Accounting Policies of Suncity Synthetics Ltd. Company

Mar 31, 2025

Note No. 1 - Significant Accounting Policies

A. Basis of Preparation

(i) Statement of compliance

These financial statements have been prepared in accordance with the Indian
Accounting Standards (hereinafter referred to as the ‘IND AS’) as notified by Ministry of
Corporate Affairs pursuant to section 133 of the Companies Act, 2013 (‘Act’) read with
the Companies (Indian Accounting standards) Rules, 2015 and other relevant provisions of
the Act.

The accounting policies are applied consistently to all the periods presented in the
financial statements, including the preparation of the opening IND AS Balance Sheet as at
1st April, 2016 being the date of transition to IND AS.

(ii) Historical cost convention

These financial statements have been prepared on a historical cost basis. Historical cost
is generally based on the fair value of the consideration given in exchange for goods and
services. Fair value is the price that would be received to sell an asset of paid to transfer
a liability in an orderly transaction between market participants at the measurement
date.

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the
company’s normal operating cycle (twelve months) and other criteria set out in the
Schedule III to the Act.

B. Use of Estimates and judgements

The preparation of financial statements in conformity with the recognition and
measurement principle of IND AS requires management to make estimates and
assumptions that affect the reported balances of assets and liabilities, disclosures of
contingent liabilities at the date of the financial statements and reported amounts of
income and expenses for the years presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and
future periods are affected.

C. Property, plant and equipment

Freehold land is carried at historical cost. All other items of property, plant and
equipment are stated at historical cost less depreciation and impairment, if any.
Historical cost includes expenditure that is directly attributable to the acquisition of the
items.

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 company 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 the
Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation on fixed assets is provided to the extent of depreciable amount on the
Straight Line Method (SLM). Depreciation is provided based on the useful life of the assets
as prescribed in the schedule II of the Companies Act, 2013. In respect of additions or
extensions forming an integral part of existing assets and insurance spares, including
incremental cost arising on account of translation of foreign currency liabilities for
acquisition of fixed assets, depreciation is provided from the date of such addition is put
to use by the company.

D. Investments

Long term Investments are stated at cost and where there is permanent diminution in
the value of investments a provision is made wherever applicable. Current Investments
are carried at lower of cost or quoted/fair value, computed category wise. Dividend is
accounted for as and when received.

E. Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable
value. An impairment loss is charged to the statement of profit and loss in the year in
which an asset is identified as impaired. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the estimate of the
recoverable amount. However, No Impairment loss is charged to Profit and loss for the
current reporting period.

F. Inventories

Items of inventories are measured at lower of cost and net realisable value after
providing for obsolescence, if any, except in case of by-products which are valued at
net realisable value. Cost of inventories comprises of cost of purchase, cost of
conversion and other costs including manufacturing overheads incurred in bringing them
to their respective present location and condition.

Cost of raw materials, process chemicals, stores and spares, packing materials, trading
and other products are determined on Weighted Average Method.

G. Revenue Recognition

Revenue is recognised only when risks and rewards incidental to ownership are
transferred to the customer, it can be reliably measured and it is reasonable to expect
ultimate collection. Revenue from operations includes sale of goods, services, service
tax, excise duty and sales during trial run period, adjusted for discounts (net), and
gain/loss on corresponding hedge contracts.

Interest income is recognised on a time proportion basis taking into account outstanding
and the interest rate applicable.

H. Cost recognition

Cost and expenses are recognised when incurred and have been classified according to
their nature. The cost of the company are broadly categorised in materials consumed,
employee benefit expenses, depreciation and other operating expenses.

I. Earnings per Share

Basic earnings per equity share are computed by dividing net profit after tax by the
weighted average number of equity shares outstanding during the year. Diluted earnings
per equity share is computed by dividing adjusted net profit after tax by the aggregate
of weighted average number of equity shares and dilutive potential equity shares
outstanding during the year. The company did not have any potentially dilutive
securities in the years presented.

