Accounting Policies of Goldstar Power Ltd. Company

Mar 31, 2025

1.0 Corporate Information

Goldstar Power LIMITED is a Limited Company, incorporated under the provisions of
Companies Act, 1956 and having CIN: L36999GJ1999PLC036274. The Company is mainly
engaged in the business of Manufacturing of Inverter Battery, battery Parts, Plates &
processing of Lead. The Company is also engaged in trading activity of Batteries and Non¬
ferrous metals. The Registered office of the Company is situated at Jamnagar - Rajkot
Highway, B/h Ravi patrol pump, Hapa, Jamnagar.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with
Generally Accepted Accounting Principles in India (“Indian GAAP”). Indian GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 (“the Act”) read with the Rule 7 of the Companies (Accounts)
Rules, 2014. The financial statements have been prepared on an accrual basis and
under the Historical Cost Convention. and the Companies (Accounting Standards)
Amendment Rules 2016 and the relevant provisions of the Companies Act, 2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This
financial statement is presented in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to lakhs
the nearest INR rupee in compliance with Schedule III of the Act, unless otherwise
stated.

Due to rounding off, the numbers presented throughout the document may not add up
precisely to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard
requires the Management to make estimates, judgments, and assumptions. These
estimates, judgments and assumptions affects the application of accounting policies
and the reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of financial statement and reported amounts of revenue and
expenses during the period. Accounting estimates could change form period to period.
Actual result could differ from those estimates. As soon as the Management is aware
of the changes, appropriate changes in estimates are made. The effect of such changes
are reflected in the period in which such changes are made and, if material, their effect
are disclosed in the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet date.
Revisions to accounting estimates are recognised in the period in which the estimate
is revised and in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following
criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in
the Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end
of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the
liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as Non - Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the
Company has ascertained its operating cycle as twelve months. This is based on the
nature of services and the time between the acquisition of the assets or liabilities for
processing and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparation

a) Presentation and Disclosure of Standalone Financial Statements

These standalone financial statements have been prepared as per “Schedule - III”
notified under the Companies Act, 2013. The Company has also reclassified /
regrouped / restated the previous year figures in accordance with the requirements
applicable in the current year.

b) Property, Plant & Equipment and Intangible Assets:-

i. The company has adopted Cost Model to measure the gross carrying amount of
Property Plant & Equipment.

ii. Tangible Property Plant & Equipment are stated at cost of acquisition less
accumulated depreciation. Cost includes the purchase price and all other
attributable costs incurred for bringing the asset to its working condition for
intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and
customization thereof less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as
Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is
disclosed as Intangible Assets under Development.

c) Depreciation / Amortisation : -

Depreciation has been provided under Straight Line Method at the rates prescribed
under schedule III of the Companies Act, 2013 on single shift and Pro Rata Basis to
result in a more appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been
provided at the rates prescribed under Schedule II.

Intangible assets being Software are amortized over a period of its useful life on a
straight line basis, commencing from date the assets is available to the company for
its use.

d) Impairment of Assets:-

An asset is treated as impaired when the carrying cost of an asset exceeds its
recoverable value. An impairment loss is charged to the Statement of Profit and Loss
in the year in which an asset is identified as impaired. The impairment loss recognised
in prior period is reversed if there has been a change in the estimate of the
recoverable amount.

e) Investments:-

• Long term investments are stated at cost. Provision for diminution in the value of
long-term investment is made only if such decline is other than temporary.

• Current investments are stated at lower of cost or market value. The
determination of carrying amount of such investment is done on the basis of
specific identification.

f) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government authorities or
any other authorities in respect of manufacturing or other facilities are dealt as
follows:

• Grants in the nature of subsidies which are non - refundable are credited to the
respective accounts to which the grants relate, on accrual basis, where there is
reasonable assurance that the Company will comply with all the necessary
conditions attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as Liabilities in
the Balance Sheet at the Reporting date.

g) Retirement Benefits:-

a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are
classified as short term benefits. Such benefits include salaries, wages, bonus, short
term compensated absences, awards, ex-gratia, performance pay etc. and the same
are recognised in the period in which the employee renders the related service.

b) Employment Benefits:

i) Defined Contribution Plans:

The company has Defined Contribution Plans for post employment benefit in the
form of Provident Fund which are administered by the Regional Provident Fund
Commissioner. Provident Fund are classified as defined contribution plans as the
company has no further obligation beyond making contributions. The company''s
contributions to defined contribution plans are charged to the Statement of Profit
and Loss as and when incurred.

