Accounting Policies of Hariyana Ventures Ltd. Company

Mar 31, 2024

1.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Property, Plants and Equipment⁷ s
Measurement at Recognition

An item of property, plants and equipment''s that qualifies as an assets is measured on the initial
recognition at cost. Following the initial recognition, item of property, plants and equipment''s are
carried at its cost less accumulated depreciation and accumulated impairment losses, if any.

The Company identifies and determines cost of each part of an item of property, plants and
equipment''s separately, if the part has a cost which is significant to the total cost of that item of
property, plants and equipment''s and has useful life that is materially different from that of the
remaining items.

The cost of an item of property, plants and equipment''s comprises of its purchase price including
import duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing
the assets to its present location and working condition for its intended use and the initial estimate of
decommissioning, restoration and similar liabilities, if any. Any trade discount and rebates are
deducted in arriving at the purchase price of such property, plants and equipment''s.

Cost includes the cost of replacing a part of the plants and equipment''s, if the recognition criteria are
met. Expenses directly attributable to new manufacturing facilities during its construction period are
capitalized, if the recognition criteria are met. Expenditure related to plans, designs and drawings of
buildings or plant and machineries are capitalized under the relevant heads of property, plants and
equipment''s, if the recognition criteria are met.

When the significant parts of property, plants and equipment''s are required to be replaced at
periodical intervals, the Company recognizes such part as individual assets with specific useful lives
and depreciates them accordingly.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flows
to the Company and the cost of the item can be measured reliably. The carrying amount of any
components accounted for as a separate asset is de-recognized when replaced.

All the costs, including administrative, financing and general overhead expenses, as are specifically
attributable to construction of a specific projects or to the acquisition of a property, plants and
equipment''s or bringing it to its present location and working condition, is include as a part of the cost
of construction of the project or as a part of the cost of property, plants and equipment''s, till the
commencement of its commercial production. Any adjustments arising from exchange rate variations
attributable to the property, plants and equipment''s are capitalized as aforementioned.

Borrowing costs relating to the acquisition/construction of property, plants and equipment''s which
takes the substantial period of time to get ready for its intended use are also included in the cost of
property, plants and equipment''s/cost of constructions to the extent they relate to the period till such
property, plants and equipment''s are ready to be put to use.

Any subsequent expenditure related to an item of property, plants and equipment''s is added to its
book value only and only if it increases the future economic benefits from the existing assets beyond
its previously assessed standard of performance.

Any items such as spare parts, stand by equipment and servicing equipment''s that meet the
definitions criteria of the property, plants and equipment''s are capitalized at cost and depreciated
over the useful life of the respective property, plants and equipment''s. Cost is in the nature of repairs
and maintenances are recognized in the statement of profit and loss as and when incurred.

Capital Work-in-Progress and Capital Advances

Cost of property, plants and equipment''s not ready for intended use, as on the balance sheet date, is
shown as a "Capital Work-in-Progress". The capital work-in-progress is stated at cost. Any
expenditure in relation to survey and investigation of the properties is carried as capital work-in¬
progress. Such expenditure is either capitalized as cost of the projects on completion of construction
project or the same is expensed in the period in which it is decided to abandon such projects. Any
advances given towards acquisition of property, plants and equipment''s outstanding at each balance
sheet date are disclosed as "Other Non - Current Assets".

The Company has elected to consider the carrying value of all its property, plants and equipment
appearing in its financial statements and used the same as deemed cost in the opening Ind AS Balance
Sheet prepared at April 01, 2016.

Depreciation

Depreciation on each part of property, plants and equipment''s are provided to the extent of the
depreciable amount of the assets on the basis of "Straight Line Method (SLM)" on the useful lives of
the tangible property, plants and equipment''s as estimated by the Company''s management and is
charged to the statement of profit and loss, as per the requirement of Schedule - II to the Companies
Act, 2013. The estimated useful lives of the property, plants and equipment''s has been assessed based
on the technical advice which is considered in the nature of the property, plants and equipment''s, the
usage of the property, plants and equipment''s, expected physical wear and tear of the such property,
plants and equipment''s, the operating conditions, anticipated technological changes, manufacturer
warranties and maintenance support of the property, plants and equipment''s etc.

When the parts of an item of the property, plants and equipment''s have different useful lives, they are
accounted for as a separate items (major components) and are depreciated over their useful lives or
over the remaining useful lives of the principal property, plants and equipment''s, whichever is less.

