Accounting Policies of Felix Industries Ltd. Company

Mar 31, 2025

NOTE 1: MATERIAL ACCOUNTING POLICIES

a) Accounting Conventions:

The Financial Statements of the Company are prepared under the
historical cost convention on accrual basis of accounting and in
accordance with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India and referred to in section
133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 except in case of leave salary, gratuity
& other retirement employee benefits including statutory
provisions if any applicable and generally accepted accounting
principles in India. The accounting policies not referred to otherwise
have been consistently applied by the Company during the year.

b) Use of Estimates:

The preparation of financial statements in accordance with the GAAP
requires management to make estimates and assumptions that may
affect the reported amount of assets and liabilities, classification of
assets and liabilities into non-current and current and disclosures
relating to contingent liabilities as at the date of financial statements
and the reported amounts of income and expenses during the reporting
period. Although the financial statements have been prepared based on
the management''s best knowledge of current events and procedures/
actions, the actual results may differ on the final outcome of the matter/
transaction to which the estimates relate.

c) Property, Plant & Equipment and Intangible
Assets:

The Property, Plant & Equipment (PPE) except land are stated at cost
of acquisition/construction (less Accumulated Depreciation, if any).
The cost of Property, Plant & Equipment comprises of their purchase
price including freight, duties, taxes or levies, directly attributable cost
of bringing the assets to their working conditions for their intended use.
The Company capitalises its Property, Plant & Equipment at a value net
of GST received/receivable during the year in respect of eligible Capital
Goods. Subsequent expenditures on Property, Plant & Equipment have
been capitalised only if such expenditures increase the future benefits
from the existing assets beyond their previously assessed standard of
performance.

The items of property, plant & equipment that are under construction/
erection/development or not fully acquired and therefore not available
for productive/intended have been classified as "Capital Work in
Progress" under Property, Plant & Equipment and will be capitalized
on completion of the construction/erection/acquisition/development
activities.

The Property, Plant & Equipment developed/erected under the Build,
Own, Operate and Transfer (BOOT) model have been capitalized at
cost of materials used in erection/development and other cost directly
incurred and ancillary to the acquisition, development and installations.
The cost of PPE developed/erected under BOOT model is being
systematically amortized by way of depreciation over the period of
terms of agreement with respective parties in proportion of revenue
realized during the year from operations vis-a-vis expected revenue to
be realized over the period of the terms of agreement.

The costs of PPE under the process of acquisition, erection, development
& installations have been capitalized as "Capital Work-in-Progress" and
disclosed separately as "Capital Work-in-Progress" as a part of PPE. The
costs of such "Capital Work-in-Progress" will be transferred to respective
PPE on completion of acquisition, erection, development & installations
such that economic benefits from the operations of such PPE will
commence to flow to the company.

The Intangible Assets of Waste Water Recycling Process, Website
Design & Development and Software have been recognised at their
cost of acquisition less accumulated amortization. On the basis of
the availability of the asset for its intended use, relevant contractual
agreements and technological changes that may affect the usefulness
of the asset, the useful life of the asset had been assumed to be of five
years from the date of its acquisition.

d) Depreciation:

The Depreciation on Property, Plant & Equipment is provided on straight
line method for the period of acquisition/construction i.e. from the
period from which such assets were available for their intended use on
pro-rata basis on the basis of useful life of each of the item of Property,
Plant & Equipment as per Schedule II of the Companies Act, 2013.

