Accounting Policies of Polymac Thermoformers Ltd. Company

Mar 31, 2024

(A). SIGNIFICANT ACCOUNTING POLICIES:

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (Indian GAAP), under the historical cost convention on the accrual basis
except for certain financial instruments which are measured at fair values. GAAP comprises
mandatory Accounting Standard as prescribed under section 133 of the Companies Act, 2013.
("Act") read with rule 7 of the Companies (Accounts) Rules 2014.

2. TANGIBLE ASSETS AND DEPRECIATION:

a) Tangible Assets are stated at cost including inward freight, duties, taxes and expenses
incidental to acquisition and installation.

b) Depreciation has been provided on Tangible Assets on written down value method at the rates
Prescribed in Part "C" of schedule II of the Companies Act, 2013, on the basis of remaining useful
life.

3. INVESTMENTS:

Investments are stated at cost unless otherwise stated.

4. INVENTORIES:

Inventories are valued at cost.

5. 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. The following specific recognition criteria
must also be met before revenue is recognized:

Revenue from services is recognised based on performance of the services and in accordance
with the terms of respective contracts. The Company collects service tax on behalf of the
Government and, therefore, it is not an economic benefit flowing to the Company. Hence, it is
excluded from revenue.

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

Dividend income is recognized when the Company’s’ right to receive dividend is established by
the reporting date.

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. The weighted average number of equity shares outstanding
during the period is adjusted for the events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2014

1. Accounting Conventions

The Accounts are prepared under historical cost convention based on generally accepted accounting principles and applicable Accounting Standards specified by the Institute o Chartered Accountants of India and IRAC norms issued by RBI. The Company follows accrual system of accounting and recognition of Income and Expenditure is on Accrual basis. Accounting policies, unless specifically stated to be other, are consistent and are in consonance with generally accepted accounting policies.

2. Fixed Assets and Depreciation

Fixed assets, except land are stated at cost of acquisition cost, net of accumulated depreciation The cost comprises of purchase cost and other directly attributable cost of bringing the assets to Its working condition for intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Depreciation on fixed assets is calculated under WDV method as per Schedule XIV of the companies Act 1956.

3. Inventory

Inventories are stated at lower of cost. Cost is determined on weighted average/First in first out (FIFO) basis, as considered appropriate by the company. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct cost and related production overheads.

4. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only, if such a decline is other than temporary nature, in the opinion of the management.

5. Gratuity

Provisions of payment of Gratuity Act are not applicable to the Company for the year under review.

6. Taxation

In accordance with the requirements of Accounting Standards - 22 relating to Taxation on income the deferred tax assets has not been currently recognized in the accounts, as a measure of prudence and as recommended by Accounting Standard - 22.

7. Provisions and contingent Liabilities

Provisions: Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities represent items that are not recognized in the Statement of Financial Position because there is significant uncertainty at that date as to the necessity for the entity to receive or make payments in respect of them.

There is a claim of the WBSEDCL amounting to Rs. 2,74,03,132/- against which a case is pending in the High Court.