ii) Defined Benefit Plans:

a) Gratuity:

The company has defined benefit plan for post employment benefit in the form of
gratuity for the employees which are administered through Life Insurance
Corporation of India. Liability for the said defined plan is provided on the basis of
valuation as at the Balance Sheet date, carried out by an independent actuary. The
actuarial method used for measuring the liability is the Projected Unit Credit
Method.

b) Leave Encashment:

The Management has decided to pay all the pending leave of the year for the year
in which the same has become payable and pending dues are cleared.

h) Valuation of Inventory : -

Inventories of the raw material, work-in-progress, finished goods, packing material,
stores and spares, components, consumables and stock in trade are carried at lower
of cost and net realizable value. However, raw material and other items held for use in
production of inventories are not written down below cost if the finished goods in
which they will be incorporated are expected to be sold at or above cost. The
comparison of cost and net realizable value is made on an item by item basis.

Cost of inventories included the cost incurred in bringing the each product to its
present location and conditions are accounted as follows:

a) Raw Material:- Cost included the purchase price and other direct or indirect costs
incurred to bring the inventories into their present location and conditions. Cost is
determined on First in First out basis (FIFO).

b) Finished Goods and Work-in-Progress:- Work in progress are valued at cost
which includes raw materials and cost incurred till the stage of production of process.
Finished Goods are valued at cost or Net realizable value whichever is lower. Cost
included cost of direct materials and the labor cost and a proportion of manufacturing
overhead based on the normal operating capacity, but excluding the borrowing costs.
Cost is determined on "First in First out basis (FIFO)".

c) Stock in Trade:- Cost included the purchase price and other direct or indirect costs
incurred in bringing the inventories to their present location and conditions. Cost is
determined on "''Weighted Average Basis".

All other inventories of stores and spares, consumables, project material at site are
valued at cost. The stock of waste or scrap is valued at net realizable value.

"Net Realizable Value” is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated cost necessary to make the
sales of the products.

i) Revenue Recognition :-

Revenue is recognized when it is probable that economic benefit associated with the
transaction flows to the Company in ordinary course of its activities and the amount
of revenue can be measured reliably, regardless of when the payment is being made.
Revenue is measured at the fair value of consideration received or receivable, taking
into the account contractually defined terms of payments, net of its returns, trade
discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise
duty, received and receivable by the Company, on its own account. Amount collected
on behalf of third parties such as sales tax, value added tax and goods and service tax
(GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are
exclusive of Sales tax, Vat, GST and Freight Charges if any. The revenue and
expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable i.e. on the basis of matching concept..

Dividend from investments in shares / units is recognized when the company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of export
itself, provided no uncertainty exists,

Other items of Income are accounted as and when the right to receive arises.

j) Accounting for effects of changes in foreign exchange rates

Transactions denominated in foreign currencies are normally recorded at the
exchange rate prevailing at the time of the transactions.

Any income or expenses on account of exchange difference either on settlement or on
Balance sheet Valuation is recognized in the profit and loss account except in cases
where they relate to acquisition of fixed assets in which case they are adjusted to the
carrying cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts.

Commodity Hedging: - The realized gain or loss in respect of commodity hedging
contracts, the principal period of which has expired during the year, is recognized in
profit and loss account. In respect of contracts, that are outstanding as on date of
Balance sheet are valued at prevailing market price and the resultant loss, if any, is
provided.

k) Borrowing Cost :-

Borrowing Cost includes the interest, commitments charges on bank borrowings,
amortization of ancillary costs incurred in connection with the arrangement of
borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of
qualifying property, plants and equipments are capitalized as a part of cost of that
property, plants and equipments. The amount of borrowing costs eligible for
capitalization is determined in accordance with the Accounting Standards - 16
“Borrowing Costs”. Other Borrowing Costs are recognized as expenses in the period in
which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from
foreign currency borrowings to the extent that they are regarded as adjustments to
interest costs are recognized as Borrowing Costs and are capitalized as a part of cost
of such property, plants and equipments if they are directly attributable to their
acquisition or charged to the Standalone Statement or Profit and Loss.

l) Segment Reporting:-

• Business Segment :

The company has disclosed business segment in notes on accounts as the primary
segment taking into account the type of products, the differing risk return and the
internal reporting system. The various segment identified by the company
comprised as under:

Name of Segment Comprised of-

- Manufacturing of Battery, Lead Alloy.