The Company based on technical assessment made by the technical experts and the Company''s
management estimate, depreciate certain items of property, plants and equipment''s over the
estimated useful lives which are different from the useful lives as prescribed under Schedule - II of the
Companies Act, 2013. The Company''s management believes that the useful lives as given above is best

to represent the period over which Company''s management expects to use these property, plants and
equipment''s.

Freehold land is not depreciated. Leasehold land and their improvement cost are amortized over the
period of the lease.

The useful lives, residual value of each part of an item of property, plants and equipment''s and the
method of depreciation are reviewed at the end of each reporting period, if any, of these expectations
differ from the previous estimates, such change is accounted for as a change in accounting estimate
and adjusted prospectively, if appropriate.

Derecognition

The carrying amount of an item of property, plants and equipment''s and other intangible assets are
recognized on disposal or when no future economic benefits are expected from its use or disposal. The
gain or loss arising from derecognition of the property, plants and equipment''s is measured as the
difference between the net disposal proceeds and the carrying amount of the assets and is recognized
in the statement of profit and loss, as and when the assets are de-recognized.

b) Intangible Assets
Measurement at Recognition

Intangible assets acquired separately measured on the initial recognition at cost. Intangible assets
arising on the acquisition of business are measured at fair value as at the date of acquisition. Internally
generated intangible assets including research costs are not capitalized and the related expenditure is
recognized in the statement of profit and loss in the period in which the expenditure is incurred.
Following the initial recognition, intangible assets are carried at cost less accumulated amortization
and accumulated impairment loss, if any.

Amortization

Intangible assets with the finite lives are amortized on a "Straight Line Basis" over the estimated
useful economics lives of such intangible assets. The amortization expenses on intangible assets with
the finite lives are recognized in the statement of profit and loss.

The amortization period and the amortization method for an intangible assets with the finite useful
lives are reviewed at the end of each financial year, If any, of these expectations differ from the
previous estimates, such changes are accounted for as a change in an accounting estimate and
adjusted prospectively, if appropriate.

Derecognition

The carrying amount of an intangible assets are recognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the de-recognition of an
intangible assets is measured as the difference between the net disposal proceeds and the carrying
amount of the intangible assets and is recognized in the statement of profit and loss, as and when such
assets are de-recognized.

c) Impairment

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication
that a non-financial asset may be impaired. Assets that have an indefinite useful life, are not subject to
amortization and are tested for impairment annually and whenever there is an indication that the
assets may be impaired.

Assets that are subject to depreciation and amortization and assets representing investments in
subsidiary and associate companies are reviewed for impairment, whenever events or changes in
circumstances indicate that carrying amount may not be recoverable. Such circumstances include,
though are not limited to, significant or sustained decline in revenues or earnings and material
adverse changes in the economic environments.

The Company assesses at each reporting date, whether there is an indication that assets may be
impaired, if any indication exists based on internal or external factors, or when Annual impairment
testing for assets is required, the Company estimates the asset''s recoverable amount. Where the
carrying amount of the assets or its cash generating unit (CGU) exceeds its recoverable amount, the
assets are considered impaired and written down to its recoverable amount. The recoverable amount
is greater of the fair value less cost to sell and value-in-use.

In assessing value-in-use, the estimated future cash flows are discounted to their present value using a
pre-tax rate that reflects current market rates and the risk specific to the assets. For an asset that does
not generate largely independent cash inflows, the recoverable amount is determined for the CGU to
which the assets belong. Fair value less cost to sell is the best estimate of the amount obtainable from
the sale of an assets in an arm''s length transactions between knowledgeable, willing parties, less cost
of disposal. After the impairment, depreciation is provided on the revised carrying amount of the
assets over its remaining useful lives.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that
the impairment losses recognized for the assets no longer exists or has decreased. However, the
increase in the carrying amount of assets due to the reversal of an impairment loss is recognized to the
extent it does exceed the carrying amount that would have been determined (net of depreciation) had
no impairment loss been recognized for the assets in the prior years.

Impairment losses, if any, are recognized in the statement of profit and loss and included in
depreciation and amortization expense. Impairment losses are reversed in the statement of profit and
loss only to the extent that the asset''s carrying amount does not exceed the carrying amount that
would have been determined; if no impairment loss had previously been recognized.

d) Revenue Recognition

Revenue from Contracts with Customers

Revenue from contracts with customers is recognized on transfer of control of promised goods or
services to a customer at an amount that reflects the consideration to which the Company is expected
to be entitled to in exchange for those goods or services.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that performance obligation. The transaction price of
goods sold and services rendered is net of variable consideration on account of various discounts and
schemes offered by the Company as part of the contract. This variable consideration is estimated
based on the expected value of outflow. Revenue (net of variable consideration) is recognized only to
the extent that it is highly probable that the amount will not be subject to significant reversal when
uncertainty relating to its recognition is resolved.

