Accounting Policies of Surya India Ltd. Company

Mar 31, 2024

C Significant Accounting Policies

i) Property, Plant and Equipment
Recognition and Measurement :

The property, plant and equipment (PPE) are tangible assets which are held for use in production, supply of goods or
services or for administrative purposes.

Property, plant and equipment are measured at Cost (which includes capitalized borrowing costs, if any) net of tax/duty
credit availed less accumulated depreciation and accumulated impairment losses, if any. Cost includes any directly
attributable cost of bringing the item to its working condition for its intended use.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the Statement of
Profit and Loss.

The components have been identified by the management as per the requirement of schedule II to the Companies Act,
2013 and the identified components are being depreciated separately over their useful lives and the remaining
components are depreciated over the life of the principal assets.

The residual values and useful lives of property, plant and equipment is reviewed at each financial year end and adjusted
prospectively, if appropriate.

Subsequent Expenditure :

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. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period
in which they are incurred.

Depreciation/Impairment/Amortization :

Depreciation on tangible assets commences when the assets are ready for their intended use which is generally on
commissioning and is provided on the Straight Line Method over the useful lives of assets as defined in schedule II of the
Companies Act,2013.

Depreciation for assets purchased / sold during a period is proportionately charged.

ii) Investment Properties
Recognition and Measurement :

As per Ind AS 40 (Investment Property), properties (land and/or buildings) held to earn rentals or/and for capital
appreciation but not for sale in the ordinary course of business are categorized as investment properties.

Investment Properties are measured initially at cost, including transaction costs & borrowing cost, if recognition criteria is
met.

Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. Additional expenditure is capitalized to the Asset''s carrying amount only when it is probable that
future economic benefits associated with the expenditure will flow to the company and the cost of the item can be
measured reliably. All other repairs and maintenance costs are expensed when incurred.

Fair value of investments properties are disclosed in the notes. Fair values are determined based on the evaluation
performed by an accredited external independent valuer applying a recognized and accepted valuation model or
estimation based on available sources of information from market.

Transfers to or from the investment property is made only when there is a change in use and the same is made at the
carrying amount of Investment Property.

Investment properties are derecognized either when they have been disposed off or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the Statement of
Profit and Loss in the period of derecognition.

Depreciation :

Investment Properties are depreciated on straight line method based on expected life span of assets which is in
accordance with Schedule II of Companies Act, 2013.

iii) Intangible Assets
Recognition and Measurement :

Intangible assets are recognized when it is probable that future economic benefits that are attributable to concerned
assets will flow to the Company and the cost of the assets can be measured reliably.

Separately purchased intangible assets are initially measured at cost.

Subsequently, intangible assets are carried at cost less any accumulated amortization and accumulated impairment
losses, if any.

Gain or loss arising from derecognition of an intangible asset is recognized in the Statement of Profit and Loss.
Depreciation/Amortization :

The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortized on
a straight-line basis over the period of their expected useful lives.

The amortization period for indefinte-life intangible assets is reviewed at each financial year end and adjusted
prospectively, if appropriate.

iv) Impairment of Non-Financial Assets (Intangible Assets and Property, Plant and Equipment)

The carrying values of assets/cash generating units (CGU) at each balance sheet date are reviewed for impairment if any
indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount (i.e. higher of the fair value and the value
in use), impairment is recognized for such excess amount.

The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless the asset is carried at
revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the
extent a revaluation reserve is available for that asset.

When there is indication that an impairment loss recognized for an asset in earlier accounting periods which no longer
exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the
extent the amount was previously charged to the Statement of Profit and Loss.

v) Investment in subsidiary, Associates

Investments in subsidiaries, associates and jointly controlled entities are carried at cost less accumulated impairment
losses, if any.

Where an indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount.

