Accounting Policies of Purv Flexipack Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF PREPARATION

The financial statements have been prepared in accordance with the applicable Accounting Standards notified under Section
133 of the the Companies Act, 2013 read with Rule 7 of Companies (Accounts Rules), 2014 under historical cost convention
on accrual basis.

All the assets and liabilities have been classified as current or non-current as per Company''s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013.

b. USE OF ESTIMATES

The preparation of the financial statements is in conformity with Indian GAAP (Generally Accepted Accounting Principles)
which requires the management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent liabilities as on the date of the financial statements. The estimates and assumptions
made and applied in preparing the financial statements are based upon management''s best knowledge of current events and
actions as on the date of financial statements. However, due to uncertainties attached to the assumptions and estimates
made actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in
current and future periods.

c. REVENUE RECOGNITION:

(i) Revenue from sale of goods is recognised when significant risk and rewards of ownership of the goods have been passed to
the buyer and it is reasonable to expect ultimate collection. Sale of goods is recognised net of GST and other taxes as the
same is recovered from customers and passed on to the government.

(ii) Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(iii) Dividend income is recognised when the right to receive dividend is established.

(iv) Other items of income are recognised on accrual basis.

(v) Income from export entitlement is recognised as on accrual basis.

(vi) Rental income is recognised on time period basis.

d. FOREIGN CURRENCY TRANSACTIONS.

Initial recognition

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of the transaction.

Measurement of foreign currency

Foreign currency monetary items (other than derivative contracts) as at Balance Sheet date are restated at the year end
rates.

Exchange difference

Exchange differences arising on settlement of monetary items are recognised as income or expense in the period in which
they arise.

Exchange difference arising on restatement of foreign currency monetary items as at the year end being difference between
exchange rate prevailing on initial recognition/subsequent restatement on reporting date and as at current reporting date is
adjusted in the Statement of Profit & Loss for the respective year.

Any expense incurred in respect of Forward contracts entered into for the purpose of hedging is charged to the Statement of
Profit and loss.

Forward Exchange Contract

The Premium or discount arising at the inception of the Forward Exchange contracts entered into to hedge an existing
asset/liability, is amortized as expense or income over the life of the contract. Exchange Differences on such contracts are
recognised in the Statement of Profit and Loss in the reporting period in which the exchange rates change. Any Profit or Loss
arising on cancellation or renewal of such a forward contract is recognized as income or expense in the period in which such
cancellation or renewal is made.

e. INVESTMENTS

Non-Current/ Long-term Investments are stated at cost. Provision is made for diminution in the value of the investments, if,
in the opinion of the management, the same is considered to be other than temporary in nature. On disposal of an
investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of
Profit and Loss.

Current investments are carried at lower of cost and fair value determined on an individual basis. On disposal of an
investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of
Profit and Loss.

Investment property:

An Investment in Land or Building, which is not intended to be occupied substantially for used by, or in operations of, the
company, is classified as Investment Property. Investment Properties are stated at cost less diminution in value (other than
temporary).

The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing
investment property to its working condition for the intended use.

On disposal of investment, the difference between it carrying amount and net disposal proceeds is charged / credited to the
statement of profit and loss.

f. PROPERTY, PLANT AND EQUIPMENT

(i) Initial Recognition

The items of property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment
losses, if any, using the cost model as prescribed under Accounting Standard, AS-10 "Property, Plant & Equipment". Cost of
an item of property, plant and equipment comprises of the purchase price, including import duties, if any, non-refundable
purchase taxes, after deducting trade discounts and rebates, and costs that are 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.

(ii) Depreciation

Depreciation on property, plant & equipment is provided on pro-rata basis on Straight Line Method over the useful
life/remaining useful life of the asset as per Schedule II of the Companies Act 2013. Depreciation on assets purchased /
acquired during the year is charged from the date of purchase / acquisition of the asset or from the day the asset is ready for
its intended use. Similarly, depreciation on assets sold / discarded during the year is charged up to the date when the asset is
sold / discarded. Freehold land is not depreciated.

g. INVENTORIES:

Inventories of traded goods are valued at lower of cost and net realizable value. Cost comprises of all costs of purchase and
other costs incurred in bringing the inventories to their present location and condition . Cost formula used is FIFO.

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

h. IMPAIRMENT OF ASSETS:

Assessment is done at each Balance Sheet date as to whether there is any indication that a tangible asset might be impaired.
For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash flows from other assets or other group of assets, is considered as a
cash generating unit. If any such indication exists, an estimate of the recoverable amount of asset/ cash generating unit is
made.

