Accounting Policies of Shish Industries Ltd. Company

Mar 31, 2025

B. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation

"These financial statements are the separate financial statements
of the Company (also called as standalone financial statements).
The company has prepared and presented the financials as per
reporting requirements u/s 133 of Companies Act, 2013 and
Companies (Indian Accounting Standards) Rules, 2015 (""Ind AS"")
as amended by Companies (Indian Accounting Standards) Rules,
2016 effective from 1st April 2016 on the accruals basis. Ind AS
comprises mandatory accounting standards notified under the
Companies Act, 2013. Accounting policies have been consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use. The Management
evaluates all recently issued or revised accounting standards on an
ongoing basis.

The financial statements have been prepared on a going concern
and accrual basis. The accounting policies are applied consistently
to all the periods presented in the financial statements. The financial
statements of the Company for the year ended 31st March 2025
were approved by the Board of Directors on 05/05/2025."

b) Use of Estimates

The preparation of the financial statements in conformity with Ind
AS requires the management to make estimates and assumptions
that affect the reported balances of assets and liabilities and
disclosures relating to contingent assets and liabilities as at the date
of the financial statements and reported amounts of income and
expenses during the period. Examples of such estimates include
provisions for doubtful debts, future obligations under employee
retirement benefit plans, income taxes, post-sales customer support
and the useful lives and dismantaling expenses of fixed assets and
intangible assets. The management periodically assesses using,
external and internal sources, whether there is an indication that an
asset may be impaired.

An impairment occurs where the carrying value exceeds the present
value of future cash flows expected to arise from the continuing use
of the asset and its eventual disposal. The impairment loss to be
expensed is determined as the excess of the carrying amount over
the higher of the asset''s net sales price or present value as
determined above. Contingencies are recorded when it is probable
that a liability will be incurred, and the amount can be reasonably
estimated. Where no reliable estimate can be made, a disclosure is
made as contingent liability. Actual results could differ from those
estimates.

c) Fair Value Measurement

Some of the Company''s accounting policies and disclosures require
the measurement of fair values, for both financial and non-financial
assets and liabilities.

The company regularly reviews significant unobservable inputs and
valuation adjustments. If third party information, such as pricing
services, is used to measure fair values, then the company
assesses the evidence obtained from the third parties to support the
conclusion that these valuations meet the requirements of Ind AS,

including the level in the fair value hierarchy in which the valuations
should be classified.

Fair values are categorised into different levels in a fair value
hierarchy based on the inputs used in the valuation techniques as
follows.

Level 1: quoted prices (unadjusted) in active markets for

identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that

are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on

observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the
Company uses observable market data as far as possible. If the
inputs used to measure the fair value of an asset or a liability fall
into different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the
fair value hierarchy as the lowest level input that is significant to the
entire measurement.

The Company recognises transfers between levels of the fair value
hierarchy at the end of the reporting period during which the change
has occurred.

d) Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet
based on Current/ Non- Current classification.

An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in
normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting
period, or

- Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting
period, or

- There is no unconditional right to defer the settlement of the
liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current
assets and liabilities.

e) Property, plant and equipment

Property, Plant & Equipment are carried at the cost of acquisition or
construction less accumulated depreciation and impairment losses.
The cost of Property, Plant & Equipment includes non-refundable
taxes, duties, freight and other incidental expenses related to the
acquisition and installation of the respective assets as per Para 11
of Ind AS - 16, (Property Plant and Equipment). Borrowing and
incidental costs directly attributable to acquisition or construction of
those Property, Plant & Equipment which necessarily take a
substantial period of time to get ready for their intended use are
capitalised as per Para 8 of Ind As - 8 (Borrowing Costs).

Advances paid towards the acquisition of Property, Plant &
Equipment outstanding at each balance sheet date and the cost of
Property, Plant & Equipment not ready for their intended use before
such date are disclosed under capital work-in-progress.

