Accounting Policies of Ridhi Synthetics Ltd. Company

Mar 31, 2024

B MATERIAL ACCOUNTING POLICIES

(a) Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost
convention (except for certain financial instruments that are measured at fair values and defined benefit employee plans) on accrual basis to
comply in all material aspects with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS'') as notified by Ministry of Corporate
Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared on accrual and going concern
basis. The accounting policies are applied consistently to all the periods presented in the financial statements. All assets and liabilities have been
classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to
the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash
and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of
assets and liabilities.

(b) Revenue

(i) Interest Income

Interest income from a financial asset is recognised 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 principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to
that asset''s net carrying amount on initial recognition.

(ii) Dividend Income

Dividend Income is recognised when the right to receive the payment is established.

(c) Income taxes

The income tax expense or credit for the year is the tax payable on the current period''s taxable income based on the applicable income tax rate
adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.Deferred income tax is
provided in full, using the balance sheet approach, on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are
offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same
taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or 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 recognised in other comprehensive income or directly in equity, respectively.

(d) Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external
factors. An asset is treated as impaired when the carrying amount exceeds its recoverable value. The recoverable amount is the greater of the
asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value using a
pre-tax discount rate that reflects current market assessment of the time value of money and risks specific to the assets. An impairment loss is
charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. After impairment, depreciation is provided on
the revised carrying amount of the asset over its remaining useful life. The impairment loss recognized in prior accounting periods is reversed if
there has been a change in the estimate of recoverable amount.

(e) financial investment
Classification

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows. For
assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt
instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on
whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through
other comprehensive income. The company reclassifies debt investments when and only when its business model for managing those assets
changes.

The carrying value (Gross Block less accumulated depreciation and amortisation) as on 1st April, 2015 of the Property, plant and equipment is
considered as a deemed cost on the date of transition. Property, plant and equipment are carried at cost, net of recoverable taxes, trade
discounts and rebates, less accumulated depreciation, amortisation and impairment loss, if any. Cost comprises of purchase price, borrowing
cost if capitalisation criteria are met, and directly attributable cost of bringing the asset to its working conditions for the intended use.

Measurement

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of
principal and interest.

Measurement of debt instruments

• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost, is recognised in
profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the
effective interest rate method.

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the
financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other
comprehensive income (FVOCI). Movements in the carrying amount are taken through Other Comprehensive Income, except for the recognition
of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the
financial asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from equity to
profit

or loss and recognised in other gains/ (losses). Interest income from these financial assets is included
in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or
loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss, is recognised in profit or loss and
presented net in the statement of profit and loss within other gains/(losses) n the year in which it arises. Interest income from these financial
assets is included in other income.

Measurement of equity instruments

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/(losses) in the statement of profit and
loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other
changes in fair value. Impairment of financial assets

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected
lifetime losses to be recognised from initial recognition of the receivables.

De-recognition of financial assets Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the entity has neither
transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised
if the company has not retained control of the financial asset. Where the company retains control of the financial asset, the asset is continued to
be recognised to the extent of continuing involvement in the financial asset.

(f) Property, plant and equipment

The carrying value (Gross Block less accumulated depreciation and amortisation) as on 1st April, 2015 of the Property, plant and equipment is
considered as a deemed cost on the date of transition. Property, plant and equipment are carried at cost, net of recoverable taxes, trade
discounts and rebates, less accumulated depreciation, amortisation and impairment loss, if any. Cost comprises of purchase price, borrowing
cost if capitalisation criteria are met, and directly attributable cost of bringing the asset to its working conditions for the intended use.

Depreciation on property, plant and equipment

Depreciation on proprty, plant and equipment is provided to the extent of depreciable amount on straight-line method over the useful life of asset
as assessed by the management and the same is similar to the useful lives as prescribed in Part-C of Schedule II to the Companies Act, 2013.
Residual values, useful lives and method of depreciation of Property Plant and Equipments are reviewed at each financial year end and are
adjusted prospectively, if appropriate. The effects of any revision are included in the statement of profit and loss when
the changes arises.

Gains or losses arising from derecognition of an tangible asset are measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

(g) Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially recognised at fair value (net of transaction costs incurred). Difference between the fair value
and the transaction proceeds on initial is recognised as an asset / liability based on the underlying reason for the difference. Subsequently all
financial liabilities are measured at amortised cost using the effective interest rate method Preference shares which are mandatorily redeemable
on a specific date are classified as a financial liability.