Sale of Products

Revenue from sales of goods is recognized, when control on the goods have been transferred to the
customers. The performance obligation in the case of sale of goods is satisfied at a point in time i.e.
when the material is shipped to the customers or delivery to the customers as may be specified in the
contracts with them.

Sales (Gross) excludes Goods and Service Tax (GST) and is net of discounts and incentives to the
customers.

Sale of Services

Revenue from sales of service is recognized over time by measuring the progress towards satisfaction
of performance obligation for the service rendered. The revenue is recognized based on the
agreements / arrangements with the customers as the service is performed and based on the
satisfaction of performance obligation. Advances from customers are recognized under "Other
Current Liabilities" and released to revenue on satisfaction of performance obligation.

Interest

Revenue from Interest income is recognized using the effective interest method. Effective interest rate
(EIR) is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial instruments or a shorter period, where appropriate, to the gross carrying
amount of the financial assets or to the amortized cost of financial liabilities.

Rental Income

Rental income arising from operating lease on investment properties is accounted for on a straight line
basis over the lease term except the case where the incremental lease reflects inflationary effect and
rental income is accounted in such case by actual rent for the period.

e) Inventories

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,
materials and other items held for use in the 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 costs.
The comparison of costs and net realizable value is made on an item-by-item basis. In determining the
cost of raw materials, work-in-progress, finished goods, packing materials, stores and spares,
components and stock-in-trade, "First-in-First-out" method is used. Cost of inventories comprises all
costs of purchase, non-refundable duties and taxes, cost of conversion including an appropriate share
of fixed and variable production overheads and all other costs incurred in bringing the inventory to its
present location and conditions.

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

The Company considers factors like estimated shelf life, product discontinuances and aging of
inventory in determining the provision for slow moving, obsolete and other non-saleable inventory
and adjust the inventory provision to reflect the recoverable value of the inventory.

g) Financial Instruments

A financial instruments are in any contract that gives rise to a financial assets of one entities and a
financial liabilities or equity instruments of another entities.

Financial Assets

Initial Recognition and Measurements

The Company recognizes financial assets in its balance sheet, as and when it becomes party to the
contractual provisions of the instruments. All the financial assets are recognized initially at fair value,
plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL),
transaction costs that are attributable to the acquisition of the financial assets. However, trade
receivables that do not contain a significant financing component are measured at transaction price.

Where the fair value of a financial assets at initial recognition is different from its transaction price, the
difference between the fair value and the transaction price is recognized as a gain or loss in the
statement of profit and loss at initial recognition, if the fair value is determined through a quoted
market price in an active market for an identical assets (i.e. level 1 input) or through a valuation
technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognized as a
gain or loss in the statement of profit and loss only to the extent that such gain or loss arises due to a
change in factor that market participants take into account when pricing the financial assets.

Subsequent Measurements

For subsequent measurements, the Company classifies a financial assets in accordance with the below
criteria:

i) The Company''s business model for managing the financial assets and

ii) The contractual cash flows characteristics of the financial assets.

Based on the above criteria, the Company classifies its financial assets into the following categories:

i) Financial assets measured at amortized costs

ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)

iii) Financial assets measured at fair value through profit or loss (FVTPL)

Financial Assets measured at Amortized Costs

A financial assets are measured at the amortized costs if both the following conditions are met:

a) The Company''s business model objective for managing the financial assets is to hold financial assets
in order to collect contractual cash flows, and

b) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of
the Company. Such financial assets are subsequently measured at amortized cost using the effective
interest method.

Under the effective interest method, the future cash receipts are exactly discounted to the initial
recognition value using the effective interest rate. The cumulative amortization using the effective
interest method of the difference between the initial recognition amounts and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial assets over
the relevant period of the financial assets to arrive at the amortized costs at each reporting date. The
corresponding effect of the amortization, under effective interest method is recognized as interest
income over the relevant period of the financial assets. The same is included under "Other Income" in
the statement of profit and loss.

The amortized costs of a financial assets are also adjusted for loss allowance, if any.

