Accounting Policies of Pithampur Poly Products Ltd. Company

Mar 31, 2024

(B) SIGNIFICANT ACCOUNTING POLICIES

(a) Property, Plant and Equipment & Depreciation

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. The cost of an
item of Property, Plant and Equipment comprises:

- its purchase price, including Import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

- Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by Management.

- Property, Plant and Equipment is stated at cost or deemed cost applied on transition to Ind AS, less accumulated depreciation and
impairment.

- In case of Self Constructed assets, all expenses including trial run expenses incidental to bringing the asset to the location and condition for
the Intended use are capitalised.

- Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to
be capable of operating in the manner intended by management, are recognized in Statement of Profit and Loss. If significant parts of an
item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of
property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in Statement of Profit and Loss.

Spare parts and servicing equipment are usually carried as inventory and recognised in profit and loss as consumed .However ,major spare
parts stand by equipment and servicing equipment qualify as property, plant and equipment when an entity expects to use them during
more than one period.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related
incidental expenses and attributable interest.

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

Any excess of the net sales proceeds of items produced over the cost of testing (if any) shall be deducted from the cost of Property, Plant and
Equipments.

Depreciation

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

Depreciation on property, plant and equipment of the Company has been provided on the straight-line method as per the useful life
prescribed in Schedule II to the Act, except in respect of the following categories of assets, in whose case the life of the assets has been
assessed as under based on independent technical evaluation and management''s assessment thereof, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological
changes, manufacturers warranties and maintenance support, etc.

Freehold land is not depreciated.

Depreciation method, useful live and residual values are reviewed at each financial year end and adjusted if appropriate.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use (disposed of).

(b) Other Intangible Assets:-

Intangible assets are carried at cost less accumulated amortization and impairment Losses, if any. The cost of Intangible asset comprises of
its purchase price, including any import duties and other taxes (other than those subsequently recoverable from he taxing authorities), and
any directly attributable expenditure on making the asset ready for its intended use .

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

(c) Impairment of assets:

The carrying values of assets/cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment
exists. The following intangible assets are tested for impairment each financial year even if there is no indication that the asset is impaired:

i) an intangible asset that is not yet available for use; and

ii) an intangible asset that is having indefinite useful life.

If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for such excess amount. The
impairment loss is recognised as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case
any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash
flows to their present value based on an appropriate discount factor.

When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods no longer
exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, to the extent the amount
was previously charged to the Statement of Profit and Loss. In case of revalued assets, such reversal is not recognised.

(d) Foreign Currency Transactions

(a) Functional and presentation currency

Items Included in the financial statements are measured using the currency of the primary economic environment in which the entity
operates (''the functional currency"). The financial statements are presented in Indian rupee (INR), which is the Company''s functional and
presentation currency.

(b) Transactions and balances

On Initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between
the functional

currency and the foreign currency at the date of the transaction. Gains/Losses arising out of fluctuation in foreign exchange rate between the
transaction date and settlement date are recognised in the Statement of Profit and Loss.

Monetary assets and liablities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the
reporting date and the exchange difference are recognised in the Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates
of the initial transactions.

Non- Monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value is determined. The gain or loss arising on translation of non-monetary Items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (l.e., translation differences on items whose fair value gain or loss
is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

(e) Income tax:

Income tax expense consists of current tax ,deferred tax and Income tax expenses of earlier years. Income tax expense is recognised in the
Statement of Profit and Loss except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

(f) Current tax

Current tax comprises of expected tax payable on the taxable income or loss for the year . It is measured using tax rates enacted or
substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if, the Company:

i) has a legally enforceable right to set off the recognised amounts; and

ii) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

(g) Deferred tax

Deferred taxes are recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is
probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the
probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future
taxable profits will be available against which they can be used.

Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates
enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset only if:

i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

ii) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable
entity.

(h) Inventories:

Basis of Valuation

Inventories are valued at lower of cost and net realizable value after providing cost of obsolescence, if any. However, materials and other
items held for use in the production of Inventories are not written down below cost If the finished products in which they will be
Incorporated are expected to be sold at or above cost. The comparison of cost and net realizable value is made on an item-by-Item basis.

Method of Valuation:

Cost of raw materials has been determined by using moving weighted average cost method and comprises all costs of purchase, duties, taxes
(other than those subsequently recoverable from tax authorities) and all other costs Incurred in bringing the inventories to their present
location and condition.

Cost of finished goods and work-in-progress Includes direct labour and an appropriate share of fixed and variable production overheads and
excise duty as applicable.

Fixed production overheads are allocated on the basis of normal capacity of production facilities. Cost is determined on moving weighted
average basis.

Cost of traded goods has been determined by using moving weighted average cost method and comprises all costs of purchase, dutles, taxes
(other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the Inventorles to their present
location and condition.

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

Provision of obsolescence on inventories is considered on the basis of management''s estimate based on demand and market of the
inventories.

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Mar 31, 2015

1 Accounting Convention

1.1 The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified 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, as applicable.

1.2 The financial statements have been prepared on the basis of historical cost convention, and on the accounting principle of a going concern.

1.3 The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

2 Use of estimates

The preparation of financial statements, in conformity with the generally accepted accounting principles [GAAP], requires management to make estimates and assumptions that are considered in the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of financial statements and reported amounts of revenues and expenses for the year. Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known / materialize.

3 Fixed Assets

3.1 Fixed Assets are stated at cost, less accumulated depreciation and impairment, if any. Direct cost are capitalized untill such assets are ready for use.

