Accounting Policies of Manor Estates & Industries Ltd. Company

Mar 31, 2024

NOTE [1] - SIGNIFICANT ACCOUNTING POLICIES

1 .CORPORATE INFORMATION

a. The company was originally incorporated as Karan Woo-Sin Limited at Hyderabad as a
public limited company under the Companies Act 1956 pursuant to a certificate of
incorporation dated 18^th June 1992 issued by the Registrar for Companies Andhra Pradesh
Hyderabad. The name of the company was changed to Manor Estates and Industries Limited
and a fresh certificate of incorporation dated 31^st October 2014 consequent upon change of
name was issued by the Registrar of Companies, Telangana at Hyderabad. The Company
has its registered office at Survey No.321 Kallakal Village, Medak Dist, Telangana - 502336.
The equity shares of the company are listed on BSE Limited. The company presently engaged
in real estate and construction activity

b. These financial statements were authorized for issue in accordance with a resolution
of the Board of Directors passed in its meeting held on 23-05-2024.

2 .BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

a. These Financial Statements have been prepared under the historical cost basis in
accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013 ("Act”) - to the extent modified, read with Companies (Indian
Accounting Standards) Rules, 2015 and other relevant provisions of the Act and rules
thereunder as well as the guidelines issued by the Securities and Exchange Board of India
(SEBI).

b. The Company’s presentation and functional currency is Indian Rupees. All figures
appearing in the financial statements are rounded up to lakhs

3. USE OF JUDGMENTS AND ESTIMATES

In the preparation of the Company’s financial statements the management has-made
judgements, estimates and assumptions that may affect the reported amounts of revenue,
expenses, assets, liabilities and the accompanying disclosures along with contingent
liabilities. In view of the uncertainty about these assumptions and estimates they may result
in outcomes that require material adjustments to the carrying amount of assets or liabilities
affected in future periods. The Company continuously evaluates these estimates and
assumptions based on the most recently available information.

The following are the areas where estimates and judgments in applying accounting policies
have been made which may have the most significant effect on the amounts recognized in
the financial statements are as below:

• Estimates in the useful lives of Property, Plant & Equipment (PPE)

• Valuation of Inventories

• Provisions

• Evaluation of recoverability of Deferred Tax Assets

• Contingencies

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions
to the accounting estimate are recognised in the period in which the estimate is revised and
in any future periods affected.

4. PROPERTY, PLANT AND EQUIPMENT

a. Property, Plant & Equipment are carried at cost less accumulated depreciation and
accumulated impairment losses, if any. Such cost includes purchase price, non-recoverable
taxes, borrowing cost and other directly attributable cost to bring the asset to its working
condition for its intended use.

b. Gain and losses on disposal/de-recognition of an item of property, plant and equipment
are measured as a difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the Statement of Profit and Loss when the asset is
disposed/de-recognized.

c. Depreciation on property, plant and equipment (except Land and Development Cost) has
been provided on the cost less estimated residual value using Straight line method over the
useful life of asset as stipulated in Schedule II to the Companies Act, 2013

d. The assets residual value, useful lives and methods of depreciation are reviewed at each
financial year end, and adjustment if any, is made prospectively.

5. INVENTORIES

Inventories comprise of land. Inventories are valued at lower of cost or net realiable value.
[Land which was foarming part of Property, Plnt and Equipment was converted to stock in
trade on 15.10.2021, the date on which the company commenced its real-estate activity].

6. REVENUE RECOGNITION

a. Revenue from contracts with customers is recognized as and when the company satisfies
the performance obligation by transferring control of promised goods or services to a
customer, which usually coincides with title passing to the customer and the customer taking
physical possession.

b. When the performance obligation is satisfied, the company recognizes as revenue the
transaction price that is allocated to that performance obligation in the contract based on the
standalone selling price of the goods and services promised. The transaction price is the
amount of consideration to which the company is entitled.

Interest Income

Interest income 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 deposits and the interest rate settled with the Bank.