Financial Assets measured at FVTOCI

A financial assets are measured at FVTOCI if both of the following conditions are met:

a) The Company''s business model objective for managing the financial assets is achieved both by
collecting contractual cash flows and selling the financial assets, and

b) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

This category applies to certain investments in debt instruments. Such financial assets are
subsequently measured at fair value at each reporting date. Fair value changes are recognized in the
Other Comprehensive Income (OCI). However, the Company recognizes interest income and
impairment losses and its reversals in the statement of profit and loss.

On de-recognition of such financial assets, cumulative gain or loss previously recognized in OCI is
reclassified from equity to statement of profit and loss.

Further, the Company, through an irrevocable election at initial recognition, has measured certain
investments in equity instruments at FVTOCI. The Company has made such election on an
instrument-by-instrument basis. These equity instruments are neither held for trading nor are
contingent consideration recognized under a business combination. Pursuant to such irrevocable
election, subsequent changes in the fair value of such equity instruments are recognized in other
comprehensive income. However, the Company recognizes dividend income from such instruments
in the statement of profit and loss, when the right to receive such payment is established, it is probable
that the economic benefits will flow to the Company and the amount can be measured reliably.

On de-recognition of such financial assets, cumulative gain or loss previously recognized in OCI is not
reclassified from the equity to statement of profit and loss. However, the Company may transfer such
cumulative gain or loss into retained earnings within equity.

Financial Assets measured at FVTPL

A financial assets are measured at FVTPL unless it is measured at amortized costs or at FVTOCI as
explained above. This is a residual category applied to all other investments of the Company
excluding investments in subsidiary and associate companies. Such financial assets are subsequently
measured at fair value at each reporting date. Fair value changes are recognized in the statement of
profit and loss.

Derecognition

A financial assets (or, where applicable, a part of a financial assets or part of a group of similar
financial assets) is derecognized (i.e. removed from the Company''s balance sheet) when any of the
following occurs:

i) The contractual rights to cash flows from the financial assets expires;

ii) The Company transfers its contractual rights to receive cash flows of the financial assets and has
substantially transferred all the risks and rewards of ownership of the financial assets;

iii) The Company retains the contractual rights to receive cash flows but assumes a contractual
obligation to pay the cash flows without material delay to one or more recipients under a "pass -
through" arrangement (thereby substantially transferring all the risks and rewards of ownership of
the financial assets);

iv) The Company neither transfers nor retains substantially all risk and rewards of ownership and
does not retain control over the financial assets.

In cases, where the Company has neither transferred nor retained substantially all of the risks and
rewards of the financial assets, but retains control of the financial assets, the Company continues to
recognize such financial assets to the extent of its continuing involvement in the financial assets. In
that case, the Company also recognizes an associated liabilities. The financial assets and the associated
liabilities are measured on a basis that reflects the rights and obligations that the Company has
retained.

On de-recognition of a financial assets, (except as mentioned in above for financial assets measured at
FVTOCI), the difference between the carrying amount and the consideration received is recognized in
the statement of profit and loss.

Impairment of Financial Assets

The Company applies expected credit losses (ECL) model for measurements and recognition of loss
allowance on the following:

i) Trade receivables

ii) Financial assets measured at amortized costs (other than trade receivables)

iii) Financials assets measured at fair value through other comprehensive income (FVTOCI)

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to
lifetime ECL is measured and recognized as loss allowance.

In case of other assets (listed as ii and iii above), the Company determines, if there has been a
significant increase in credit risk of the financial assets since the initial recognition. If the credit risk of
such assets has not increased significantly, an amount equal to twelve months ECL is measured and
recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to
lifetime ECL is measured and recognized as loss allowance.

Subsequently, if the credit quality of the financial assets improves such that there is no longer a
significant increase in credit risk since initial recognition, the Company reverts to recognizing
impairment loss allowance based on twelve months ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expected to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected
life of a financial assets. Twelve months ECL is a portion of the lifetime ECL which results from
default events that are possible within twelve months from the reporting date.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts
determined by a range of outcomes, taking into account the time value of money and other reasonable
information available as a result of past events, current conditions and forecasts of future economic
conditions.

As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its
portfolio of trade receivables. The provision matrix is prepared based on historically observed default
rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At each
reporting date, the historically observed default rates and changes in the forward-looking estimates
are updated.

ECL impairment loss allowance (or reversal) recognized during the reporting period are recognized as
income / expense in the statement of profit and loss under the head "Other Expenses".

