Accounting Policies of Gabriel Pet Straps Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES:

2.1. Accounting convention

The financial statements have been prepared in accordance with accounting principles generally
accepted in India (GAAP) under historical cost convention on an accrual basis and GAAP includes
accounting standard specified under Section 133 of the Companies Act, 2013 {the Act! read with the
Companies (Accounting Standards! Rules, 2021 (as amended) except otherwise mentioned elsewhere
in the financial statements,

The accounting method employed is Mercantile Accounting System, Final Accounts has been
prepared on Going Concent assumption and materiality aspect but some expenses due to their
peculiar nature like electricity, telephone expenses, etc are accounted for, on cash basis.

2.2, Use of Estimates

The preparation of Financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and liabilities including contingent
liabilities, if any) as of the date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful lives of assets etc, Management
believes that the estimates used in the preparation of financial statements are prudent and!
reasonable. Future results may vary from these estimates. t

2.3. Revenue Recognition

Revenues are recognised in accordance with AS 9 on; Revenue Recognition'' following the accrual basis of accounting and using exclusive method i,e. excluding the amount of taxes.
However* certain items, due to their nature, are recognized on cash basis. However, effect of
the same does not seem to be material.

Interest: Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate. Interest income is included under the head ''‘other
income"’ in the statement of profit and loss.

2.4. Foreign currency translation

There are no transactions related to foreign currency,

2.5, Property* Plant and Equipment

Fixed Assets are valued at cost Less depreciation by SLM method as per the useful life prescribed
under the Companies Act, .2013. The details of fixed assets are given in the balance sheet & the
schedule referred therein, The existence, utilization date of put to use of fixed assets has been
taken as declared by the management.

Further as clarified by the management, certain items of Property, Plant and Equipment are held in
the name of erstwhile Limited Liability Partnership firm i.e, Gabriel Pet Straps LLP.

As represented by management, process for transfer of property in Company’s name is already
initiated for many items and will be earned out for all the items in due course.

4. Segment Reporting .

The Company is primarily engaged in the business of Manufacturing of PET Straps. The Company
operates in only one business segment and therefore. Accounting Standard 17 ''Segment
Reporting” issued by the Institute of Chartered Accountants of India is not applicable to the
company.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of
the Company by the weighted average number of Equity Shares outstanding during the year.

The following reflects die income and shares data used in the Basic EPS and Diluted EPS
Computations:

6. Taxes on Income
Current Tax

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

Current lax assets and liabilities are offset only if there is a legally enforceable right to set off the
recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or
simultaneously

On 20 September 2019, the Government of India, vide Taxation Laws (Amendment| Ordinance 2019,
inserted section 115BAA in the Income Tax Act, 1961. which provides domestic companies an option
to pay Income Tax at reduced rates effective April 2019, subject to certain conditions. The tax
expenses for the year ended March 31,2025. have been provided for at such reduced rates.

Deferred Tax

Deferred tax is provided on temporary'' differences between the tax base of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date. Deferred lax liabilities
are recognized for all taxable temporary differences except for the following:

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 profit will be available to allow all or part of
the deferred tax asset to be utilized, Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognized to the extern that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered,

Deferred tax assets and Liabilities are measured ar the tax-rates that are expected to apply in the
year when the asset is realized or the liability is settled, based on tax rales (and tax laws] that have
been enacted or substantively enacted at the reporting date,

Deferred lax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current lax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority,

7. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand,

For the purpose of Cash Flow Statement, cash and cash equivalents consists of cash and bank
balances reported under Current Assets,

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Mar 31, 2024

1. CORPORTAE INFORMATION

GABRIEL PET STRAPS LIMITED (the company) is company incorporated under the Companies Act, 2013 by conversion of “Gabriel Pet Straps LLP” (erstwhile Limited Liability Partnership) into Public Limited Company with effect from 03.08.2023 by taking over all assets and liabilities of the running business on going concern basis (and also in line with section 47(xiii) provisions of the Income Tax Act, 1961). The purpose of the same was, to make Initial Public Offer of Equity shares and Listing requirements.

The Company is engaged into manufacturing of polymer pet striping, polymer pet strips, polymer tapes, biaxial oriented polypropylene (BOPP) tape, synthetic, natural or blended polymer and polymer items, polymer intermediaries, its raw materials, derivatives, mixture used as / in packing material for trade, commerce and industries.