The intangible assets are amortized on straight line basis over the
estimated useful economic life.

e) Inventories:

The inventories of Trading Goods and goods used for making waster
water and industrial effluents recycling plants and plants related to
water management intended for sale or service in the ordinary course
of business of the company have been valued at cost or net realizable
value whichever is lower. The Costs in respect of all items of inventories
have been computed on FIFO basis. The cost of inventories comprises
of the purchase price including duties and taxes, freight inwards and
other expenditure directly attributable to the acquisition. The purchase
price does not include GST credit availed of by the Company during
the year.

f) Revenue Recognition:

All income and expenses are accounted on accrual basis. The Company
recognised Sale of Goods when it had transferred the property in
Goods to the buyer for a price or all significant risks and rewards
of ownership had been transferred to the buyer and no significant
uncertainty existed as to the amount of consideration that would be
derived from such sale. The recognition event is usually the dispatch
of goods to the buyer such that the Company retains no effective
control over the goods dispatched. The revenue in respect of service
contract and build, operate and transfer module is recognized based on
order/contract with the parties, completion of performance obligation,
receipt of services by the parties, transfer of control over the properties
transferred and reasonable expectation of realisation of sales/service
consideration from the customers.

Interest income is taken into revenue in full on accrual basis and tax
deducted at source thereon is treated as advance tax.

g) Borrowing Costs:

The borrowing costs incurred during the year have been debited to the
Statement of Profit and Loss of the current year.

h) Taxes on Income:

Taxes on income comprises of current tax and deferred tax. Taxes on
income have been determined based on the tax rates and tax laws that
have been enacted or substantively enacted by the balance sheet date.
The tax credit available for set-off against current tax liabilities in future
has been set-off against current tax liabilities of the year.

Deferred income taxes are determined for future consequences
attributable to timing differences between financial determination of
income and income chargeable to tax as per the provisions of Income
Tax Act, 1961. Deferred tax liabilities/assets have been worked out using
the tax rate and tax laws that were in force as on the date of balance
sheet.

i) Impairment of Assets:

The management of the company makes an assessment at each
reporting date as to whether there is any indication that any asset
or group of assets is impaired or previously recognized impairment
losses if any, may no longer exist or may have decreased. If such
indication exists, the Company estimates the asset''s or group of asset''s
recoverable amount and makes provision/reversal of provision of
impairment losses.

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Mar 31, 2024

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

a) Accounting Conventions:

The Financial Statements of the Company are prepared under the historical cost convention on accrual basis of accounting and in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountants of India and referred to in section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 except in case of leave salary, gratuity & other retirement employee benefits including statutory provisions if any applicable and generally accepted accounting principles in India. The accounting policies not referred to otherwise have been consistently applied by the Company during the year.

b) Use of Estimates

The preparation of financial statements in accordance with the GAAP requires management to make estimates and assumptions that may affect the reported amount of assets and liabilities, classification of assets and liabilities into non-current and current and disclosures relating to contingent liabilities as at the date of financial statements and the reported amounts of income and expenses during the reporting period. Although the financial statements have been prepared based on the management''s best knowledge of current events and procedures/actions, the actual results may differ on the final outcome of the matter/ transaction to which the estimates relate.

c) Property, Plant & Equipment and Intangible Assets:

The Property, Plant & Equipment (PPE) except land are stated at cost of acquisition/construction (less Accumulated Depreciation, if any). The cost of Property, Plant & Equipment comprises of their purchase price including freight, duties, taxes or levies, directly attributable cost of bringing the assets to their working conditions for their intended use. The Company capitalises its Property, Plant & Equipment at a value net of GST received/ receivable during the year in respect of eligible Capital Goods. Subsequent expenditures on Property, Plant & Equipment have been capitalised only if such expenditures increase the future benefits from the existing assets beyond their previously assessed standard of performance.

The items of property, plant & equipment that are under construction/erection/development or not fully acquired and therefore not available for productive/intended have been classified as "Capital Work in Progress" under Property, Plant

& Equipment and will be capitalized on completion of the construction/erection/acquisition/development activities.

The Property, Plant & Equipment developed/erected under the Build, Own, Operate and Transfer (BOOT) model have been capitalized at cost of materials used in erection/development and other cost directly incurred and ancillary to the acquisition, development and installations. The cost of PPE developed/ erected under BOOT model is being systematically amortized by way of depreciation over the period of terms of agreement with respective parties in proportion of revenue realized during the year from operations vis-a-vis expected revenue to be realized over the period of the terms of agreement.