Financial Liabilities

Initial Recognition and Measurements

The Company recognizes a financial liabilities in its balance sheet when it becomes party to the
contractual provisions of the instruments. All financial liabilities are recognized initially at fair value,
in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction
costs that are attributable to the acquisition of the financial liabilities.

Where the fair value of a financial liabilities at initial recognition is different from its transaction price,
the difference between the fair value and the transaction price is recognized as a gain or loss in the
statement of profit and loss at initial recognition, if the fair value is determined through a quoted
market price in an active market for an identical assets (i.e. level 1 input) or through a valuation
technique that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognized as a
gain or loss in the statement of profit and loss, only to the extent that such gain or loss arises, due to a
change in factor that market participants take into account when pricing the financial liabilities.

Subsequent Measurements

All financial liabilities of the Company are subsequently measured at amortized costs using the
effective interest method.

Under the effective interest method, the future cash payments are exactly discounted to the initial
recognition value using the effective interest rate. The cumulative amortization using the effective
interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial liabilities
over the relevant period of the financial liabilities to arrive at the amortized costs at each reporting
date. The corresponding effects of the amortization, under effective interest method is recognized as
interest expense over the relevant period of the financial liabilities. The same is included under finance
costs in the statement of profit and loss.

Derecognition

A financial liabilities are de-recognized when the obligation under the liabilities are discharged or
cancelled or expires. When an existing financial liabilities are replaced by another from the same
lender on substantially different terms, or the terms of an existing liabilities are substantially modified,
such an exchange or modification are treated as the de-recognition of the original liabilities and the
recognition of a new liabilities. The difference between the carrying amount of the financial liabilities
de-recognized and the consideration paid is recognized in the statement of profit and loss.

Offsetting of Financial Assets and Financial Liabilities

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet,
if there is a currently enforceable legal right to offset the recognized amounts and there is an intention
to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

g) Fair Value

The Company measures financial instruments at fair value in accordance with the accounting policies
mentioned above. Fair value is the price that would be received to sell an assets or paid to transfer a
liabilities in an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the assets or transfer the
liabilities takes place either:

* In the principal market for the assets or liabilities, or

* In the absence of a principal market, in the most advantageous market for the assets or liabilities.

All the assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy that categorizes into three levels, described as follows,
the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest
priority to a quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the
lowest priority to unobservable inputs (Level 3 inputs).

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the assets or
liabilities, either directly or indirectly;

Level 3 - Inputs that are unobservable for the assets or liabilities.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting period and discloses the same.

h) Taxes on Income

Tax expense comprises current tax and deferred income tax. Tax expenses are the aggregate amount
included in the determination of profit or loss for the reporting period current tax and deferred
income tax. Tax expenses are recognized in the statement of profit and loss, except to the extent that it
relates to the items recognized in the other comprehensive income or in the equity. In that case, tax is
also recognized in other comprehensive income or equity.

Current income tax is the amount of income tax payable in respect of taxable profit for the reporting
period. Taxable profit differs from "Profit Before Tax" as reported under the statement of profit and
loss because of item of expenses or income that are taxable or deductible in other years and items that
are never taxable or deductible under Income Tax Act, 1961.

Current tax assets and liabilities are measured by using the tax rates that have been enacted by the end
of the reporting period for the amounts expected to be recovered from or paid to the income tax
authorities. Current tax also includes any adjustment amount to tax payable / receivable in respect of
previous reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit under Income Tax Act, 1961 and their carrying amounts. Deferred tax is measured based
on the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are generally recognized for all deductible and taxable temporary
differences. However, in the case of temporary differences that arise from initialrecognition of assets
or liabilities in a transaction (other than business combination) that affect neither the taxable profits
nor the accounting profits or does not give rise to equal taxable and deductible temporary difference,
deferred tax assets and liabilities are not recognized. Also, for temporary differences, if any, that may
arise from initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences, and any unused
tax losses and unused tax credits, to the extent, it is probable that taxable profits will be available
against which those deductible temporary difference can be utilized. In the case of temporary
differences that arise from initial recognition of assets or liabilities in a transaction that affect neither
the taxable profits nor the accounting profits, deferred tax assets are not recognized.

The carrying amount of deferred tax assets / liabilities are reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow the benefits of part or all such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled.

