Accounting Policies of Chandra Prabhu International Ltd. Company

Mar 31, 2025

7. Summary of Material Accounting Policies Information

(a) 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, regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or
duties collected on behalf of the government.

Revenue from sale of goods / services

Revenue is recognized upon transfer of control of promised products or services to the customer at the amount of
Transaction price i.e. an amount that reflects the consideration, to which an entity expects to be entitled in exchange for
transferring goods or services to customers, excluding amounts collected on behalf of third parties. Revenue is recognized
as and when each distinct performance obligation is satisfied. The Company evaluates its exposure to significant risks and
reward associated with the revenue arrangements in order to determine its position of a principal or an agent in this regard.

Service revenue pertains to renting agricultural machinery. Arrangements with customers are on a fixed-price or fixed-time
frame. Revenue is recognized when related services are rendered.

Interest Income

Interest Income from a financial asset is recognized when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the asset''s net carrying amount on initial recognition.

(b) Inventories

Inventories are stated at lower of weighted average cost or net realizable value. Net realizable value represents the
estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Cost
includes all costs of purchases and incidental expenses incurred in bringing the inventory to their present condition and
location.

Custom duty on material imported are provided for at the applicable rate.

(c) Depreciation and Amortization

Depreciation on property, plant and equipment, except freehold land, is provided as per cost model on written down value
basis over the estimated useful lives of the asset as per Schedule II of the Companies Act, 2013.

Depreciation is charged on addition, deletion on pro-rata basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the Standalone Statement of Profit
and Loss when the asset is derecognized. Repairs & Maintenance costs are recognized in Statement of Profit & Loss when
incurred.

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.

The estimates made by the management for the useful life of the Property Plant and Equipments are as follows:-

The company has decided to retain the useful life/ Residual Value hitherto adopted for various categories of properties
plant and equipments as prescribed in Schedule II of the Act

(d) Taxation

Current Income Tax

Current income tax assets and liabilities are measured at the amounts expected to be recovered from or paid to the taxation
authorities; on the basis of the taxable profits computed for the current accounting period in accordance with Income Tax
Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the
reporting date.

Tax expenses recognized in the Statement of Profit or Loss comprises the sum of the current tax and deferred tax except
the ones recognized in Other Comprehensive Income or directly in Equity.

Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the
amounts used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of
the reporting period. Deferred tax assets are recognized for the future tax consequences to the extent its probable that
future taxable profits will be available against which the deductible temporary differences can be utilized. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the
likely timing and the level of future taxable profits together with future tax planning strategies.

(e) Property, Plant and Equipment (PPE)

Land is carried at historical cost. All other items of property, plant and equipment are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if any.

The initial cost of an asset comprises its purchase price and any costs directly attributable to bring the asset into the location
and condition necessary for it to be capable of operating in the manner intended by management.

An item of property, plant and equipment initially recognized separately are derecognized upon disposal or when no future
economic benefits expected from its use or disposal or when the property, plant and equipment has been reclassified as
ready for disposal. Any gain or loss arising on derecognition of the asset is included in the statement of profit and loss
when the asset is derecognized.

Residual value and useful life of property, plant and equipment are reviewed at each financial year end and changes are
accounted for as a change in accounting estimates on a prospective basis.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item
depreciated separately. However, significant part(s) of an item of PPE having same useful life and depreciation method are
grouped together in determining the depreciation charge.

Costs of the day to-day servicing described as for the ''repairs and maintenance'' are recognized in the statement of profit
and loss in the period in which the same are incurred.

(f) Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that a Property, plant and equipment may
have been impaired. If any such indication exists, the Company estimates the recoverable amount of the Property, plant
and equipments. If such recoverable amount of the Property, plant and equipments or the recoverable amount of the cash
generating unit to which the Property, plant and equipment 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 recognized in the profit and loss. If
at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the Asset is reflected at the recoverable amount subject to a maximum of depreciated historical
cost.