2. BASIS OF ACCOUNTING AND PREPERATION OF FINANCIAL STATEMENTS:

The accompanying financial statements are prepared under the historical costs convention and on accrual basis of accounting and in compliance, in all materials respects, with the Generally Accounting Principles accepted and applicable in India, the applicable accounting standards notified under relevant sections and provisions of the Companies Act, 2013. Further, the opening balances of all assets and liabilities are recorded in books of accounts of the company as per balances reflected in audited financial statements of erstwhile Limited Liability partnership.

On basis of opinion and decision taken by the management, the books of the company are initially closed for the period 03.08.2023 to 31.03.2024 i.e. Period less than eight months.

As the company came into existence only during current financial year, no comparative figures of previous year are''included in Financial Statements.

We have relied on management''s representation for bifurcation and ageing of trade payables, trade receivable, Capital Assets Work in Progress, and other relevant items.

3. USE OF ESTIMATES:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates made are recognized in the period in which the results are materialized.

4. PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION ON IT:

Fixed Assets are valued at cost Less depreciation w.e.f. 03.08.2023 by SLM method as per the useful life prescribed under the Companies Act, 2013. The details of fixed assets are given in the balance sheet & the schedule referred therein. The existence, utilization & date of put to use of fixed assets have been taken as declared by the management. Further all the assets transferred under the conversion are taken as addition on 3^rd August, 2023. And the same is reflected as gross block of asset at closing Written down value, as shown in audited books of accounts of erstwhile Limited Liability partnership firm on 2^nd August, 2023.

Further as clarified by the management, certain items of Property, Plant and Equipment are held in the name of erstwhile Limited Liability Partnership firm i.e. Gabriel Pet Straps LLP.

As represented by management, process for transfer of property in Company’s name is already initiated for many items and will be carried out for all the items in due course.

5. INVENTORY:

Inventories are valued at lower of cost or market value as declared by the company. Stock is considered as taken Value and Certified by the company.

6. ACCOUNTING METHOD:

The accounting method employed is Mercantile Accounting System. Final Accounts has been prepared on Going Concern assumption and materiality aspect but some expenses due to their peculiar nature like electricity, telephone expenses, etc are accounted for, on cash basis.

Few adjustments are made on or after 3^rd August, 2023 for some entries related to Income-expenses-assets-liabilities of erstwhile Limited Liability partnership firm.

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7. REVENUE RECOGNITION:

Revenues are recognized in accordance with AS 9 on; Revenue Recognition’ following the accrual basis of accounting and using exclusive method i.e. excluding the amount of taxes. However, certain items, due to their nature, are recognized on cash basis. However, effect of the same does not seem to be material.

9. VERIFICATION

We have verified the transactions recorded in the books with such of the documentary evidences as were made available and produced before us, where such documentary evidence was not available the entries authenticated by the party have been accepted.

10. All the Balances to the Debit and Credit of Debtors, Creditors and Unsecured Loans are subject to confirmation and reconciliation.

11. Accounting Ratios are calculated on the basis of figures shown in audited set of accounts.

12. The figures have been rearranged and regrouped wherever considered necessary and rounded off to the nearest Rupee in Thousands.

13. There are no prior period expenses or there are no extra ordinary expenses debited to Profit & Loss account except non-material item of erstwhile partnership firm.

14. Earnings Per Share

Earnings per share, as reflected in Profit and Loss Statement and other relevant places, is for relevant period of 242 days only (from 03/08/2023 to 31/03/2024) and by considering Shares outstanding as on Balance Sheet date.

15. Effect of Conversion:

The corporate Entity comes into existence on 03.08.2023 after conversion of Limited Liability partnership firm. As per the representation of management, company is eligible for benefit of provisions of Section 47(xiii) and other provisions of Income tax Act, 1961 and estimates NIL tax liabilities on conversion. We are not aware of outcome of the same on the date of our report and hence we do not comment upon the same.

Figures of GST credit and liability as per books of account and as per GST Portal are subject to reconciliation by the Company.

16. Reportable Segments

No business segment of the Company qualifies as separate reportable segments, and therefore segment wise reporting is not provided.

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