Accounting Policies of Prashant India Ltd. Company

Mar 31, 2025

IH.Material Accounting Policies -

a. Property, plant and equipment -
Freehold land is carried at historical cost.

All other items of Property, Plant and Equipment are stated at cost of acquisition or construction. They
are stated on historical cost basis less accumulated depreciation.

b. Depreciation —

Depreciation on Property, Plant and Equipment is provided on pro rata basis on straight line method at
le revised rates prescribed under the Companies Act, 2013 based on useful life of the respective asset.

Inventories -

Inventories are valued at cost or market value, whichever is less.

d. 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.

Sale and operating income includes sale of products, services, etc. Sale of goods are recognized, net of
returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer. Sales
exclude GST. Sale of services are recognized when services are rendered and related costs are incurred.

e. Leases

As a lessor, the Company determines at lease inception whether each lease is a finance lease or an
operating lease. To classify each lease, the Company makes an overall assessment of whether the lease
transfers substantially all the risk and rewards incidental to the ownership of the underlying asset. If this
is the case, then the lease is a finance lease, if not, then it is an operating lease. As part of the assessment,
the Company considers certain indicators such as whether the lease is for the major part of the economic
life of the asset. If an arrangement contains lease and non-lease components, the Company applies Ind
AS 115 "Revenue from contract with customers" to allocate the consideration in the contract. The
Company recognizes lease payments received under operating lease as income on a straight-line basis
over the lease tom as part of "Revenue from operations".

f. Foreign Currency Transactions -

Foreign currency transactions entered into by the Company are accounted at the exchange rate prevailing
on the date of the transaction or at rate that closely approximate the rate at the date of the transaction.
Foreign currency monetary items outstanding at the Balance Sheet date are restated at the year-end rate.

g. Earnings per share (EPS) -

Basic earnings per share is computed by dividing the profit / (loss) after tax attributable to the equity
shareholders for the period by the weighted average number of equity shares outstanding during the
reporting period

---

Mar 31, 2024

Significant accounting policies -

a. Basis of preparation of financial statements-

• The financial statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) to comply in all material respects with
the Accounting Standards as specified u/s 133 of the Companies Act, 2013 read with rule 7 of
the Companies (Accounts) Rules, 2014 ( as amended) and the relevant provisions of the
Companies Act, 2013 and other accounting pronouncements of ICAI. The financial statements
have been prepared on accrual basis under the historical cost convention except for gratuity,
leave encashment and bonus, which are charged to profit & loss account on cash basis
and that is contrary to the specific provisions of the Companies Act, 2013 and also
contrary to the Ind AS 10 issued by the Institute of Chartered Accountants of India. The
accounting policies adopted in the preparation of the financial statements are consistent with
those followed in the previous year.

• As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,
2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail as per the statutory requirements for record retention is applicable
for the financial year ended March 31, 2024.

• Based on our examination which included test checks, the company has moved to Tally Prime
Edit log accounting software in its standard form ready to use available in the market, for
maintaining its books of accounts, which has a feature of recording audit trail (edit log) facility
with its inherent limitations and the same was enabled and operated for all relevant
transactions recorded in the software with effect from 2^nd May, 2023. During the course of
performing our procedures where the audit trail facility was available for part of the year, we
did not notice any instance of the audit trail feature being tempered with.

Going concern -

Despite the facts as mentioned herein below and also in the absence of adequate essential data and
information for compilation on an alternative basis, accounts are continued to be prepared on ''Going
Concern Basis'', as the Company has been running its operations for last so many years inspite of all
such limitations:

i. The operations of Agro Division of the Company have been suspended since the year
1998 and the Company has sold plant & machineries of this Division as scrap after
obtaining Members'' Permission vide Special Resolution in this regard at EOGM
convened on dated 27-04-2018.

ii. The Textile Division of the Company had also to be closed during currentyear F.Y 2023¬
24, due to unavailability of job work and unaffordable pricing issues and obsolete
technology.

iii. Since the Textile Division of the Company is closed, the power generated by Wind Farm
Division of the Company is not captively consumed and has to be sold to DGVCL at
predefined rate, which is significantly lower than the billing rate.

