Accounting Policies of Creative Graphics Solutions India Ltd. Company

Mar 31, 2025

Significant accounting policies

2. Basis of preparation

The financial statements of the Company have
been prepared in accordance with Indian
Accounting Standards (IndAS) notified under
the Companies (IndianAccounting Standards)
Rules, 2015 (as amended from time to time)
and presentation reguirements of Division II of
Schedule III to the Companies Act, 2013, (Ind
AS compliant Schedule III), as applicable to the
financial statements.

The financial statements have been prepared
on a historical cost basis, except for certain
financial assets and liabilities measured at fair
value (refer accounting policy regarding
financial instruments).

2.01 Property, plant and equipment

All items of property, plant and eguipment are
stated at historical cost less accumulated
depreciation and accumulated impairment
losses. Historical cost includes expenditure
that is directly attributable to the acguisition of
the items. Cost includes its purchase price
including non-refundable taxes and duties,
directly attributable costs of bringing the asset
to its present location and condition.

Subseguent 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.

The carrying amount of any component
accounted for as a separate asset is
derecognized when replaced. All other repairs
and maintenance are charged to statement of
profit or loss during the reporting period in
which they are incurred.

An asset''s carrying amount is written down
immediately to its recoverable amount if the
asset''s carrying amount is greater than its
estimated recoverable amount.

The residual values and useful lives of property,
plant and eguipment are reviewed at each
financial year end and changes, if any, are
accounted in the line with revisions to
accounting estimates.

Depreciation

Depreciation on property, plant and eguipment
is provided on straight line method, which is in
line with the estimated useful life as specified
in Schedule II of the Companies Act, 2013.

Depreciation commences when the assets are
ready for their intended use. The assets
residual values and useful lives are reviewed,
and adjusted if appropriate, at the end of each
reporting period.

Gains and losses on disposals are determined
by comparing net disposal proceeds with
carrying amount. These are included in the
statement of profit and loss.

2.02 Impairment of property, plant and
equipment

Consideration is given at each balance sheet
date to determine whether there is any
indication of impairment of the carrying
amount of the Company '' each class of the
property, plant and eguipment. If any indication
exists, an asset''s recoverable amount is
estimated. An impairment loss is recognized
whenever the carrying amount of an asset
exceeds its recoverable amount. The
recoverable amount is the greater of the net
selling price and value in use. In assessing
value in use, the estimated future cash flows
are discounted to their present value based on
an appropriate discount factor.

2.03 Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/non-
current classification. An asset is treated as
current when it is:

• Expected to be realised or intended to be
sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve
months after the reporting period, or

• Cash or cash eguivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months
after the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities as
non-current.

Deferred tax assets and liabilities are classified
as non-current assets and liabilities.

The operating cycle is the time between the
acguisition of assets for processing and their
realisation in cash and cash eguivalents. The
group has identified twelve months as its
operating cycle.

2.04 Fair value measurement

The Company measures financial instruments
at fair value at each balance sheet date. Fair
value is the price that would be received to sell
an asset or paid to transfer a liability in an
orderly transaction between market
participants at the measurement date. The fair
value measurement is based on the
presumption that the transaction to sell the
asset or transfer the liability takes place either:

• In the principal market for the asset or
liability, or

• In the absence of a principal market, in the
most advantageous market for the asset or
liability

The principal or the most advantageous market
must be accessible by the Company. The fair
value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial
asset takes into account a market participant''s
ability to generate economic benefits by using
the asset in its highest and best use or by
selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation technigues that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximising the use of relevant
observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

• Level 1: Quoted (unadjusted) market prices
in active markets for identical assets or
liabilities

• Level 2: Valuation technigues for which the
lowest level input that is significant to the
fair value measurement is directly or
indirectly observable

• Level 3: Valuation technigues for which the
lowest level input that is significant to the
fair value measurement is unobservable

For financial assets and liabilities maturing
within one year from the balance sheet date
and which are not carried at fair value, the
carrying amount approximates fair value to due
to shortterm maturity of these instruments.

The Company recognises the transfer between
the levels of fair value hierarchy at the end of
the reporting period during which the changes
has occurred.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.

This note summaries accounting policy for fair
value. Other fair value related disclosures are
given in the relevant notes.