7. TAXES ON INCOME

a. Tax comprises of Current tax and Deferred Tax. Current tax is the expected tax payable
on the taxable income or Book profit for the current year. The amount of current tax reflects
the best estimate of the tax amount to be paid after considering the uncertainty, if any, related
to income taxes.

b. Deferred tax is recognized on temporary differences between the carrying amount of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilized.

c. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on the tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting period.

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Mar 31, 2014

A) Basis of accounting:

The Financial Statements are prepared under the historical cost convention on an accrual basis and are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 and are in accordance with the require- ments of the Companies Act, 1956.

b) Sales are recognized on dispatches to customers and exclusive of excise duty wher- ever applicable.

c) Fixed Assets:

Fixed Assets are stated at cost less depreciation and capital work in progress is valued at cost.

d) Depreciation on fixed assets is provided on straight-line method at the rates speci- fied from time to time in schedule XIV of the Companies Act, 1956. Depreciation on additions / deductions during the year is calculated pro-rata from / to date of additions / deductions.

e) An asset is treated as impaired when the carrying cost of assets exceeds its recover- able value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.

f) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

g) Investment:

The investments that are made by the company are valued at cost or realizable value, whichever is less.

h) Inventories:

Inventories are valued as under:

Raw materials

Stores & Spares At Cost

Packing materials

Finished goods At cost or net realizable value whichever is lower.

Work – in – progress At cost

i) Retirement Benefits for Employees:

The provisions of Accounting Standard 15 on Accounting for Retirement Benefits in the Financial Statements of Employer issued by the Council of the Institute of Char- tered Accountants of India are being complied with by the company under the Provi- dent Fund Act. Gratuity is accounted for on cash basis.

j) Prior Period and Extraordinary items:

Income and expenditure pertaining to prior period as well as extraordinary items, where material are disclosed separately.

k) Foreign Exchange transactions:

Transactions in Foreign Currency are recorded at original rates of exchange in force at the time of the transaction. Gains/Losses, if any, at the year-end on account of restatement of current assets and current liabilities are accounted for in the state- ment of profit and loss.

Exchange Rate Fluctuations arising due to repayment of liabilities incurred for the purpose of acquiring fixed assets or due to restatement at the closing rate or at the forward rate contracted, as applicable, are accounted for in the statement of profit and loss.

l) The company is engaged in the business of manufacturing socks and there are no separate reportable primary and secondary segments as per Accounting Standard – 17 "Segment Reporting."

m) The company has not entered into any non-cancelable lease. Hence reporting as per Accounting Standard AS-19 "Accounting for Leases" does not arise.

n) The timing differences relating mainly to depreciation and unabsorbed losses up to 31st March, 2014, resulted in net deferred asset as per Accounting Standard – 22 "Accounting for Taxes on Income". As a prudent measure the net deferred assets relating to the above periods have not been recognized in the accounts.

o) Earnings per share:

Disclosure is made in the statement of profit and loss as per the requirement of the standard.

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Mar 31, 2012

A) Basis of accounting: The Financial Statements are prepared under the historical cost convention on an accrual basis and are in compliance with the Accounting Standards

referred to in Section 211 (3C) of the Companies Act, 1956 and are in accordance with the requirements of the Companies Act, 1956.

b) Sales are recognized on dispatches to customers and exclusive of excise duty wherever applicable.

c) Fixed Assets: Fixed Assets are stated at cost less depreciation and capital work in progress is valued at cost.

d) Depreciation on fixed assets is provided on straight-line method at the rates specified from time to time in schedule XIV of the Companies Act, 1956. Depreciation on additions / deductions during the year is calculated pro-rata from / to date of additions / deductions.

e) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.

f) Borrowing Costs: Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

g) Investment: The investments that are made by the company are valued at cost or realizable value, whichever is less.

h) Inventories: Inventories are valued as under:

Raw materials Stores & Spares At Cost Packing materials Finished goods: At cost or net realizable value whichever is lower.