3.2 Tangible Fixed Assets, that are not yet ready for their intended use, are carried at costs, comprising direct cost, and other incidental/ attributable expenses and reflected under capital work in progress.

3.3 Intangible Assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

4 Investments

Investments are either classified as current or long term, based on Management's intention. Current investment are carried at lower of cost and fair value of each investment individually. Long term investments are carried individually at cost. However, provision for diminution is made to recognize a decline, if any, otherthan temporary, in the carrying value of the investment.

5 Inventories

Cost of inventory comprises all cost of purchase, cost of conversion and other cost incurred for bringing the inventory to their present condition and location.

Inventories are valued as under:

i. Raw Material, Stores and Spares are valued at cost or net realisable value whichever is lower.

ii. Work-In-Progress are valued at average raw material cost plus average cost of processing for various operations performed up to estimated stage of process.

iii. Finished goods are valued at cost or net realisable value whichever is lower.

6 Accounting for taxes on income

6.1 Provision for Income-Tax is made on the basis of the estimated taxable income for the accounting year in accordance with the Income-Tax Act, 1961.

6.2 The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a virtual certainty that these would be realised in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

7 Depreciation

Depreciation on fixed assets is provided on the written down value method in the manner prescribed under Schedule II to the Companies Act, 2013.

During the year, the company has revised estimated useful life of certain items of fixed assets in accordance with the useful life specified in Part-C of Schedule II of the Companies Act, 2013.

8 Retirement Benefits

Short-Term Employee Benefits are accounted for in the period during which the services have been rendered. The company's contribution to the Provident Fund and ESIC is remitted to the respective Government Authorities prescribed for this purpose on a fixed percentage of eligible employee's salary and charged to Statement of Profit and Loss. The company is providing for Gratuity and Leave Encashment benefits on the basis of actuarial valuation made at the end of the year. However, the funds for the same are retained by the company only.

9 Revenue Recognition

Revenue are recognised, on accrual basis. Job Work Receipts is recognised on completion of job and invoicing thereof.

10 Provisions and Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation ora present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

11 Impairment of Assets

An asset is treated 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. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

12 Cash Flow Statement

Cash flow statement are reporterd using the indirect method, whereby profit / (loss) before extra-ordinary items / exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of the Company are segregated based on available information.

13 Earnings per share

Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2014

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its inten- ded use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expanditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premises and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting statndard AS-2 as issued of ICAI.

8. Amortization of Miscellanious Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

9. Foreign Currency Transaction

There are no foreign currency transaction during the year.

10. Research and Devlopment

The company does not have a separate research & devlopment department and has not incurred any expenditure on research & devlopment.

11. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.

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Mar 31, 2013

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its inten- ded use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expanditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premi- ses and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting statndard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellanious Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited;charged to Profit & Loss account in case of revenue items.

11. Research and Devlopment

The company does not have a separate research & devlopment department and has not incurred any expenditure on research & devlopment.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.

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Mar 31, 2012

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leaves and other directly attributable cost up to the date, the asset is put to working condition for its intended use. Civet Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expenditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance there of from the factory premises and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting standard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellaneous Expenditures

The companies amortizes preliminary and public issue expenses equally over a period often accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited; charged to Profit & Loss account in case of revenue items.

11. Research and Development

The company does not have a separate research & development department and has not incurred any expenditure on research & development.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.

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Mar 31, 2010

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its intended use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expenditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in-progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premi- ses and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting standard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellaneous Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited; charged to Profit & Loss account in case of revenue items.

11. Research and Development

The company does not have a separate research & development department and has not incurred any expenditure on research & development.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.

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Mar 31, 2009

1. Accounting Convention

The Financial Statements are prepared under historical cost convention and income & expenditure are recognized on accrual basis.

2. Fixed Assets

Fixed Assets are stated at cost less depreciation. The cost of assets comprises its purchase price, duties, leavies and other directly attributable cost upto the date, the asset is put to working condition for its intended use. Cenvat Credit on capital goods was reduced from the cost.

3. Prior Period Items

The expanditure and income pertaining to prior period being not material are shown under the respective head of accounts in the Profit & Loss Account.

4. Treatment of expenditure during construction period

The expenditure incurred during the period including interest during construction period are charge to capital work-in- progress and on completion, the cost to be allocated to the respective fixed assets.

5. Depreciation

Depreciation on fixed assets is provided on Straight-Line method at the rate prescribed in schedule XIV to the Companies Act, 1956, on pro rate basis from the month next to the month in which the assets was put to use.

6. Excise duty

The Excise Duty payable on finished goods is accounted in the clearance thereof from the factory premises and hence not included in valuation of stock CENVAT Credit is accounted by recording material purchased net of excise duty.

7. Inventories

The Company value its inventories as per accounting statndard AS-2 as issued of ICAI.

8. Retirement Benefits

Employees retirement benefits are accounted on actual basis.

9. Amortization of Miscellanious Expenditures

The companies amortizes preliminary and public issue expenses equally over a period of ten accounting period.

10. Foreign Currency Transaction

Foreign currency transactions during the accounting period are translated at the rates prevalent on the date of payment/receipt. The exchange difference is credited;charged to Profit & Loss account in case of revenue items.

11. Research and Devlopment

The company does not have a separate research & devlopment department and has not incurred any expenditure on research & devlopment.

12. Contingent Liabilities

The contingent liabilities are not provided and are disclosed by way of notes.