- Trading of Inverter, Chemicals & other battery related equipment

Segment Revenue, segment results, segment assets and segment liabilities
including directly identified with the segment and also an allocation on reasonable
basis of amount not directly identified. The expenses which are not directly
relatable to the business segment, are shown as unallocated corporate cost. The
assets and the liability that cannot be allocated between the segments are shown
as unallocated corporate assets and liabilities respectively.

• Geographical Segment:

The Company has identified Geographical Segments as a secondary segment.

m) Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the related
parties as defined in the Accounting Standard are given in notes of accounts.

n) Accounting for Leases :-

A lease is classified at the inception date as finance lease or an operating lease. A lease
that transfers substantially all the risk and rewards incidental to the ownership to the
Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged to the
Standalone Statement of Profit and Loss on a Straight line basis over the term of the
relevant lease.

b) Finance Lease:- Finance lease are capitalized at the commencement of the lease, at
the lower of the fair value of the property or the present value of the minimum lease
payments. The corresponding liability to the lessor is included in the Balance Sheet as
a finance lease obligation. Lease payments are apportioned between finance charges
and the reduction of the lease obligation so as to achieve a constant rate of interest on
the remaining balance of the liability. Finance charges are charged directly against the
income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or
finance lease to others.

o) Cash flow:-

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

p) Earnings Per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance
with Accounting Standard 20, “Earnings per Share”. Basic EPS is computed by dividing
the Net Profit or Loss attributable to the Equity Shareholders for the year by the
weighted average number of equity shares outstanding during the year. Diluted EPS is
computed by dividing the Net Profit or Loss attributable to the Equity Shareholders
for the year by the weighted average number of Equity Shares outstanding during the
year as adjusted for the effects of all potential Equity Shares, except where the results
are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is
adjusted for events such a Bonus Issue, Bonus elements in right issue, share splits,
and reverse share split (consolidation of shares) that have changed the number of
Equity Shares outstanding, without a corresponding change in resources.

q) Taxes on Income :-

• Current Tax: -

Provision for current tax is made after taken into consideration benefits
admissible under the provisions of the Income Tax Act, 1961.

• Deferred Taxes: -

Deferred Income Tax is provided using the liability method on all temporary
difference at the balance sheet date between the tax basis of assets and liabilities
and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary
differences to the extent that it is probable that taxable profit will be
available in the future against which this items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are
expected to apply to the period when the assets is realized or the liability is
settled, based on tax rates ( and the tax) that have been enacted or enacted
subsequent to the balance sheet date.

r) Discontinuing Operations :-

During the year the company has not discontinued any of its operations.

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Mar 31, 2024

Note: - 1 Significant accounting policies:

1.0 Corporate Information

Goldstar Power LIMITED is a Limited Company, incorporated under the provisions of Companies Act, 1956 and having CIN: L36999GJ1999PLC036274. The Company is mainly engaged in the business of Manufacturing of Inverter Battery, battery Parts, Plates & processing of Lead. The Company is also engaged in trading activity of Batteries. The Registered office of the Company is situated at Jamnagar - Rajkot Highway, B/h Ravi patrol pump, Hapa, Jamnagar.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (“Indian GAAP”). Indian GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with the Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the Historical Cost Convention. and the Companies (Accounting Standards) Amendment Rules 2016 and the relevant provisions of the Companies Act, 2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This financial statement is presented in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated.

Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the Management to make estimates, judgments, and assumptions. These estimates, judgments and assumptions affects the application of accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statement and reported amounts of revenue and expenses during the period. Accounting estimates could change form period to period. Actual result could differ from those estimates. As soon as the Management is aware of the changes, appropriate changes in estimates are made. The effect of such changes are reflected in the period in which such changes are made and, if material, their effect are disclosed in the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as Non - Current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has ascertained its operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of the assets or liabilities for processing and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparation

a) Presentation and Disclosure of Standalone Financial Statements

These standalone financial statements have been prepared as per “Schedule - III” notified under the Companies Act, 2013. The Company has also reclassified / regrouped / restated the previous year figures in accordance with the requirements applicable in the current year.

b) Property, Plant & Equipment and Intangible Assets:-

i. The company has adopted Cost Model to measure the gross carrying amount of Property Plant & Equipment.

ii. Tangible Property Plant & Equipment are stated at cost of acquisition less accumulated depreciation. Cost includes the purchase price and all other attributable costs incurred for bringing the asset to its working condition for intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and customization thereof less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed as Intangible Assets under Development.

c) Depreciation / Amortisation : -

Depreciation has been provided under Straight Line Method at the rates prescribed under schedule III of the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule II.