iv. Gujarat Energy Development Agency (GEDA) has informed the Company that as per
Gujarat Renewable Energy Policy 2023, announced by Energy & Petrochemical
Department, Govt of Gujarat, all wind turbines of more than 25 years old have to be
repowered. The Company''s Wind turbines are already more than 25 years old
Moreover, contract with the Company has been terminated by Gujarat Energy
Transmission Corporation Limited as per Letter Dt06.07.2023, and operations of Wind
Turbines have been discontinued by it with effect from 01.04.2024. Though, the
company has been pursuing the matter with GEDA, GETCO and other relevant
authorities for the wheeling of power generation and to make the unit operational.

v. The Company having obtained members’ approval for the sale of fixed assets including
land and building of the Company vide special resolution passed at AGM dated 20^th
September, 2018 and again on 27^th September, 2023

vi. The Company having incurred net losses/ cash losses for several years in past including
in F.Y 2023-24 of Rs.35,83,853.

vii. The Net Worth of the Company having been eroded completely based on the Audited
Annual Financial Statements of the Company, since the year ended on 31^st March, 1998.

viii. The Accumulated Losses of the Company as at the end of the financial year, are far
exceeding the entire Net Worth of the Company

ix. The Company was once registered under BIFR and the BIFR since then has been
dissolved and no such case is pending before NCLT or any similar authority.

x. Secured creditors are demanding for the repayment of their due and the Net Realisable
Value of assets offered as security is far lesser than the liabilities accrued. As such, the
Company is unable to settle the dues unless substantial haircut is offered by secured
creditors.

Consequently, no adjustments are made in the accounts for compilation of Accounts on an
alternative basis relating to the recoverability of recorded asset amounts and in respect of likely
devolvement of recorded liabilities and contingent liabilities

b. Use of estimates -

The preparation of financial statements in conformity with Indian GAAP requires the management
to make estimates and assumptions which are considered in the reported amounts of assets and
liabilities and disclosure of contingent liabilities as of the date of financial statements and the
reported amounts of income and expenses for the financial period. The management believes that
the estimates used in preparation of financial statements are prudent and reasonable. Future results
could differ due to these estimates and differences between the actual results and the estimates are
recognized in the periods in which the results are known /materialize.

c. Fixed assets -

Fixed assets are valued at cost of acquisition or construction. They are stated on historical cost basis
less accumulated depreciation.

d. Depreciation -

Depreciation on fixed assets is provided on pro rata basis on straight line method at the revised
rates prescribed under the Companies Act, 2013 based on useful life of the respective asset

e. Inventories -

Inventories are valued at cost or market value, whichever is less.

f. 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.

g. Foreign Currency Transactions -

Foreign currency transactions entered into by the Company are accounted at the exchange rate
prevailing on the date of the transaction or at rate that closely approximate the rate at the date of
the transaction. Foreign currency monetary items outstanding at the Balance Sheet date are restated
at the year-end rate.

h. Earnings per share (EPS) -

Basic earnings per share is computed by dividing the profit / (loss) after tax attributable to the
equity shareholders for the period by the weighted average number of equity shares outstanding
during the reporting period

---

Mar 31, 2014

A. Basis of preparation of financial statements-

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India ( Indian GAAP) to comply with the Accounting Standards notified under the Companies ( Accounting Standards) Rules, 2006 ( as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for gratuity, leave encashment and bonus, which are charged to profit & loss account on cash basis and that is contrary to the specific provisions of the Companies Act, 1956 and also contrary to the Accounting Standard 15 issued by the Institute of Chartered Accountants of India. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Going concern -

Despite the facts as mentioned herein below, accounts are continued to be prepared on ''Going Concern Basis'', in the absence of adequate essentia I data and information for compilation on an alternative basis.

The operations of Agro Division of the Company have been suspended since 1998.

The Company having incurred net losses during the current year and continuously incurring net losses/ cash losses for last several years The Net Worth of the Company has been eroded completely based on the audited Annual Financial Statements of the Company, since the year ended on 31stMarch, 1998.