Depreciation on Property, Plant & Equipment is provided using the
written down value method at the rates specified in Schedule II to
the Companies Act, 2013 or based on the useful life of the assets
as estimated by Management. Depreciation is calculated on a pro¬
rata basis from the date of installation till the date the assets are
sold or disposed. Disclosure as per Para 75-76 of Ind AS-16
(Property, Plant and Equipment) relating to dismantling cost is
unascertainable. The management is unable to estimate the
dismantaling cost of individual assets as the same is impracticable,
due to the complexity and size of the company.

f) Impairment of Assets

The Company assesses at each balance sheet date whether there
is any indication that an asset may be impaired. If any such
indication exists, the Company estimates the recoverable amount
of the asset. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset
belongs is less than its carrying amount, the carrying amount is
reduced to its recoverable amount. The reduction is treated as an
impairment loss and is recognised in the profit and loss account. If
at the balance sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable amount
is reassessed and the asset is reflected at the recoverable amount
subject to a maximum of depreciated historical cost.

No impairment loss for any assets have been identified and
recorded during the year in terms of Para 58-64 of AS - 36,
Impairment of Assets

g) Inventories

Inventories are valued at cost (including cost for bringing the
inventory to its current location and condition) or net realisable value
whichever is less. Inventory as appearing in the financial statements
is inclusive of duties, taxes and freight, in terms of Para 10 to 19 of
Ind AS - 2, Inventories. Inventory excludes Goods and Services
Tax.

h) Investments

Long-term investments are carried at cost less any other-than-
temporary diminution in value, determined separately for each
individual investment.

i) Retirement Benefits

Retirement Benefits, are accounted on Actuarial Basis.

j) Foreign currency transactions and balances

Export Sales have been recorded at the prevailing customs rate as
on the date of removal of goods from the factory. The relevant
debtor ledger is debited / credited with appropriate profit / loss on
foreign exchange transactions when the sale proceeds are actually
received as per Para 21 of AS - 21, (The Effect of Changes in
Foreign Exchange Rates).

Monetary assets and liabilities denominated in foreign currencies as
at the balance sheet date, not covered by forward exchange
contracts, are translated at year-end rates. The resultant exchange
differences are recognised as Other Comprehensive Income under
the group Other Equity. Non-monetary assets are recorded at the
rates prevailing on the date of the transaction.

k) Revenue Recognition

Revenue from sale of goods is recognised when significant risks
and rewards in respect of ownership of products are transferred to
customers. Revenue from domestic sales of products is recognised
on dispatch of products to customers from the factory premises.

Revenue from product sales is stated exclusive of returns,
applicable trade discounts, allowances, and GST.

Dividend income is recognised when the unconditional right to
receive the income is established. Income from interest on deposits,
loans and interest-bearing securities is recognised on the time
proportionate method.

Export entitlements are recognised as income when the right to
receive credit as per the terms of the scheme is established in
respect of the exports made and where there is no significant
uncertainty regarding the ultimate collection of the relevant export
proceeds.

The Customs Duty Drawback benefits have been recognized as
recommended by the Expert Advisory Committee of ICAI. In the
opinion of the Expert Advisory Committee on the accounting
treatment of Duty Drawback benefit, wherein it has been opined that
the benefit under the Duty Drawback Scheme should be recognised
as income when the exports (against which the credit has been
granted) are made, provided the criteria for recognition of revenue
under AS 9 have been fulfilled (query No. 28 of Vol. XX of
Compendium of Opinions, page 96).

In the said opinion, the Committee has stated, inter alia, the
following: “Under the facts and circumstances of the query, the Duty
Drawback benefit should be recognised in the books of account
when no significant uncertainties as to the amount of consideration
that would be derived and as to its ultimate collection exist. In the
case of drawback benefit on post-export basis when the company
applies for the credit on realisation of export proceeds and the
benefit is to be utilised for imports by the company, there seems to
be no such significant uncertainty and, therefore, the drawback
benefit should be recognised in the year in which the export was
made.

l) Income Tax Expense

Income tax expense comprises current tax and deferred tax charge
or credit.

Current Tax

The current charge for income taxes is calculated in accordance
with the relevant tax regulations applicable to the Company.

Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantially enacted by the balance
sheet date. Deferred tax assets are recognised only to the extent
there is reasonable certainty that the assets can be realised in
future; however, where there is unabsorbed depreciation or carry
forward of losses, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax
assets are reviewed at each balance sheet date and is written-down
or written-up to reflect the amount that is reasonably/virtually certain
(as the case may be) to be realised. The break-up of the major
components of the deferred tax assets and liabilities as at balance
sheet date has been arrived at after setting off deferred tax assets
and liabilities where the Company has a legally enforceable right to
set-off assets against liabilities and where such assets and liabilities
relate to taxes on income levied by the same governing taxation
laws.

m) Financial instruments
Initial Recognition

All financial instruments are recognized initially at fair value.
Transaction costs that are attributable to the acquisition of the
financial asset (other than financial assets recorded at fair value
through OCI) are included in the fair value of the financial assets.
Purchase or sales of financial assets that require delivery of assets
within a time frame established by regulation or convention in the
market place (regular way trade) are recognised on trade date.
While, loans and borrowings and payables are recognised net of
directly attributable transaction costs.

Subsequent Measurement

The classification of financial instruments depends on the objective
of the business model for which it is held. Management determines
the classification of its financial instruments at initial recognition.

a) Non-derivative Financial Assets

(i) Financial assets at amortized cost

A financial asset shall be measured at amortised cost if both of the
following conditions are met:

(a) the financial asset is held within a business model whose
objective is to hold financial assets in order to collect contractual
cash flows and

(b) the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding. They are
presented as current assets, except for those maturing later
than 12 months after the reporting date which are presented as
non-current assets. Financial assets are measured initially at
fair value plus transaction costs and subsequently carried at
amortized cost using the effective interest method, less any
impairment loss. Trade receivables, security deposits, cash and
cash equivalents, employee and other advances and eligible
current and non-current assets are measured at Amortized
Cost.

(ii) Debt instruments at FVTOCI

A debt instrument shall be measured at fair value through other
comprehensive income if both of the following conditions are met:

(a) the objective of the business model is achieved by both
collecting contractual cash flows and selling financial assets
and

(b) the asset''s contractual cash flow represents SPPI Debt
instruments included within FVTOCI category are measured
initially as well as at each reporting period at fair value plus
transaction costs. Fair value movements are recognised in
other comprehensive income (OCI). However, the Company
recognises interest income, impairment losses & reversals and
foreign exchange gain loss in statement of profit and loss. On
derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit and loss.
Interest earned is recognised under the effective interest rate
(EIR) model.

(iii) Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments
held for trading is classified as FVTPL. For all other equity
instruments, the Company may make an irrevocable election to
present subsequent changes in the fair value in OCI. The Company
makes such election on an instrument-by- instrument basis. If the
Company decides to classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument, excluding dividend are
recognised in OCI which is not subsequently recycled to statement
of profit and loss.

(iv) Financial assets at FVTPL

FVTPL is a residual category for financial assets. Any financial
asset which does not meet the criteria for categorization as at
amortised cost or as FVTOCI, is classified as FVTPL.

In addition, the Company may elect to designate the financial asset,
which otherwise meets amortised cost or FVTOCI criteria, as
FVTPL if doing so eliminates or significantly reduces a
measurement or recognition inconsistency. The Company has not
designated any financial asset as FVTPL.

Financial assets included within the FVTPL category are measured
at fair values with all changes in the statement of profit and loss.

b) Non-derivative financial Liabilities

Financial liabilities at amortized cost

Financial liabilities at amortised cost represented by borrowings,
trade and other payables are initially recognized at fair value, and
subsequently carried at amortized cost using the effective interest
rate method.

n) Current Assets Balances

Balances of Sundry Creditors, Sundry Debtors and loans and
advances are subject to confirmation. In the opinion of the Board of
Directors, the current assets, loans and advances have a realisable
value at least equal to the amounts at which they are stated in the
Balance Sheet.

o) Employee Benefits

Provisions of Gratuity is applicable to the company. All the
provisions required to be made for the applicability of gratuity as
required under Para 11 of Ind AS-19 (Employee Benefits) has been
complied with. The company has made the provision of Gratuity as
per the Consultancy services taken by the Management and same
has been treated in the Profit & loss Statement.

p) Segment Reporting

The company is primarily engaged in manufacturing, trading and
marketing of PP Corrugated Sheet and Rolls, Insulation and
Building Products, Industrial Packaging Products, Consumer
Products etc., which constitute a single reportable segment in
accordance with Ind AS 108 - “Segment Reporting”.

q) Events Occurring after the Balance Sheet Date

There were no such events occured after balance sheet date which
required material disclosure by the management and auditors.

r) Change in Accounting Policies

There have been no other changes in the accounting policy, in
terms of Para 14 to 21 of Ind AS - 8 (Accounting Policies, Change
in Accounting Estimates and Errors).

s) Prior Period Items

During the year we had not found any prior period item. But there
was a short provision for earlier years of which now given effect in
profit & loss A/c.