(g) Investment in Properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the
Company, is classified as investment property. Investment property is measured initially at its cost, including related
transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the asset''s carrying
amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company
and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Investment in building is a fair value model which reflects the current market value of the property and any changes in
value are recognized directly in profit or loss.

(h) Borrowing Costs

Borrowing costs are expensed as and when incurred except where they are directly attributable to the acquisition,
construction or production of qualifying assets i.e. the assets that necessarily takes substantial period of time to get ready
for its intended use, in which case they are capitalized as part of the cost of those asset up to the date when the qualifying
asset is ready for its intended use.

(I) Leases

A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may
or may not eventually be transferred. An operating lease is a lease other than a finance lease.

Company as a lessee

A lease is classified at the inception date as a finance lease or an operating lease.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and
reduction of the lease liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Finance charges are recognized in finance costs in the statement of profit and loss, unless they are directly attributable to
qualifying assets, in which case they are capitalized in accordance with the Company''s general policy on the borrowing
costs. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the
Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated
useful life of the asset and the lease term.

(j) Foreign Currency Transactions
Initial Recognition

Foreign Current Transactions are recorded in Indian Currency by applying the exchange rate between the Indian Currency
and Foreign Currency at the date of the transaction.

Conversion

Current assets and current liabilities being monetary items designated in foreign currencies are recognized at the rate
prevailing on the date of Balance Sheet.

Exchange Difference

Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized as income
or as on expense in the year in which they arise.

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Mar 31, 2024

Summary of material accounting policies and other explanatory information.

Note : 1

1. CORPORATE INFORMATION

Chandra Prabhu International Ltd. referred to as ^MCPIL^M or "the Company" was incorporated on 29th November, 1984 registered with Registrar of Companies, Delhi & Haryana, New Delhi. The Company is a Public Limited Company whose shares are listed on BSE.

The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report.

The standalone financial statements were approved for issue in accordance with a resolution of the directors on 28th May, 2024.

2. Basis of preparation and Material Accounting Policies

Pursuant to the Companies (Indian Accounting Standards) Amendment Rules, 2023 effective 01-04-2023, the company is required to disclose ''material accounting policy information'' in lieu of the earlier requirement of disclosing ''significant accounting policies''.

All accounting policies followed by the company are in accordance with the Indian Accouting Standards (Ind AS) notified u/s 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 and conform to Schedule III to the Companies Act, 2013 as applicable.

Special disclosure of material accounting policy information where Ind AS permits options is made hereunder:

The company has assessed the materiality of the accounting policy information, which involves excercising judgement and considering both quantitative and qualitative factors by taking into account not only the size and nature of the item or condition but also the characteristics of the transactions, events or conditions that could make the information more likely to impact the decisions of the users of the financial statements.

2.1 The financial statements have been prepared in accordance with under historical cost convention on accrual basis, except for the employees defined benefit obligation measured as per actuarial valuation and certain financial instruments which are measured at fair value or amortised cost at the end of the each reporting period, as explained in the Accounting policies below. All assets and libilities are classified as current and non current as per the Companies normal operating cycle. However the company has ascertained its operating cycle as 12 months for the current classification of Assets and Liabilities. The financial statements have been prepared on a going concern basis.

2.2 Statement of compliance

The standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 ("The Act"), read with the Companies (Indian Accounting Standards) as amended from time to time.

The Company also applies requirement of Division II to Schedule III of the Companies Act 2013, while presenting financial statements.