J. Employee Benefits

The undiscounted amount of short -term benefits expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the period when
employees render the services. These benefits include performance incentive and
compensated absences. Post-employment benefits are not being treated as expenditure
in the year in which the amount is liable to be paid by the company. No provision is made
for such post-employment benefits.

K. Borrowing Cost

Borrowing cost related to acquisition or construction of qualifying specific Fixed Assets
have been capitalised. A qualifying asset is one that takes substantial period of time to
get ready for intended use or sale. All other borrowing costs are charged to revenue.

L. Income Taxes

Tax expense comprises of Current tax and net change in the deferred Tax assets or
liabilities for the year. Current tax is measured at the amount expected to be paid to the
tax authorities, using the applicable tax rates. Deferred income tax reflect the current

period timing differences between taxable income and accounting income for the period
and reversal of timing differences of earlier years/period. Deferred tax asset are
recognised only to the extent that there is a reasonable certainty that sufficient future
income will be available except that deferred tax assets, in case there are unabsorbed
depreciation or losses, are recognised if there is virtual certainty that sufficient future
taxable income will be available to realise the same. However, due to depreciation
losses during the current financial year, no provision for Income Tax is made for the year.

In accordance with IND AS, Taxes on income, deferred tax is recognised, subject to
consideration of prudence, being the difference between accounting and taxable
income that originate in one year and are capable of reversal in a subsequent year.
Deferred Tax assets and liabilities are measured using the tax rates and tax law that have
been enacted or substantively enacted by the Balance Sheet Date.

M. Impairment of Assets

At each balance sheet date, the Company assesses whether there is any indication that
an asset may be impaired. If any such indication exists, the Company estimates the
recoverable amount. If the carrying amount of the asset exceeds its recoverable
amounts, an impairment loss is recognised in the statement of profit and loss to the
extent that carrying amount exceeds the recoverable amount. There is no impairment
loss during the year.

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Mar 31, 2015

A. Basis of preparation of financial statements:

* These financial statements have been prepared to comply with the Accounting Principles generally accepted in India (India GAAP), the Accounting Standards notified under the companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 2013.

B. Use of Estimates:

* The preparation of financial statements in conformity with generally accepted accounting principles requires estimates, judgements and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expense during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialise.

C. Fixed Assets:

Tangible Assets

Depreciation on fixed assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on the useful life of the assets as prescribed in the schedule II of the companies Act, 2013. In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of fixed assets, depreciation is provided from the date of such addition is put to use by the company.

Assets having opening balance as on the last day of previous year and useful life thereof has been "Nil" as per the provisions of the schedule II of the companies Act, 2013 has been written off during the year to the extent of "salvage Value" or "Opening Balance" whichever is lower and adjusted to "Reserve and Surplus" of the Company.

D. Investments:

Long term Investments are stated at cost and where there is permanent diminution in the value of investments a provision is made wherever applicable. Current Investments are carried at lower of cost or quoted/fair value, computed category wise. Dividend is accounted for as and when received.

E. Impairment:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount. However, No Impairment loss is charged to Profit and loss for the current reporting period.

F. Inventories:

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on FIFO Method.

G. Revenue Recognition:

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Interest income is recognised on a time proportion basis taking into account outstanding and the interest rate applicable.

EXCISE DUTY/SERVICE TAX

Excise duty/Service Tax is accounted on the basis of both, payment made in respect of goods cleared / services provided and provisions made for goods lying in bonded warehouses.

H. Earnings per Share:

Basic earning per equity share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

I. Employee Benefits

The undiscounted amount of short -term benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when employees render the services. These benefits include performance incentive and compensated absences. Post-employment benefits are not being treated as expenditure in the year in which the amount is liable to be paid by the company. No provision is made for such post-employment benefits.

J. Borrowing Cost

Borrowing cost related to acquisition or construction of qualifying specific Fixed Assets have been capitalised. A qualifying asset is one that takes substantial period of time to get ready for intended use or sale. However, if the cost is not bifurcable to specific Fixed assets, such costs have been treated as pre operative expenses and such expenses to write off within next five years. All other borrowing costs are charged to revenue.

