Accounting Policies of Sai Industries Ltd. Company

Mar 31, 2024

1.1 Basis of Preparation

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind-AS)
notified under section 133 of the Companies Act 2013 (The Companies (Indian Accounting Standards)
Rules, 2015) and comply in all material aspects with their provisions.

1.2 Classification of Assets and Liabilities

All assets and liabilities are classified as current or non-current as per the Company’s normal operating
cycle and other criteria set out in Ind-AS 1 notified under the Companies (Indian Accounting Standards)
Rules, 2015. Based on the nature of products and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, twelve months has been considered by the
Company for the purpose of current/ non-current classification of assets and liabilities. However certain
liabilities such as trade payables and some accruals for employee and other operating costs are part of the
working capital used in the Company’s normal operating cycle, accordingly classified as current liabilities.

1.3 Accounting Estimates and Judgements

Due to the nature of the Company’s operations, critical accounting estimates and judgements principally
relate to the:

• Tangible fixed assets (estimate useful life);

The management of the Company makes assumptions about the estimated useful lives, depreciation
methods or residual values of items of property, plant and equipment could impact the results of the
Company based on past experience and information currently available. In addition, the management
assesses annually whether any indications of impairment of intangible assets and tangible assets. The
management of the Company believe that on balance sheet date no impairment indications were existing.

The management of the Company believe that the inventory balances on hand could be sold to the third
parties at the disclosed value.

Furthermore, the management believe that the net carrying amount of trade receivables is recoverable
based on their past experience in the market and their assessment of the credit worthiness of debtors at
31st March 2018.

1.4 Presentation of income statement

The income statement is presented in the form based on the nature of expense and classifies expenses
according to their function. Further detailed analyses of expenses are provided in notes to the financial
statements.

1.5 Inventories

As per Ind AS-2, all inventories are valued at Cost or Net Realisable Value whichever is less. Inventories
are valued as per Ind AS 32.

1.6 Property, Plant and Equipment

Furniture, plant and equipment held for use in the business or for administrative purposes are stated at
historical cost or deemed cost less accumulated depreciation and any accumulated impairment losses.
Cost comprises of purchase price and any directly attributable cost of bringing the assets to its working
condition for its intended use.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
group and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in which they are incurred.

1.7 Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair
value less costs of disposal and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets (cash-generating units). Non¬
financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.

1.8 Depreciation

Depreciation on fixed assets is provided on written down value method. Depreciation is provided based on
useful life of assets as prescribed in schedule II to the Companies Act, 2013.

1.9 Investments and other financial assets

(a) Classification

The Investments and other financial assets has been classified as per Company’s business model
for managing the financial assets.

(b) Measurement

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income.

(b.1) Equity instruments

The Company\ subsequently measures all equity investments at fair value. Where the
group’s management has elected to present fair value gains and losses on equity
investments in other comprehensive income, there is no subsequent reclassification of fair
value gains and losses to profit or loss. Dividends from such investments are recognised in
profit or loss as other income when the Company’s right to receive payments is
established.

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.

(c) Derecognition of financial assets

A financial asset is derecognised only when
(e.2) Dividends

Dividends are recognised in profit or loss only when the right to receive payment is
established, it is probable that the economic benefits associated with the dividend will flow
to the group, and the amount of the dividend can be measured reliably.

1.10 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.

1.11 Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less provision for impairment.

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Mar 31, 2014

A) Accounting Convention

These accounts are prepared under the historical cost convention and evaluated on a going concern basis. The Financial statements materially comply with and are in conformity with the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the standards and the presentation requirements of the Companies Act, 1956.

b) Borrowing Costs

Borrowing Costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset upto the asset are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue.

c) Valuation of Investments

At Cost. Provision is made for permanent diminution in value of investments.

d) Valuation of Fixed Assets

At Cost less accumulated depreciation.

e) Depreciation has been provided on Straight Line Method in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rate basis on existing assets. However, on leased assets, the substantial part of the block has been written off during the year.

f) Lease Rentals are accounted on accrued and due basis except in the case of leased rentals which have become NPA as per NBFC Prudential Norms (RBI) Directors 2000 which has been accounted on receipt basis.

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Mar 31, 2012

A) Accounting Convention

These accounts are prepared under the historical cost convention and evaluated on a going concern basis. The Financial statements materially comply with and are in conformity with the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the standards and the presentation requirements of the Companies Act, 1956.

b) Borrowing Costs

Borrowing Costs attributable to the acquisition and construction of asset are capitalised as part of he cost of such asset up to the asset are capitalised as part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue.

c) Valuation of Investments

At Cost. Provision is made for permanent diminution in value of investments.

d) Valuation of Fixed Assets

At Cost less accumulated depreciation.

e) Depreciation has been provided on Straight Line Method in accordance with the provisions of Section 205{2)(b) of the Companies Act, 1956 at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rate basis on existing assets. However, on leased assets the substantial part of the block has been written off during the year.

J) Lease Rentals are accounted on accrued and due basis except in the case of leased rentals which have become NPA as per NBFC Prudential Norms (RBI) Directors 2000 which has been accounted on receipt basis.

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Mar 31, 2010

A) Accounting Convention

These accounts are prepared under the historical cost convention and evaluated on a going concern basis. The Financial statements materially comply with and are in conformity with the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the standards and the presentation requirements of the Companies Act, 1956.

b) Borrowing Costs

Borrowing Costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset up to the asset are capitalised as part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue.

c) Valuation of Investments

At Cost. Provision is made for permanent diminution in value of investments.

d) Valuation of Fixed Assets

At Cost less accumulated depreciation.

e) Depreciation has been provided on Straight Line Method in accordance with the provisions of Section 205(2)(b) of the Companies Act, 1956 at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rate basis on existing assets. However, on leased assets, the substantial part of the block has been written off during the year.

f) Lease Rentals are accounted on accrued and due basis except in the case of leased rentals which have become NPA as per NBFC Prudential Norms (RBI) Directors 2000 which has been accounted on receipt basis.