2.3 Use of estimates and judgments

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these asumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilites affected in future periods.

i. Depreciation / amortization and useful lives of property, plant and equipment / intangible assets

Property, Plant and Equipment / intangible assets are depreciated / amortized over their estimated useful lives after taking into account estimated residual value. The estimated useful lives and residual values of the assets are reviewed annually in order to determine the amount of depreciation / amortization to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes and other related matters. The depreciation / amortization for future periods is revised if there are significant changes from previous estimates.

ii. Recoverability of trade receivable

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the period of overdues, the amount and timing of anticipated future payments and the probability of default.

iii. Measurement of Defined Benefit Obligation:-

The present value of defined benefit obligation which includes gratuity is determined using actuarial valuations using projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in the assumptions. All assumptions are reviewed at each reporting date.

iv. Recognition and measurement of provisions, liabilities and contingencies: -

Provision and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events that can be reasonably be estimated. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

Contingencies in the normal course may arise from litigation and other claims. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes to accounts but are not recognized.

v. Income Taxes:-

The Company’s tax jurisdiction is India. Signific

ant judgements are involved in determining the provisions for income taxes including amount expected to be paid or recovered for uncertain tax positions.

2.4. Material Accounting Policies

A summary of the material accounting policies applied in the preparation of the financial statements are as given below. The accounting policies have been applied consistently to all the periods in the financial statements.

a. Property, Plant and Equipment (PPE)

Land is carried at historical cost. All other items of property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

The initial cost of an asset comprises its purchase price and any costs directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended by management.

An item of property, plant and equipment initially recognized separately are derecognized upon disposal or when no future economic benefits expected from its use or disposal or when the property, plant and equipment has been reclassified as ready for disposal. Any gain or loss arising on derecogntion of the asset is included in the statement of profit and loss when the asset is derecognized.

Residual value and useful life of property, plant and equipment are reviewed at each financial year end and changes are accounted for as a change in accounting estimates on a prospective basis.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item depreciated separately. However, significant part(s) of an item of PPE having same useful life and depreciation method are grouped together in determining the depreciation charge.

Costs of the day to-day servicing described as for the ‘repairs and maintenance’ are recognised in the statement of profit and loss in the period in which the same are incurred.

b. Leases

A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred. An operating lease is a lease other than a finance lease.

Company as a lessee

A lease is classified at the inception date as a finance lease or an operating lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

c. Revenue recognition Revenue from sale of goods

Revenue from the sale of goods is recognized when all the following conditions have been satisfied:

(a) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

(b) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow to the Company; and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes, levies or duties collected on behalf of the government/ other statutory bodies.

Advances received from the customers are reported as "advance from customers " unless the above conditions for revenue recognition are met.

d. Depreciation and Amortization

Depreciation on property, plant and equipment, except freehold land, is provided as per cost model on written down value basis over the estimated useful lives of the asset as per Schedule II of the Companies Act, 2013.

Depreciation is charged on addition, deletion on pro-rata basis.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Standalone Statement of Profit and Loss when the asset is derecognized. Repairs & Maintenance costs are recognised in Statement of Profit & Loss when incurred.

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.

The estimates made by the management for the useful life of the Property Plant and Equipments are as follows:-

Type of Asset	Period (Estimated Useful Life)
Vehicles	8 years
Plant & Machinery	15 years
Office Equipments	5 years
Furniture & Fixtures	10 years
Building	60 years
Computers	3 years

The company has decided to retain the useful life/ Residual Value hitherto adopted for various categories of properties plant and equipments as prescribed in Schedule II of the Act.

e. Inventories Traded Goods

Inventories of coal/scrap/agro products are stated at lower of weighted average cost or net realisable value. Net realisable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Cost includes all costs of purchases and incidental expenses incurred in bringing the inventory to their present condition and location.

Custom duty on material imported are provided for at the applicable rate.

