Accounting Policies of Baheti Recycling Industries Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies

2.1 Basis of Preparation of Financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting principles
(GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards
as prescribed under Section 133 of the Companies Act,2013("the act") read with Rule 7 of the Companies (Accounts)
Rules,2014, the provisions of the Act.

2.2 Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires judgements, assumptions to be
made that effect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of
financial statement and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period in which the results are known/materialised.

2.3 Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis.
The accounts are prepared on historical cost basis and as a going concern basis. Accounting policies not referred to
specifically otherwise, are consistent with the generally accepted accounting principles.

2.4 Property, Plant & Equipment

Tangible Assets

Property, plant and equipment are stated under the cost model.i.e.at cost less accumulated depreciation and
impairment, if any, costs directly attributable to acquisition are capitalised until the property, plant and equipment
are ready for use, as intended by the management. Cost comprises the purchase

Property, plant and equipment are stated under the cost model.i.e.at cost less accumulated depreciation
and impairment, if any, costs directly attributable to acquisition are capitalised until the property, plant
and equipment are ready for use, as intended by the management. Cost comprises the purchaseprice
and any attributable cost of bringing the asset to its working condition for its intended use. Input tax
credit of GST grants on capital goods are accounted for by reducing the cost of capital goods.

Subsequent expenditures relating to property, plant and equipment are capitalised only when it is
probable that future economic benefits associated with them will flow to the company and the cost of
expenditure can be measured reliably. Repairs and maintenance costs are recognized in the statement
of profit and loss when they are incurred.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss
arising on the disposal or retirement of an asset is determined as the difference between sales proceeds
and the carrying amount of the asset and is recognized in statement of profit and loss for the relevant
financial year.

Intangible Assets

Intangible assets are measured at cost on initial recognition and are amortized on a straight-line basis
over their estimated useful lives, which are reviewed annually.

2.5 Depreciation

Depreciation on property, plant and equipment, tangible and intangible assets has been provided under
straight line method over the useful life of assets estimated by the management which is in line with
the terms prescribed in schedule II to the Companies act,2013. Depreciation for assets purchased/sold
during the period is proportionately charged. Depreciation method, useful life and residual value are
reviewed periodically.

2.6 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company
and the revenue can be reliably measured.

Sale of Goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have been
passed to the buyer. Sales are disclosed net of GST, trade discounts and returns as applicable.

Income from services

Revenue from services is recognized when services have been rendered and there should be no uncertainty
regarding consideration and its ultimate collection.

Interest Income

Interest income is recognized on a time proportionate basis taking into account the amount outstanding
and the rate applicable.

Dividend Income

Dividend income is recognised on receipt basis.

2.7 Inventories

Raw materials including stores item and packing material have been valued at cost. Cost is determined
on FIFO basis.

Cost of finished goods and semi-finished goods includes all cost of purchase, conversion cost and other
cost incurred in bringing the inventories to their present location and condition. The net realizable value
is estimated selling price in the ordinary course of business less the estimated costs of completion and
estimated cost necessary to make the finished goods/product ready for sale. Finished Goods has been
valued at Cost or Net realizable value whichever is lower. NRV is assessed at each reporting date

2.8 Investment

Investment which are readily realizable and intended to be held for not more than one year from the
date on which such investments are made, are classified as current investments. All other investments
are classified as non- current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and
directly attributable acquisition charges such as brokerage, fees and duties.

2.9 Retirement benefits and other employee benefits

All Short-term employee benefits are accounted on undiscounted basis during the accounting period
based on services rendered by employees. The company''s contribution to provident fund is charged to
the statement of profit and loss on accrual basis. The company''s obligation is limited to the amount to be
contributed by it. Gratuity is accounted for based on actuarial valuation using the Projected Unit Credit
Method. The scheme is unfunded

2.10 Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are
capitalized as part of the cost of such assets till such time the asset is ready for its intended use. A
qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.
Costs incurred in raising funds are amortized equally over the period for which the funds are acquired.
All other borrowing costs are charged to profit and loss account.

2.11 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects
of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts
or payments and items of income or expenses associated with investing and financing cash flows. The
cash flows from operating, investing and financing activities are segregated. Cash and cash equivalents
comprise cash at bank and in hand and short-term investments with an original maturity of three months
or less.