Uncertain Tax Positions

The Company''s management periodically evaluates the positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and consider whether it is
probable that a taxation authority will accept uncertain tax treatments. The Company reflects the
effect of uncertainty for each uncertain tax treatment by using one of two methods, the expected value
method (the sum of the possibility - weighted amounts in range of possible outcomes) or the most
likely amount (single most likely amount method in a range of possible outcomes), depending on
which is expected to better predict the resolution of the uncertainty. The Company applies consistent
judgments and estimates, if an uncertain tax treatment affects both the current and deferred income
tax.

Presentation

Current tax and deferred tax are recognized as income or an expense in the statement of profit and
loss, except when they relate to items that are recognized in other comprehensive income, in which
case, the current tax and deferred tax income / expense are recognized in other comprehensive
income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize
the assets and settle the liabilities simultaneously. In case of deferred tax assets and deferred tax

liabilities, the same are offset, if the Company has a legally enforceable right to set off corresponding
current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same tax authority on the Company.

l) Lease

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. All other lease is classified as operating lease.

The Company as a Lessee

a) Operating Lease: Rental payable under the operating lease are charged to the statement of profit
and loss on a straight-line basis over the term of the relevant lease except where another systematic
basis is more representative of time pattern in which economic benefits from the leased assets are
consumed.

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
liabilities to the lessor is included in the balance sheet as a finance lease obligation. Lease payments
are apportioned between finance expenses and the reduction of the lease obligation so as to achieve
a constant rate of interest on the remaining balance of the liabilities. Finance expenses are charged
directly against the income over the period of the lease unless they are directly attributable to the
qualifying assets, in which case they are capitalized. Contingent rental is recognized as an expense
in the period in which they are incurred.

A leased assets are depreciated over the useful lives of the assets, however, if there is no reasonable
certainty that the Company will obtain ownership by the end of the lease term, the assets are
depreciated over the shorter of the estimated useful lives of the assets and the lease terms.

The Company as a Lessor:

Lease payments under operating leases are recognized as an income on a straight-line basis in the
statement of profit and loss over the lease term except where the lease payments are structured to
increase in line with expected general inflation. The respective leased assets are included in the
balance sheet based on their nature.

m) Borrowing Costs

Borrowing cost include the interest, commitments charges on bank borrowings, amortization of
ancillary costs incurred in connection with the arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the extent they are regarded as an adjustment to the
finance cost.

Borrowing costs, if any, that are directly attributable to the acquisition or constructions or production
of qualifying property, plants and equipment''s are capitalized as a part of cost of that property, plants
and equipment''s until such time that the assets are substantially ready for their intended use.
Qualifying assets are assets which take the substantial period of time to get ready for the intended use
or sale.

When the Company borrows the funds specially for the purpose of obtaining the qualifying assets, the
borrowing costs incurred are capitalized with the qualifying assets. When the Company borrows fund
generally and use them for obtaining a qualifying assets, the capitalization of borrowing costs are
computed on weighted average cost of general costs that are outstanding during the reporting period

and used for acquisition of the qualifying assets. Capitalization of the borrowing costs ceases when
substantially all the activities necessary to prepare the qualifying assets for intended use are complete.

Other borrowing costs are recognized as expenses in the period in which they are incurred. Any
interest income earned on temporary investment of specific borrowings pending their expenditure on
qualifying assets are deducted from the borrowing costs eligible for capitalization.

k) Employee Benefits

Short-Term Employee Benefits

All the employee benefits payable wholly within twelve months of rendering the services are
classified as short-term employee benefits and they are recognized in the period in which the
employee renders the related services. The Company recognizes the undiscounted amount of short¬
term employee benefits expected to be paid in the exchange for services are rendered as a liabilities
(accrued expense) after deducting any amount already paid.

Post - Employment Benefits

a) Defined Contribution Plans

Defined contribution plans are employee state insurance scheme and Government administrated
pension fund scheme for all the applicable employees and superannuation scheme for all the eligible
employees, if any, who met eligible criteria. The Company''s contribution to defined contribution
plans is recognized in the statement of profit and loss in the reporting period to which they relate.

i. Recognition and Measurement of Defined Contribution Plans

The Company recognizes contribution payable to a defined contribution plan as an expense in the
statement of profit and loss when the employees render services to the Company during the reporting
period. If the contributions payable for services received from employees before the reporting date
exceeds the contributions already paid, the deficit payable is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for
services received before the reporting date, the excess is recognized as an assets to the extent that the
prepayment will lead to, for example, a reduction in future payments or a cash refund. Generally, no
employee will fall within the ambit of the eligibility of the same.

b) Defined Benefits Plans

i) Gratuity

The Company operates a defined benefits plan for its employees. The Company pays the gratuity to
employee whoever has completed its five year of service with the Company at the time of retirement
or resignation or superannuation. The gratuity is paid @ 15 Days salary for every completed year of
service as per the Payment of Gratuity Act, 1972.