Intangible assets being Software are amortized over a period of its useful life on a straight line basis, commencing from date the assets is available to the company for its use.

d) Impairment of Assets :-

An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior period is reversed if there has been a change in the estimate of the recoverable amount.

e) Investments:-

• Long term investments are stated at cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

• Current investments are stated at lower of cost or market value. The determination of carrying amount of such investment is done on the basis of specific identification.

f) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government authorities or any other authorities in respect of manufacturing or other facilities are dealt as follows:

• Grants in the nature of subsidies which are non - refundable are credited to the respective accounts to which the grants relate, on accrual basis, where there is reasonable assurance that the Company will comply with all the necessary conditions attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as Liabilities in the Balance Sheet at the Reporting date.

g) Retirement Benefits:-

a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the employee renders the related service.

b) Employment Benefits:

i) Defined Contribution Plans:

The company has Defined Contribution Plans for post employment benefit in the form of Provident Fund which are administered by the Regional Provident Fund Commissioner. Provident Fund are classified as defined contribution plans as the company has no further obligation beyond making contributions. The company’s contributions to defined contribution plans are charged to the Statement of Profit and Loss as and when incurred.

ii) Defined Benefit Plans:

a) Gratuity:

The company has defined benefit plan for post employment benefit in the form of gratuity for the employees which are administered through Life Insurance Corporation of India. Liability for the said defined plan is provided on the basis of valuation as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit Method.

b) Leave Encashment:

The Management has decided to pay all the pending leave of the year for the year in which the same has become payable and pending dues are cleared.

h) Valuation of Inventory : -

Inventories of the raw material, work-in-progress, finished goods, packing material, stores and spares, components, consumables and stock in trade are carried at lower of cost and net realizable value. However, raw material and other items held for use in production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost. The comparison of cost and net realizable value is made on an item by item basis.

Cost of inventories included the cost incurred in bringing the each product to its present location and conditions are accounted as follows:

a) Raw Material:- Cost included the purchase price and other direct or indirect costs incurred to bring the inventories into their present location and conditions. Cost is determined on First in First out basis (FIFO).

b) Finished Goods and Work-in-Progress:- Work in progress are valued at cost which includes raw materials and cost incurred till the stage of production of process. Finished Goods are valued at cost or Net realizable value whichever is lower. Cost included cost of direct materials and the labor cost and a proportion of manufacturing overhead based on the normal operating capacity, but excluding the borrowing costs. Cost is determined on "First in First out basis (FIFO)".

c) Stock in Trade:- Cost included the purchase price and other direct or indirect costs incurred in bringing the inventories to their present location and conditions. Cost is determined on "Weighted Average Basis".

All other inventories of stores and spares, consumables, project material at site are valued at cost. The stock of waste or scrap is valued at net realizable value.

"Net Realizable Value” is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated cost necessary to make the sales of the products.

i) Revenue Recognition :-

Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the Company in ordinary course of its activities and the amount of revenue can be measured reliably, regardless of when the payment is being made. Revenue is measured at the fair value of consideration received or receivable, taking into the account contractually defined terms of payments, net of its returns, trade discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received and receivable by the Company, on its own account. Amount collected on behalf of third parties such as sales tax, value added tax and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat, GST and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept..

Dividend from investments in shares / units is recognized when the company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of export itself, provided no uncertainty exists,

Other items of Income are accounted as and when the right to receive arises.

j) Accounting for effects of changes in foreign exchange rates :-

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transactions.

Any income or expenses on account of exchange difference either on settlement or on Balance sheet Valuation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts.

Commodity Hedging: - The realized gain or loss in respect of commodity hedging contracts, the principal period of which has expired during the year, is recognized in profit and loss account. In respect of contracts, that are outstanding as on date of Balance sheet are valued at prevailing market price and the resultant loss, if any, is provided.

k) Borrowing Cost :-

Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying property, plants and equipments are capitalized as a part of cost of that property, plants and equipments. The amount of borrowing costs eligible for capitalization is determined in accordance with the Accounting Standards - 16 “Borrowing Costs”. Other Borrowing Costs are recognized as expenses in the period in which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from foreign currency borrowings to the extent that they are regarded as adjustments to interest costs are recognized as Borrowing Costs and are capitalized as a part of cost of such property, plants and equipments if they are directly attributable to their acquisition or charged to the Standalone Statement or Profit and Loss.

l) Segment Reporting:-

• Business Segment :

The company has disclosed business segment in notes on accounts as the primary segment taking into account the type of products, the differing risk return and the internal reporting system. The various segment identified by the company comprised as under:

Name of Segment Comprised of-

- Manufacturing of Battery, Lead Alloy.