Assets whose carrying value exceeds their recoverable amount are written down to recoverable amount. Recoverable
amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Value in use is the present value
of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its
useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss
recognized for an asset in prior accounting period may no longer exist or may have decreased.

i. EMPLOYEE BENEFITS:

(i) Short-term employee benefits

Short term employee benefits are recognised as an expense at the undiscounted amounted in the statement of Profit and
loss for the year which includes benefits like salary, wages, bonus and are recognised as expenses in the period in which the
employee renders the related service

(ii) Post employment benefits:

Defined Contribution Plan

The Company has Defined Contribution Plans for Post employment benefits in the form of Employee State Insurance for all
applicable employees. Employee State Insurance are classified as defined contribution plans as the Company has no further
obligation beyond making the contributions. The Company''s contributions to Defined Contribution plans are charged to the
Statement of Profit and Loss as and when incurred.

Defined benefit Plans

Unfunded Plan:The Company has a defined benefit plan for Post-employment benefit in the form of Gratuity.

Liability for the above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by
an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

j. BORROWING COSTS

Borrowing costs are interest, commitment charges and other costs incurred by an enterprise in connection with Short Term/
Long Term borrowing of funds. Borrowing cost directly attributable to acquisition or construction of qualifying assets are
capitalized as a part of the cost of the assets, upto the date the asset is ready for its intended use. All other borrowing costs
are recognized in the Statement of Profit and Loss in the year in which they are incurred.

k. EARNINGS PER SHARE:

The earnings in ascertaining the Company''s EPS comprises the net profit after tax attributable to equity shareholders and
includes the post tax effect of any extraordinary items. The number of shares used in computing basic EPS is the weighted
average number of shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax attributable to Equity Shareholders (including
the post tax effect of extra ordinary items, if any) as adjusted for dividend, interest and other charges to expense or income
relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been
issued on conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.
Dilutive potential equity shares are determined independently for each period.

l. TAXATION:

Tax expense for the year comprising current tax & deferred tax are considered in determining the net profit for the year.
Provision is made for current tax and based on tax liability computed in accordance with relevant tax laws applicable to the
Company. Provision is made for deferred tax for all timing difference arising between taxable incomes & accounting income
at currently enacted or substantively enacted tax rates, as the case may be. Deferred tax assets (other than in situation of
unabsorbed depreciation and carry forward losses) are recognized only if there is reasonable certainty that they will be
realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. Deferred
tax assets, in situation of unabsorbed depreciation and carry forward losses under tax laws are recognised only to the extent
that where is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against
which such deferred tax assets can be recognised. Deferred Tax Assets and Deferred Tax Liability are been offset wherever
the Company has a legally enforceable right to set off current tax assets against current tax liability and where the Deferred
Tax Asset and Deferred Tax Liability relate to Income taxes is levied by the same taxation authority.

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Mar 31, 2024

1 CORPORATE INFORMTION

Purv Flexipack Limited ("the Company") is a listed entity incorporated in India. The Registered Office of the Company is located at Annapurna Apartment, Suit 1C, 1st Floor, 23 Sarat Bose Road, Kolkata 700020 , West Bengal.

2 SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF PREPARATION

The financial statements have been prepared in accordance with the applicable Accounting Standards notified under Section 133 of the the Companies Act, 2013 read with Rule 7 of Companies (Accounts Rules), 2014 under historical cost convention on accrual basis.

All the assets and liabilities have been classified as current or non-current as per Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.

b. USE OF ESTIMATES

The preparation of the financial statements is in conformity with Indian GAAP (Generally Accepted Accounting Principles) which requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities as on the date of the financial statements. The estimates and assumptions made and applied in preparing the financial statements are based upon management''s best knowledge of current events and actions as on the date of financial statements. However, due to uncertainties attached to the assumptions and estimates made actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. REVENUE RECOGNITION:

(i) Revenue from sale of goods is recognised when significant risk and rewards of ownership of the goods have been passed to the buyer and it is reasonable to expect ultimate collection. Sale of goods is recognised net of GST and other taxes as the same is recovered from customers and passed on to the government.

(ii) Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(iii) Dividend income is recognised when the right to receive dividend is established.

(iv) Other items of income are recognised on accrual basis.

(v) Income from export entitlement is recognised as on accrual basis.

(vi) Rental income is recognised on time period basis.

d. FOREIGN CURRENCY TRANSACTIONS.

Initial recognition

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of the transaction.

Measurement of foreign currency monetary items at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) as at Balance Sheet date are restated at the year end rates.

Exchange difference

Exchange differences arising on settlement of monetary items are recognised as income or expense in the period in which they arise.

Exchange difference arising on restatement of foreign currency monetary items as at the year end being difference between exchange rate prevailing on initial recognition/subsequent restatement on reporting date and as at current reporting date is adjusted in the Statement of Profit & Loss for the respective year.

Any expense incurred in respect of Forward contracts entered into for the purpose of hedging is charged to the Statement of Profit and loss.