Work in Progress

At lower of cost or net realisable value. Cost for this purpose includes cost of land and registration charges.

f. Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand, cash at bank, highly liquid investments with original maturities of three months or less, which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

g. Taxation Current Income Tax

the basis of the taxable profits computed for the current accounting period in accordance with Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.U196

Tax expenses recongnised in the Statement of Profit or Loss comprises the sum of the current tax and deferred tax except the ones recognised in Other Comprehensive Income or directly in Equity.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised for the future tax consequences to the extent its probable that future taxable profits will be available against which the deductible temporary differences can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

h. Foreign Currency Transactions

a) Intial Recognition

Foreign Currenct Transactions are recorded in Indian Currency by applying the exchange rate between the Indian Currency and Foreign Currency at the date of the transaction.

b) Conversion

Cureent assets and current liabilities being monetary items designated in foreign currencies are recognized at the rate prevailing on the date of Balance Sheet.

c) Exchange Difference

Exchange differences arising on the settlement and convesion of foreign currency transactions are recognized as income or as on expense in the year in which they arise.

i. Provisions, Contingent Liabilities and Contingent Assets Provisions

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation.

All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. The expense relating to provision is presented in the statement of profit and loss. Provisions are reviewed at each balance sheet date.

Contingent Liabilities

A contingent liability is a Possible obligations, whose existence will only be confirmed by the occurrence or nonoccurrence of one or more future uncertain events not wholly within the control of the company,or a present obligation that is not recognised because it is probable that an outflow resources will be required to settle the obligation or it cannot be measured with sufficient reliability. Contingent liabilities are disclosed on the basis of judgment of management.

Contingent Assets

Contingent Assets are not recognised or disclosed in the financial statements. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

j. Borrowing cost

Borrowing costs are expensed as and when incurred except where they are directly attributable to the acquisition, construction or production of qualifying assets i.e. the assets that necessarily takes substantial period of time to get ready for its intended use, in which case they are capitalised as part of the cost of those asset up to the date when the qualifying asset is ready for its intended use.

k. Segment Reporting Identification of Segments

The companies decision maker viz Board of Directors examine the company''s performance relating to trading of items such as coal and scrap iron & sponge iron as different segments.

Allocation of common cost

Common allocable cost are allocated on the basis of net fund employed in each segment.

Unallocated items

Company assets and liabilities, income and expenses which relate to the company as a whole and are not allocable to segments are included under this head.

1. Financial Instruments: -

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

Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. When the financial asset is derecognized or impaired, the gain or loss is recognized in the statement of profit and loss.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in 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. Equity instruments are subsequently measured at fair value. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI (designated as FVOCI — equity investment). This election is made on an investment by investment basis. Fair value gains and losses recognized in OCI are not reclassified to 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. Equity instruments are subsequently measured at fair value. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI (designated as FVOCI — equity investment). This election is made on an investment by investment basis. Fair value gains and losses recognized in OCI are not reclassified to profit and loss.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(v) Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. The Company recognizes a loss allowance for expected credit losses on financial asset. In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 — Financial Instruments for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

Derecognition Financial Assets

Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the or in which the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. Reclassification of Financial Assets and Financial Liabilities

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company’s senior management determines change in the business model as a result of external or internal changes which are significant to the Company’s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

2.5 Event after reporting date

Where the events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

2.6 Functional and Presentation Currency

The Financial Statements have been prepared in Indian Rupees (INR), which is also the Company''s functional currency. All financial information presented in INR has been rounded off to nearest lacs as per requirements of Schedule III, unless otherwise stated.

2.7 New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

i. Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company’s financial statements.

ii. Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s financial statements

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Mar 31, 2015

Background

Chandra Prabhu International Ltd. is a Company registered with Registrar of Companies, Delhi & Haryana, New Delhi. The Company is a Public Limited Company whose shares are listed in BSE. Chandra Prabhu International Ltd. is a well-known name in the trading of Synthetic Rubber and Coal.

1 Basis of preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013 ("the Act"), as applicable.

2 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 amount 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 end. Although, these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3 Fixed Assets

Tangible fixed assets are stated at cost of acquisition including incidental expenses less depreciation. All costs including financing costs till the assets are ready to be put to use are adjusted to the carrying amount of fixed assets.

4 Depreciation

In respect of fixed assets during the year, depredation/ amortisation is charged on written Down Method as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depredated over the remaining usefull life based on an evaluation.

