Accounting Policies of Suncare Traders Ltd. Company

Mar 31, 2024

Note: - 1 Significant accounting policies:

1.0 Corporate Information

Suncare Traders Limited is a Limited Company, incorporated under the provisions of
Companies Act, 2013 and having CIN: L51909GJ1997PLC031561. The Company is mainly
engaged in the business of trading in laminates, plywood and apart from trading of solar power
generation, etc. The Registered office of the Company is situated at 3RD FLOOR,CHINUBHAI
HOUSE ,7-B AMRUTBAUG COLONY, OPP.SARDAR PATEL STADIUM,NR HINDU

COLONY,NAVRANGPURA, Navjivan, Ahmedabad, Ahmadabad City, Gujarat, India, 380014

1.0 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

a. Accounting Convention: -

The financial statements have been prepared in accordance with Section 133 of Companies
Act, 2013, i.e. Indian Accounting Standards (''Ind AS'') notified under Companies (Indian
Accounting Standards) Rules 2015. The Ind AS Financial Statements are prepared on
historical cost convention, except in case of certain financial instruments which are
recognized at fair value.

All assets and liabilities have been classified as current or non-current as per the
Company''s normal operating cycle and other criteria set out in the Part I of Schedule Ill to
the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents.

b. Functional and Presentation Currency

All amounts disclosed in the financial statements and notes are rounded off to lakhs the
nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated.

The functional and presentation currency of the company is Indian rupees. This financial
statement is presented in Indian rupees. Due to rounding off, the numbers presented
throughout the document may not add up precisely to the totals and percentages may not
precisely reflect the absolute figures.

c. Compliance with Ind AS

The financial statements have been prepared in accordance with Ind AS notified under the
Companies (Indian Accounting Standards) Rules, 2015.

d. Use of Estimates and Judgments

The preparation of the Ind AS financial statements in conformity with the generally
accepted accounting principles in India requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities as of the Balance Sheet
date, reported amount of revenue and expenses for the year and disclosure of contingent
labilities and contingent assets as of the date of Balance Sheet. The estimates and

assumptions used in these Ind AS financial statements are based on management''s
evaluation of the relevant facts and circumstances as of the date of the Ind AS financial
statements. The actual amounts may differ from the estimates used in the preparation of the
Ind AS financial statements and the difference between actual results and the estimates are
recognized in the period in which the results are known/materialize.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in
future periods affected.

Particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial Statement are as below:

1. Valuation of Financial Instruments;

2. Evaluation of recoverability of deferred tax assets/Liabilities ;

3. Useful lives of property, plant and equipment and intangible assets;

4. Measurement of recoverable amounts of cash-generating units;

5.Obligations relating to employee benefits;

6. Provisions and Contingencies;

7. Provision for income taxes, including amount expected to be paid/recovered for
uncertain tax positions;

8. Recognition of Deferred Tax Assets/Liabilities

e. Current versus Non-Current Classification

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

An asset / liability is treated as current when it is:-

i. Expected to be realised or intended to be sold or consumed or settled in normal
operating cycle.

ii. Held primarily for the purpose of trading.

iii. Expected to be realised / settled within twelve months after the reporting period,
or.

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

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

All other assets and liabilities are classified as non-current.

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

1.2 ACCOUNTING POLICIES:

(A) Property, Plant and Equipment

All items of property, plant and equipment are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Cost includes purchase price, non-recoverable taxes and duties, labour cost and direct
overheads for self-constructed assets and other direct costs incurred up to the date the asset
is ready for its intended use.

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

Depreciation is provided on the Written-Down Value (WDV) over the estimated useful lives of
the assets considering the nature, estimated usage, operating conditions, past history of
replacement, anticipated technological changes, manufacturers'' warranties and maintenance
support. The Company provides pro-rata depreciation from the day the asset is put to use and
for any asset sold, till the date of sale.

Projects under commissioning and other Capital work-in-progress are carried at cost
comprising of direct and indirect costs, related incidental expenses and attributable interest.
Depreciation is not recorded on capital work-in-progress until construction and installation
are complete and the asset is ready for its intended use.

An item of property, plant and equipment is derecognized on disposal. Any gain or loss arising
from derecognition of an item of property, plant and equipment is included in profit or loss.