On disposal of investments in subsidiaries, associates and jointly controlled entities, the difference between net disposal
proceeds and the carrying amounts are recognized in the Statement of Profit or Loss.

vi) Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand, bank balances and short-term deposits with an original maturity of
three months or less, which are subject to an insignificant risk of changes in value.

vii) Financial Instruments, Financial Assets and Financial Liabilities

(A) Financial Assets

(a) Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.

On initial recognition, a financial asset is recognized at fair value. In case of Financial assets which are recognized at fair
value through profit and loss (FVTPL), its transaction cost is recognized in the statement of profit and loss. In other cases,
the transaction cost is attributed to the acquisition value of the financial asset.

(b) Classification and Subsequent measurement

Financial assets are subsequently classified and measured at

• amortized cost

• fair value through profit and loss (FVTPL)

• fair value through other comprehensive income (FVOCI)

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at
amortized cost while investments may fall under any of the aforesaid classes. However, in respect of particular
investments in equity instruments that would otherwise be measured at FVTPL, an irrevocable election at initial
recognition may be made to present subsequent changes in FVOCI.

(c) Impairment of Financial Asset

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as
investments, trade receivables, advances and security deposits held at amortized cost and financial assets that are
measured at fair value through other comprehensive income are tested for impairment based on evidence or information
that is available without undue cost or effort.

(d) Reclassification

When and only when the business model is changed, the Company shall reclassify all affected financial assets
prospectively from the reclassification date as subsequently measured at amortized cost, FVOCI, FVTPL without restating
the previously recognized gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS
relating to Financial Instruments.

(e) Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire,
or it transfers the contractual rights to receive the cash flows from the asset and derecognition is measured at Amortized
Cost or FVOCI, depending upon the circumstances of the case and the individual characteristics of Instrument.

(B) Financial Liabilities

(a) Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities (Borrowings, trade payables and Other financial liabilities) are initially measured at the amortized cost
unless at initial recognition, they are classified as fair value through profit and loss.

(b) Subsequent measurement

Financial liabilities are subsequently measured at amortized cost.

(c) Derecognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

(C) Offsetting of Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally
enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset
and settle the liability simultaneously.

viii) Recognition of Revenue & Expenses

a) Revenue Recognition and Measurement

Interest Income

Interest Income is recognized on accrual basis as per the terms agreed with the party/parties, at fair value.

Rental Income

Rental Income is recognized on accrual basis at fair value as per the terms agreed with the party/parties.

Dividend

Dividend Income is recognized when the right to receive the dividend is established.

b) Recognition of Expenses

Expenses are accounted for on accrual basis.

ix) Employee Benefits

(A) Short-term employee benefits

All employee benefits falling due wholly within 12 months of rendering the services are classified as short-term employee
benefits, which include benefits like salaries, wages, etc. and are recognized as expenses in the period in which the
employee renders the related service.

(B) Post-employment benefits

a) Defined Contribution Plans

Contributions to defined contribution schemes such as Provident Fund, Pension Fund, ESI, etc., are recognized as
expenses in the period in which the employee renders the related service.

Provident Fund Contributions are made to government administered Provident Fund. In respect of contributions made to
government administered Provident Fund, the Company has no further obligations beyond its monthly contributions.

b) Defined Benefit Plans

The Company also provides for post employment defined benefit in the form of gratuity.

The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit
that employees have earned in the current and prior periods, after discounting the same. The calculation of defined
benefit obligations is determined using the projected unit credit method, with actuarial valuation being carried out at each
balance sheet date.

Re-measurement of the net defined benefit liability, which comprise actuarial gains and losses are recognized immediately
in Other Comprehensive Income (OCI). Net interest expense (income) on the net defined liability (assets) is computed by
applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses
related to defined benefit plans are recognized in Statement of Profit and Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service or the gain or loss on curtailment is recognized immediately in Statement of Profit and Loss.