- Trading of Inverter, Chemicals & other battery related equipment

Segment Revenue, segment results, segment assets and segment liabilities including directly identified with the segment and also an allocation on reasonable basis of amount not directly identified. The expenses which are not directly relatable to the business segment, are shown as unallocated corporate cost. The assets and the liability that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.

• Geographical Segment:

The Company has identified Geographical Segments as a secondary segment.

m) Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given in notes of accounts.

n) Accounting for Leases :-

A lease is classified at the inception date as finance lease or an operating lease. A lease that transfers substantially all the risk and rewards incidental to the ownership to the Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged to the Standalone Statement of Profit and Loss on a Straight line basis over the term of the relevant lease.

b) Finance Lease:- Finance lease are capitalized at the commencement of the lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance charges and the reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against the income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or finance lease to others.

o) Cash flow:-

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

p) Earnings Per Share :-

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard 20, “Earnings per Share”. Basic EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year by the weighted average number of Equity Shares outstanding during the year as adjusted for the effects of all potential Equity Shares, except where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for events such a Bonus Issue, Bonus elements in right issue, share splits, and reverse share split (consolidation of shares) that have changed the number of Equity Shares outstanding, without a corresponding change in resources.

q) Taxes on Income :-

• Current Tax: -

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

• Deferred Taxes: -

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available in the future against which this items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets is realized or the liability is settled, based on tax rates ( and the tax) that have been enacted or enacted subsequent to the balance sheet date.

r) Discontinuing Operations :-

During the year the company has not discontinued any of its operations.

s) Provisions Contingent liabilities and contingent assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as Contingent Liability.

A disclosure for a Contingent Liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation is reported as Contingent Liability. In the rare cases, when a liability cannot be measures reliable, it is classified as Contingent Liability. The Company does not recognize a Contingent Liability but disclosed its existence in the standalone financial statements.

t) Event after Reporting Date:-

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

All the events occurring after the Balance Sheet date up to the date of the approval of the standalone financial statement of the Company by the board of directors on May 28th 2023, have been considered, disclosed and adjusted, wherever applicable, as per the requirement of Accounting Standards.

u) Late Delivery Charges

The liability on account of late delivery charges, due to delay in delivery of finished products for on accrual basis as per the terms of contract after adjusting for the claims which are no longer.

v) Research and Development Expenses

Research and development cost of revenue are charged to revenue as and when incurred, and of capital nature is capitalized and depreciation thereon is provided as per the rates prescribed inn schedule II to the companies Act, 2013.

w) Warranty Claims and Provisions

The Company makes a provision for the probable future liability on account of warranty as at the end of the financial year, in addition to meeting the actual warranty claimed.

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Mar 31, 2023

Data Not Available

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Mar 31, 2018

(A) AS-1 Disclosure of accounting policies:

The Financial statements are prepared under the accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP), and in accordance with the requirement of the Companies Act, 1956 and Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2009 prescribed by the Central Government.

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets & Liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period.

Difference between the actual result and estimates are recognized in the period in which results are known/ materialized.

(B) AS-2 Valuation of Inventory:

Raw Material : At Lower of Cost or Net realizable value.

Semi-finished goods : At estimated cost.

Finished goods : At Lower of Cost or Market Value

(C) AS-4 Contingencies and Events Occurring After the Balance Sheet Date:

Effects of, events occurred after Balance Sheet date and having material effect on financial statements are reflected in the accounts at appropriate places.

(D) AS-5 Net Profit or loss for the period, prior period items and changes in accounting policies:

Material items of prior period, non -recurring and extra ordinary items are shown separately, If any

(E) AS-6 Depreciation accounting:

Depreciation has been provided under Straight Line Method at the rates prescribed under schedule II of the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule II.

(F) AS-9 Revenue Recognition:

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept..

Dividend from investments in shares / units is recognized when the company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of export itself, provided no uncertainty exists,

Other items of Income are accounted as and when the right to receive arises._

(G) AS-10 Accounting for Fixed Assets:

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

(H) AS - 11 Accounting for effects of changes in foreign exchange rates :-

Transactions denominated in foreign currencies are normally recorded at the exchange

1 rate prevailing at the time of the transactions.