Work-in-progress: At cost

i) Retirement Benefits for Employees:

The provisions of Accounting Standard 15 on Accounting for Retirement Benefits in the Financial Statements of Employer issued by the Council of the Institute of Chartered Accountants of India are being complied with by the company under the Provident Fund Act. Gratuity is accounted for on cash basis.

j) Prior Period and Extraordinary items: Income and expenditure pertaining to prior period as well as extraordinary items, where material are disclosed separately. k) Foreign Exchange transactions: Transactions in Foreign Currency are recorded at original rates of exchange in force at the time of the transaction. Gains/Losses, if any, at the year-end on account of restatement of current assets and current liabilities are accounted for in the statement of profit and loss. Exchange Rate Fluctuations arising due to repayment of liabilities incurred for the purpose of acquiring fixed assets or due to restatement at the closing rate or at the forward rate contracted, as applicable, are accounted for in the statement of profit and loss. l) The company is engaged in the business of manufacturing socks and there are no separate reportable primary and secondary segments as per Accounting Standard - 17 "Segment Reporting." m) The company has not entered into any non-cancelable lease. Hence reporting as per Accounting Standard AS-19 "Accounting for Leases" does not arise. n) The timing differences relating mainly to depreciation and unabsorbed losses up to 31st March, 2012, resulted in net deferred asset as per Accounting Standard - 22 "Accounting for Taxes on Income".

As a prudent measure the net deferred assets relating to the above periods have not been recognized in the accounts.

o) Earnings per share: Disclosure is made in the statement of profit and loss as per the requirement of the standard.

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Mar 31, 2010

A) Basis of accounting

The Financial Statements are prepared under the historical cost convention on an accrual basis and are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 and are in accordance with the requirements of the Companies Act, 1956.

b) Sales are recognized on dispatches to customers and inclusive of excise duty wherever applicable.

c) Fixed Assets:

Fixed Assets are stated at cost less depreciation and capital work in progress is valued at cost.

d) Depreciation on fixed assets is provided on straight-line method at the rates specified from time to time in schedule XIV of the Companies Act, 1956. Depreciation on additions / deductions during the year is calculated pro-rata from / to date of additions / deductions.

e) An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired.

f) Borrowing Costs:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

g) Investment:

The investments that are made by the company are valued at cost or realizable value, whichever is less.

h) Inventories:

Inventories are valued as under:

Raw materials

Stores & Spares At Cost

Packing materials

Finished goods: At cost or net

realizable value whichever is lower.

Work-in-progress: At cost

i) Retirement Benefits for Employees:

The provisions of Accounting Standard 15 on Accounting for Retirement Benefits in the Financial Statements of Employer issued by the Council of the Institute of Chartered Accountants of India are being complied with by the company under the Provident Fund Act.

Gratuity is accounted for on cash basis.

j) Prior Period and Extraordinary items:

Income and expenditure pertaining to prior period as well as extraordinary items, where material are disclosed separately.

k) Foreign Exchange transactions:

Transactions in Foreign Currency are recorded at original rates of exchange in force at the time of the transaction. Gains/Losses, if any, at the year-end on account of restatement of current assets and current liabilities are accounted for in the profit and loss account.

Exchange Rate Fluctuations arising due to repayment of liabilities incurred for the purpose of acquiring fixed assets or due to restatement at the closing rate or at the forward rate contracted, as applicable, are accounted for in the Profit and Loss Account.

l) The company is engaged in the business of manufacturing socks and there are no separate reportable primary and secondary segments as per Accounting Standard - 17 "Segment Reporting."

m) The company has not entered into any non-cancelable lease. Hence reporting as per Accounting Standard AS-19 "Accounting for Leases" does not arise.

n) The timing differences relating mainly to depreciation and unabsorbed losses up to 31st March, 2010, resulted in net deferred asset as per Accounting Standard – 22 "Accounting for Taxes on Income". As a prudent measure the net deferred assets relating to the above periods have not been recognized in the accounts.

o) Earnings per share:

Disclosure is made in the Profit and Loss account as per the requirement of the standard.