Sub Notes

i. Vide Special Resolution passed by the Members through Postal ballot on November 30, 2024, the face value of equity shares of the Company
had been sub-divided/split in a manner that, 1 (One) Equity Share having face value of INR 10/- (Rupees Ten only) each fully paid up, was
sub-divided/split into 10 (Ten) Equity Shares having face value of INR 1/- (Rupee One only) each fully paid-up, ranking pari-passu with each
other in all respects, effective from October 17, 2024 (“Record Date”).

ii. All Equity Shares have common voting rights, preferences and there are no restrictions inter-alia. Also, there are no other class of shares other
than equity shares.

iii. The Company has allotted 566520 (post-split 5665200) Equity shares on preferential basis on May 07, 2024 having face value of INR 10.00
each at an issue price of INR 120.05 per equity share [including premium of INR 110.05 per equity share] aggregating to INR 680.11 Lakhs.

iv. The Company has allotted 27500 (post-split 275000) Equity shares on preferential basis on May 10, 2024 having face value of INR 10.00 each
at an issue price of INR 120.05 per equity share [including premium of INR 110.05 per equity share] aggregating to INR 33.01 Lakhs.

v. There are no shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

vi. There are no calls unpaid by Directors and Officers.

vii. There are no forfeited shares with the company.

Terms of Warrants Convertible into Equity Shares

The Company has allotted 3266800 Fully Convertible Equity Warrants (“Warrants”), each convertible into, or exchangeable for, 1 (One) fully paid-
up equity share of the Company of face value Rupees 10.00 (Rupees Ten only), at a price of Rupees 120.05 per equity share (including a premium
of Rupees 110.05 per equity share) aggregating to INR 3,921.79 Lakhs, out of which (1) 684236 Warrants have been converted into equity shares
on September 30, 2024 and the Company has allotted 684236 (post-split 6842360) of face value Rupees 10.00 (Rupees Ten only) each, and (2)
1666240 Warrants have been converted into equity shares on October 01,2024 and the Company has allotted 1666240 (post-split 16662400) of
face value Rupees 10.00 (Rupees T en only) each. Balance 916324 warrants on which minimum subscription am ount have already been received,
are outstanding for conversion as on March 31,2025. The details of major terms and conditions of convertible Warrant are as under;

- The Warrants shall not carry any voting rights until they are converted into equity shares

- The right attached to Warrants may be exercised by the Warrant holder, in one or more tranches, at any time on or before the expiry of 18
(eighteen) months from the date of allotment of the Warrants i.e. May 10, 2025

- the price of Warrants determined above and the number of equity shares to be allotted on exercise of the Warrants shall be subject to
appropriate adjustments, if applicable. If the amount payable on account of the re-computation of price is not paid within the time stipulated in
SEBI (ICDR) Regulations, the Warrants shall continue to be locked- in till the time such amount is paid by the Warrant Holder.

- The tenure of Warrants shall not exceed 18 (eighteen) months from the date of allotment of Warrants. Accordingly, last date for conversion of
warrants into equity shares is November 09, 2025.

- The Warrants by itself, until exercised and converted into equity shares, shall not give the Warrant holders any rights with respect to that of an
equity shareholder of the Company.

Assets taken on lease where the company acquires substantially the entire risks and rewards incidental to ownership are classified as finance
leases. The amount recorded is the lesser of the present value of minimum lease rental and other incidental expenses during the lease term or the
fair value of the assets taken on lease. The rental obligations, net of interest charges, are reflected as secured loans. Leases that do not transfer
substantially all the risks and rewards of ownership are classified as operating leases and recorded as expense as and when the payments are
made over the lease term. Any advance payments of operating leases is recognized as an expense over the economic useful life of the asset under
lease.

The assets taken on lease by the Company includes leasehold land, and Staff Quarters taken from GIDC on future lease payments. The total of
future minimum lease payments under non-cancellable operating leases for each of the following periods are as shown below:

During the current year, the company has recognized an Increase in deferred tax asset, on account of temporary difference for taxation. Accordingly,
a deferred tax Asset has been increased by an amount of INR 11.33 Lakh from the existing deferred tax asset balance considering the principle of
prudence as per Para 16-18 & 58 of Ind AS - 12 (Income Taxes).

