Accounting Policies of Assam Entrade Ltd. Company

Mar 31, 2025

2. Summary of significant accounting policies.

The principal accounting policies applied in the preparation of these standalone financial statements arc set
out below. These policies have been consistently uppiicd to all the years presented, unless otherwise stated.

2.1 Basis of preparation of financial statements

i. Statement of compliance with IND AS

These financial statements arc prepared in accordance with Indian Accounting Standards (lnd AS) as
per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and
notified under section 133 of the Companies Act, 2013 along with other relevant provisions and
directions issued by Reserv e Bank of India to the extent applicable.

ii. Historical Cost Convention

The standalone financial statements have been prepared on a historical cost basis except for the

following:

• Derivative financial instruments are measured at fair value

• Investments are measured at fair value net of impairment losses if any on investment.

iii. Going Concern

Financial Statements arc prepared on a going concern basis unless management either intends to
liquidate the entity or to cease trading, or has no realistic alternative but to do so.

iv. Use of Estimates and Judgments

The preparation of financial statements in conformity with the recognition and measurement
principles of Ind AS requires the management of the company to make judgments, estimates
and assumptions, that affect the application of accounting policies and the reported amounts
of revenues and expenses for the years presented. Actual results may differ from these
estimates.

Estimates and underlying assumptions about significant arc reviewed at each balance sheet
date. Revisions to accounting estimates are recognized in the period in which the estimate is
revised and future period alTected.

Impairment of Investments

The company reviews its earning value of Investment carries at amortized cost annually, or
more frequently when there is indication for impairment. If the recoverable amount is less
than its carrying amount, the impairment loss is accounted for.

Useful life of property, plant and equipment

The company reviews the useful life and residual value of property, plant and equipment at
the end of each reporting period. Thus, assessment may result in change in depreciation
expense in future periods.

Valuation of Deferred assets/ Liabilities

The company review''s the carrying amount of deferred tax assets / liabilities at the end of
each reporting period.

2.2 Foreign Currency Translation

i. Functional and presentation currency

The Company’s functional currency and presentation currency is Indian Rupees (?) in Lacs. All
amounts disclosed in the financial statements and notes are in Indian Rupees (?) in Lacs

2.3 Financial instruments

Initial Recognition and measurement

A financial instrument is any contract that at the same lime gives rise to a financial asset of one entity
and a financial liability'' or equity instrument of another entity''. Finuncial assets and financial liabilities
are recognized when the entity becomes a party to the contractual provisions of the instrument.

When the fair value of financial assets and liabilities differs from the transaction price on initial
recognition, the entity recognizes the difference as follows: -

a. When the fair value is evidenced by quoted price in an active market for an identical asset or liability
(i.e., Level I input) or based on a valuation technique that uses only data from observable markets, the
difference is recognized as a gain or loss.

2.4 Financial Assets

i. Initial recognition and measurement

Financial Asset, with the exception of loans and advances to customers, are initially recognized on
the trade date, i.c., the date that the Company becomes a party to ti>e contractual provisions of the
instrument. Loans and advances to customers are recognized when funds arc disbursed to the
customers. The classification of financial instruments at initial recognition depends on tlieir purpose
and characteristics and the management''s intention when acquiring them. All financial assets are
recognized initially at fair value plus, in the ease of financial assets not recorded at fair value through
profit or loss, transaction costs that arc attributable to the acquisition of the financial asset.

ii. Classification and subsequent measurement

The Company has applied Ind AS 109 and classified its financial assets in the following
measurement categories: -

> Fair value through profit or loss (FVTPL)

> Amortized Cost

Fair Value through profit or loss (FVTPI,): -Assets that do not meet the criteria for amortized
cost, arc measured at fair value through profit & loss.

Amortized cost: - Assets that arc held for collection of contractual cash flows where those cash
flows represent solely payments of Principal and Interest (‘SPIT), and that are not designated at
FVTPL arc measured at amortized cost. Carry ing amount of the assets is adjusted and expected
credit loss is recognized and measured on the doubtful assets.

Equity Instruments

Equity instruments arc instruments that meet the definition of equity from the issuer''s perspective:

I hat is. instruments that do not contain a contractual obligation to pay and that evidence a residual
interest in issuer’s net assets.

The company measures some equity instruments at fair value and others at amortized cost.
Management has elected to present fair value gains or losses on equity investments in profit & loss
account. Changes in the fair value of financial assets at fair value through profit or loss arc
recognized in net gainfloss on fair value changes in the Statement of Profit & Loss.

iii. Modification in classification of Loans/ Borrowings

The company modified the classification of loans previous year on the basis of contractual cash
flows expected from them in the future considering the factors like insolvency proceedings in acted
on some debtors, past trend of cash received and future uncertainty of recovery.

2.5 Financial liabilities

i. Initial recognition and measurement

Financial liabilities are classified and measured at amortized cost or FVTPL. A financial liability is
classified as at FVTPI, if it is classified as held-for trading or it is designated as on initial
recognition. All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts and derivative financial instruments

ii. Classification and subsequent measurement

Financial liabilities are measured at amortized cost except for:

> Derivatives, which have been measured at fair value through profit or loss

2.6 Reclassification of financial assets and liabilities

The Company doesn’t reclassify its financial assets subsequent to their initial recognition, apart front the
exceptional circumstances in which the Company acquires, disposes of, or terminates a business line.
Financial liabilities are never reclassified.

2.7 De-recognition of financial assets and liabilities

i. Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is dc-rccogniscd when the rights to receive cash flows from the financial asset
have expired. The Company also de-recognised the financial asset if it has transferred the
financial asset and the transfer qualifies for de recognition.