• Quantitative disclosures of fair value
measurement hierarchy (Note 31)

• Financial instruments (including those
carried at amortised cost) (Note 31)

2.05 Revenue from contract with customers

Revenue is recognised at an amount that
reflects the consideration to which the
Company expects to be entitled in exchange for
transferring services to a customer. The
Company identifies the performance
obligations in its contracts with customers and
recognises revenue as and when the
performance obligations are satisfied.

Revenue from inter-company arrangement is
recognised based on transaction price which is
at arm''s length based on transfer pricing
arrangement.

Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, price concessions and
incentives, if any, as specified in the contract
with the customer. Revenue also excludes
taxes collected from customers.

Sale of products:

Revenue from sale of goods is recognised, net
of returns and trade discounts, deductions
claimed and / or allowed on account of price
difference, guantity discount and claims for
shortages etc., if any, on transfer of significant
risks and rewards of ownership to the buyer,
which generally coincides with the delivery of
goods. Sales excludes Goods & Services Tax
(GST). When there is uncertainty about the
ultimate collectability, the revenue recognition
is postponed until such uncertainty is resolved.

Other Income:

Revenue in respect of overdue interest,
insurance claims, etc. is recognised to the
extent the Company is reasonably certain of its
ultimate realisation.

Interest Income:

Interest income is accounted on receipt basis.
Dividend income is accounted for when the
right to receive is established. Interest from
customers on delayed payments are
recognised when there is a certainty of
realisation.

Export Incentive / Duty drawback:

Export incentives are recognised when there is
reasonable assurance that the Company will
comply with the conditions and the incentive
will be received.

2.06 Inventories

Inventories are valued at the lower of cost and
net realisable value.

Costs incurred in bringing each product to its
present location and condition are accounted
for as follows:

• Raw materials: Raw Materials and Packing
Materials are valued at cost determined on
Weighted Average method as the company
believes that it will not sell the products at
lower of the cost it incurs to manufacture it.

• Work in Progress: Work-in-process is valued
at estimated cost.

• Finished goods: At Lower of Cost or Net
Realisable Value. Cost includes Direct
Material, Direct Labour and other Direct
Costs.

Cost of inventories comprises of purchase
price, cost of conversion and other costs
including manufacturing overheads
appropriated through the system, net of
recoverable taxes incurred in bringing them to
the point of sale / consumption.

Initial cost of inventories includes the transfer
of gains and losses on gualifying cash flow
hedges, recognised in OCI, in respect of the
purchases of raw materials.

Net realisable value is the estimated selling
price in the ordinary course of business, less
estimated costs of completion and the
estimated costs necessary to make the sale.

2.07 T axes

Current income tax assets and liabilities are
measured at the amount expected to be
recovered from or paid to the taxation
authorities in accordance with the Income Tax
Act 1961. The tax rates and tax laws used to
compute the amount are those that are
enacted or substantively enacted, at the
reporting date.

Current income tax relating to items recognised
outside profit or loss is recognised outside
profit or loss (either in other comprehensive
income or in eguity). Current tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in eguity.
Management periodically evaluates positions
taken in the tax returns with respect to
situations in which applicable tax regulations
are subject to interpretation and establishes
provisions where appropriate.

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right
to set off the recognised amounts and there is
an intention to settle the asset and the liability
on a net basis.

Deferred Tax

Deferred tax is recognised using balance sheet
approach at the reporting date between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purpose at the
reporting date.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to
the extent that it is no longer probable that
sufficient taxable profits will be available to
allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax assets to be recovered.

Deferred tax assets and liabilities are measured
using the tax rates that are expected to apply in
a year when asset is realised or the liability is
expected to be settled based on the tax rates
and tax laws that have been enacted or
substantively enacted by the reporting date.

Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set off assets against liabilities
representing current tax where the deferred tax
assets and deferred tax liabilities relate to taxes
on income levied by the same governing
taxation laws.

Current and deferred tax for the year

Current and deferred tax are recognised in the
statement of profit or loss, except when they
relate to items that are recognised in other
comprehensive income or directly in eguity, in
which case, the current and deferred tax are
also recognised in other comprehensive
income or directly in eguity respectively.

2.08 Foreign Currency translation

Functional and Presentation currency

Items included in the financial statements of
the Company are measured using the currency
of the primary economic environment in which
the entity operates (''the functional currency'').
The Financial statements are presented in
Indian rupee (INR), which is functional and
presentation currency of the Company.

Transaction and balances

Transactions in foreign currencies are initially
recognised in the financial statements using
exchange rates prevailing on the date of
transaction. Monetary assets and liabilities
denominated in foreign currencies are
translated to the functional currency at the
exchange rates prevailing at the reporting date
and foreign exchange gain or loss are
recognised in profit or loss.