The Accumulated Losses of the Company as at the end of the financial year, are far exceeding the entire Net Worth of the Company The BIFR and the Appellate Authority AAlFR have held that the Company should be wound up u/s 20(1) of SICA, 1985 vide order dt. 14-09-2006 and dt.06-12-2010 respectively. Consequently, no adjustments are made in the accounts for compilation of Accounts on an alternative basis relating to the recoverability of recorded asset amounts and in respect of likely devolvement of recorded liabilities''and contingent liabilities

b. Use of estimates -

The preparation of financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions which are considered in the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of financial statements and the reported amounts'' of income and expenses for the financial period. The management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and differences between the actual results and the estimates are recognized in the periods in which the results are known /materialize.

c. Fixed assets -

Fixed assets are valued at cost of acquisition or construction. They are stated on historical cost basis less accumulated depreciation.

d. Depreciation -

Depreciation on fixed assets is provided on pro rata basis on straight line method at the rates prescribed under the Companies Act, 1956.

e. Inventories -

Inventories are valued at cost or market value, whichever is less.

f. 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 .

Sales are recognized, net of returns and trade disc ounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude VAT.

The purchases and sales are shown after making adjustments for claims, rebates, rate difference, discounts, etc. received/paid as per the practice prevailing in the trade. Necessary adjustments for the same are done either by passing journal entry or rectifying the original invoice of purchase/sales and accounting the same in subsidiary books etc. with amount.NET RECEIVED or NET PAID for the particular invoice.

g. Foreign Currency Transactions -

Foreign currency transactions entered into by the Company are accounted at the exchange rate prevailing on the date of the transaction or at rat e that closely approximate the rate at the date of the transaction. Foreign currency monetary items outstanding at the Balance Sheet date are restated at the year-end rate.

-h. Earnings per share ( EPS) -

Basic earnings per share is computed by dividing the profit / (loss) after tax attributable to the equity shareholders for the period by the weighted averagenumber of equity shares outstanding during the reporting period *

i.. Contingent liabilities -

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of whicha reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their , present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

Security -

* Consortium loans in (a) above are secured by hypothecation of all movable current assets and further secured by first charge on land-building, plant-machinery, etc. of Agro division at Bhavnagar

* Loan in (b) above is secured by first charge on all the immovable properties and also by whole of movable plant-machineries, spares, tools, accessories, both present and future, of Textile division at Palsana

* Loans in (b) and (c) above are secured by first charge on all the immovable properties and also by whole of movable plant-machineries, spares, tools and accessories, both present and future, of wind farm unit

* Loans above are further secured by personal guarantee of the directors.

Repayment terms -

All loans have become overdue for repayment since long.

Default in repayment -

There has been a continuous default in repayment of above loans and interest since Dec, 1998.

* Also refer Note No.- 7 for other details

Security -

* SBI-WCDL is secured by hypothecation of entire current assets including stocks & book debts and further secured by second charge on all the immovable properties of Textile division at Palsana

* SBI-WCDL is further secured by personal guarantee of the directors Repayment terms - SBI-WCDL repayable on demand has become overdue for repayment since long. Default in repayment - There has been a continuous default in repayment of SBI- WCDL and interest since Dec, 1998. Other details -

* The Company had been held sick industrial company under the purview of the provisions of section 3(1 )(o) of the SICA ( Special Provisions), 1985 by the BIFR on dt.20-09-2005 and has been held to be wound up u/s 20(1) of the said Act on dt.14-09-2006 and upheld by the AAIFR on dt.06-12-2010. These winding up orders are challenged by the Company, by way of civil application before the hon''ble Gujarat High Court.

---

Mar 31, 2012

A. Method of accounting -

The financial statements are prepared under the historical cost convention and in accordance with the Generally Accepted Accounting Principles. The Company has been following accrual system of accounting both as to income and expenditure except for gratuity, leave encashment and bonus, which are charged to profit & loss account on cash basis and that is contrary to the specific provisions of the Companies Act, 1956 and also contrary to the Accounting Standard 15 issued by the Institute of Chartered Accountants of India.

b. Going concern

Despite the facts as mentioned herein below, accounts are continued to be prepared on 'Going Concern Basis', in the absence of adequate essential data and information for compilation on an alternative basis.

- The operations of Agro division of the company have been suspended since 1998.