Forward Exchange Contract

The Premium or discount arising at the inception of the Forward Exchange contracts entered into to hedge an existing asset/liability, is amortized as expense or income over the life of the contract. Exchange Differences on such contracts are recognised in the Statement of Profit and Loss in the reporting period in which the exchange rates change. Any Profit or Loss arising on cancellation or renewal of such a forward contract is recognized as income or expense in the period in which such cancellation or renewal is made.

e. INVESTMENTS

Non-Current/ Long-term Investments are stated at cost. Provision is made for diminution in the value of the investments, if, in the opinion of the management, the same is considered to be other than temporary in nature. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Current investments are carried at lower of cost and fair value determined on an individual basis. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Investment property:

An Investment in Land or Building, which is not intended to be occupied substantially for used by, or in operations of, the company, is classified as Investment Property. Investment Properties are stated at cost less diminution in value (other than temporary).

The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing investment property to its working condition for the intended use.

On disposal of investment, the difference between it carrying amount and net disposal proceeds is charged / credited to the statement of profit and loss.

f. PROPERTY, PLANT AND EQUIPMENT

(i) Initial Recognition

The items of property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment losses, if any, using the cost model as prescribed under Accounting Standard, AS-10 "Property, Plant & Equipment". Cost of an item of property, plant and equipment comprises of the purchase price, including import duties, if any, non-refundable purchase taxes, after deducting trade discounts and rebates, and costs that are 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.

(ii) Depreciation

Depreciation on property, plant & equipment is provided on pro-rata basis on Straight Line Method over the useful life/remaining useful life of the asset as per Schedule II of the Companies Act 2013. Depreciation on assets purchased / acquired during the year is charged from the date of purchase / acquisition of the asset or from the day the asset is ready for its intended use. Similarly, depreciation on assets sold / discarded during the year is charged up to the date when the asset is sold / discarded. Freehold land is not depreciated.

g. INVENTORIES:

Inventories of traded goods are valued at lower of cost and net realizable value. Cost comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location and condition . Cost formula used is FIFO.

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

h. IMPAIRMENT OF ASSETS:

Assessment is done at each Balance Sheet date as to whether there is any indication that a tangible asset might be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash flows from other assets or other group of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of asset/ cash generating unit is made.

Assets whose carrying value exceeds their recoverable amount are written down to recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting period may no longer exist or may have decreased.

i. EMPLOYEE BENEFITS:

(i) Short-term employee benefits

Short term employee benefits are recognised as an expense at the undiscounted amounted in the statement of Profit and loss for the year which includes benefits like salary, wages, bonus and are recognised as expenses in the period in which the employee renders the related service

(ii) Post employment benefits:

Defined Contribution Plan

The Company has Defined Contribution Plans for Post employment benefits in the form of Employee State Insurance for all applicable employees. Employee State Insurance are classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Company''s contributions to Defined Contribution plans are charged to the Statement of Profit and Loss as and when incurred.

Defined benefit Plans

Unfunded Plan:The Company has a defined benefit plan for Post-employment benefit in the form of Gratuity.

Liability for the above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

j. BORROWING COSTS

Borrowing costs are interest, commitment charges and other costs incurred by an enterprise in connection with Short Term/ Long Term borrowing of funds. Borrowing cost directly attributable to acquisition or construction of qualifying assets are capitalized as a part of the cost of the assets, upto the date the asset is ready for its intended use. All other borrowing costs are recognized in the Statement of Profit and Loss in the year in which they are incurred.

k. EARNINGS PER SHARE:

The earnings in ascertaining the Company''s EPS comprises the net profit after tax attributable to equity shareholders and includes the post tax effect of any extraordinary items. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax attributable to Equity Shareholders (including the post tax effect of extra ordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period.

l. TAXATION:

Tax expense for the year comprising current tax & deferred tax are considered in determining the net profit for the year. Provision is made for current tax and based on tax liability computed in accordance with relevant tax laws applicable to the Company. Provision is made for deferred tax for all timing difference arising between taxable incomes & accounting income at currently enacted or substantively enacted tax rates, as the case may be. Deferred tax assets (other than in situation of unabsorbed depreciation and carry forward losses) are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. Deferred tax assets, in situation of unabsorbed depreciation and carry forward losses under tax laws are recognised only to the extent that where is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be recognised. Deferred Tax Assets and Deferred Tax Liability are been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liability and where the Deferred Tax Asset and Deferred Tax Liability relate to Income taxes is levied by the same taxation authority.

m. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

(i) Provisions

A provisions is recognized when the Company has a present obligation as a result of past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation.

(ii) Contingent Liability

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

(ii) Contingent Assets

Contingent Assets are neither recognised nor disclosed in the financial statements.

n. GOVERNMENT GRANTS

Government grants relating to revenue are recognized on accrual basis to match them with related costs that are intended to be compensated. Such grants are shown separately under other operating income or deducted from related expenses.

o. OPERATING CYCLE

Based on the nature of the business of the Company, the company has determined it''s operating cycle as 12 (twelve) months for the purpose of classification of its assets and liabilities as current and non-current

p. CASH & CASH EQUIVALENTS

Cash & cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amount of cash to be cash equivalents.