The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(C) Other long-term employee benefits

All employee benefits like Earned Leaves and Sick Leaves (other than post-employment benefits and termination benefits)
which do not fall due wholly within 12 months after the end of the period in which the employees render the related
services are determined based on actuarial valuation carried out at each balance sheet date. The cost is determined using
the projected unit credit method, with actuarial valuation being carried out at each balance sheet date. Expense on non
accumulating compensated absences is recognized in the period in which the absences occur.

x) Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the asset.

Such capitalization is done only when it is probable that assets will result future economic benefit and the cost can be
measured reliably.

Capitalization of borrowing cost commences when all the following conditioned are satisfied:

i) Expenditure for the acquisition, construction or production of a qualifying assets is being incurred;

ii) Borrowing Cost are being incurred; and

iii) Activities that are necessary to prepare the assets for its intended use are in progress
Capitalization of borrowing costs is suspended when active development is interrupted.

Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

All other borrowing costs are charged to revenue account.

xi) Income Taxes

Income tax expense for the year comprises of current tax and deferred tax. It is recognized in the Statement of Profit and
Loss except to the extent it relates to a business combination or to an item which is recognized directly in equity or in
other comprehensive income (OCI).

Current Tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax
payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the
reporting date.

Deferred Tax

Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against
which the asset can be used.

Deferred tax assets recognized or unrecognized are reviewed at each reporting date and are recognized/reduced to the
extent that it is probable / no longer probable respectively that the related tax benefit will be realized.

A deferred tax liability is recognized based on the expected manner of realization or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period.

The Company offsets, the current tax assets and liabilities (on a year on year basis) and deferred tax assets and liabilities,
where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

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Mar 31, 2014

A. Basis of Accounting

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Accounting Convention

The financial statements are prepared under the historical cost convention on accrual basis, in accordance with generally accepted accounting principal in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under the subsection (l)(a) of section 642 and provisions of Companies Act ,1956.

The preparation of the financial statements in conformity to the above requires the management of the company to make estimates and assumption that affect the reported amounts of revenue and expenses of the year, reported balances of the assets and liabilities as on the date of the financial statement. Instances of such estimates include future obligation under the employee retirement benefit plans. Actual results could differ from those estimates.

C. Fixed Assets

Fixed Assets are capitalised at cost of acquisition inclusive of freight, transportation and other incidental expenses relating to installation.

D. Depreciation

Depreciation on fixed assets has been provided on Straight Line method at pro-rata basis, as per the rates prescribed in Schedule XIV of the Companies Act, 1956. Cost of Leasehold Land is amortised over lease period.

E. Taxation

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

Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

F. Additional Demand of Taxes

Payment of additional demand of Income Tax is accounted for on payment basis. Similarly refund of above is accounted for "As and when received" basis.

G. Investment

The investments are classified as current investment or long-term investment. Current Investments are carried at lower of Cost or Market Value. Long-term Investments are carried at cost and provision recorded to recognize any decline, other than temporary, in the carrying value such investment.

H. Lease

Assets given under lease where the significate portion of risk and rewards of ownership are retained by the company, are classified as operating lease. Lease rentals are charged to the statement of profit & Loss account on accrual basis.

I. Advances

Advances have been classified as "Standard", "Sub-standard" "Doubtful" and "Loss assets" and provisions for possible losses on such advances are made as per prudential norms issued by Reserve Bank of India as under:-

Sub-Standard asset

10%

Doubtful assets

100% of unsecured portion Plus 20%/30%/50% of secured portion depending upon the period for which advance has remained doubtful.

Loss assets

100%

Further, a general provision @0.25% on Standard Advances is made.

J. Statutory Reserve

The company has created a reserve fund by way of transferring a sum at the rate of 20% of its net profits in accordance with the directions of the Reserve Bank of India in pursuance of the issuance of certificate of registration under section of 45-1A of the Reserve Bank of India Act 1934.

