata basis depending on period of usage.

f. Cost of Intangible Assets is amortized over its estimated useful life i.e. 5 years for Software & 10 years for Technical Know-how on pro-rata basis.

E Capital Work in Progress:

a. Capitalwork-in-progress iscarried at cost,comprising

direct cost and related incidental expenses.

F Leases:

Operating lease

Lease rentals in respect of assets acquired under operating lease are charged off to the statements of profit and loss as incurred on straight line basis.

G Investment:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as longterm investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis.

Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

H Inventories:

a. Raw Materials and Consumables are valued at Cost or NRV which ever is lower. The cost is arrived on FIFO basis. ''Cost'' includes all duties, taxes (other than those subsequently recoverable by the enterprise from the taxing authorities) and other expenses incurred to bring the inventories to their present location and condition.

b. Finished products are valued at lower of cost or net realizable value.

c. The Stock of Work in Progress have been valued at Raw Material cost increased by a proportion of overheads in consonance with the stage of completion as certified by the management.

d. The Stock of Scrap is valued at Realisable Value.

e. The Goods in transit are valued at Actual Cost.

Net Realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Spare parts, servicing equipment and standby equipment meeting the definition of property, plant and equipment as per AS 10 are classified as PPE.

I Employees Benefit:

a. Employee Benefits comprise short term as well as long term defined contribution and benefit plans.

b. Contributions to Provident Fund and Employee State Insurance are defined contributions. The Company’s Contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no further obligations beyond the periodic contributions.

c. The Company policy of Leave Encashment falls under short-term compensation plan as it usually pays off the employees against their accumulated leave on a short term basis. However, unpaid leaves as at year end, if any are provided for.

d. The Company continues to have a defined benefit Gratuity plan. The Company has obtained actuarial valuation for creating a provision towards Gratuity obligations that may arise in the years to come and accordingly the amount towards Gratuity as per the report of actuarial valuation is provided for.

J Sales/Turnover Income recognition:

a. Revenue is recognized on transfer of property in goods or on transfer of significant risks and rewards of ownership to the buyer, for a consideration, without the seller retaining any effective control over the goods.

b. Sales are accounted on dispatch of goods (which generally coincides with the transfer of ownership) and are net of goods and service tax and net of returns/rejections/discounts/deductions on account of quality disputes etc.

c. In case of services, revenue is recognized on completion of particular services.

d. Other items of income such as Duty Drawback etc are accounted on accrual basis (depending on certainty of realization) and disclosed under the head “Other Operating Income”.

K Goods and Service Tax (GST) and Input Tax Credit

(ITC):

a. Purchases and Sales are accounted net of GST element and net of recoveries, if any.

b. Expenses are accounted net of GST Input Tax Credit Available.

c. Element of Input Tax Credit is set off against the amount of GST to be paid on sales / provision of

services. Net Amount Payable against GST is shown under Current Liabilities and Balance amount of Input Tax Credit of GST as at the end of the period appears under the head Loans & Advances named-Balance with revenue authorities.

L Accounting on Tax on income:

a. Provision for taxation for the year under report includes provision for Current tax as well as provision for deferred tax.

b. Provision for Current Tax is made, based on tax estimated to be payable as computed under the various provisions of the Income Tax Act, 1961.

c. Deferred tax is recognized, subject to prudence, on timing differences between taxable income and accounting income that originate during the year and are capable of being reversed in one or more subsequent periods. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that future taxable income will be available against which such deferred tax assets can be realised. Deferred Tax Liabilities / Assets are quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

M impairment of 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 assets is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual CGU, or otherwise they are allocated to the smallest group of CGU for which a reasonable and consistent allocation basis can be identified.

An intangible asset not yet available for use is tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

The Company’s corporate assets do not generate independent cash inflows. To determine impairment of a corporate asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.