Any income or expenses on account of exchange difference either on settlement or on Balance sheet Valuation is recognized in the profit and loss account except in cases

2 where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

3 Foreign currency transactions accounts are given in the notes of accounts

Commodity Hedging: - The realized gain or loss in respect of commodity hedging contracts, the principal period of which has expired during the year, is recognized in

4 profit and loss account. In respect of contracts, that are outstanding as on date of Balance sheet are valued at prevailing market price and the resultant loss, if any, is provided

(I) AS - 12 Accounting for Government Grants :

Capital subsidiary receivable specific to fixed assets is treated as per accounting standard 12 and other revenue grants is recorded as revenue items.

(J) AS - 13 Accounting for Investments

Investments are valued at cost.

(K) AS - 14 Accounting for Amalgamations

During the year there was no amalgamation

(L) AS - 15 Employees Retirement Benefit Plan

Provident Fund : - Provident fund is a defined contribution scheme as the company

1 pays fixed contribution at pre -determined rates. The obligation of the company is limited to such fixed contribution. The contributions are charged to Profit & Loss A/c.

2 Gratuity Plan: - Provision for Gratuity is made by calculating Projected Unit Credit Method as per the calculation given by the Life Insurance Corporation of India

(M) AS - 16 Borrowing Cost

Borrowing costs directly attributable to the acquisition of qualifying assets are capitalized till the same is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing cost is charged to revenue.

(N) AS - 17 Segment Reporting

Business Segment: The company has disclosed business segment in notes on accounts as the primary segment taking into account the type of products, the differing risk return and the internal reporting system. The various segment identified by the company comprised as under:

Name of Segment Comprised of :-

(i) Manufacturing of Battery, Lead Alloy.

(ii) Trading of Inverter, Chemicals & other battery related equipment.

(iii) Segment Revenue, segment results, segment assets and segment liabilities including directly identified with the segment and also an allocation on reasonable basis of amount not directly identified. The expenses which are not directly relatable to the business segment are s hown as unallocated corporate cost. The assets and the liability that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.

Geographical Segment: The Company has identified Geographical Segmen ts as a secondary segment._

(O) AS - 18 Related Party Disclosure

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given in notes of accounts.

(P) AS - 19 Accounting for Leases

The Company has not entered into any lease agreements during the year.

(Q) AS - 20 Earnings Per Share

Disclosure is made in the Notes of accounts as per the requirements of the standard

(R) AS - 22 Accounting for Taxes on Income

Current Tax: - Provision for current tax is made after taken into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

1. Deferred Tax Assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available in the future against which this items can be utilized.

2. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets is realized or the liability is settled, based on tax rates ( and the tax) that have been enacted or enacted subsequent to the balance sheet date.

(S) AS - 24 Discontinuing Operations

During the year the company has not discontinued any of its operations.

(T) AS - 28 Impairment of Assets

At the date of each Balance Sheet, the company evaluates indications of the impairment internally, if any, to the carrying amounts of its fixed and other assets. If any indication does exist, the recoverable amount is estimated at the higher of the realizable value and value in use, as considered appropriate. If the estimated realizable value is less than the carrying amount, an impairment loss is recorded.

Reversal of impairment losses recognized in prior years is recorded when th ere is an indication that the impairment losses recognized for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carryi ng amount that would have been determined (Net of Depreciation) had no impairment loss been recognized for the assets in prior years.

(U) AS - 29 Provisions Contingent liabilities and contingent assets

- Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

- Contingent Liabilities are not recognized but are disclosed in the notes.

- Contingent Assets are neither recognized nor disclosed in the financial Statement.

- Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.

- Dividends: - Provision Is made in the accounts for the dividends payable by the co mpany as recommended by the Board of Directors, pending approval of the shareholders at the Annual General Meeting. Income tax on dividend Payable is provided for in the year to which such dividends relate.

Late Delivery Charges:^-

(_V) The liability on account of late delivery charges, due to delay in delivery of finished ⁽ products for on accrual basis as per the terms of contract after adjusting for the claims which are no longer.

Warranty Claims and Provisions:^-

(W) The Company makes a provision for the probable future liability on account of warranty as at the end of the financial year, in addition to meeting the actual warranty claimed.

Research and Development Expenses:^-

(X) Research and development cost of revenue are charged to revenue as and when ^{( )} incurred, and of capital nature is capitalized and depreciation thereon is provided as per the rates prescribed inn schedule II to the companies Act, 2013.