(B) Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes, accumulated
amortization, and impairment losses, if any. Such costs include purchase price, borrowing
cost, and any cost directly attributable to bringing the asset to its working condition for the
intended use, net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets.

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 entity and cost can be measured reliably.

The amortization period for intangible assets with finite useful lives is reviewed at each year-
end. Changes in expected useful lives are treated as changes in accounting estimates.

Internally generated intangible asset Research costs are charged to the statement of Profit
and Loss in the year in which they are incurred.

The cost of an internally generated intangible asset is the sum of directly attributable
expenditure incurred from the date when the intangible asset first meets the recognition
criteria to the completion of its development.

Product development expenditure is measured at cost less accumulated amortisation and
impairment, if any. Amortisation is not recorded on product in progress until development is
complete.

Gains or losses arising from derecognition of an Intangible 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.

(C) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or changes
in circumstances indicate that they might be impaired. Other assets are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized 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.

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 recognized in the statement of profit and loss. If at the balance sheet date there is an
indication that 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 depreciable historical cost.

(D) Leases

As a lessee

The Company has applied IND AS 116 using the partial retrospective approach.

The Company assesses at contract inception whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration.

The Company applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. The Group recognizes lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying
assets.

Right of use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognized, initial direct costs incurred, and lease payments made at or before the

commencement date less any lease incentives received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets.

Lease Liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees.

In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the underlying asset.

As Lessor:

At the inception of a lease, the lease arrangement is classified as either a finance lease or an
operating lease, based on contractual terms & substance of the lease arrangement. Whenever
the terms of the lease transfer substantially all the risks and rewards of ownership to the
lessee, the contract is classified as a finance lease. All other leases are classified as operating
leases.

Amounts due from lessees under finance leases are recognised as receivables at the amount of
the Company''s net investment in the leases. Finance lease income is allocated to accounting
periods so as to reflect a constant periodic rate of return on the Company''s net investment
outstanding in respect of the leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the
relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are
added to the carrying amount of the leased asset and recognised on a straight-line basis over
the lease term.

(E) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to Chief Operating Decision Maker (CODM).

The Company has identified its Managing Director as CODM who is responsible for allocating
resources and assessing performance of the operating segments and makes strategic
decisions.

The Company is operating in single business segments i.e. trading in laminates, plywood
items. Hence, reporting requirement of Segment reporting is not arise.

(F) Statement of Cash flow

Cash Flows of the Group are reported using the indirect method, whereby profit before tax is
adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or
future operating cash receipts or payments and item of income or expenses associated with
investing or financing Cash Flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

(G) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and highly liquid
investments with an original maturity of up to three month that are readily convertible into
cash and which are subject to an insignificant risk of changes in value.

(H) Inventories

Inventories includes raw material, semi-finished goods, stock -in -trade, finished goods, stores
& spares, consumables, packing materials, goods for resale and material in transit are valued
at lower of cost and net

Stock-in-trade - Cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and conditions. Cost is determined on First-In-First-Out
basis.

Stores, Spare Parts, Consumables, Packing Materials etc. - Cost is determined on on First-In¬
First-Out basis.

Goods for Resale - valuation Cost is determined on First-In-First-Out basis.

realizable Net realizable value represents the estimated selling price for inventories less all
estimated costs of completion and costs necessary to make the sale. Adequate allowance is
made for obsolete and slow-moving items.

(I) Foreign Currency Transactions
i) Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the
foreign currency amount the exchange rate between the functional currency and the
foreign currency at the date of the transaction.

ii) Subsequent Recognition

As at the reporting date, non-monetary items which are carried in terms of historical
cost denominated in a foreign currency are reported using the exchange rate at the date
of the transaction. All non-monetary items which are carried at fair value or other
similar valuation denominated in a foreign currency are reported using the exchange
rates that existed when the values were determined.

All monetary assets and liabilities in foreign currency are restated at the end of
accounting period. Exchange differences on restatement of all other monetary items are
recognised in the Statement of Profit and Loss.

Any subsequent events occurring after the Balance Sheet date up to the date of the approval of
the financial statement of the Company by the board of directors on 27^th May, 2023 have been
considered, disclosed and adjusted, if changes or event are material in nature wherever
applicable, as per the requirement of Ind AS.

