Accounting Policies of York Exports Ltd. Company

Mar 31, 2024

2. Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of
these financial statements. These policies have been consistently applied to all the years
presented, unless otherwise stated. The financial statements are for the Company consisting
of York Exports Limited (the ‘Company’).

i) Basis of Preparation
Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act, 2013 read with rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of
the Act.

The Financial Statements have been prepared on accrual basis and under historical cost
basis, except insurance claim and Employee’s Defined Benefit Plan as per actuarial
valuation.

All assets and liabilities have been classified as current & non-current as per Company''s
normal operating cycle and other criteria set out in the schedule III of the Act.

ii) Foreign currency transaction

Transaction denominated in foreign currency is recorded at the exchange rate prevailing
at the date of transaction. Exchange differences arising on settlement / conversion of
foreign currency transaction are included in the profit and loss account.

iii) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivables.
Amounts disclosed as revenue are net of returns, trade allowances and goods and service
taxes.

Sale of goods

Sales are recognised when substantial risk and rewards of ownership are transferred to
customer as per the terms of the contract, there is no continuing managerial involvement
with the goods. The Company retains no effective control of the goods transferred to a
degree usually associated with ownership and no significant uncertainty exists regarding
the amount of the consideration that will be derived from the sale of goods in case of
domestic customer, sales take place when goods are dispatched or delivery is handed
over to transporter.

Revenue from Services

Revenue from services is recognised in the accounting period in which the services are
rendered.

iv) Investments (Financial Assets)

Investments are carried at cost and provision is made in the accounts for diminution in
the value of investment.

a) Initial Recognition

Investments are initially recognised at cost.

b) Classification and Subsequent Measurement: Investment

The Company classifies investment as subsequently measured at fair value through
other comprehensive income (“FVOCI") on the basis of following:

- The entity''s business model for managing the financial assets and

- The contractual cash flow characteristics of the financial asset.

c) Impairment of Investments

• Investment other than those at FVTPL, are assessed for indicators of impairment at
the end of each reporting period. The impairment methodology applied depends
on whether there has been a significant increase in credit risk. In books such
impairment is recorded as diminution in the value of investment.

d) Investments in associates

Under Ind AS, Paragraph D14 and D15 of Ind AS 101 permits a first time adopter to
elect to continue with the carrying value of its investments in associates as recognised
in the financial statements as at the date of transition to Ind AS, measured as per the
previous GAAP.

v) Property, Plant and equipment & Intangible assets

All assets are stated at cost, net of taxes and includes incidental expenses and borrowing
cost, less accumulated depreciation and impairment loss if any.

On transition to Ind AS, the Company has adopted optional exemption under Ind AS 101
to measure property, Plant and Equipment at previous GAAP carrying value.
Consequently, the previous GAAP carrying value has been summed to be deemed cost
of Property, Plant and Equipment on the date of transition i.e. 1st April, 2016.

Depreciation methods, estimated useful lives and residual value

Depreciation for the year has been provided on Straight Line Method on the basis of useful
lives specified in Schedule-ll of the Companies Act, 2013.

vi) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw
materials cost plus conversion cost depending on the stage of completion, finished goods

at cost or net realisable value whichever is less and waste/damaged goods etc.at
estimated realisable value.

vii) Reorganization of Income & Expenditure

All incomes and expenditures are accounted for on accrued basis except insurance
claims, which are being counted for on receipt basis.

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Mar 31, 2014

I) Fixed Assets

(a) Fixed assets are stated at their original cost, which includes duties, taxes and incidental expenses.

(b) Depreciation has been provided on written down value method on pro-rata basis at the rates and manners prescribed by Schedule XIV of the Companies Act, 1956.

ii) Investments

Investments are carried at cost and provision is made in the accounts for diminution in the value of quoted investment

iii) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw materials cost plus conversion cost depending on the stage of completion, finished goods at cost or net realisable value whichever is less and waste/damaged goods etc. at estimated realisable value.

iv) Employees Benefits

(a) Gratuity- Provision for liability in respect of gratuity is accounted for on the basis of an independent actuarial valuation. The present value of defined benefit obligation as at the end of the year is determined using the projected Unit Credit method i.e. each period of service rendered by the employee is considered to give rise to an additional unit of benefit entitlement, gradually building up the final obligation.

(b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year.

(c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

v) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat.

vi) Reorganization of Income & Expenditure

All incomes and expenditures are accounted for on accrued basis except insurance claims, which are being accounted for on receipt basis.

vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is made in the accounts in respect of liabilities which are acknowledged by the company and which have material effect on the position stated in the balance sheet.

viii) Impairment of assets

At each balance sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that the assets suffered any impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment of loss. Recoverable amount is higher of the assets net selling price and value in use. In assessing value in use, estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pretax discount rate that reflects the current market assessment of time value of money and the risks specific to the assets.

ix) Taxes on Income including Deferred Tax

Current tax is determined as the amount of tax payable in respect of income for the period.

Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between the taxable income and accounting income that originate in one year and are capable of reversal in one or more year. Deferred tax assets are not recognized unless there is a sufficient assurance with respect to its reversal in future years.

x) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate prevailing at the date of transaction. Exchange differences arising on settlement / conversion of foreign currency transaction are included in the profit and loss account.

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Mar 31, 2013

I) Fixed Assets

(a) Fixed assets are stated at their original cost, which includes duties, taxes and incidental expenses.

(b) Depreciation has been provided on written down value method on pro-rata basis at the rates and manners prescribed by Schedule XIV of the Companies Act, 1956.

ii) Investments

Investments are carried at cost and provision is made in the accounts for diminution in the value of quoted investment

iii) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw materials cost plus conversion cost depending on the stage of completion, finished goods at cost or net realisable value whichever is less and waste/damaged goods etc. at estimated realisable value.

iv) Employees Benefits

a) The gratuity is charged to revenue on cash basis, so no provision has been made for gratuity. The accrued liability as on 31st March, 2013 in respect of gratuity is Rs.27,19,038/-(Previous year Rs.24,97,325/-)

b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year.

c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

v) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat.

vi) Reorganization of Income & Expenditure

All incomes and expenditures are accounted for on accrued basis except insurance claims, which are being accounted for on receipt basis.

vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is made in the accounts in respect of liabilities which are acknowledged by the company and which have material effect on the position stated in the balance sheet.

viii) Impairment of assets

At each balance sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that the assets suffered any impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment of loss. Recoverable amount is higher of the assets net selling price and value in use. In assessing value in use, estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pretax discount rate that reflects the current market assessment of time value of money and the risks specific to the assets.

ix) Taxes on Income including Deferred Tax

Current tax is determined as the amount of tax payable in respect of income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between the taxable income and accounting income that originate in one year and are capable of reversal in one or more year. Deferred tax assets are not recognized unless there is a sufficient assurance with respect to its reversal in future years.

x) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate prevailing at the date of transaction. Exchange differences arising on settlement / conversion of foreign currency transaction are included in the profit and loss account.

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Mar 31, 2012

I) Fixed Assets

(a) Fixed assets are stated at their original cost, which includes duties, taxes and incidental expenses.

(b) Depreciation has been provided on written down value method on pro-rata basis at the rates and manners prescribed by Schedule XIV of the Companies Act, 1956.

ii) Investments

Investments are carried at cost and provision is made in the accounts for diminution in the value of quoted investment

iii) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw materials cost plus conversion cost depending on the stage of completion, finished goods at cost or net realisable value whichever is less and waste/damaged goods etc. at estimated realisable value.

iv) Employees Benefits

a) The gratuity is charged to revenue on cash basis, so no provision has been made for gratuity. The accrued liability as on 31st March, 2012 in respect of gratuity is Rs.24.97,325/-(Previous year Rs.20,40,529/-)

b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year.

c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

v) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat

vi) Reorganization of Income & Expenditure

All incomes and expenditures are accounted for on accrued basis except insurance claims, which are being accounted for on receipt basis.

vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is made in the accounts in respect of liabilities which are acknowledged by the company and which have material effect on the position stated in the balance sheet.

viii) Impairment of assets

At each balance sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that the assets suffered any impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment of loss. Recoverable amount is higher of the assets net selling price and value in use. In assessing value in use, estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pretax discount rate that reflects the current market assessment of time value of money and the risks specific to the assets.

ix) Taxes on Income including Deferred Tax

Current tax is determined as the amount of tax payable in respect of income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between the taxable income and accounting income that originate in one year and are capable of reversal in one or more year. Deferred tax assets are not recognized unless there is a sufficient assurance with respect to its reversal in future years.

x) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate prevailing at the date of transaction. Exchange differences arising on settlement / conversion of foreign currency transaction are included in the profit and loss account.

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Mar 31, 2011

I) Fixed Assets

(a) Fixed assets are stated at their original cost, which includes duties, taxes and mental expenses. b) Depreciation has been provided on written down value method on pro-rata basis at the c) KS manners prescribed by Schedule XIV of the Companies Act, 1956.

ii) Investments

investments are carried at cost and provision is made in the accounts for diminution In the value of quoted investment iii) Inventories Valuation realizable value. iv) Retirement Benefits 20 40 529/- (Previous year Rs. 17,36,958/-)

b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year.

c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

iii) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat.

iv) Reorganization of Income & Expenditure

Ail incomes and expenditures are accounted for on accrued basis except insurance claims, which are being accounted for on receipt basis. vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is Madeira-the accounts in respect of liabilities which are acknowledged by the company and wh.ch have material effect on the position stated in the balance sheet.

