Note 1. General Information

Maruti Interior Products Limited (previously known as Maruti Interior Products Private Limited) (CIN: U36998GJ1997PLC031719), having its registered office at Plot No 13 Survey No 236 Krishna Ind Estate, Veraval, Tal: Kotda Sangani - 360024 Gujarat, India.

The company was incorporated as Ravi Bearings Private Limited on February 14, 1997 at Rajkot, Gujarat as a private limited company under the Companies Act, 1956 with the Registrar of Companies, Ahmedabad. Subsequently the name of the company was changed to Maruti Interior Products Private Limited vide special resolution passed by the shareholders of the company in their meeting held on April 04, 2000 and fresh Certificate of Incorporation consequent to the change of the name was granted to the company May 12, 2000, by the Registrar of Companies, Ahmedabad. The Name of the company was subsequently changed to "Maruti Inteiror Products Limited" pursuant to a special resolution passed by the shareholders of the company at the Extra Ordinary General Meeting held on October, 20 2021. A fresh certificate of incorporation consequent upon change of name was issued on 9th November, 2021 by the Registrar of Companies, Ahmedabad.

The equity share of the Company got listed on Bombay Stock Exchange of India Limited (“BSE”) on the BSE SME Exchange Platform w.e.f. 16^th February, 2022. Its ISIN is INE0JSJ01014, Script Code is 543464 and Script Name is MARUTIIPL.

The Company is engaged in manufacturing and domestic sale & export of modular kitchen storage system, aluminium long wardrobe handle & profile handle. The Company has a wide range of product offerings for different customer segments. The Company’s brand Everyday Kitchen is focused towards economic range and other brand Spitze by Everyday is offering premium products. The Company also manufacture products for other companies on OEM basis.

Authorization of financial statements

The Financial Statements were authorized for issue in accordance with a resolution of the directors on 28^th May, 2024.

Note 2. Summary of Significant Accounting Policies:

a) Basis of Preparation:

The Financial statements have been on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory Accounting Standards referred to in Section 133 of The Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and Guidance Notes issued by Institute of Chartered Accountants of India.

All the assets and liabilities have been classified as current and Non-current as per the company’s operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between acquisition of assets for processing and realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

b) Use of Estimates

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 statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

c) Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 “Cash Flow Statements”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.

d) Property Plant & Equipment — Tangible Assets, Depreciation and Impairment of assets:

Tangible Assets:

i) Tangible Assets are capitalized at acquisition costs. ‘Acquisition cost’ includes directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to its working condition for use.

ii) Expenditure relating to existing assets is added to the cost of the assets where it improves the performance / extends life of the assets as assessed earlier.

iii) The profit or loss arising from the disposal of assets is recognized in the Profit & Loss Account.

iv) Assets in the course of work-in-progress for production or administrative purpose are carried at cost. Cost includes land and building improvement costs, related acquisition expenses and construction costs incurred during the period of construction. Depreciation of these assets charged as and when assets are ready for their intended use.

Depreciation:

Depreciable amount for tangible assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation has been provided on the tangible fixed assets as per Straight Line method considering useful lives as per Schedule II of Companies Act, 2013. Depreciation on assets addition during the year is charged on prorata basis.

The company estimates that the useful lives as given below best represent the useful lives of these assets based on internal assessment and supported by technical advice where necessary which may be different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

Impairment of Assets:

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. For the purposes of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists or may have decreased, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount.

e) Investments:

a Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

b Current investments are carried in the financial statements 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.

c On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

f) Inventories:

Inventories are taken, value and certified by Directors and are valued following FIFO method on the following basis:

i) Raw Material is valued at cost or net realizable value whichever is lower on FIFO method.

ii) Stores and Consumables are valued at cost or net realizable value whichever is lower.

iii) Finished Goods are valued at cost or net realizable value whichever is lower. Cost comprises raw material cost, labour cost, cost of stores, spares and consumables, other manufacturing and overheads expenses that have been incurred in bringing the inventories to their present location and condition.

iv) Stock in process is valued at cost. Cost comprises raw materials cost and appropriate portion of labour costs, cost of stores, spares and consumables, other manufacturing and overhead expenses.

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

g) Revenue Recognition:

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales revenue is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer and no effective ownership is retained and when there is a reasonable certainty of its ultimate collection.

Interest income is recognized on time proportion basis depending upon the amount outstanding and the rate applicable. However interest income on refund of any tax, duty or cess is recognized in the year in which it is received.

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

Revenue from export benefits arising from Duty entitlement pass book (DEPB scheme), duty drawback scheme, and merchandise export incentive scheme are recognised on export of goods in accordance with their respective underlying scheme at fair value of consideration received.

Dividend Income is accounted on receipt basis except on which TDS has been deducted is accounted on accrual basis.

Miscellaneous Income is recognized at the time of relevant event occurring when there is no significant uncertainty in collection of the amount of consideration.

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

h) Expenditure Recognition:

Expenditure relating to purchase of goods are accounted on accrual basis.

Purchase is exclusive of GST wherever applicable.

Expenditure is accounted on accrual basis considering the materiality of the transaction.

Company has not made any provision for impairment of asset.

i) Foreign Currency Transaction:

i. Transactions in foreign currency are recorded at exchange rates prevailing on the date of transactions.

ii. Monetary items denominated in foreign currency outstanding at the year end, are translated at the exchange rates prevailing as at the year end.

iii. Non-monetary items denominated in foreign currency are valued at the rates prevailing on the date of the transaction.

iv. Any gains or losses arising due to differences in exchange rates at the time of translation or settlement are accounted for in the Profit & Loss Account.

v. Exchange differences on long-term foreign currency monetary items relating to acquisition of depreciable assets are charged to Profit & Loss Account.

j) Employee Benefit:

Short Term Employee Benefit

All employee benefit payable wholly within twelve months of rendering the services are classified as short term employee benefit. Benefits such as salaries, wages, short-term compensated absences, etc. and the expected cost of bonus are recognized in the period in which the employee renders the related services.

Retirement Benefit:

Defined Contribution Plans: The State governed provident fund scheme and employee pension scheme are defined contribution plans. The contribution paid/ payable under the schemes is recognized during the period in which the employee renders the related service.

Defined Benefit Plans:

Gratuity is a company’s defined benefit plan: The Company has defined benefit plans for its employees, viz., gratuity. The cost of providing benefits under this plans are determined on the basis of actuarial valuation at each year end. Actuarial valuation is carried out for the plan using the projected unit credit method. Actuarial gains and losses for defined benefit plans are recognised in full in the period in which they occurs in the statement of profit and loss.

k) Borrowing Costs:

Interest and other borrowing costs are recognised in the statement of profit and loss except borrowing cost that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets until the asset is first put to use, when substantially all the activities necessary to prepare such Inventory for its intended sale are complete.

l) Segment Reporting:

The Company is engaged in manufacturing and domestic sale & export of modular kitchen storage system, aluminium long wardrobe handle & profile handle. These, in the context of Accounting Standard 17 on Segment Reporting, as specified in the Companies (Accounting Standard) Rules, 2006, are considered to constitute one single primary segment.

m) Provisions and Contingent Liabilities:

Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

n) Provision for Current and Deferred tax:

The tax expenses comprise of current tax and deferred tax charged or credited to the profit and loss account for the year. Provision for current tax is made accordance with the tax laws applicable to the current financial year after taking into consideration benefit admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from “timing difference” between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in the future.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.