2.12 Taxation

The accounting treatment for the income tax in respect of the company''s income is based on the
accounting standard on "accounting for taxes on Income" (AS-22). The provision made for income
tax in accounts comprises both, the current tax and deferred tax. Provision for current tax is made
on the assessable income as per Income tax rate is applicable to the relevant assessment year after
considering various deductions available under income tax act,1961.

Deferred tax is recognised for all timing differences, being the differences between the taxable income
and accounting income that originate in one period and are capable of reversal in one or more subsequent
periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as
on the balance sheet date. The carrying amount of deferred tax asset/liability is reviewed at each balance
sheet date and consequential adjustments are carried out.

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Mar 31, 2024

1. Corporate Information

Baheti Recycling Industries Limited (Formaly Known as Baheti Metal and Ferro Allyos Limited) aluminium recycling company, primarily engaged in processing aluminium based metal scrap to manufacture (I) Aluminium alloys in the form of ingots and (II) Aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar. The versatile properties of aluminium and its alloys, results in it being used in various industries, which include automobiles, construction, electrical transmission application, food packaging etc. Aluminium alloys ar<* used in automobile components due to its stiffness, corrosion resistance and excellent strength to weight ratio. The Aluminium de-ox alloys are used as deoxidizer in steel manufacturing units.

Baheti Recycling Industries Limited ( was originally incorporated as a public limited company under the name of “Baheti Metal and Ferro Alloys Limited” on December 28,1994 under the provisions] of The Companies act,1956 with the Registrar of Companies, Gujarat, Dadra and Nagar Haveli bearing registration number as 04-24001.Subsequently ,the name of our company was changed from “Baheti Metal and Ferro Alloys Limited” to “Baheti Recycling Industries Limited vide a fresh certificate of incorporation dated January 25,2022,issued by the Registrar of the Companies, Ahmedabad, Gujarat bearing CIN as U37100GJ1994PLC024001.

2. Significant Accounting Policies

2.1 Basis of Preparation of Financial statements

There financial statements are prepared in accordance with Indian Generally Accepted Accounting principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act,2013(“the act”) read with Rule 7 of the Companies (Account) Rules,2014, the provisions of the act.

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2.2 Use of Estimates: ''

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that effect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statement and the reported amount of revenues and - expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.-

2.3 Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern basis. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles. \

2.4 Property. Plant & Equipment Tangible Assets

Property, plant and equipment are stated as per cost model.i.e.at cost less accumulated depreciation and impairment, if any, costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by the managemenfc^Bistxomprises the purchase

price and any attributable cost of bringing the asset to its working condition for its intended use. Input tax credit of GST, grants on capital goods are accounted for by reducing the cost of capital goods.

Subsequent expenditures relating to property, plant and equipment are capitalised only when it is probable that future economic benefits associated with them will flow to the company and the cost of expenditure can be measured reliably. Repairs and maintenance costs are recognized in the statement of profit and loss when they are incurred. /

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in statement of profit and loss for the relevant financial year.

Intangible Assets

Intangible assets purchased are initially measured at cost. The cost of an intangible asset comprises its purchase price including any cost directly attributable to making the asset ready for their intended use.

2.5 Denreciation

Depreciation on property, plant and equipment, tangible and intangible assets has been provided under straight line method over the useful life of assets estimated by the management which is in line with the terms prescribed in schedule II to the Companies act,2013. Depreciation for assets purchased/sold during the period is proportionately charged. Depreciation method, useful life and residual value are reviewed periodically.

2.6 Revenue Recognition _

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Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliable measured.

Sale of Goods _____

Revenue is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are disclosed net of GST, trade discounts and returns as applicable.

Income from services

Revenue from services is recognized when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection.

Interest Income

Interest income is recognized on a time proportionate basis taking into account the amount outstanding and the rate applicable.

Dividend Income

Dividend income is recognised on receipt basis.

2.7 Inventories

Raw materials including store item and packing material have been valued at cost. Cost is determined on FIFO basis.

Cost of finished goods and semi-finished goods includes all cost of purchase, conversion cost and other cost incurred in bringing the inventories to their present location and condition. The net realizable value is estimated selling price in the ordinary course of business less , the estimated costs of completion and estimated cost necessary to make the finished goods/product ready for sale.

2.8 Investment

Investment which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as noncurrent investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

2.9 Retirement benefits and other employee benefits

All Short-term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees. The company’s contribution to provident fund is charged to the statement of profit and loss on accrual basis. The company’s obligation is limited to the amount to be contributed by it. The liability in respect of gratuity is recognized on the basis of actuarial valuation.

