Accounting Policies of Enterprise International Ltd. Company

Mar 31, 2024

2. Significant Accounting Policies

2.1 Basis of Preparation

The financial statements have been prepared on a “Going Concern” basis.

The financial statements have been prepared on historical cost basis, except 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 asserts and liabilities are classified as current and
non-current as per the Company’s normal operating cycle.

2.2 Functional and Presentation Currency

These financial statements are presented in Indian National Rupee (''INR''), which is the Company''s
functional currency. All amounts have been rounded to the nearest rupees, unless otherwise indicated.

2.3 Use of Judgements and Estimates

In preparing these financial statements, management has made judgements, estimates and
assumptions that affect of the company''s accounting policies and the reported amounts of assets,
liabilities, income and expenses. Management believes that the estimates used in the preparation of
the financial statements are prudent and reasonable. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively.

Judgements

Information about the judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements have been given below:

- Classification of leases into finance and operating lease.

- Classification of financial assets: assessment of business model within which the assets are held and
assessment of whether the contractual terms of the financial asset are solely payments of principal and

Notes to the financial statements for the year ended March 31*'', 2024
interest on the principal amount outstanding.

Assumptions and Estimation Uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the financial statements for the every period ended is included below:¬
- Recognition of deferred tax assets: availability of future taxable profit against which carryforward
tax losses can be used;

- Impairment test: key assumptions underlying recoverable amounts;

- Useful life and residual value of Property, Plant and Equipment;

- Recognition and measurement of provisions and contingencies: key assumptions about the
likelihood and magnitude of an outflow of resources.

2.4 Classification of Assets and Liabilities as Current and Non-Current

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset/ liabilities is treated as current when it is:

- Expected to be realised / settled (liabilities) or intended to be sold or consumed in normal operating
cycle;

- Held primarily for the purpose of trading;

- Expected to be realised / settled within twelve months after the reporting period, or

- Cash and Cash equivalents unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period or there is no unconditional right to defer the
settlement of the liability for at least twelve months after the reporting period.

All other assets /liabilities are classified as non-current.

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

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

2.5 Property, Plantand Equipment
Recognition and Measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation and
accumulated impairment loss, if any. The cost of assets comprises of purchase price and directly
attributable cost of bringing the assets to working condition for its intended use including borrowing cost

Notes to the financial statements for the year ended March 31”, 2024

and incidental expenditure during construction incurred upto the date when the assets are ready to use.
Capital work in progress includes cost of assets at sites, construction expenditure and interest on the
funds deployed less any impairment loss, if any.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as a separate item (major components) of property, plant and equipment.

Subsequent Measurement

Subsequent expenditure is capitalised only if it is probable that there is an increase in the future
economic benefits associated with the expenditure will flow to the Company.

Depreciation

Depreciation is calculated on Straight Line Method using the rates arrived at on the basis of estimated
useful lives given in Schedule II ofthe Companies Act, 2013.

Depreciation on additions to or on disposal of assets is calculated on pro-rata basis.

Depreciation methods, useful lives and residual values are reviewed in each financial year end and
changes, if any, are accounted for prospectively.

The management believes that these estimated useful lives are realistic and reflect a fair approximation
ofthe period over which the assets are likely to be used.

Capital work-in-progress

Expenditure incurred during the construction period, including all expenditure direct and indirect
expenses, incidental and related to construction, is carried forward and on completion, the costs are
allocated to the respective property, plant and equipment.

De-recognition

An item of property, plant and equipment is de-recognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between net disposal proceeds and the carrying amount ofthe asset and is recognised in the Statement
of Profit and Loss.

2.6 Intangible Assets

Intangible Assets (Other than Goodwill) acquired separately are stated at cost less accumulated
amortization and impairment loss, if any. Intangible assets are amortized on straight line method basis
over the estimated useful life. Estimated useful life of the Software is considered as 10 years.
Amortisation methods, useful lives and residual values are reviewed in each financial year end and
changes, if any, are accounted for prospectively.

An intangible asset is de-recognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the

difference between the net disposal proceeds and the carrying amount of the asset are recognised in
the Statement of Profit and Loss when the asset is derecognised.

2.7 Impairment of Non-financial Assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other
than inventories and deferred tax assets) to determine whether there is any indication on impairment. If
any such indication exists, then the recoverable amount of assets is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of the cash inflows of other assets or
Cash Generating Unit (CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs
to sell. Value in use is based on the estimated future cash flows, discounted to their present value using
a pretax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU
exceeds its recoverable amount.

Impairment loss in respect of assets other than goodwill is reversed only to the extent that the assets
carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised in prior years. A reversal of
impairment loss is recognised immediately in the Statement of Profit & Loss.

2.8 Foreign Currency Transactions

Transactions in foreign currencies are recorded by the Company at their respective functional currency
at the exchange rates prevailing at the date of the transaction first qualifies for recognition. Monetary
assets and liabilities denominated in foreign currency are translated to the functional currency at the
exchange rates prevailing at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in the
Statement of Profit and Loss.

2.9 Employee Benefits

As per INDAS-19 Employee Benefits, the Company is required to make provisions for post employment
benefits such as gratuity and other retirement benefits. However, the company has only 3-4 employees
and does not operate any formal post employment benefit plan. Due to the immaterial nature of the
obligation, the company has not made any provision for post employment benefits like gratuity, leave
pay in financial statements. This approach is in accordance with materiality principle and has been
consistently applied.

2.10 Revenue Recognition

The Company recognises revenue from sale of goods when;

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

ii) the amount of revenue can be measured reliably;

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

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

Revenue (other than sale of goods) is recognised to the extent that it is probable that the economic
benefits will flow to the company and the revenue can be reliably measured. Claim on insurance
companies, interest and others, where quantum of accrual cannot be ascertained with reasonable
certainty, are accounted for on acceptance basis.