An impairment loss is recognized if the carrying amount

of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of profit and loss. Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

N Borrowing Cost:

According to AS-16, borrowing costs that are directly attributable to the acquisition of qualifying assets are to be capitalized for the period until the asset is ready for its intended use. A qualifying asset being, an asset that necessarily takes a substantial period of time to get ready for its intended use. Other borrowing costs are to be recognized as an expense in the period in which they are incurred.

O Government Grants:

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is shown as a deduction from the gross value of concerning asset and thus such grant is recognised in Profit and Loss Account over the useful life of asset by way of a reduced depreciation charge. Where the government grants are of the nature of prmoter''s contribution and no repayment is ordinarily expected in respect thereof, the grants are treated as capital reserve.

P Foreign Currency Transactions:

Transactions in foreign currency are recorded in Indian Rupees at the exchange rate prevailing on the date of the transactions. Balances of monetary items in foreign currencies, at the date of Balance Sheet i.e. foreign currency monetary transactions not settled on the Balance Sheet date, are converted into Indian Rupees at the rates of exchange prevailing on that date. Exchange gains or losses on settlement, if any, are treated as income or expenditure respectively in the Statement of Profit & Loss in the year in which they arises. Non Monetary items has been recorded at Historical Cost.

Q Foreign Currency Derivative Contracts:

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company tries to limit the effects of foreign exchange rate fluctuations by following risk management policies including use of

derivatives. For this the Company enters into forward exchange contracts, where the counter-party is a Bank. Theses forward contracts are not used for trading or speculation purposes.

In case of forward contracts the gain or loss arising on exercise of option or settlement or cancellation are recognized in the Statement of profit and loss for the period. The forwards contracts outstanding as at the balance sheet date, if any, are marked-to-market and corresponding exchange gain or loss is recognized on the same.

R Contingencies / Provisions:

Provisions are recognized when an enterprise has a present obligation as a result of past event for which it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimates.

Provisions for legal claims, product warranties and make good obligations are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurence or nonoccurence of one or more uncertain future events not wholly within the control of the company or the present obligations that arises from past events, where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Contingent Asset are neither disclosed nor recognised in Financial Statement.

S Cash & Cash Equivalents

Cash and cash equivalents for the purposes of the cash flow statement comprise cash at bank, in hand and short-term investments with an original maturity of three months or less.

T Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity

shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

U Cash Flow Statement

Cash flows are reported using the Indirect Method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

V Non-Consolidation of Wholly Owned Subsidiary-Section-8 Company

"The Company has a wholly-owned subsidiary incorporated as a Section 8 Company under the Companies Act, 2013, established exclusively for charitable and not-for-profit purposes.

As per paragraph 11(b) of Accounting Standard (AS) 21 -Consolidated Financial Statements, a subsidiary should be excluded from consolidation when:

""it operates under severe long-term restrictions which significantly impair its ability to transfer funds to the parent.""

In this case, the Section 8 subsidiary is governed by statutory provisions which:

(i) Prohibit any distribution of profits or surplus to its members or parent entity;

(ii) Require that all income and property be applied solely for the promotion of its objects;

(iii) Result in permanent legal restrictions on the transfer of funds, including dividends and capital repatriation, to the parent company.

In view of the above, the Company has assessed that the said subsidiary operates under severe longterm statutory restrictions, significantly impairing its ability to transfer funds to the parent. Accordingly, the subsidiary has not been consolidated, in line with paragraph 11(b) of AS 21.

Note 1: General Information of the company :

Yash Highvoltage Limited (“the company") was originally incorporated in name of M/s Yash Highvoltage Insulators Private Limited in 2003 by technocrats to engage in the business of manufacturing of high-end transformer bushings.

For over 20 years, the Company has been delivering innovative and highly efficient transformer bushings to the industry ranging from RIP, HV-OIP, LV High Current, HV RIP Condenser Bushings and FRP Cylinders. It has spread its wings to numerous countries and created a brand name for itself. With continued patronage of its discerning customers, most of whom are domestic and global giants of the industry, clubbed with international collaborations, YASH today is synonymous with high-performance and world-class quality solutions at competitive value and has carved out a distinct niche for itself. It has a distinct track record of growth which is expected to only get better going forward.