The costs of PPE under the process of acquisition, erection, development & installations have been capitalized as "Capital Work-in-Progress" and disclosed separately as "Capital Work-inProgress" as a part of PPE. The costs of such "Capital Work-inProgress" will be transferred to respective PPE on completion of acquisition, erection, development & installations such that economic benefits from the operations of such PPE will commence to flow to the company.

The Intangible Assets of Waste Water Recycling Process, Website Design & Development and Software have been recognised at their cost of acquisition less accumulated amortization. On the basis of the availability of the asset for its intended use, relevant contractual agreements and technological changes that may affect the usefulness of the asset, the useful life of the asset had been assumed to be of five years from the date of its acquisition.

) Depreciation

The Depreciation on Property, Plant & Equipment is provided on straight line method for the period of acquisition/construction i.e. from the period from which such assets were available for their intended use on pro-rata basis on the basis of useful life of each of the item of Property, Plant & Equipment as per Schedule II of the Companies Act, 2013.

The intangible assets are amortized on straight line basis over the estimated useful economic life.

) Inventories

The inventories of Trading Goods and goods used for making waster water and industrial effluents recycling plants and plants related to water management intended for sale or service in the ordinary course of business of the company have been valued at cost or net realizable value whichever is lower. The Costs in respect of all items of inventories have been computed on FIFO basis. The cost of inventories comprises of the purchase price including duties and taxes, freight inwards and other expenditure directly attributable to the acquisition. The purchase price does not include GST credit availed of by the Company during the year.

) Revenue Recognition

All income and expenses are accounted on accrual basis. The Company recognised Sale of Goods when it had transferred the property in Goods to the buyer for a price or all significant risks and rewards of ownership had been transferred to the buyer and no significant uncertainty existed as to the amount of consideration that would be derived from such sale. The recognition event is usually the dispatch of goods to the buyer such that the Company retains no effective control over the

goods dispatched. The revenue in respect of service contract and build, operate and transfer module is recognized based on order/contract with the parties, completion of performance obligation, receipt of services by the parties, transfer of control over the properties transferred and reasonable expectation of realisation of sales/service consideration from the customers.

Interest income is taken into revenue in full on accrual basis and tax deducted at source thereon is treated as advance tax.

g) Borrowing Costs

The borrowing costs incurred during the year have been debited to the Statement of Profit and Loss of the current year.

h) Taxes On Income:

Taxes on income comprises of current tax and deferred tax. Taxes on income have been determined based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The tax credit available for set-off against current tax liabilities in future has been set-off current tax liabilities of the year. Deferred income taxes are determined for future consequences attributable to timing differences between financial determination of income and income chargeable to tax as per the provisions of Income Tax Act, 1961. Deferred tax liabilities/assets have been worked out using the tax rate and tax laws that were in force as on the date of balance sheet.

The company has carried forward balances of unabsorbed depreciation as per the Income Tax Act, 1961 as at the reporting date. Deferred tax assets have been recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Impairment of Assets

The management of the company makes an assessment at each reporting date as to whether there is any indication that any asset or group of assets is impaired or previously recognized impairment losses if any, may no longer exist or may have decreased. If such indication exists, the Company estimates the asset''s or group of asset''s recoverable amount and makes provision/reversal of provision of impairment losses.