The liabilities in respect of gratuity is calculated using "Project Unit Credit Method" and spread over
the period during which the benefits is expected to be derive from employee services. The
remeasurement of defined benefits plan in respect of post-employments are charged to the other
comprehensive income (OCI).

ii) Provident Fund Scheme

Provident fund is defined contribution plan covering certain eligible employees. The Company and
the eligible employees make a monthly contribution to the provident fund maintained by the regional
provident fund commissioners equal to the specified percentage of the basic salary of the eligible
employees as per the scheme. The contributions to the provident fund are charged to the statement of
profit and loss for the period, when the contributions are due.

Recognition and Measurement

The cost of providing defined benefits is determined using the "Projected Unit Credit Method" with
actuarial valuations being carried out at each balance sheet date. The defined benefit obligations
recognized in the balance sheet represent the present value of the defined benefit obligations as
reduced by the fair value of plan assets, if applicable. Any defined benefit assets is recognized
representing the present value of available refunds and reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on the
defined benefit liabilities / (assets) are recognized in the statement of profit and loss. Remeasurements
of the net defined benefits liabilities / (assets) comprising actuarial gains and losses and the return on
the plan assets (excluding amounts included in net interest on the net defined benefit liabilities /
assets), are recognized in other comprehensive income. Such remeasurements are not reclassified to
the statement of profit and loss in the subsequent periods.

Past service cost is recognized immediately to the extent that the benefits are already vested, else is
amortized on a straight-line basis over the average period until the amended benefits become vested.
Actuarial gain or losses in respect of the defined benefits plan are recognized in the statement of profit
and loss in the year in which they arise.

The Company presents the above liabilities as current and non-current in the balance sheet as per the
actuarial valuation by the independent actuary, if any.

The Company generally operates with the policy to hire the outsourcing man power supply agencies,
thus the total employee strength of the Company is below the threshold limit as prescribed under the
Payment of Gratuity Act, 1972 and Employee Provident Fund Act and Miscellaneous Provision Act,
1952. Hence, the said Act is not applicable in the case of the Company. The cost of providing defined
benefits is determined using the "Projected Unit Cash Credit method" with actuarial valuations being
carried out at each balance sheet date. The defined benefit obligations recognized in the balance sheet
represent the present value of the defined benefit obligations as reduced by the fair value of plan
assets, if applicable. Any defined benefit assets (negative benefit defined obligations resulting from
these calculations) are recognized representing the present value of available refunds and reductions
in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on defined
benefit liabilities / (assets) are recognized in the statement of profit and loss. Re-measurements of the
net defined benefits liabilities / (assets) comprising actuarial gains and losses and the return on the
plan assets (excluding amounts included in net interest on the net defined benefit liabilities / assets),
are recognized in other comprehensive income. Such re-measurements are not reclassified to the
statement of profit and loss in the subsequent periods.

Past service cost is recognized immediately to the extent that the benefits are already vested, else is
amortized on a straight-line basis over the average period until the amended benefits become vested.
Actuarial gain or losses in respect of the defined benefits plan are recognized in the statement of profit
and loss in the year in which they arise.

The Company presents the above liabilities as current and non-current in the balance sheet as per the
actuarial valuation by the independent actuary.

The Company generally operates with the policy to hire the outsourcing man power supply agencies,
thus the total employee strength of the Company is below the threshold limit as prescribed under the
Payment of Gratuity Act, 1972 and Employee Provident Fund Act and Miscellaneous Provision Act,
1952. Hence, the said Act is not applicable in the case of the Company.

l) Earnings per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Ind AS - 33,
"Earnings per Share". Basic EPS is computed by dividing the net profit or loss attributable to the
equity shareholders of the Company for the period by the weighted average number of equity shares
outstanding during the period.

Diluted EPS is computed by dividing the net profit or loss attributable to the equity shareholders for
the period by the weighted average number of equity shares outstanding during the period 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.

m) Provisions and Contingencies

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a
past event exists and it is probable that an outflow of resources embodying economic benefits will be
required to settle such obligation and the amount of such obligation can be reliably estimated.

