NOTE: 25- NOTES ON ACCOUNTS & ACCOUNTING POLICIES

Forming part of Balance Sheet and Statement of Profit and Loss for the Year ended 31st March, 2024

A. SIGNIFICANT ACCOUNTING POLICIES: -

The following disclosure of accounting policies is made in pursuance of the recommendation of the Accounting standards Boards of the Institute of Chartered Accountants of India on 'Disclosure of Accounting Policies'.

a) System of Accounting:

The company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 01st April 2020, with a transition date of 01st April 2019. The adoption of IndAs has been carried out in accordance with Ind AS 101, First Time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS Standards and interpretations that are issued and effective for the First Ind AS Financial Statements for the year ended 31st March 2021 be applied retrospectively and consistently for all financial years presented.

b) Basis of preparation Statement of compliance

These Standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended notified under Section 133 of Companies Act, 2013, ("the Act") and other relevant provisions of the Act

Functional and presentation currency:

These financial statements are presented in Indian Rs., which is also the Company's functional currency

Historical cost convention

The financial statements have been prepared under historical cost convention on accrual basis, unless otherwise stated. Fair value is the price that would be received to sell an asset or paid to transfer a

liability in an orderly transaction between market participants at the measurement date_L

c) Current versus non-current classification

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

An asset is treated as current when:

i) It is expected to be realized or intended to be sold

or consumed in normal oPerating cycle;

ii) It is held primarily for the purpose of trading;

iii) It is expected to be realized within twelve months

after the reporting Period; or

iv) It is cash and cash equivalent unless restricted

from being exchanged or used to settle a liability for at least twelve months after the reporting Period

The Company classifies all other assets as noncurrent.

A liability is current when:

i) It is expected to be settled in normal operating cycle:

ii) It is held primarily for the purpose of trading;

iii) It is due to be settled within twelve months after reporting period; or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting Period'

The Company classifies all other liabilities as noncurrent'

Deferred tax assets and liabilities are classified as non-current assets and liabilities The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company recognises 12 month as its operating cycle for the purpose of current -non-current classification of assets and liabilities

d) Property, plant and equipment (PPE) and Intangible assets

For transition to Ind AS, The Company has elected to continue with the carrying value of all of ia PPE

recognized as of April 1, 2019 (transition date) measured as per the previous GAAP as of April 1, 2019 (transition date) measured as per the previous GAAP.

The cost of an item of property, plant and equipment comprises its purchase price, including import duties and other non-refundable taxes or levies, freight, any directly attributable cost of bringing the asset to its working condition for its intended use and estimated cost of dismantling and restoring onsite; any trade discounts and rebates are deducted in arriving at the purchase Price.

Subsequent costs are included in the asset's carrying amount or recognised 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. The carrying amount of any component accounted for as a separate asset is de recognised when replaced. A11 other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Advances paid towards acquisition of property, plant and equipment outstanding at each Balance sheet date, are shown under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital work-in0progress.

Depreciation and amortization methods, estimated useful lives and residual value

Depreciation is provided on Written Down Value method assuming residual value as 5% over the useful lives of assets estimated by the Management. at the rates specified in Part C of Schedule II of the Companies Act 2013 on Pro rata basis and the Assets having the Value up to Rs 5000.00 have been depreciated at the rate of 100%.

Freehold land is not depreciated.

Depreciation and amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.

e) Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings. Borrowing cost which are not relatable to the qualifying asset are recognized as an expense in the period in which they are incurred. Borrowing cost on specific loans, used on acquisition or construction of fixed assets, which necessarily take a substantial period of time to be ready for their intended use, are capitalised. Other borrowing costs are recognized as an expense in the period in which they are incurred.

f) Valuation of Inventory

FIFO method of Stock valuation has been adopted by the company. Stock of raw material, stores & spares are valued at cost whereas stock of finished goods is valued at cost or net realizable value whichever is lower.

'g) Events Occuring After the Valuation Date

Events occurring after the date of Balance Sheet, are considered up to date of finalisation of accounts, wherever material.

'h) Use Of Estimates

The preparation of the financial statements in conformity with INDAS requires management to make estimates and assumption that affect the reported balances of assets and liabilities and discloser relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the company to estimates the efforts or cost expended to date as a proportion to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligation under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed tangible assets and intangible assets.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

'i) Recognition Of Income & Expenditure

i) Revenue is recognised to the extent that it is

probable that the economic benefits will flow to the company, the significant risks and rewards of ownership have been transferred to the buyer and the revenue can be reliably measured in compliance with IND AS-18

ii) Sales are recognised as & when the goods are

supplied and net of GST. However rebate & discount is being seperately shown as other income.

iii) Expenses are accounted for on accrual basis and

provision is made for all known losses and expenses.

'j) Employee's Benefits Short term employee benefits

All employee benefits falling due within twelve months of the end of the period in which the employees render the related services are classified as short-term employee

Post - employment benefits

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under:

i) Gratuity

The employee gratuity scheme is a defined benefit plan. The present value of the obligation under such defined benefit plan is determined at Balance Sheet date based on an actuarial valuation carried out by an independent actuary using the projected unit credit method. Actuarial gains and losses and past service cost are recognized immediately in other comprehensive income. Long term employee benefit

also comprises of compensated absences. These are measured based on actuarial valuations carried out by an independent actuary using the protected unit method at balance sheet date unless they are insignificant' Actuarial gains and losses and past service cost are recognized immediately in other comprehensive income.

ii) Provident Funds

The Company's contribution to the Provident fund is charged to statement of profit and loss.

Acruarial valuation

The liability in respect of all defined benefit plans and other long-term benefits is accrued in the books of account on the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans is based on the market yields on Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations. Remeasurement gains and losses on other long-term benefits ale recognised in the statement of profit and loss in the year in which they arise. Remeasurement gains and losses in respect of all defined benefit plans 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 other equiry in the Statement of Changes in Equiry and in the Balance Sheet. Changes in the Present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as Past service cost. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs.

Past service cost is recognised as an expense in the statement of profit and loss on a straightline basis over the average period until the benefits become vested. To the extent that the benefits are already vested immediately following the introduction of, or changes to, a defined benefit plan, the Past service cost is recognised immediately in the statement of profit and loss. Past service cost may be either positive (where benefits are introduced or improved) or negative (where existing benefits are reduced)

'k Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating. investing and financing activities of the company are segregated. The company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

'l) Income Tax

Income tax is recognized in the Statement of income except to the extent that it relates to items recognized directly within equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially-enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. 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.

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the period in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonably certain that the company will pay normal income tax during the specified period.

m) Financial Instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entry.

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e. the date that the Company commits to purchase or sell the asset'

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

i) Debt Instruments at amortized cost

ii) Debt Instruments, derivatives and equiry

Instruments at fail value through profit /loss (FVTPL)

iii) Debt Instrument at fair value through other

comprehensive Income (FVOCI)

iv) Equity Instruments measured at fair value through

Other comprehensive income (FVOCI)

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to the Statement of Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss to retained earnings.

B. NOTES ON ACCOUNTS :-

'1. Previous year figure have been re-grouped / rearranged / re-caste wherever considered necessary, to suit the current year's layout as per the Performa of Revised Schedule III of IND AS.

'2. In the opinion of the Board, the current assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and that the provision for known liabilities are adequate and not in excess of amount reasonably necessary.

1. EPS CALCULATION

Basic earnings per share

Basic earnings per share is calculated by dividing

A) the profit/(loss) attributable to owners of the company

B) by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

A) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares' and

B) the weighted average number of additional equiry shares that would have been outstanding assuming the conversion of all dilutive potential equity years.