- The company having incurred net losses during the current year and continuously incurring cash losses for last several years

- The Net Worth of the Company has been eroded completely based on the Audited Annual Financial Statements of the company since the year ended on 31st March, 1998.

- The Accumulated Losses of the company as at the end of the financial year, are far exceeding the entire Net Worth of the company

- The BIFR and the Appellate Authority AAIFR have held that the company should be wound up u/s 20(1) of SICA, 1985 vide order dt. 14-09-2006 and dt.06-12-2010 respectively. (Also refer note no. 17 )

Consequently, no adjustments are made in the accounts for compilation of Accounts on an alternative basis relating to the recoverability of recorded asset amounts and in respect of likely development of recorded liabilities and contingent liabilities.

c. Fixed Assets -

All fixed assets are stated at cost of acquisition or construction. They are stated on historical cost basis less accumulated depreciation.

d. Depreciation -

Depreciation on fixed assets is provided on straight line method on pro rata basis as per the rates prescribed under the Companies Act, 1956. (Please also refer note no. 8)

e. Investments -

Investments are stated at cost of acquisition.

f. Inventories -

Inventories are valued at cost or market value, whichever is less.

g. Revenue Recognition -

The purchases and sales are shown after making adjustments for claims, rebates, rate difference, discounts, etc. received/paid as per the practice prevailing in the trade. Necessary adjustments for the same is done either by passing journal entry or rectifying the original invoice of purchase/sales and accounting the same in subsidiary books etc. with amount NET RECEIVED or NET PAID for the particular invoice.

h. Contingent liabilities -

These are disclosed in the notes on accounts. Provision is made in the accounts in respect of contingencies which are likely to materialise into liabilities after the year till the approval of accounts by the Board of Directors and which have material effect on the position stated in the Balance Sheet.

---

Mar 31, 2010

A. Method of accounting -

The financial statements are prepared under the historical cost convention and in accordance with the Generally Accepted Accounting Principles. The Company has been following accrual system of accounting both as to income and expenditure except for gratuity, leave encashment and bonus, which are charged to profit & loss account on cash basis and that is contrary to the specific provisions of the Companies Act, 1956 and also contrary to the Accounting Standard 15 issued by the Institute of Chartered Accountants of India.

b. Going concern -

Despite the facts as mentioned herein below, accounts are continued to be prepared on, Going Concern Basis, in the absence of adequate essential data and information for compilation on an alternative basis.

- The operations of Agro division of the company have been suspended since 1998,

- Although there has been cash profit earned during the current year, the company had been continuously incurring cash losses for last several years

- The Net Worth of the Company has been eroded completely based on the Audited Annual Financial Statements of the company since the year ended on 31st March, 1998.

- The Accumulated Losses of the company as at the end of the financial year, are far exceeding the entire Net Worth of the company

- The BIFR has held that the company should be Wound up u/s 20(1) of S1CA, 1985 vide order dt. 14-09-2006. (Also refer note no. 17 ) Consequently, no adjustments are made in the accounts for compilation of Accounts on an alternative bases relating to the recoverability of recorded asset amounts and in respect of likely devolvement of recorded liabilities and contingent liabilities.

c. Fixed Assets -

All fixed assets are stated at cost of acquisition or construction. They are stated on historical cost basis less accumulated depreciation.

d. Depreciation-

Depreciation on fixed assets is provided on straight line method on pro rata basis as per the rates prescribed under the Companies Act, 1956. (Please also refer note no. 8)

e. Investments -

Investments are stated at cost of acquisition.

f. Inventories -

Inventories are valued at cost or market value, whichever is less.

g. Revenue Recognition -

The purchases and sales are shown after making adjustments for claims, rebates, rate difference, discounts, etc. received/paid as per the practice prevailing in the trade. Necessary adjustments for the same is done either by passing journal entry or rectifying the original invoice of purchase/sales and accounting the same in subsidiary books etc. with amount NET RECEIVED or NET PAID for the particular invoice.

h. Contingent liabilities -

These are disclosed in the notes on accounts. Provision is made in the accounts in respect of contingencies which are likely to materialise into liabilities after the year till the approval of accounts by the Board of Directors and which have material effect on the position stated in the Balance Sheet.