With the vision of creating a global large-scale enterprise, the present promoters converted the Company to a Limited Company and the name of the Company was changed to Yash Highvoltage Limited

Further, the reputed Swiss Group Pfiffner Messwandler AG, with which the Company had earlier made a technical know-how collaboration for RIP Bushings, invested in the Company through its subsidiary M/s. MGC Moser Glaser AG, by way of acquisition of a strategic 25.70% stake, which made the Company as genuine Swiss Collaborators for RIP Bushings business. The company has reaped the benefits of the same as can be witnessed by consistent growth in Turnover and Profitability.

During the year the Company has also got its in-house R&D Centre approved and has also received NABL Accreditation for its state-of-the-art Testing Facility during the first quarter of the coming year. Further, with the swiss-collaboration period for RIP Bushing parts officially ending, the Company has started developing the technology in-house as also identified other global vendors for the same.

Going forward, the Company has major expansion plans. The stake of the Swiss counterpart has been bought over by the promoter under Call Option as per the shareholders’ agreement and the Company plans to go public to meet its funds requirements for the next phase of growth.

Note 2: Significant Accounting Policies:

A) Method of Accounting:

The Financial Statements are prepared on accrual basis of accounting, following historical cost convention, in accordance with the provisions of the Companies Act, 2013 (‘the Act’), accounting principles generally accepted in India and comply the accounting standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. The Accounting Policies have been consistently applied by the Company and are consistent with those used in the previous year.

For the year under report, the Company is a Small and Medium Sized Company (SMC) as defined in the Companies (Accounting Standard) Rules, 2021 notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company, save, and if, as otherwise mentioned in / these financials.

B) Property, Plant & Equipment:

a Property, Plant & Equipment are stated at their cost of acquisition less any subsidy I grant received less accumulated depreciation. The cost of acquisition includes freight, installation cost, duties, taxes and other incidental expenses, identifiable with the asset, incurred during the installation / construction stage in order to bring the assets to their working condition for intended use.

b. Internally generated Intangible assets have been stated at cost of generation as per Accounting Standard 26 “Intangible Assets" less accumulated amortization. Other Intangible assets are stated at direct cost incurred and other costs identified as incurred towards the same less any subsidy / grant received less accumulated amortization.

c. Any Property, Plant & Equipment under construction as at the Balance Sheet date are shown as Capital Work in Progress.

d. Depreciation on assets is being provided on the Written Down Value Method on the basis of useful lives specified in Part C of Schedule II to the Companies Act, 2013 except in respect of Server where the useful life have been determined by the management to be 3 years in line with that of regular computer units based on technical assessment.

e. On addition / disposals during the year, depreciation has been provided on pro-rata basis depending on period of usage.

f. Cost of Intangible Assets is amortized over its estimated useful life i.e. 5 years for Software & 10 years for Technical Know-how on pro-rata basis.

C) Inventory:

a. Raw Materials and Consumables are valued ‘at Cost or NRV whichever is lower'' on

FIFO basis. ’Cost’ includes all duties, taxes and other expenses incurred to bring the

inventories to their present location and condition.

b. Finished products are valued at lower of cost or net realizable value.

c Semi-Finished goods have been valued at Raw Material cost increased by a proportion of overheads in consonance with the stage of completion as certified by the

management.

D) Employee Benefits:

a. Employee Benefits comprise short term as well as long term defined contribution and benefit plans.

b. Contributions to Provident Fund and Employee State Insurance are defined

contributions. The Company’s Contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no further obligations beyond the periodic contributions.

c The Company policy of Leave Encashment falls under short-term compensation plan as it usually pays off the employees against their accumulated leave on a yearly basis. However, unpaid leaves as at year end, if any are provided for.

d. The Company continues to have a defined benefit Gratuity plan. The Company has obtained actuarial valuation for creating a provision towards Gratuity obligations that ; may arise in the years to come and accordingly the amount towards Gratuity as per the \ report of actuarial valuation is provided for.