K. Income Taxes:

Tax expense comprises of Current tax as well as deferred Tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax asset are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same. However, due to depreciation losses during the current financial year, no provision for Income Tax is made for the year.

In accordance with Accounting Standard 22 - Taxes on income, deferred tax is recognised, subject to consideration of prudence, being the difference between accounting and taxable income that originate in one year and are capable of reversal in a subsequent year. Deferred Tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet Date.

L. Impairment of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amounts, an impairment loss is recognised in the statement of profit and loss to the extent that carrying amount exceeds the recoverable amount. There is no impairment loss during the year.

M. Provisions and Contingencies:

The Company creates a provision when there is a present obligation as result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the obligation cannot be made. The Provisions, Contingent Liabilities and Contingent Asset are reviewed at each balance sheet date.

N. PRELIMINARY AND PRE-OPERATIVE EXPENSES

Expenditures regarding incorporation of the company including business establishment expenses are treated as pre-operative expenditure. Any Expenditures recurring in nature incurred for commencement of production and are treated as Pre-operative Expenses. Such kind of expenses are capitalised and charged to profit and loss account in such a way that the same get written off within Five Financial year.

O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

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

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Mar 31, 2014

Not Available.

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Mar 31, 2012

1.1 Nil Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium and Reserves.

1.2 Nil Shares out of the issued, subscribed and paid up share capital were allotted in the last five years pursuant to the various Schemes of amalgamation without payment being received in cash.

1.3 Nil Shares out of the issued, subscribed and paid up share capital were allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited equity shares, since inception.

1.4 NIL Shares out of the issued, subscribed and paid up share capital held by Subsidiaries do not have Voting Rights and are not eligible for Bonus Shares.

1.5 375,000 Shares out of the issued, subscribed and paid up share capital were alloted as fully paidup Bonus Shares by way of capitalisation of reserves.

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Mar 31, 2011

Basis of Accounting:The accounts are prepared on accrual basis under the historical cost convention in accordance with mandatory accounting standards and relevant presentation requirments of the Companies Act, 1956.

Fixed Assets: Fixed assets are stated at cost of acquisition or construction including indirect cost related to construction.

Depreciation: Depreciation is provided on Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, on pro rata basis.

Inventories : Stocks are valued at cost or net realisable value whichever is lower.

Revenue Recognition:Revenue is recognised when no significant uncertainty as to determination or realisation exit.

Foreign Exchange Transactions:Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the reminttance.Current assets, current liabilities and loans denominated in foreign currencies are recorded on the date of transaction.

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

Investments: Long term assets are stated at cost. However diminution in value other than temporary is provided. The profit/loss arising on account of sales is recognised in the Profit & Loss A/c.

Taxation:

i) Current year charge The provision for taxation is made based on an estimate of assessable income determined by the company under the Income Tax Act, 1961.

ii) Deferred Tax Deferred tax is recognised, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

Treatment of Contingent Liability Contingent Liabilities are disclosed by way of Notes to Accounts.

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Mar 31, 2010

Basis of Accounting: The accounts are prepared on accrual basis under the historical cost convention in accordance with mandatory accounting standards and relevant presentation requirments of the Companies Act, 1956.

Fixed Assets: Fixed assets are stated at cost of acquisition or construction including indirect cost related to construction.

Depreciation: Depreciation is provided on Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, on pro rata basis.

Inventories: Stocks are valued at cost or net realisable value whichever is lower.

Revenue Recognition: Revenue is recognised when no significant uncertainty as to determination or realisation exit.

Foreign Exchange Transactions: Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the remittance. Current assets, current liabilities and loans denominated in foreign currencies are recorded on the date of transaction.

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

Investments: Long term assets are stated at cost. However diminution in value other than temporary is provided. The profit/loss arising on account of sales is recognised in the Profit & Loss A/c.

Taxation:

i) Current year charge: The provision for taxation is made based on an estimate of assessable income determined by the company under the lncome Tax Act, 1961.

ii) Deferred Tax: Deferred tax is recognised, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent years.

Treatment of Contingent Liability

Contingent Liabilities are disclosed by way of Notes to Accounts.