2.10 Borrowing cost i

•I'' *-

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets till such time the asset is readyjor its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Costs incurred in raising funds are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to profit and loss account.

2.11 Cash Flow Statement

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

2.12 Taxation

The accounting treatment for the income tax in respect of the company’s income is based on the accounting standard on “accounting for taxes on Income” (AS-22). The provision made for income tax in accounts comprises both, the current tax and deferred tax. Provision for current tax is made on the assessable income as per Income tax rate is applicable to the relevant assessment year after considering various deductions available under income tax act,1961.

Deferred tax is recognised for all timing differences, being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. The carrying amount of deferred tax asset/liability is reviewed at each balance sheet date and consequential adjustments are carried out.

2.13 Provisions. Contingent liabilities and Contingent assets

A provision is recognized, if as a result of a past event, the company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the likely future outflow of economic benefits required to settle the obligation at the reporting date.

Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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

However, Contingent assets are assessed regularly and when it becomes reasonably certain that inflow of economic benefit will arise then same is recognised in books of accounts.

2.14 Contingencies and events occurring after the balance sheet date

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Events that occur between balance sheet date and date on which these are approved, might suggest the requirement for and adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure. Adjustments are required to assets andjiabilities for events which occur after balance sheet date which offer added information substantially affecting the determination of the amounts which relates to the conditions that existed at balance sheet date.

2.1$ Impairment of Assets

Ah asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows. An impairment loss is charged off to profit and loss account as and when asset is identified for impairment. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount: An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flow.

2.16 Foreign Currency Transactions

a. Initial Recognition:

Foreign currency transactions are recorded in the reporting currency by applying the exchange rate between the reporting currency and the foreign currency at the date of transaction.

b. Conversion:

Foreign currency monetary items are reported using the closing rate.

c. Exchange Difference:

Exchange differences arising on the settlement of monetary items at rates different from those at which they are initially recorded during the year or reported in previous financial statement are recognized as income or as expenses at the end of the year by applying closing rate.

2.17 Earnings per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of shares that could have been issued upon conversion of all dilutive potential equity shares.

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The diluted potential equity shares are adjusted for the proceeds receivable had the shares have been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

In case of bonus issue the weighted average number of equity shares outstanding during the period and for all periods presented should be adjusted for events, other than the conversion of potential equity shares, that have changed the numbeir of equity shares outstanding, without a corresponding change in resources.

2.18 Government Grants:

Government grants are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants will be received. ''

Government grants whose primary conditions that company should purchase, construct or otherwise acquired capital assets are presented by deducting them from carrying value of assets.

Grants related to the revenue are adjusted against expenses to the extent there is certainty to receive.

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Mar 31, 2023

I.Significant Accounting Policies & Notes on Accounts

The Financial Statements of the Company have been prepared in compliance of Companies (Accounting Standards) Rules, 2015 and other relevant provisions of Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India (SEBI) for listed public companies. A summary of important accounting policies is set out below: -

(A) Basis of Preparation

The financial Statements have been prepared and presented under the historical cost convention on the accrual basis of Accounting and comply with Generally Accepted Accounting Principles in India ("GAAP”) and notified accounting Standards prescribed under the Act to the Extent applicable and the current practices prevailing in such industry in India. Accounting Policies have been applied in accordance with relevant Accounting Standard or any change in existing standard has been notified separately in other notes.

Functional and Presentation Currency

The Financial Statements are presented in Indian Rupees (INR), and all the values are rounded to the nearest Lacs with two decimals, except when otherwise indicated.

(B) Revenue Recognition

(i) Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured.

(ii) Items of income and expenditure are generally accounted on accrual basis.

(C) Use of Estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liability at the date of the financial statements and results of operations during the reporting period. Although these Estimated are based upon the management best knowledge of current events and actions, actual results could differ from the estimates.

(D) Going concern

During the current year ended March 31, 2023, management has performed an assessment of the entity’s ability to continue as a going concern. Based on the assessment, management believe that there is no material uncertainty with respect to any events or conditions that may cast a significant doubt on the entity to continue as a going concern, hence the Financial Statements have been prepared on going concern basis.

