Accounting Policies of Dhanashree Electronics Ltd. Company

Mar 31, 2025

1.01 Basis of Preparation of Financial Statements:

These financial statements have been prepared in accordance with the Indian Accounting Standards (‘Ind AS’)
notified under the Companies (Indian Acconting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016 (as amended from time to time and presentation requirements of
Schedule III of the Companies Act, 2013. The financial statements have been prepared under the historical
cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

1.02 Use of Estimates:

The preparation of the financial statements requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are recognised in the periods in which the results are
known / materialise.

1.03 Inventories/WIP:

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if
any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of
cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing
them to their respective present location and condition. Cost of work-in-progress and finished goods includes
labour and manufacturing overheads, where applicable. Net realisable value is the estimated selling price in
the ordinary course of business less the estimated costs of completion and the estimated costs necessary to
make the sale.Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other
products are determined on weighted average basis.

1.04 Cash Flow Statement:

Cash flow are reported using indirect method, whereby net profit before tax is adjusted for effects of
transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from regular revenue generating, investing and financing activities of the company are shown
separately.

1.05 Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Contingent Liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the Group or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle the obligation or
reliable estimate of the amount cannot be made.

1.06 Depreciation:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,
2013. Purchased software / licenses are amortised over the period the benefits are expected to accrue.

1.07 Revenue Recognition:

Sales are recognised upon transfer of substantial risk and rewards of ownership in the goods to the buyers as
per the terms of the Contract and net of trade discounts,sales tax etc., where applicable.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the
interest rate applicable.

Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared /
services provided and provisions made for goods lying in bonded warehouses.

Other items of the revenue are accounted for on accrual basis.

1.08 Property Plant And Equipment:

Property Plant And Equipments are carried at cost less accumulated depreciation and impairment losses, if
any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying Property
Plant And Equipment up to the date the asset is ready for its intended use and other incidental expenses
incurred up to that date. Subsequent expenditure relating to Property Plant And Equipment is capitalised only
if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed
standard of performance. (Also refer to policy on borrowing costs, impairment of assets).

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase
the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.

1.09 Government grants

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

Government grants whose primary condition is that the Group should purchase, construct or otherwise
acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is
recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Other government grants are recognised as income over the periods necessary to match them with the costs
for which they are intended to compensate, on a systematic and rational basis.

1.1 Investments:

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current
investments are stated at cost. Provision for diminution in the value of Non Current investments is made only
if such a decline is other than temporary.

1.11 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period
in which they are incurred.

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Mar 31, 2024

Note : l Significant Accounting Policies

1.01 Basis of Preparation of Financial Statements:

These financial statements have been prepared in accordance with the Indian Accounting Standards (Tnd AS'') notified under the Companies (Indian Accenting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 (as amended from time to lime and presentation requirements of Schedule III of the Companies Act, 20x3. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which arc measured at fair value. .

1.02 Use of Estimates:

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.03 Invcntorics/WIP:

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except in case of bv-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in hringing them to their respective present location and condition. Cost of work-in-progress and finished goods includes labour and manufacturing overheads, whore applicable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products are determined on weighted average basis.

1.04 Cash Flow Statment:

Cash flow are reported using indirect method, whereby net profit before tax is adjusted for effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are shown separately.

1.05 Provisions. Contingent Liabilities and Contingent Assets:

A provision is recognised wheu the Company has a present obligation as a result of past events aud it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.Contingcnt Liabilities arc disclosed when there is a possible obligation arising from past events, the existence of w^rhich will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or reliable estimate of the amount cannot be made.

t.o6 Depreciation:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Une Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Purchased software / licenses are amortised over the period the benefits arc expected to accrue.

Type of Assets	Useful Life Taken
Factory Building & Trough House	30 Years
Electrical Instalation And Equipment	10 Years
Computer And Data Processing Unit	3 Years
Plant and Machinery	13 Years
Office Equipments	5 Years
Furniture and Fixtures	10 Years
Vehicles	8-10 Years

1.07 Revenue Recognition:

Sales are recognised upon transfer of substantial risk and rewards of ownership in the goods to the buyers as per the terms of the Contract and net of trade discounts,sales tax etc., where applicable.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared / services provided and provisions made for goods lying in bonded warehouses.

Other items of the revenue arc accounted for on accrual basis.

1.08 Property Plant And Equipment:

Property Plant And Equipments are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying Property Plant And Equipment up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Subsequent expenditure relating to Property Plant And Equipment is capitalised only it such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance. (Also refer to policy on borrowing costs, impairment of assets).