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Mar 31, 2013

A. Basis of Accounting

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Accounting Convention

The financial statements are prepared under the historical cost convention on accrual basis, in accordance with generally accepted accounting principal in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under the subsection (l)(a) of section 642 and provisions of Companies Act ,1956.

The preparation of the financial statements in conformity to the above requires the management of the company to make estimates and assumption that affect the reported amounts of revenue and expenses of the year, reported balances, of the assets and liabilities as on the date of the financial statement. Instances of such estimates include future obligation under the employee retirement benefit plans. Actual results could differ from those estimates.

C. Fixed Assets

Fixed Assets are capitalised an cost of acquisition inclusive of freight, transportation and other incidental expenses relating to installation.

D. Depreciation

Depreciation on fixed assets has been provided on Straight Line method at pro-rata basis, as per the rates prescribed in Schedule XIV of the Companies Act, 1956. Cost of Leasehold Land is amortised over lease period.

E. Taxation

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

Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these -assets can be realised in future.

F. Additional Demand of Taxes

Payment of additional demand of Income Tax is accounted for on payment basis. Similarly refund of above is accounted for "As and when received" basis.

G. Investment

The investments are classified as current investment or long-term investment. Current Investments are carried at lower of Cost or Market Value. Long-term Investments are carried at cost and provision recorded to recognize any decline, other than temporary, in the carrying value of such investment.

H. Lease

Assets given under lease where the significate portion of risk and rewards of ownership are retained by the company, are classified as operating lease. Lease rentals are charged to the statement of profit & Loss account on accrual basis.

I. Advances

Advances have been classified as "Standard", "Sub-standard" "Doubtful" and "Loss assets" and provisions for possible losses on such advances are made as per prudential norms issued by Reserve Bank of India as under:-

Sub-Standard asset 10%

Doubtful assets

100% of unsecured portion Plus 20%/30%/50% of secured portion depending upon the period for which advance has remained doubtful.

Loss assets 100%

Further, a general provision @0.25% on Standard Advances is made.

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Mar 31, 2012

A. Basis of Accounting

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

B. Accounting Convention

The financial statements are prepared under the historical cost convention on accrual basis, in accordance with generally accepted accounting principal in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under the subsection (l)(a) of section 642 and provisions of Companies Act ,1956.

The preparation of the financial statements in conformity to the above requires the management of the company to make estimates and assumption that affect the reported amounts of revenue and expenses of the year, reported balances of the assets and liabilities as on the date of the financial statement. Instances of such estimates include future obligation under the employee retirement benefit plans. Actual results could differ from those estimates.

C. Fixed Assets

Fixed Assets are capitalised at cost of acquisition inclusive of freight, transportation and other incidental expenses relating to installation.

D. Depreciation

Depreciation on fixed assets has been provided on Straight Line method at pro-rata basis, as per the rates prescribed in Schedule XIV of the Companies Act, 1956. Cost of leasehold land is amortised over lease period.

E. Taxation

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

Deferred tax for timing differences between tax/profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

F. Additional Demand of Taxes

Payment of additional demand of Income Tax is accounted for on payment basis. Similarly refund of above is accounted for "As and when received" basis.

G. Investment

The investments are classified as current investment or long-term investment. Current investments are carried at lower of cost and Market Value. Long-term investments are carried at cost and provision recorded to recognize any decline, other than temporary, in the carrying value of such investment.

H. Lease

Assets given under lease where the significate portion of risk and rewards of ownership are retain by the company are classified as operating lease. Lease rentals are charged to the statement of profit & Loss account on accrual basis.

I. Advances

Advances have been classified as "Standard", "Sub-standard" "Doubtful" and "Loss assets" and provisions for possible losses on such advances are made as per prudential norms issued by Reserve Bank of India as under:-

Sub-Standard asset 10%

Doubtful assets

100% of unsecured portion Plus 20%/30%/50% of secured portion depending upon the period for which advance has remained doubtful.

Loss assets 100%

Further a general provision @0.25% on standard Advances is made.