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Mar 31, 2023

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

a) Accounting Conventions:

The Financial Statements of the Company are prepared under the historical cost convention on accrual basis of accounting and in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountants of India and referred to in section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 except in case of leave salary, gratuity & other retirement employee benefits including statutory provisions if any applicable and generally accepted accounting principles in India. The accounting policies not referred to otherwise have been consistently applied by the Company during the year.

b) Use of Estimates

The preparation of financial statements in accordance with the GAAP requires management to make estimates and assumptions that may affect the reported amount of assets and liabilities, classification of assets and liabilities into non-current and current and disclosures relating to contingent liabilities as at the date of financial statements and the reported amounts of income and expenses during the reporting period. Although the financial statements have been prepared based on the management''s best knowledge of current events and procedures/actions, the actual results may differ on the final outcome of the matter/transaction to which the estimates relate.

c) Property, Plant & Equipment and Intangible Assets:

The Property, Plant & Equipment (PPE) except land are stated at cost of acquisition/construction (less Accumulated Depreciation, if any). The cost of Property, Plant & Equipment comprises of their purchase price including freight, duties, taxes or levies, directly attributable cost of bringing the assets to their working conditions for their intended use. The Company capitalises its Property, Plant & Equipment at a value net of GST received/receivable during the year in respect of eligible Capital Goods. Subsequent expenditures on Property, Plant & Equipment have been capitalised only if such expenditures increase the future benefits from the existing assets beyond their previously assessed standard of performance.

The assets that are under construction/erection/development or not fully acquired and therefore not available for productive/intended have been classified as "Capital Work in Progress" under Property, Plant & Equipment and will be capitalized on completion of the construction/erection/acquisition/development activities.

The Property, Plant & Equipment developed/erected under the Build, Own, Operate and Transfer (BOOT) model have been capitalized at cost of materials used in erection/development and other cost directly incurred and ancillary to the acquisition, development and installations. The cost of PPE developed/erected under BOOT model is being systematically amortized by way of depreciation over the period of terms of agreement with respective parties in proportion of revenue realized during the year from operations vis-a-vis expected revenue to be realized over the period of the terms of agreement.

The costs of PPE under the process of acquisition, erection, development & installations have been capitalized as"Capital Work-in-Progress" and disclosed separately as "Capital Work-in-Progress" as a part of PPE. The costs of such "Capital Work-in-Progress" will be transferred to respective PPE on completion of acquisition, erection, development & installations such that economic benefits from the operations of such PPE will commence to flow to the company.

The Intangible Assets of Waste Water Recycling Process, Website Design & Development and Software have been recognised at their cost of acquisition less accumulated amortization. On the basis of the availability of the asset for its intended use, relevant contractual agreements and technological changes that may affect the usefulness of the asset, the useful life of the asset had been assumed to be of five years from the date of its acquisition.

d) Depreciation

The Depreciation on Property, Plant & Equipment is provided on straight line method for the period of acquisition/construction i.e. from the period from which such assets were available for their intended use on pro-rata basis on the basis of useful life of each of the item of Property, Plant & Equipment as per Schedule II of the Companies Act, 2013.

The intangible assets are amortized on straight line basis over the estimated useful economic life.

e) Inventories

The inventories of Trading Goods have been valued at cost or net realizable value whichever is lower. The Costs in respect of all items of inventories have been computed on FIFO basis. The cost of inventories comprises of the purchase price including duties and taxes, freight inwards and other expenditure directly attributable to the acquisition. The purchase price does not include GST credit availed of by the Company during the year.

f) Revenue Recognition

All income and expenses are accounted on accrual basis. The Company recognised Sale of Goods when it had transferred the property in Goods to the buyer for a price or all significant risks and rewards of ownership had been transferred to the buyer and no significant uncertainty existed as to the amount of consideration that would be derived from such sale. The recognition event is usually the dispatch of goods to the buyer such that the Company retains no effective control over the goods dispatched. The revenue in respect of service contract and build, operate and transfer module is recognized based on order/contract with the parties, completion of performance obligation, receipt of services by the parties, transfer of control over the properties transferred and reasonable expectation of realisation of sales/service consideration from the customers.