E) Sales /Turnover and Income Recognition:

a Revenue is recognized on transfer of property in goods or on transfer of significant risks and rewards of ownership to the buyer, for a consideration, without the seller retaining any effective control over the goods.

b Sales are accounted on dispatch of goods (which generally coincides with the transfer of ownership) and are net of goods and service tax and net of returns/rejections/deductions on account of quality disputes etc.

c In case of services, revenue is recognized on completion of jobs.

d Other items of income such as Interest, Duty Drawback, Other recoveries etc are accounted on accrual basis (depending on certainty of realization) and disclosed under the head "Other Income”.

F) Goods and Sendee Tax (GST) and Input Tax Credit:

a Purchases and Sales are accounted net of GST element and net of recoveries, if any.

b. Expenses are accounted net of GST Input Tax Credit Available.

c. Element of Input Tax Credit is set off against the amount of GST to be paid on sales / provision of services. Net Amount Payable against GST is shown under Current Liabilities and Balance amount of Input Tax Credit of GST as at the end of the period appears under Loans & Advances under Indirect Taxes Recoverable.

G) Accounting for Taxes on Income:

a Provision for taxation for the year under report includes provision for Current tax as well as provision for deferred tax.

b. Provision for Current Tax is made, based on tax estimated to be payable as computed under the various provisions of the Income Tax Act, 1961.

c Deferred tax is recognized, subject to prudence, on timing differences between taxable income and accounting income that originate during the year and are capable of being reversed in one or more subsequent periods. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that future taxable income will be available against which such deferred tax assets can be realised. Deferred Tax Liabilities / Assets are quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

W Impairment of Assets:

Assessment of Impairment of Assets (as covered under AS-28 Impairment of Assets) is

done as at the Balance Sheet Date considering external and internal impairment indicators.

If there is an indication that an asset may be impaired, its recoverable amount is estimated

and the impairment loss duly provided for.

I) Borrowing Costs:

According to AS-16, borrowing costs that are directly attributable to the acquisition of qualifying assets are to be capitalized for the period until the asset is ready for its intended use. A qualifying asset being, an asset that necessarily takes a substantial period of time to get ready for its intended use. Other borrowing costs are to be recognized as an expense in the period in which they are incurred.

J) Government Grants:

According to AS-12, Grants related to specific Fixed Assets are shown as a deduction from gross value of the respective Fixed Asset. The grant is thus recognized in the statement of Profit and Loss over the useful life of the depreciable asset by way of a reduced depreciation charge.

Grants related to Revenue Expenditure are reduced from related expenditure.

K) Foreign Currency Transactions :

Transactions in foreign currency are recorded in Indian Rupees at the exchange rate prevailing on the date of the transactions. Balances of Current Assets / Liabilities in foreign currencies, at the date of Balance Sheet i.e. foreign currency transactions not settled on the Balance Sheet date, are converted into Indian Rupees at the rates of exchange prevailing on that date. Exchange gains or losses on settlement, if any, are treated as income or expenditure respectively in the Statement of Profit & Loss.

L) Foreign Currency Derivative Contracts:

The Company is exposed to foreign currency fluctuations on foreign currency assets and forecasted cash flows denominated in foreign currency. The Company tries to limit the effects of foreign exchange rate fluctuations by following risk management policies including use of derivatives. For this the Company enters into forward exchange contracts, where the counter-party is a Bank. Theses forward contracts are not used for trading or speculation purposes.

In case of forward contracts the gain or loss arising on exercise of option or settlement or cancellation are recognized in the Statement of profit and loss for the period The forwards contracts outstanding as at the balance sheet date, if any, are marked-to-market and corresponding exchange gain or loss recognized on the same

M) Contingencies/Provisions:

Contingencies which can be reasonably ascertained are provided for, if in the opinion of the Management, there is a probability that it will result in an outflow for the Company in the future. Other Contingencies, the outcome of which is not certain, have been disclosed in these notes as Contingent Liabilities. Contingent Assets have not been provided for.