Note 34: EARNING PER SHARE

The basic earnings per share (“EPS”) is computed by dividing the net profit after tax for the year by the weighted average nu mber of equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax for the year and the weighted average
number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares
are deemed converted as of the beginning of the period, unless they have been issued at a later date. The company presents basic and diluted
EPS from continuing and discontinuing operations separately.

---

Mar 31, 2024

B. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation

These financial statements are the separate financial statements of the Company (also called as standalone financial statements). The company has prepared and presented the financials as per reporting requirements u/s 133 of Companies Act, 2013 and Companies (Indian Accounting Standards) Rules, 2015 ("Ind AS") as amended by Companies (Indian Accounting Standards) Rules, 2016 effective from 1st April 2016 on the accruals basis. Ind AS comprises mandatory accounting standards notified under the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Management evaluates all recently issued or revised accounting standards on an ongoing basis.

The financial statements have been prepared on a going concern and accrual basis. The accounting policies are applied consistently to all the periods presented in the financial statements. The financial statements of the Company for the year ended 31st March 2024 were approved by the Board of Directors on 18/04/2024.

b) Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives and dismantaling exps of fixed assets and intangible assets. The management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired.

An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset''s net sales price or present value as determined above. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Where no reliable estimate can be made, a disclosure is made as contingent liability. Actual results could differ from those estimates.

c) Fair Value Measurement

Some of the Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as pricing services, is used to measure fair values, then the company assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations

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Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

d) Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non- Current classification.

An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

e) Property, plant and equipment

Property, Plant & Equipment are carried at the cost of acquisition or construction less accumulated depreciation and impairment losses. The cost of Property, Plant & Equipment includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets as per Para 11 of Ind AS - 16, (Property Plant and Equipment). Borrowing and incidental costs directly attributable to acquisition or construction of those Property, Plant & Equipment which necessarily take a substantial period of time to get ready for their intended use are capitalised as per Para 8 of Ind AS - 8 (Borrowing Costs).

Advances paid towards the acquisition of Property, Plant & Equipment outstanding at each balance sheet date and the cost of Property, Plant & Equipment not ready for their intended use before such date are disclosed under capital work-in-progress.

Depreciation on Property, Plant & Equipment is provided using the written down value method at the rates specified in Schedule II to the Companies Act, 2013 or based on the useful life of the assets as estimated by Management. Depreciation is calculated on a prorata basis from the date of installation till the date the assets are sold or disposed. Disclosure as per Para 75-76 of Ind AS-16 (Property, Plant and Equipment) relating to dismantling cost is unascertainable. The management is unable to estimate the dismantaling cost of individual assets as the same is impracticable, due to the complexity and size of the company.

f) Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

No impairment loss for any assets have been identified and recorded during the year in terms of Para 58-64 of AS - 36, Impairment of Assets.

g) Inventories

Inventories are valued at cost (including cost for bringing the inventory to its current location and condition) or net realisable value whichever is less. Inventory as appearing in the financial statements is inclusive of duties, taxes and freight, in terms of Para 10 to 19 of Ind AS - 2, Inventories. Inventory excludes Goods and Services Tax.

h) Investments

Long-term investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.

i) Retirement Benefits

Retirement Benefits, are accounted on Actuarial Basis.

j) Foreign currency transactions and balances

Export Sales have been recorded at the prevailing customs rate as on the date of removal of goods from the factory. The relevant debtor ledger is debited / credited with appropriate profit / loss on foreign exchange transactions when the sale proceeds are actually received as per Para 21 of AS - 21, (The Effect of Changes in Foreign Exchange Rates).

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forward exchange contracts, are translated at year-end rates. The resultant exchange differences are recognised as Other Comprehensive Income under the group Other Equity. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.

k) Revenue Recognition

Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognised on dispatch of products to customers from the factory premises. Revenue from export sales is recognised on the date of removal of goods from the factory.

Revenue from product sales is stated exclusive of returns, applicable trade discounts, allowances, and GST.

Dividend income is recognised when the unconditional right to receive the income is established. Income from interest on deposits, loans and interest-bearing securities is recognised on the time proportionate method.

