Accounting Policies of Essen Speciality Films Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of
the Companies Act, 2013, as applicable. 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.

b Use of Estimates

The preparation of financial statements requires the management of the Company to make estimates and
assumptions that affect the reported balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and reported amounts of income and
expense during the period. Examples of such estimates include provisions for doubtful receivables, provision
for income taxes, the useful lives of depreciable Property, Plant and Equipment and provision for
impairment. Future results could differ due to changes in these estimates and the difference between the
actual result and the estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs
include all expenses incurred to bring the asset to its present location and condition.

d Depreciation and amortization

In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired
during the period, depreciation/amortisation is charged on a Straight Line Basis so as to write-off the cost of
the assets over the useful lives. As per the company''s accounting policy, depreciation on Plant & Machinery
is calculated using the double shift method, which accounts for accelerated Depreciation due to extended
use of the asset, typically resulting from a second shift of operation. This method allows for a faster
depreciation schedule, reflecting the higher consumption of the asset''s economic benefits over a shorter
period.

e Impairment of assets

At each balance sheet date, the management reviews the carrying amounts of its assets included in each
cash generating unit to determine whether there is any indication that those assets were impaired. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
impairment. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the continuing use of the asset and from its
disposal are discounted to their present value using a pre-tax discount rate that reflects the current market
assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is
recognised as income in the statement of profit and loss.

f Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the
risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of
the lease at lower of the fair value or the present value of the minimum lease payments and a liability is
recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the
interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with
the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the
statement of profit and loss on a straight-line basis.

g Investment

Long-term investments and current maturities of long-term investments are stated at cost, less provision for
other than temporary diminution in value. Current investments, except for current maturities of long-term
investments, comprising investments in mutual funds, government securities and bonds are stated at the
lower of cost and fair value.

h Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted
average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost
and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value.
Finished goods produced or purchased by the Company are carried at lower of cost and net realisable
value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

i Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known
amount of cash that are subject to an insignificant risk of change in value and having original maturities of
three months or less from the date of purchase, to be cash equivalents.

j Revenue recognition

Revenue is recognized when there is a transfer of significant risk and rewards of ownership in goods to the
buyer.

Interest income is recognized on time proportion basis taking into account amount outstanding and the
applicable interest rates.

Service income is recognized on the basis of completion of service method. Dividend is recorded when the
right to receive payment is established. Interest income is recognised on time proportion basis taking into
account the amount outstanding and the rate applicable.

k Employee Benefits

Post-employment benefit plans

Contributions to defined contribution retirement benefit schemes are recognised as expense when
employees have rendered services entitling them to such benefits.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses
are recognised in full in the statement of profit and loss for the period in which they occur. Past service cost is
recognised immediately to the extent that the benefits are already vested, or amortised on a straight-line
basis over the average period until the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair value
of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds
and reductions in future contributions to the scheme.

Other employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees is recognised during the period when the employee renders the service.
These benefits include compensated absences such as paid annual leave, overseas social security
contributions and performance incentives.

Compensated absences which are not expected to occur within twelve months after the end of the period
in which the employee renders the related services are recognised as an actuarially determined liability at
the present value of the defined benefit obligation at the balance sheet date.

l Borrowing Cost

The entity has followed the policy of capitalizing borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset, as part of the cost of such assets. Other
borrowing costs are recognized as an expense in the period in which they are incurred.

The accounting treatment of borrowing costs is in accordance with the Accounting Standard 16 "Borrowing
Costs"notified under the Companies (Accounting Standards) Rules, 2021.

m Research and Development Expenses

The entity follows the policy of accounting research and development expenditure as under :

Research expenditure is charged to the Statement of Profit and Loss as incurred.

Development expenditure incurred on specific projects is recognized as an intangible asset if it meets the
recognition criteria laid down under the Accounting Standard AS 26 - Intangible Assets. If such criteria are
not met, the development expenditure is charged to revenue in the year of incurrence.