v) Impairment of assets

At Ph balance sheet date the company reviews the carrying amount of its fixed assets to whether There is any indication that the assets suffered any impartment loss. any Sir rd carom exists the recoverable amount of the assets is estimated in order to determine she statement loss. Recoverable amount is higher of the assets net selling price Inn 12 the use assessing value in use, estimated future cash flows expected from the co timings the assets and from its disposal are discounted to their present value using a pretax Sun rate that reflects the current market assessment of time value of money and the risks specific to the assets.

vi) Taxes on Income

Current tax is determined as the amount of tax payable in respect of income for the period Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between the taxable income and accounting income that originate in one year and are capable of reversal in one or more year Deferred tax assets are not recognized unless there is a sufficient assurance with respect to its reversal in future years.

vii) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate prevailing at the date of transaction. Exchange differences arising on settlement / conversion of foreign currency transaction are included in the profit and loss account.

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Mar 31, 2010

I) Fixed Assets

(a) Fixed assets are stated at their original cost, which includes duties, taxes and incidental expenses.

(b) Depreciation has been provided on written down value method on pro-rata basis at the rates and manners prescribed by Schedule XIV of the Companies Act, 1956.

ii) Investments

Investments are carried at cost and provision is made in the accounts for diminution in the value of quoted investment

iii) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw materials cost plus conversion cost depending on the stage of completion, finished goods a cost or net realizable value whichever is less and waste/damaged goods etc. at estimate realizable value.

iv) Retirement Benefits

a) The gratuity is charged to revenue on cash basis, so no provision has been made for gratuity. The accrued liability as on 31st March, 2010 in respect of gratuity is; Rs.17,36,958/-(Previous year Rs.14,37,239/-)

b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year.

c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

v) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat.

vi) Reorganization of Income & Expenditure

AIM comes and expenditures are accounted for on accrued basis except insurance claim; which are being accounted for on receipt basis.

vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is made in the accounts in respect of liabilities which are acknowledged by the company and which have material effect on the position stated in the balance sheet.

viii) Impairment of assets

At each balance sheet date, the company reviews the carrying amount of its fixed assets determine whether there is any indication that the assets suffered any impairment loss If at such indication exists, the recoverable amount of the assets is estimated in order to deter mar the extent of impairment of loss. Recoverable amount is higher of the assets net selling pinch and value in use. In assessing value in use, estimated future cash flows expected from tt continuing use of the assets and from its disposal are discounted to their present value using pretax discount rate that reflects the current market assessment of time value of money and tell risks specific to the assets.

xi Taxes on income

Current tax is detained as the amount tax payable in respect of income for the period deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences being the differences, hang the difference between the taxable income and accounting of reversal in one or more year. Deferred tax assets are not recons. efficient assurance with respect to its reversal in future years.

x) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate prevailing at the date of transaction Exchange differences arising on settlement / conversion of foreign currency on account of bank balance lying in EEFC A/c as on 31 03 2010 less account.

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Mar 31, 2009

I) Fixed Assets

(a) Fixed assets are stated at their original cost, which includes duties, taxes and incidental expenses.

(b) Depreciation has been provided on written down value method on pro-rata basis at the rates and manners prescribed by Schedule XIV of the Companies Act, 1956.

ii) Investments

Investments are carried at cost and provision is made in the accounts for diminution in the value of quoted investment

iii) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw materials cost plus conversion cost depending on the stage of completion, finished goods at cost or net realisable value whichever is less and waste/damaged goods etc. at estimated realisable value.

iv) Retirement Benefits

a) The gratuity is charged to revenue on cash basis, so no provision has been made for gratuity. The accrued liability as on 31st March, 2009 in respect of gratuity is Rs 14,37,239/- (Previous year Rs. 9,85,387/-)

b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year.

c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

v) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat.

vi) Reorganization of Income & Expenditure

All incomes and expenditures are accounted for on accrued basis except insurance claims, which are being accounted for on receipt basis.

vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is made in the accounts in respect of liabilities which are acknowledged by the company and which have material effect on the position stated in the balance sheet.

viii) Impairment of assets

At each balance sheet date the company reviews the carrying amount of its fixed assets to determine whether there is any indication that the assets suffered any impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment of loss. Recoverable amount is higher of the assets net selling price and value in use. In assessing value in use, estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pretax discount rate that reflects the current market assessment of time value of money and the risks specific to the assets.

ix) Taxes on Income

Current tax is determined as the amount of tax payable in respect of income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between the taxable income and accounting income that originate in one year and are capable of reversal in one or more year. Deferred tax assets are not recognized unless there is a sufficient assurance with respect to its reversal in future years.

x) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate prevailing at the date of transaction. Exchange differences arising on settlement / conversion of foreign currency transaction including the Exchange differences on account of balance outstanding as on 31.03.2009 are included in the profit and loss account.