Export entitlements are recognised as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

The Customs Duty Drawback benefits have been recognized as recommended by the Expert Advisory Committee of ICAI. In the opinion of the Expert Advisory Committee on the accounting treatment of Duty Drawback benefit, wherein it has been opined that the benefit under the Duty Drawback Scheme should be recognised as income when the exports (against which the credit has been granted) are made, provided the criteria for recognition of revenue under As 9 have been fulfilled (query No. 28 of Vol. XX of Compendium of Opinions, page 96).

In the said opinion, the Committee has stated, inter alia, the following: “Under the facts and circumstances of the query, the Duty Drawback benefit should be recognised in the books of account when no significant uncertainties as to the amount of consideration that would be derived and as to its ultimate collection exist. In the case of drawback benefit on post-export basis when the company applies for the credit on realisation of export proceeds and the benefit is to be utilised for imports by the company, there seems to be no such significant uncertainty and, therefore, the drawback benefit should be recognised in the year in which the export was made.

l) Income Tax Expense

Income tax expense comprises current tax and deferred tax charge or credit.

Current Tax

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and is written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised. The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company has a legally enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

m) Financial instruments Initial Recognition

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through OCI) are included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trade) are recognised on trade date. While, loans and borrowings and payables are recognised net of directly attributable transaction costs.

The classification of financial instruments depends on the objective of the business model for which it is held. Management determines the classification of its financial instruments at initial recognition.

a) Non-derivative Financial Assets

(i) Financial assets at amortized cost

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss. Trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets are measured at Amortized Cost.

(ii) Debt instruments at FVTOCI

A debt instrument shall be measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the objective of the business model is achieved by both collecting contractual cash flows and selling financial assets and

(b) the asset''s contractual cash flow represents SPPI Debt instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value plus transaction costs. Fair value movements are recognised in other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain loss in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to profit and loss. Interest earned is recognised under the effective interest rate (EIR) model.

(iii) Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by- instrument basis. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividend are recognised in OCI which is not subsequently recycled to statement of profit and loss.

(iv) Financial assets at FVTPL

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as FVTPL.

In addition, the Company may elect to designate the financial asset, which otherwise meets amortised cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has not designated any financial asset as FVTPL.

Financial assets included within the FVTPL category are measured at fair values with all changes in the statement of profit and loss.

b) Non-derivative financial Liabilities

Financial liabilities at amortized cost

Financial liabilities at amortised cost represented by borrowings, trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest rate method.

n) Current Assets Balances

Balances of Sundry Creditors, Sundry Debtors and loans and advances are subject to confirmation. In the opinion of the Board of Directors, the current assets, loans and advances have a realisable value at least equal to the amounts at which they are stated in the Balance Sheet.

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Mar 31, 2023

B. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation

These financial statements are the separate financial statements of the Company (also called as standalone financial statements). The company has prepared and presented the financials as per reporting requirements u/s 133 of Companies Act, 2013 and Companies (Indian Accounting Standards) Rules, 2015 ("Ind AS") as amended by Companies (Indian Accounting Standards) Rules, 2016 effective from 1st April 2016 on the accruals basis. Ind AS comprises mandatory accounting standards notified under the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Management evaluates all recently issued or revised accounting standards on an ongoing basis.

b) Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives and dismantling expenses of fixed assets and intangible assets. The management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired.

An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset''s net sales price or present value as determined above. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Where no reliable estimate can be made, a disclosure is made as contingent liability. Actual results could differ from those estimates.

c) Fair V alue Measurement

Some of the Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as pricing services, is used to measure fair values, then the company assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices)

or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

d) Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non- Current classification.

An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

e) Property, plant and equipment

Property, Plant & Equipment are carried at the cost of acquisition or construction less accumulated depreciation and impairment losses. The cost of Property, Plant & Equipment includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets as per Para 11 of Ind AS - 16, (Property Plant and Equipment). Borrowing and incidental costs directly attributable to acquisition or construction of those Property, Plant & Equipment which necessarily take a substantial period of time to get ready for their intended use are capitalised as per Para 8 of Ind AS - 8 (Borrowing Costs).

Advances paid towards the acquisition of Property, Plant & Equipment outstanding at each balance sheet date and the cost of Property, Plant & Equipment not ready for their intended use before such date are disclosed under capital work-in-progress.