Dividends on preference shares are recognised in statement of profit and loss. Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has
been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss. The gain / loss is recognised in other equity in case of transaction with shareholders.

(h) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the
statement of profit and loss as finance costs.

(i) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event. 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
the obligation. If the effect of the time value of money is material, provisions are discounted using equivalent period government securities
interest rate. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at each
balance sheet date and are adjusted to reflect the current best estimate. Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by 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. Information on contingent liability is disclosed
in the Notes to the Financial Statements. Contingent assets are not recognised. However, when the realisation of income is
virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

(j) Employee benefits

Liability towards leave entitlements (short term) of employees is determined as per rules of the Company and provided for. Liability towards
Gratuity entitlement is determined as per provisions of the Payment of Gratuity Act, 1972 and provided for.

(k) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive income) for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events such as bonus issue, bonus element in a right issue, shares split and reserve share
splits (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources. For the
purpose of calculating diluted earnings per share, the net profit or loss (excluding other comprehensive income) for the year attributable to equity
share holders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity
shares.

(l) Fair value measurement:

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability. A fair value measurement of a non-financial
asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it
to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the

financial statements are categorised within the fair value hierarchy.

(m) Leases

As a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains
contract. A contract is, or contains, a lease a lease, at inception of a if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits
from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset. At the date of
commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and
low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease
liabilities includes these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability adjusted for any lease

payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a
straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted
using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these
leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment
if whether it will exercise an extension or a termination option.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with
similar characteristics. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows.

The Company as a lessor

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is
classified as a finance or operating lease by reference to the right- of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

(n) Significant Accounting Judgments, Estimates And Assumptions:

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
described below. The Company based on its assumptions and estimates on parameters available when the financial statements were prepared.
However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i) Property, plant and equipment, Investment Properties and Intangible Assets:

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be
recorded during any reporting period. The useful lives and residual values as per schedule II of the Companies Act, 2013 or are based on the
Company''s historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate.

ii) Income Tax:

The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from
actual outcome which could lead to an adjustment to the amounts reported in the standalone financial statements.

iii) Contingencies:

Management has estimated the possible outflow of resources at the end of each annual reporting financial year, if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

iv) Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The Company uses
judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market
conditions as well as forward looking estimates at the end of each reporting period.

v) Recoverability of trade receivable:

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those
receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and
any possible actions that can be taken to mitigate the risk of non-payment.

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Mar 31, 2014

(a) Use of Estimates - The presentation of financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and the estimates are recognized in the period in which the results are known/materialized.

(b) Fixed Assets - Fixed assets are stated at cost of acquisition or construction and include incidental expenses.

(c) Depreciation - Depreciation is provided on written down value method as per the provisions of the Income Tax Act, 1961.

(d) Impairment of Assets - An asset is treated as impaired when the carrying cost of asset 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. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(e) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

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Mar 31, 2013

(a) Use of Estimates - The presentation of financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and the estimates are recognized in the period in which the results are known / materiaiized.

(b) Fixed Assets - Fixed assets are stated at cost of aquisition or construction and include incidental expenses.

(c) Depreciation - Depreciation is provided on written down value method as per the provisions of the Income Tax Act, 1961.

(d) Impairment of Assets - An asset is treated as impaired when the carrying cost of asset 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. The impairement loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(e) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

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Mar 31, 2012

(a) Use of Estimates - The presentation of financial statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and the estimates are recognized in the period in which the results are known / materialized.

(b) Fixed Assets - Fixed assets are stated at cost of acquisition or construction and include incidental expenses.

(c) Depreciation - Depreciation is provided on written down value method as per the provisions of the Income Tax Act, 1961.

(d) Impairment of Assets - An asset is treated as impaired when the carrying cost of asset 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. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(e) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of investments.

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Mar 31, 2010

(a) Basis of Preparation of Financial Statements - The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

(b) Fixed Assets - Fixed assets are stated at cost of aquisition or construction and include incidental expenses.

(c) Depreciation - Depreciation is provided on written down value method as per the provisions | of the Income Tax Act, 1961.

(d) Investments - Long Term Investments are carried at cost. However, provision for diminution in ! value is made to recognise a decline other than temporary in the value of investments.

(e) Revenue & Expenditure - All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.

1. As the Company does not have distinguishable business segments, the requirement to give segment reporting as per Accounting Standard (AS 17) on Segment Reporting issued by the Institute of Chartered Accountants of India is not applicable.