Interest income is taken into revenue in full on accrual basis and tax deducted at source thereon is treated as advance tax.

g) Borrowing Costs

The borrowing costs incurred during the year have been debited to the Statement of Profit and Loss of the current year.

h) Taxes On Income:

Taxes on income comprises of current tax and deferred tax. Taxes on income have been determined based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The tax credit available for set-off against current tax liabilities in future has been set-off current tax liabilities of the year. Deferred income taxes are determined for future consequences attributable to timing differences between financial determination of income and income chargeable to tax as per the provisions of Income Tax Act, 1961. Deferred tax liabilities/assets have been worked out using the tax rate and tax laws that were in force as on the date of balance sheet.

The company has carried forward balances of unabsorbed depreciation and unabsorbed business losses as per the Income Tax Act, 1961 as at the reporting date. Deferred tax assets have been recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Impairment of Assets

The management of the company makes an assessment at each reporting date as to whether there is any indication that any asset or group of assets is impaired or previously recognized impairment losses if any, may no longer exist or may have decreased. If such indication exists, the Company estimates the asset''s or group of asset''s recoverable amount and makes provision/reversal of provision of impairment losses.

j) Provisions, Contingent Liabilities and Contingent Assets

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of the Company''s resources embodying economic benefits and a reliable estimate can be made of the amount of the obligation. A disclosure of contingent liabilities is made when there is a possible obligation that may, but probably will not, require an outflow of company''s resources. As a measure of prudence, the contingent assets are not recognised.

k) Cash and Cash Equivalents-For the Purpose of Cash Flow Statements:

For the purpose of Cash Flow Statements, cash and cash equivalents include Cash on Hand and Balances with Banks in the Current Account.

l) Operating Cycle:

Based on the activities of the company and normal time between incurring of liabilities and their settlement in cash or cash equivalents and acquisition/right to assets and their realization in cash or cash equivalents, the company has considered its operating cycle as 12 months for the purpose of classification of its liabilities and assets as current and non-current.

m) Foreign Currency Transactions

The transactions in foreign currency have been recorded using the rate of exchange prevailing on the date of transactions. The difference arising on the settlement/restatement of the foreign currency denominated Current Assets/Current Liabilities into Indian rupees has been recognized as expenses/income (net) of the year and carried to the statement of profit and loss.

n) Government Grant/Subsidy:

Government Grants/Subsidy available to the Company are accounted on the basis:

i) Where there is reasonable assurance that the company will comply with the Conditions attached to them, and

ii) where such benefits have been earned by the Enterprise and it is reasonably certain that the ultimate collection will be made.

iii) nature of the grant i.e. whether in the nature of capital contribution or in the form of revenue.

o) Insurance Claims:

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

p) Research and Development:

Expenditures on research phase is recognized as an expense when they are incurred.

Expenditures on development phase are recognized as an intangible asset if they are likely to generate probable future economic benefits and the cost of the same can be measured reasonably and can be attributed the intangible assets.

q) Investments:

The investment in Gold is intended to be held for a period exceeding operating cycle of the business of the company and accordingly it is classified as "Non-Current Investment" and has been carried at cost of acquisition in the financial statements.

r) Employee Benefit Expenses:

Short term employee benefits like wages, salaries, bonus and other monetary and non-monetary benefits are recognized in the period during which services are rendered by the employees and are recognized at the value at which liabilities have been settled or are expected to be settled.

The Company''s contribution to the Provident Fund and ESIC is remitted as per the applicable provisions relating to the Employee Provident Fund Scheme and ESIC and such contributions are charged to the Statement of Profit & Loss of the period to which contributions relates. The company''s obligations towards gratuity, leave encashment or other terminal benefits if any as may be applicable will be recognized in the period in which such obligations with individual employee be settled.

s) Current/Non-Current Classifications:

The Company presents assets and liabilities in the financial statements on the basis of their respective classifications into current and non-current.

Assets:

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

• 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.

Liabilities:

A liability is treated as current when it is:

• Expected to be settled in normal operating cycle

• Held primarily for the purpose of trading

• Due to be settled within twelve months after the reporting period

• No unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.