Depreciation on Property, Plant & Equipment is provided using the written down value method at the rates specified in Schedule II to the Companies Act, 2013 or based on the useful life of the assets as estimated by Management. Depreciation is calculated on a pro-rata basis from the date of installation till the date the assets are sold or disposed. Disclosure as per Para 75-76 of Ind AS-16 (Property, Plant and Equipment) relating to dismantling cost is unascertainable. The management is unable to estimate the dismantaling cost of individual assets as the same is impracticable, due to the complexity and size of the company.

f) Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

No impairment loss for any assets have been identified and recorded during the year in terms of Para 58-64 of AS - 36, Impairment of Assets.

g) Inventories

Inventories are valued at cost (including cost for bringing the inventory to its current location and condition) or net realisable value whichever is less. Inventory as appearing in the financial statements is inclusive of duties, taxes and freight, in terms of Para 10 to 19 of Ind AS - 2, Inventories. Inventory excludes Goods and Services Tax.

h) Investments

Long-term investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.

i) Retirement Benefits

Retirement Benefits, are accounted on Actuarial Basis.

j) Foreign currency transactions and balances

Export Sales have been recorded at the prevailing customs rate as on the date of removal of goods from the factory. The relevant debtor ledger is debited / credited with appropriate profit / loss on foreign exchange transactions when the sale proceeds are actually received as per Para 21 of AS - 21, (The Effect of Changes in Foreign Exchange Rates).

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forward exchange contracts, are translated at year-end rates. The resultant exchange differences are recognised as Other Comprehensive Income under the group Other Equity. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.

k) Revenue Recognition

Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognised on dispatch of products to customers from the factory premises. Revenue from export sales is recognised on the date of removal of goods from the factory.

Revenue from product sales is stated exclusive of returns, applicable trade discounts, allowances, and GST.

Dividend income is recognised when the unconditional right to receive the income is established. Income from interest on deposits, loans and interest-bearing securities is recognised on the time proportionate method.

Export entitlements are recognised as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

The Customs Duty Drawback benefits have been recognized as recommended by the Expert Advisory Committee of ICAI. In the opinion of the Expert Advisory Committee on the accounting treatment of Duty Drawback benefit, wherein it has been opined that the benefit under the Duty Drawback Scheme should be recognised as income when the exports (against which the credit has been granted) are made, provided the criteria for recognition of revenue under AS 9 have been fulfilled (query No. 28 of Vol. XX of Compendium of Opinions, page 96).

In the said opinion, the Committee has stated, inter alia, the following: "Under the facts and circumstances of the query, the Duty Drawback benefit should be recognised in the books of account when no significant uncertainties as to the amount of consideration that would be derived and as to its ultimate collection exist. In the case of drawback benefit on post-export basis when the company applies for the credit on realisation of export proceeds and the benefit is to be utilised for imports by the company, there seems to be no such significant uncertainty and, therefore, the drawback benefit should be recognised in the year in which the export was made.

l) Income Tax Expense

Income tax expense comprises current tax and deferred tax charge or credit.

Current Tax

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and is written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised. The breakup of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company has a legally enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

m) Financial instruments Initial Recognition

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through OCI) are included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trade) are recognised on trade date. While, loans and borrowings and payables are recognised net of directly attributable transaction costs.

Subsequent Measurement

The classification of financial instruments depends on the objective of the business model for which it is held. Management determines the classification of its financial instruments at initial recognition.

a) Non-derivative Financial Assets

(i) Financial assets at amortized cost

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss. Trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets are measured at Amortized Cost.

(ii) Debt instruments at FVTOCI

A debt instrument shall be measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the objective of the business model is achieved by both collecting contractual cash flows and selling financial assets and

(b) the asset''s contractual cash flow represents SPPI Debt instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value plus transaction costs. Fair value movements are recognised in other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain loss in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to profit and loss. Interest earned is recognised under the effective interest rate (EIR) model.

(iii) Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by- instrument basis. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividend are recognised in OCI which is not subsequently recycled to statement of profit and loss.

(iv) Financial assets at FVTPL

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as FVTPL.

In addition, the Company may elect to designate the financial asset, which otherwise meets amortised cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has not designated any financial asset as FVTPL.

Financial assets included within the FVTPL category are measured at fair values with all changes in the statement of profit and loss. b) Non-derivative financial Liabilities