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use arc disclosed under Capital Work-in-Progress.

1.09 Government grants

Government grants arc recognised when there is reasonable assurance that the Group will comply with the conditions attached to them and the grants will ho received.

Government grants whose primary condition is that the Group should purchase, construct or otherwise acquire capital assets are presented hy deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Other government grants arc recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic and rational basis.

1.1 Investments:

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current investments arc stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

l.U Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs arc charged to the Profit and I/>ss Statement in the period in which they arc incurred.

1.12 Provision for Current Tax:

Current tax in respect of taxable income for the year is recognised based on applicable tax rate and laws. Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax. assets can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet dale.

1.13 Earning Per Share:

The Company reports basic and diluted earnings per equity share in accordance with Accounting Standard-20, “Earnings Per Share”. Basic earnings per equity share arc computed by dividing net profit/loss after tax (including the post tax effect of extraordinary items, if any) attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings during the year adjusted for effects of all dilutive potential equity shares per equity share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the vear.

1.14 Cash and Cash Equivalents:

Cash comprises cash in hand and demand deposits with hanks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.15 Recent pronouncements

Ministry of Corporate Affairs (“MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1,

a) Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to quality for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of lnd AS 103. The Company docs not expect the amendment to have any significant impact in its financial statements.

b) Ind AS 16 — Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company docs not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

c) Ind AS 37 - Onerous Contracts - Costs of fulfilling a contract

The amendments specify that that the cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

d) Ind AS 109 - Annual improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the To percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements

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Mar 31, 2009

Basis of preparation

he financial statement have been prepared to comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India ("ICAI") and the relevant provisions of the Companies Act, 1956. The financial statement have been prepared under the historical cost convention on accrual basis except bank commission charges, interest against import of goods, dividend and filing fees charges are accounted for on actual payment . The accounting policies have been consistently applied by the Company unless otherwise stated.

Fixed assets

fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

depreciation

Depreciation on fixed assets is provided on S.L.M method at the rates and in the manner prescribed in Schedule XIV of the Act.

Inventories

The closing stock of Raw Material, Packaging Materials Stores, Finished and Semi-Finished, Work in Progress and Scrap are continue to be valued as follows:-

Raw Materials, Packaging Material are valued at Cost Price.

Finished, Semi Finished Goods are valued at Cost or Net Realisable Value (whichever is lower)

Goods in Process are valued at Estimated Cost.

Revenue recognition

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will flow to the Company.

Sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customers and is stated net of trade discount, sales return and sales tax.

Interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

Income from Call Centre

Revenue is recognized on a time proportion basis .

Job Charges

Revenue is recognized on a time proportion basis.

Lease Rent

Assets taken on lease are capitalized at face value of Rs. 1625750/-. Revenue is recognized on a time proportion basis. : Foreign currency translation

Transactions in foreign currency made and settled during the year are accounted for on the basis of actual remittances made. Outstanding transactions at the end of the year are translated at the exchange rate prevailing on the date of Balance Sheet. The foreign currency income of (Rs. 144181/-) have been accounted during the financial year.

Retirement benefits

The Company has started making annual contributions to the employees Group Gratuity- Cum- Life Insurance Scheme of the Future General India Life Insurance Co. Ltd , a funded defined benefit for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary of the last basic salary drawn multiplied by completed year of service. Vesting Occurs on Completion of 10 years of Service.

The present value of the defined obligation and the related current service cost were measured using the actuarial report at balance sheet date.

During the year company has apportioned Rs.416338 from the Profit & Loss A/c for the transitional Provisions on differences between Actuarial valuation and Provision created in Previous year. The Company has paid Rs. 21739/- as gratuirty to eligible employee during the year.

Contribution in respect of provident and superannuation fund are made by the company and charged to profit & loss account.

Taxes on Income

The expenses comprise current tax and fringe benefit tax.

The provision for current income tax is made based on the taxable profit earned for the year ended 31.03.2009, the actual tax liability, for which, will be determined on the basis of the result for the aforesaid year.

Deferred income tax reflects the impact of current year timing differences between taxable income/losses and accounting income for the year and reversal of timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax liability has been recognized on account of timing difference of Rs. 172860/-

The Company has made provision for fringe benefit tax in accordance with the applicable income tax laws.

As the Company is Liable to pay tax U/s115JB of the Income tax act 1961 in respect of which MAT Credit entitlement has not been credited in the Profit and Loss A/c as the company has no virtual certainty that in subsequent year company will be liable to pay tax under normal provision of the Income tax act against which MAT Credit entitlement can be realised.