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.

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Mar 31, 2024

Significant accounting policies 2 Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (IndAS) notified under the Companies (IndianAccounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the financial statements.

For all periods up to March 31, 2023, the Company prepared its financial statements in accordance accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).These financial statements for the year ended March 31, 2024 are the first the Company has prepared in accordance with Ind AS.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

2.01 Property, plant and equipment

All items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost includes its purchase price including non-refundable taxes and duties, directly attributable costs of bringing the asset to its present location and condition.

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.

The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to statement of profit or loss during the reporting period in which they are incurred.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and changes, if any, are accounted in the line with revisions to accounting estimates.

Depreciation

Depreciation on property, plant and equipment is provided on straight line method, which is in line with the estimated useful life as specified in Schedule II of the Companies Act, 2013.

Depreciation commences when the assets are ready for their intended use. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing net disposal proceeds with carrying amount. These are included in the statement of profit and loss.

2.02 Impairment of property, plant and equipment

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company '' each class of the property, plant and equipment. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

2.03 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

? Expected to be realised or intended to be sold or consumed in normal operating cycle

? Held primarily for the purpose of trading

? Expected to be realised within twelve months after the reporting period, or

? Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current.

A liability is current when:

? It is expected to be settled in normal operating cycle

? It is held primarily for the purpose of trading

? It is due to be settled within twelve months after the reporting period, or

?There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.04 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as

? Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

? Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

? Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For financial assets and liabilities maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amount approximates fair value to due to short term maturity of these instruments.

The Company recognises the transfer between the levels of fair value hierarchy at the end of the reporting period during which the changes has occurred.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summaries accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

? Quantitative disclosures of fair value measurement hierarchy (Note 31)

? Financial instruments (including those carried at amortised cost) (Note 31)

2.05 Revenue from contract with customers

Revenue is recognised at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring services to a customer. The Company identifies the performance obligations in its contracts with customers and recognises revenue as and when the performance obligations are satisfied.

Revenue from inter-company arrangement is recognised based on transaction price which is at arm''s length based on transfer pricing arrangement.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.

Sale of products :

Revenue from sale of goods is recognised, net of returns and trade discounts, deductions claimed and / or allowed on account of price difference, quantity discount and claims for shortages etc., if any, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods. Sales excludes Goods & Services Tax (GST). When there is uncertainty about the ultimate collectability, the revenue recognition is postponed until such uncertainty is resolved.

Other income:

Revenue in respect of overdue interest, insurance claims, etc. is recognised to the extent the Company is reasonably certain of its ultimate realisation.

Interest income:

Interest income is accounted on receipt basis. Dividend income is accounted for when the right to receive is established. Interest from customers on delayed payments are recognised when there is a certainty of realisation.

Export Incentive / Duty drawback :

Export incentives are recognised when there is reasonable assurance that the Company will comply with the conditions and the incentive will be received.

2.06 Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

? Raw materials: Raw Materials and Packing Materials are valued at cost determined on Weighted Average method as the company believes that it will not sell the products at lower of the cost it incurs to manufacture it.

?Work in Progress: Work-in-process is valued at estimated cost.

? Finished goods: At Lower of Cost or Net Realisable Value. Cost includes Direct Material, Direct Labour and other Direct Costs.

Cost of inventories comprises of purchase price, cost of conversion and other costs including manufacturing overheads appropriated through the system, net of recoverable taxes incurred in bringing them to the point of sale \ consumption.

Initial cost of inventories includes the transfer of gains and losses on qualifying cash flow hedges, recognised in OCI, in respect of the purchases of raw materials. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

2.07 Taxes

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities in accordance with the Income Tax Act 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred Tax

Deferred tax is recognised using balance sheet approach at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at the reporting date.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.

Deferred tax assets and liabilities are measured using the tax rates that are expected to apply in a year when asset is realised or the liability is expected to be settled based on the tax rates and tax laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

Current and deferred tax for the year

Current and deferred tax are recognised in the statement of profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.08 Foreign Currency translation Functional and Presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The Financial statements are presented in Indian rupee (INR), which is functional and presentation currency of the Company.

Transaction and balances

Transactions in foreign currencies are initially recognised in the financial statements using exchange rates prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at the reporting date and foreign exchange gain or loss are recognised in profit or loss.

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.