Type of Asset Period

Vehides-Car 8 years

Vehides- Motar Bike 10 years

Plant & Machinery 15 years

Office Equipments 5 years

Furniture & Fixtures 10 years

Computers 3 years

5 Impairment of Assets

Where there is any indication that an asset is impaired, the recoverable amount, if any, is estimated and impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

6 Investments

All long-term unquoted investments are valued at cost less provision for diminiution in value.

7 Inventories.

Traded goods inventories are stated at lower of cost or net realizable value. Cost is determined on weighted average basis.

Inventory of shares is valued at cost.

8 Foreign Exchange Transaction

Gain/Losses arising out of fluctuation in exchange rates are accounted for on the basis of payments. Fluctuation in foreign exchange payment is being credited/charged to the Statement of Profit & Loss.

Premium or discount on foreign exchange contracts outstanding at the Balance Sheet date are stated at fair values and any gain or losses are recognised in the statement of Profit & Loss .

9 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

Sales are recognized when the products are shipped or services rendered. Central Sales Tax and Value Added Tax are excluded

Dividend from investments is recognized in the Statement of Profit & Loss on receipt basis

10 Employee Retirement Benefits

1. Provident Fund

The eligible employees of the company are entitiled to receive benefit under the Proident Fund , a defined contribution Plan in which the employees and the company make monthly contributions at a specified percentage of the covered employee's salary (currently 12% of employees' salary) which is recognised as a expense in the statement of profit & loss account. The contributions as specified under law are paid to the Government Provident Fund.

2. Gratuity Fund Scheme

The company has taken group gratuity insurance scheme from UC of India under defined contribution plan . The company accounts for liability of future gratuity benefit based on Actuarial valuation on projected unit credit method carried out for assessing liability as at the reporting date.Actuarial Gains and losses are recognised

3. Compensated Absenses

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the year are charged to revenue each year.

4. Employee Pension Scheme

Employees contribution to Employees Pension Scheme, a defined contribution plan is made in accordance with The Employees Pension Scheme, 1995.

5. Other Employee Benefits

Accidental Insurance Scheme, defined contribution plan is taken from Aviva Life Insurance

11 Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

12 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.

13 Cash Flow Statement

Cash Flows are reported using the Indirect Method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of 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 based on the available infomation.

14 Segment Reporting

Identification of segments

The company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

Allocation of common costs:

Common allocable costs are allocated to each segment pro-rata on the basis of revenue of each segment to the total revenue of the Company.

Unallocated items:

Unallocated items include income and expenses which are not allocated to any reportable business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the Company as a whole.

15 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those

Contingent Assets are not recognized in the Financial Statement.

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Mar 31, 2014

Note No. 1 Background

Chandra Prabhu International Ltd. is a Company registered with Registrar of Companies, Delhi & Haryana, New Delhi. The Company is a Public Limited Company whose shares are listed in BSE. Chandra Prabhu International Ltd. is a well- known name in the trading of Synthetic Rubber & Chemicals and Coal.

1 Basis of preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards issued by Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

2 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 amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statement and the result of operation during the reporting period end. Although, these estimates are based upon managements best knowledge of current events and action actual results could differ from these estimates.

3 Fixed Assets

Tangible fixed assets are stated at cost of acquisition including incidental expenses less depreciation. All costs including financing costs till the assets are ready to be put to use are adjusted to the carrying amount of fixed assets.

4 Depreciation

Depreciation has been provided on Written Down Value Method in accordance with the rates prescribed in Schedule

XIV of the Companies Act, 1956

5 Impairment of Assets

Where there is any indication that an asset is impaired, the recoverable amount, if any, is estimated and impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

6 Investments

All long-term unquoted investments are valued at cost.

7 Inventories.

Traded goods inventories are stated at lower of cost or net realizable value.

Inventory of shares is valued at cost.