The accounting treatment of research and development costs is in accordance with the applicable
accounting standards notified under the Companies (Accounting Standards) Rules, 2021.

n Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the
transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral
foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange
gains and losses are recognised in the statement of profit and loss.

o Taxation

Current income tax expense comprises taxes on income from operations in India. Income tax payable in
India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable
income and accounting income that originate in one period and is likely to reverse in one or more
subsequent periods. 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 date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units
and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation laws.

p Government Grants

Government grants are recognized in the financial statements in accordance with the Accounting
Standard 12 as follows :

Grants related to revenue are recognized in the Statement of Profit and Loss on a systematic basis over the
periods in which the related costs are incurred, and are presented either as a separate income or deducted
from the related expense.

Grants related to specific fixed assets are either reduced from the cost of such assets or presented as
deferred income and recognized in the Statement of Profit and Loss over the useful life of the related asset,
on a systematic and rational basis.

Grants received but not yet recognized are shown under liabilities as "Deferred Government Grants" until the
recognition conditions are fulfilled.

The accounting treatment is in accordance with the applicable provisions of AS 12.

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Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. 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.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable Property, Plant and Equipment and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

"Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition."

d Depreciation / amortisation

In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired during the year, depreciation/amortisation is charged on a straight line basis so as to write-off the cost of the assets over the useful lives.

e Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis.

f Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

g Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of longterm investments, comprising investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

h Revenue recognition

"Revenue is recognized when there is a transfer of significant risk and rewards of ownership in goods to the buyer.

Interest income is recognized on time proportion basis taking into account amount outstanding and the applicable interest rates.

Service income is recognized on the basis of completion of service method"

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

i Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. 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 date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

j Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in nonintegral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a nonintegral foreign operation are accumulated in a foreign currency translation reserve.

k Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

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Mar 31, 2023

1 COMPANY INFORMATION

Essen Speciality Films Limited (Formerly Essen Speciality Films Private Limited) is Engaged Mainly in the business of Manufacture and Sale of Plastic Sheets, Plastic Artificial Plants or Ports, Etc. having it registered office at PLOT NO. A, SURVEY NO. 192, VILL : VERAVAL (SHAPAR), RAJKOT, GUJARAT-360002

2 SIGNIFICANT ACCOUNTING POLICIES a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. 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.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable Property, Plant and Equipments and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

Property, Plant and Equipments are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

d Depreciation / amortisation

In respect of Property, Plant and Equipments (other than freehold land and capital work-in-progress) acquired during the year, depreciation/amortisation is charged on a straight line basis so as to write-off the cost of the assets over the useful lives.

Type of Assets	Period
Buildings	30 Years
Plant and Equipment	15 Years
Solar Power Plant	15 Years
Electric Installation and Equipments	10 Years
Furniture and Fixtures	10 Years
Laboratory Equipments	10 Years
Vehicles	8 Years
Office equipment	5 Years
Computers	3 Years

e Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis.

f Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

g Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of longterm investments, comprising investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

h Revenue recognition

"Revenue is recognized when there is a transfer of significant risk and rewards of ownership in goods to the buyer.

Interest income is recognized on time proportion basis taking into account amount outstanding and the applicable interest rates.

Service income is recognized on the basis of completion of service method."

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

i Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. 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 date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

j Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in nonintegral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a nonintegral foreign operation are accumulated in a foreign currency translation reserve.

k Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

l Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) 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 not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

m Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Fixed deposits with maturity upto 12 months are also considered as part of cash and cash equivalents as they are held as highly liquid asssets.

n Retirement and other employee benefits Short Term Employee Benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees are recognised undiscounted during the period employee renders service

Post-Employement Benefits

Company''s contribution for the period paid/payable to defined contribution retirement benefit schemes are charged to summary statement of Profit and Loss. Company''s liability towards defined benefit plan viz. gratuity is determined using the projected Unit Credit Method as per acturial valuation carried out at the reporting date. The benefit is unfunded. Acturial gains and losses for both defined benefit plans are recognized in full in the period in which they occur in the summary statement of Profit and Loss.