The Company has transferred the financial asset if, and only if, cither:

• It has transferred its contractual rights to receive cash flows from the financial asset or

• It retains the rights to the cash flows, but has assumed an obligation to pay the received cash
flows in full without material delay to a third party under a ''pass-through'' arrangement.
Pass-through arrangements are transactions whereby the Company retains the contractual rights
to receive the cash flows of a financial asset (the ''original asset*), but assumes a contractual
obligation to pay those cash flows to one or more entities (the ''eventual recipients''), when all of
the following three conditions are met:

• The Company has no obligation to pay amounts to the eventual recipients unless it has
collected equivalent amounts from the original asset, excluding short-term advances with the
right to full recovery of the amount lent plus accrued interest at market rates.

• The Company cannot sell or pledge the original asset other than as security to the eventual
recipients.

• I he Company has to remit any cash flows it collects on behalf of the eventual recipients
without material delay.

In addition, the Company is not entitled to reinvest such cash flows, except for investments in
cash or cash equivalents including interest earned, during the year between the collection date
and the date of required remittance to the eventual recipients

ii. Financial Liabilities

A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or expires. Where an existing financial liability is replaced by another from the same
lender on substantially different terms or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a de recognition of the original liability
and the recognition of a new liability. I he difference between the carrying value of the original
financial liability and the consideration paid is recognized in profit or loss.

2,8 ECL Principles

The company has reasonable and supportable information at the reporting date about past events, current
conditions and forecasts of future economic condition which make company believe that there is no
expected credit loss for company.

2.9 Derivatives and hedging activities

Derivatives arc initially recognized on the date on which the derivative contract is entered into and are
subsequently measured at fair value. All derivatives are carried as assets when tenns of the derivative are
favorable and as liabilities when terms of the derivative are unfavorable.

We have classified derivatives as - Derivatives (hat arc not designated as hedges because company
has not entered into contract to hedge specific risk.

2.10 Revenue Recognition

Revenue is recognized when the significant risk and rewards of ownership have been transferred to the
buyer, recovery of consideration is probable, and the associated cost can be estimated reliably.

a. The company derives its revenue primarily from sale of securities and Interest. Company earns
investment income which consists of interest and dividends for the year. Interest and other income
are recognized on accrual basis on time proportion basis. Dividend on equity securities is recorded as
and when the amount has actually been received.

b. A gain or loss on investment is only realized on disposal or transfer, and is difference between the
proceeds received, net of transaction costs, and its original cost. Unrealized gains and losses, arising
on investments which have not been derecognized as a result of disposal or transfer, represent the
difference between the currying value at the year end and carry ing value at the previous year end or
purchase value during the year, less previously recognized unrealized gains and losses.

c. Income from trading in derivatives, futures & options: -Derivatives arc initially recognized at the
date the derivative contracts arc entered into, and arc subsequently measured to their fair value at the
end of each reporting period. The resulting gain or loss is recognized in the statement of profit or
loss immediately. The amount of gain or loss arising out of trading are recorded as net of brokerage
and other expenses.

2.11 Income Tax

Hie income lax expense or credit for the period is the tax payable on the current period''s taxable income
based on the applicable income tax rate.

Current Tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the end of the reporting period. Management periodically evaluates position taken in tax returns with
respect to situations in which applicable tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred Tax

^{IXfCITtd income lax ls} P^{rovided on} temporary differences arising between the tax bases of assets and
liabilities and their carry ing amounts in the financial statements. Deferred income tax is determined
using the lax rate that have been enacted by the end of repotting period and are expected to apply when
the related deferred income tax asset is realized or deferred income tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities.

2.12 Cash and cash equivalents

Cash and cash equivalents are financial assets. Cash and cash equivalents consist of cash and short term
highly liquid investments that are readily convertible to cash with original maturities of three months or less
at the time of purchase and ate carried at cost plus accrued interest

2.13 Bank balance other than cash and cash equivalent

Highly liquid investments that are readily converted into cash with original maturities within 12 months at
the time of purchase arc classified under this head. The investments are carried at purchase cost plus accrued
interest.

2.14 Property, Plant and Equipment

Property, Plant and Equipment arc stated at cost of acquisition / construction, net of accumulated
depreciation and impairment losses if any. Subsequent costs are included in the assets carrying amount or
recognized as separate assets, 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 the replaced part is derecognized. All other repairs and maintenance arc changed to the
income statement during the financial period in which they arc incurred.

Borrow ing cost directly attributable to acquisition of property, plant and equipment which take substantial
period of time to get ready for its intended use arc also included to the extent they relate to the period till
such assets arc ready for intended use.

The gains and losses arising on disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sale proceeds and the carrying amount of the assets and is
recognized in statement of profit and loss.

The residual value, useful life, and method of depreciation, of property, plant and equipment is reviewed at
each financial year and adjusted prospectively, if appropriate.

Depreciation

Property, plant and equipment are depreciated on written down value method on the basis of useful life of
asset as specified in Schedule II of the companies Act 2013.

Impairment of assets

The carrying amount of assets are reviewed at each Balance Sheet date to assess if there is any indication of
impairment based on internal | external factors. An impairment loss on such assessment will be recognized
wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount of the
assets is net selling price or value in use, whichever is higher. While assessing value in use. the estimated
future cash flows are discounted to the present value by using weighted average cost of capital. A previously
recognized impairment loss is further provided or reversed depending on changes in the circumstances and to
the extent that carry ing amount of the assets does not exceed the carrying amount that will be determined if
no impairment loss had previously been recognized.

2.15 Inventories

Inventory of shares & securities is valued at lower of cost and net realizable value. Cost of raw materials,
components and consumables are ascertained on a FIFO basis. Cost includes fixed and variable production
overhead and net realizable value is the estimated selling price in the ordinary course of business less
estimated cost of completion and selling expenses.

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Mar 31, 2024

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