Revenue represents net value of goods and services provided to customers after deducting for certain
incentives including, but not limited to discounts, volume rebates, incentive programs etc.

Interest incomes are recognised on an accrual basis using the effective interest method.

Dividends are recognised at the time the right to receive payment is established.

2.11 Inventories

Inventories are valued at lower of cost and net realisable value except waste/scrap which is valued at
net realisable value. Cost of traded goods is determined by taking cost of purchases and related
overheads. Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and to make the sale.

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Mar 31, 2014

A. Use of estimates: The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Tangible fixed assets: Fixed assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assetsforthe period uptothe completion of installation of such assets.

c. Depreciation/Amortization: Depreciation on fixed assets is provided on pro-rata basis to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

d. Impairment of assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and netselling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as expenses in the Statement of Profit and Loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

e.lnventories:

lnventories are value dat lower of costornet realizable value.

f. Revenue recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured. Revenue from sale of goods is recognised when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. Dividend Income is recognised when right to receive is established.

Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

g. Investments: 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 /non- current investments. Long term investments are carried at cost unless there is diminution (otherthan temporary) in the value of investments.

h. Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered.

i. Foreign exchange transactions: Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Exchange differences arising on foreign currency transactions are recognized in the statement of profit and loss. Monetary items denominated in foreign currencies at the yearend are restated atyearend rates.

j. Contingencies: Contingent liability is a possible obligation that arises from past events and 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 enterprise, or is a present obligation that arises from past events but is not recognized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

k. Taxation: The current charges for Income Taxes are calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profit offered for Income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

I. Duty drawback: These are being accounted for as and when actually received.

m. Earnings per share: The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the period by the weighted average numberof equity shares outstanding during the period.

n. Operating Leases:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating lease Operating lease receipts are recognized as an income in the statement of Profit & Loss as per the lease terms.

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Mar 31, 2013

A. Use of estimates: The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Tangible fixed assets: Fixed assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assets for the period up to the completion of installation of such assets.

c. Depreciation/Amortization: Depreciation on fixed assets is provided on pro-rata basis to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

d. Impairment of assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as expenses in the Statement of Profit and Loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

e. Inventories: Inventories are valued at lower of cost or net realizable value.

f. Revenue recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably mea- sured. Revenue from sale of goods is recognised when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. Dividend Income is recognised when right to receive is established. Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

g. Investments: 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/non-current investments. Long term investments are carried at cost unless there is diminution (other than temporary) in the value of investments.

h. Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered.

i. Foreign exchange transactions: Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Exchange differences arising on foreign currency transactions are recognized in the statement of profit and loss. Monetary items denominated in foreign currencies at the year end are restated at year end rates.

i. Contingencies: Contingent liability is a possible obligation that arises from past events and 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 enterprise, or is a present obligation that arises from past events but is not recog- nized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

k. Taxation: The current charges for Income Taxes are calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differ- ences that result between the profit offered for Income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recog- nized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

I. Duty drawback: These are being accounted for as and when actually received.

m. Earnings per share: The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.

n. Operating Leases :

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating lease.

Operating lease receipts are recognized as an income in the statement of Profit & Loss as per the lease terms.

In accordance with the requirements under the Accounting Standard (AS-22) relating to deferred tax, the deferred tax liability at the end of the year works out to be Rs. 35,828(as on 01.04.2012 Rs.1,35,217). As a measure of prudence and as recommended under AS-22 the same has been currently recognized in the accounts.

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Mar 31, 2010

A) Basis of preparation of Financial Statements :

The financial statements are prepared under the historical cost convention on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) in India, and materially comply with the mandatory accounting standards issued by the Central Government and the provisions of the Companies Act, 1956 (the Act).

b) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period reported. Actual results could differ from these estimates. Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales price or present value as determined above. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonable estimated. Actual results could differ from those estimates.

c) Revenue recognition :

The Company recognises sales at the point of despatch of goods to the customers.

d) Fixed Assets and capital work in progress :

Fixed Assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assets for the period up to the completion of installation of such assets.

e) Depreciation :

Depreciation on fixed assets is provided pro-rata to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

f) Impairment :

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognised as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired The impairment loss recognized in prior accounting period is reserved if there has been an improvement in recoverable amount.

g) Inventories :

Inventories are valued at lower of cost or net realisable value.

h) Foreign Currency Transactions and translations :

Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction Exchange differences arising on foreign currency transactions are recognised in the profit and loss account.

i) Duty Draw Back :

These are being accounted for as and when actually received.

j) Investments :

Long term Investments are stated at cost and any decline other than temporary, in the value of such investments is charged to the Profit and Loss Account.

k) Employee benefits :

(i) Short-term employee benefits are charged off at the undiscounted amount in the year in which the related services are rendered.

(li) No post employment and other long-term employee benefits are payable by the company.

l) Contingent Liability :

i) Contingent liabilities if any are disclosed by way of notes to the Accounts.

ii) Demands raised by the Custom Authorities disputed by the Company Rs.26,27,309/- (Previous year Rs.26,27,309/-)

iii) Bank Guarantee given by a scheduled bank to a third party Rs.41,20,256/- (P. Y. Rs.32,28,756/-)

m) Income taxes, Deferred Tax and Fringe Benefits Tax :

The current charge for Income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences that result between the profit offered for income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substaintively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date.

Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Other deferred tax assets are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised and are reassessed for the appropriateness of their respective carrying values at each balance sheet date.

n) Earnings per share :

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.