8 Foreign Exchange Transaction

Gain/Losses arising out of fluctuation in exchange rates are accounted for on the basis of payments. Fluctuation in foreign exchange realization is being credited/charged to the Statement of Profit & Loss.

9 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

Sales are recognized when the products are shipped or services rendered. Sales Tax and Value Added Tax are excluded Dividend from investments is recognized in the Statement of Profit & Loss on receipt basis.

10 Employee Retirement Benefits

1. Provident Fund

The eligible employees of the company are entitiled to receive benefit under the Proident Fund , a defined contribution Plan in which the employees and the company make monthly contributions at a specified percentage of the covered employee''s salary (currently 12% of employees'' salary) which is recognised as a expense in the statement of profit & loss account. The contributions as specified under law are paid to the Government Provident Fund.

2. Gratuity Fund Scheme

The company has taken group gratuity insurance scheme from LIC of India under defined contribution plan . The company accounts for liability of future gratuity benefit based on Actuarial valuation on projected unit credit method carried out for assessing liability as at the reporting date. Acturial gains and losses are recognised.

3. Compensated Absenses

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the year are charged to revenue each year.

4. Employee Pension Scheme

Employees contribution to Employees Pension Scheme, a defined contribution plan is made in accordance with The Employees Pension Scheme, 1995.

5. Other Employee Benefits

Accidental Insurance Scheme, defined contribution plan is taken from Aviva Life Insurance

11 Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

12 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.

13 Cash Flow Statement

Cash Flows are reported using the Indirect Method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of apst or future cash receipts or payments. The cash flow operating, investing and financing acitivities of the company are segregated based on the available information.

14 Segment Reporting

Identification of segments

The company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amount are evaluated regularly by the executive management in deciding how to allocate resouces and in assessing performance.

Allocation of common costs:

Common allocable costs are allocated to each segment pro-rata on the basis of revenue of each segment to the total revenue of the Company.

Unallocated items:

Unallocated items include income and expenses which are not allocated to any reportable business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the Company as a whole.

15 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resouces or where a reliable estimate of the obligation cannot be made, obligation are assessed on going basis and only those having a Contingent Assets are not recognized in the Financial Statement.

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Mar 31, 2013

1 Basis of preparation of Financial Statements

These financial statements arc prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards issued by Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

2 Use of Estimates

The preparalion of financial Statements in conformity with generally accepted accounting principle requires management to malte estimates and assumptions that affect the reported amount of assets And liabilities lad disclosure of continent tabuilies «the date of the financial statement and the result of operation during the reporting period end. Although, these estimates are based upon managements best knowledge of current events and action actual results could

3 Fixed Assets

Tangible fixed assets *fe stated at cost r,f acquisition including incidental expenses less deprccsatiorv All costs including financing costs rill the assets ate ready to be put to use art adjusted to the carrying amount of feed assets,

4 Depreciation

Companies Act, 1956

5 Impairment of Assets

Whoe there k any indication that an asset is impaired, the recoverable amount, if any. is estimated and impairment less is recognized to the extent carrying amount exceeds recoverable amount.

6 Investments

All long-term unquoted investments arc valued at cost.

7 Inventories,

Traded goods inventories are stated at lower of cost or net realizable value. Inventory of shares is valued at cost.

8 Furcign Exchange Transaction

Cain/Losses arising out at fluctuation in exchange rates ate accounted for on the basis of payments. Fluctuation in foreign exchange realization is being credited /charged to the Statement of Profit & .

9 Revenue Recognition

Revenue is recognised to the extent Ait it is probable that the economic benefits-will flow to the Company and revenue can be reliably measured.

Sales ate recognized when the products are shipped Of services rendered. Sales Tax and Value Added Tax are excluded

Dividend from investments is recognised in the Statement of Profit & Loss on receipt basis

10 Employee Retirement Benefits

1. PfOVsdtR! I ''H''liS

The eligible employees of the company are cnritiled to receive benefit under the Proident Fund , a defined Curttfibution Plan in which the employees and the Company nuke monthly enn ttihutions at a specified percentage of the coveted employee''s salary (currently 2"U of employees'' salary) which is recognised as a expense in the statement of profit & loss account. The contributions as specified under law are paid to the Government Provident Fund.