(E) Property, Plant & Equipment’s

Property, Plant and Equipment are carried at acquisition cost, net of accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible asset are added to its book value if due to such expenditure it is probable that future economic benefits will arise to the company. Gains or Losses arising from disposal of tangible assets are recognized in the Statement of Profit and Loss.

Property, plant and equipment not ready for the intended use on the date of balance sheet are disclosed as "Capital work-in-progress”. Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

Depreciation

Depreciation is provided under Straight line method over the useful life of assets specified under sch-II to the Companies Act-2013 on single shift basis working as certified by Director. Depreciation on additions/deletion to/from fixed assets made during the year is provided on pro rata basis from/up to the date of such addition/deletion as the case may be.

The Company estimates the useful life for fixed asset as follows:

S. No.	Asset Classification	Useful life (Years)	Rate (%)
1.	Factory Building	10.00	3.17%
2.	Special Plant & Machinery	7.18	4.75%
3.	Plant & machinery Moulds	10.53	11.88%
4.	Furniture and Fixture	10.53	9.50%
5.	Plant & Machinery	7.18	6.33%
6.	Office Equipment	20.00	19.00%
7.	Computer	10.53	31.67%
8.	Motor Vehicle	10.53	15.83%

(F) Impairment of Asset

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest company of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risk specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

(G) Inventories

A. Inventories of Raw materials are valued at Cost. The Cost is determined on First in First Out (FIFO) Method Basis.

B. Stock of Work-in-progress is valued at cost. The Cost is determined on First in First Out (FIFO).

C. Stock of Finished goods is valued at cost or net realizable value basis, whichever is lower. The Cost is determined on First in First Out (FIFO).

(H) Recognition of Income and Expenditure

(i) Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured.

(ii) Items of income and expenditure are generally accounted on accrual basis.

(I) Taxes on Income

Income tax expense is accounted for in accordance with AS-22, “Accounting for Taxes on Income”, as stated below:

Provision for current tax is made based on taxable income for the year computed in accordance with provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax is measured based on the tax rates and tax laws enacted or substantially enacted at the to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Deferred tax asset is recognized and carried forward to the extent that there is a reasonable certainty of realization. In the case of unabsorbed depreciation and carry forward tax losses deferred tax asset is recognized to the extent there is visual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(J) Retirement & Other Employee Benefits1. Defined contribution plan

The Company’s employees are covered under state governed provident fund scheme and employees’ state insurance scheme which are in nature of Defined Contribution Plan.

The contribution paid/payable under the schemes are recognised during the period in which the employee renders the related service. The company’s contributions to Employees PF and ESI are charged to statement of profit and loss.

2. Defined Benefit Plans:

Employee gratuity fund scheme is the defined benefit plan. Provision for gratuity has been made in the accounts in respect of employees who have completed required number of years of service as on date of balance sheet based on Actuarial Valuation Report obtained from Actuarial Consultant. Gratuity is paid at the time of retirement of employees.

Short Term Employee Benefits like leave benefit, if any, are paid along with salary and wages as and when accrued, bonus to employees are charged to profit and loss account on the basis of actual payment on year to year basis.

(K) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resource will be required to settle the obligation, in respect of which is reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are shown by way of note in notes to accounts in respect of obligations where based on the evidence available, their existence at the balance sheet date is considered not probable. Contingent assets are neither recognized in the accounts not disclosed.

(L) Earning Per Share

Earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all potential dilutive equity shares.

(M) Foreign Currency Transactions

Transaction denominated in foreign currencies are normally recorded at exchange rate prevailing on the date of transactions. Exchange differences arising on foreign currency transaction settled during the period are recognised in the statement of Profit and Loss except in case where they relate to acquisition of fixed assets, are adjusted with the carrying cost of such assets.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the

recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

(N) Cash and Cash Equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash in hand and cash at bank including fixed deposit with original maturity period of three months and shortterm highly liquid investments with an original maturity of three months or less net of outstanding bank over drafts as they are considered an integral part of the Company’s cash management.

(O) Cash Flow Statement

Cash flows are reported using the Indirect Method, whereby profit before tax is adjusted for the effects of transactions of a non cash nature, any deferrals of past or future operating cash receipts or payment and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities pf the company are segregated.

(P) Borrowing Cost

Borrowing costs attributable to the acquisition, construction or production of qualifying assets shall be capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use or sale. Other borrowing costs shall be recognized as an expense in the period in which they are incurred.