(J) Income Taxes

The tax expense for the period comprises of current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss, except to the extent that it relates to items
recognized in the Other Comprehensive Income or in Equity. In which case, the tax is also
recognized in Other Comprehensive Income or Equity.

I. Current tax: -

Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with the taxation laws prevailing in the respective jurisdictions. Current tax
assets and current tax liabilities are offset when there is a legally enforceable right to
set off the recognized amounts and there is an intention to settle the asset and the
liability on a net basis.

II. Deferred tax:-

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and
liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amount in financial
statements.

Deferred tax asset is recognized to the extent that it is probable that taxable profit will be
available against which such deferred tax assets can be realized. The carrying amount of
deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilized.

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Mar 31, 2018

Note:-1 Significant accounting policies:

a. Disclosure of accounting policies: -

The Financial statements are prepared under the accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP), and pursuant to section 133 of the companies act, 2013 as applicable, till the standards of accounting or any addendum thereto are prescribe by central government. Existing Accounting Standards notified under the company’s act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules,2006 as amended] and other relevant provisions of the companies act,2013 (the ‘Act’).

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets & Liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which results are known/materialized.

b. Valuation of Inventory : -

Raw Material : At Lower of Cost or Net realizable value.

Semi-finished goods : At estimated cost.

Finished goods : At Lower of Cost or Net Realizable Value

c. Cash Flow Statements:-

Cash flow statement has been prepared by indirect method as prescribed in the AS-3.

d. Contingencies and Events Occurring After the Balance Sheet Date: -

Effects of, events occurred after Balance Sheet date and having material effect on financial statements are reflected wherever required.

e. Net Profit or loss for the period, prior period items and changes in accounting policies: -

Material items of prior period, non-recurring and extra ordinary items are shown separately, If any.

f. Depreciation accounting: -

Depreciation has been provided under Straight line method as per the useful life prescribed under schedule II of the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the half year, pro-rata depreciation has been provided at the rates prescribed under Schedule II.

g. Revenue Recognition:-

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept.

Dividend from investments in shares / units is recognized when the company.

Other items of Income are accounted as and when the right to receive arises.

h. Accounting for Fixed Assets :-

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any other attributable cost of bringing the asset to its working condition for its intended use less CENVAT claimed.

i. Accounting for effects of changes in foreign exchange rates :-

(a). Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transactions.

(b). Any income or expenses on account of exchange difference either on settlement or on Balance sheet Valuation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

(C). Foreign currency transactions accounts are given in the notes of accounts.

j. Accounting for Government Grants :-

Capital subsidiary receivable specific to fixed assets is treated as per accounting standard 12 and other revenue grants is recorded as revenue items.

k. Employees Retirement Benefit Plan :-

a. Provident Fund :-

Provident fund is a defined contribution scheme as the company pays fixed contribution at predetermined rates. The obligation of the company is limited to such fixed contribution. The contributions are charged to Profit & Loss A/c.

b. Leave Encashment :-

The Management has decided to apply pay-as-you-go method for payment of leave encashment. So amount of leave encashment will be accounted in the Profit & Loss A/c in the financial year in which the employee retires and provision will not be made on yearly basis.

c. Provision for Gratuity :-

The Management has decided to apply pay-as-you-go method of gratuity provision. So gratuity will be accounted in the Profit & Loss A/c in the financial year in which the employee retires and provision will not be made on yearly basis.

l. Borrowing Cost :-

Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized till the same is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing cost is charged to revenue.

m. Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given in notes of accounts.

n. Accounting for Leases :-

The Company has not entered into any lease agreements during the half year.

o. Earnings Per Share :-

Disclosure is made in the Notes of accounts as per the requirements of the standard.

p. Accounting for Taxes on Income :-Current Tax :-

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Taxes :-

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

1. Deferred Tax Assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available in the future against which this items can be utilized.

2. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets is realized or the liability is settled, based on tax rates ( and the tax) that have been enacted or enacted subsequent to the balance sheet date.

q. Discontinuing Operations :-

During the half financial year the company has not discontinued any of its operations.

r. Provisions Contingent liabilities and contingent assets :-

- Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

- Contingent Liabilities are not recognized but are disclosed in the notes.

- Contingent Assets are neither recognized nor disclosed in the financial statements.

- Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.