2. Gratuity fxn
The company has taken group gratuity insurance scheme from LIC of India Under defined conrribuuon plan . The. company accounts for liability of future gratuity benefit based on Actuarial valuarion on projected unit credit method earned out for assessing liability as at the reporting date- Acturial gains and losses are recognised.

3. GunptflMttd AbttHiei

The liability ofleave encashment and other compensated absences is recognised on arithmetical basis at the end of the year arc charged to revenue each year.

4. Eoipkytt PtaSNlt Sib&fft

Employees contribution to Employees: Pension Scheme, a defined contribution plan is made in accordance srith The Employees Pension Scheme, 1995-

5. Euplajte JSestftts

Accidental Insurance Scheme, defined contribution plan is taken from Aviva Life Insurance

11 Tax Jlion

Current ta* is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to consideration of prudence in respect of deferred uui assets on timing difference* being the difference in income and accounting that originates in (jne period and capable of reversal in one or more subsequent period,

12 Earning Per Share

Paste earnings per share arc calculated by dividing the net profit or loss for the period attributable to equity shareholders by the wetted average number of equity shares outstanding during the period.

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Mar 31, 2010

1. Basis of Accounting

i) The financial statements have been prepared on the historical cost convention in accordance with generally accepted accounting policies and in accordance with applicable accounting standards.

ii) The company generally follows the Mercantile System of Accounting and recognizes Income and Expenditure on accrual basis except stated otherwise.

2. Fixed Assets.

Fixed Assets are stated at cost of acquisition including expenses directly attributable thereto.

3. Depreciation

Depreciation on fixed assets has been provided on "Written Down Value" method at the rates and in the manner specified in Schedule XIV of the Companies Act,1956 as amended. Depreciation is calculated on a pro-rata basis only in respect of additions to Fixed Assets having a cost in excess of Rs. 5000/- Assets costing upto Rs. 5000/- are fully depreciated in the year of purchase.

4. Investments.

All long-term unquoted investments are valued at cost & quoted investments at their depleted value.

5. Inventories.

Traded goods inventories are stated at lower of cost or net realizable value. Inventory of shares is valued at cost.

6. Foreign Exchange Transaction. Gains/Losses arising out of fluctuation in exchange rates are accounted for on the basis of payments. Fluctuation in foreign exchange realization is being credited/charged to Profits Loss Account.

7. Revenue Recognition.

a) Sale are recognized when the products are shipped or services rendered. Sales Tax and Value Added Tax are excluded.

b) Dividend from investments is recognized in the Profit & Loss Account on receipt basis.

8. Employee Benefits.

Short Term employee benefits:- Short term employee benefits are recognized as an expense on an undiscounted basis in the P & L Account of the year in which the related services are rendered.

Post Employed Benefits:-

Employees contribution to the Provident Fund and Employees Pension Scheme, a defined contribution plan is made in accordance with the Provident Fund Act, 1952 r.w. The Employees Pension Scheme, 1995.

Long Term Benefits:-

The liability of leave encashment and other compensated absences is recognized on arithmetical basis at the end of the year are charged to revenue each year. Gratuity amounting to Rs. 16,250/- has been provided in the books of account on accrual basis.

9. Taxes on Income.

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable to reversal in one or more subsequent periods.

Deferred Tax Assets (Net)

The components of Deferred tax liability and assets as

10. A sum of Rs. 27,67,781.60/- being shown as recoverable under Schedule no. 11 of Current Assets is an amount deposited under protest as Anti Dumping Duty imposed by the Customs Authority Delhi on Synthetics Rubber (Styrene Butadiene KHS-68) which is being contested and the company is hopeful of recovery.