If the effect of time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liabilities. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance costs.

A disclosure for a contingent liabilities are made when there is a possible obligation or a present
obligation that may, but probably will not require an outflow of resources embodying economic
benefits or the amount of such obligation cannot be measured reliably. When there is a possible
obligation or a present obligation in respect of which likelihood of outflow of resources embodying
economic benefits is remote, no provision or disclosure is made.

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 liabilities.

n) 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 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 financial
statement of the Company by the board of directors on May 23, 2023, have been considered, disclosed
and adjusted, wherever applicable, as per the requirement of Indian Accounting Standards.

Hariyana Ventures Limited Annual Report 2023-2024

Page | 82

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Mar 31, 2013

1) System of Accounting :-

The financial statements have been prepared to comply in all material respects with the generally accepted accounting principles, Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 and the relevant provisions thereof.

The financial statements have been prepared under the historical cost convention on accrual basis of accounting except that insurance and other claims/refunds are being accounted for/adjusted in the books as and when settled. The accounting policies have been consistently applied by the Company and are in line with those used last year. The Company has not carried out any fresh business, on account of accumulated losses, the net worth of the company had not eroded, The accounts of the company has been prepared on the going concern basis, although there exists an uncertainty about the future activities.

The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2) Revenue Recognition: -

Expenses and Income considered payable and receivable respectively are accounted for on accrual.

3) Fixed Assets :-

Fixed assets are stated at historical cost, except part of leasehold land, building, shed and Plant 85 Machinery not revaluation and stated at less accumulated depreciation and impairment losses if any. Cost comprises of the purchase price (net of tax/duty credit availed) and any cost direct / incidental and borrowing cost attributable bringing the asset to its working condition for its intended use.

4) Depreciation on Fixed Assets: -

Depreciation is provided on fixed assets on straight line basis in accordance with the rates prescribed in Schedule XIV of the Companies Act 1956. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal and external factors, an impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is the greater of the assets'' net selling price and the value in use. In assessing value in use the estimated future cash flows are discounted to their present value at the weighted average cost of capital

i) Depreciation on assets installed upto 30tn June, 1987 is provided at the .rate of depreciation prevalent at the time of installation of assets as per clarification by the ministry of industry, department of company affairs, vide its circular no. 1/86 dated. 21stMay,1986.

ii) Deprecation on installation of fixed assets after 30m June, 1987 is provided as per rates specified in the schedule XIV of The Companies Act, 1956.

After 31st March. 1993;

Depreciation on all Assets installed after 31st March 1993 is provided at the new rates as amended by the Notification No. GSR756(E) DT.16/12/93 read with circular no. 14 Dt. 20/12/93 issued by the Department of Company Affairs.

Depreciation on assets except Building & Shed & Plant & Machinery is provided on "Written down value method" as per provision of section 205(2) Schedule XIV pf The Companies Act, 1956.

5. Investments: -

Investments are of long term nature and stated at cost.

6. Inventories: -

Inventories valued at cost or net realizable value whichever is lower.

7. Employee Benefits

Contributions to defined contribution schemes such as provident fund are charged to profit and loss account as incurred. The liability for Gratuity has been provided. Actuary provision for Leave encashment payable to the employees is not made as the same is accounted on cash basis.

8. Provisions

A provision is recognized when an enterprise 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 estimates can be made.

Provisions are not discounted to its present value and are determined based on best management estimates required to settle the obligations at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best management estimates.

9. Cash Flow Statement

The Company has prepared the Cash Flow Statement using the Indirect Method in compliance with Accounting Standard issued by The Institute of Chartered Accountants of India (AS-3).

10. Use of Estimates

The preparation of financial statements in conformity with the 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 result and estimates are recognized in the period in which the results are known/ materialized.

11. Contingencies

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainly are treated as contingent. Contingent liabilities not provided for are in respect of:

I. Claims not acknowledged as debts

Sales Tax 48,68,223 48,68,223.

II. Estimated value of contract remaining to be executed on capital accounts and not provided for (Net of advances) Nil Nil

12 Sales TaxDeferal payable:

The Company is entitled to defer its Liability to pay Sales Tax for a period of ten years and liable to pay the same in five annual equal installment thereafter, the liability under the scheme as on 31.03.2013 is Rs. 17,75,397 (Previous Year 35,73,636), which is provided for on the basis of the net present Value of such liability.

13 Taxes on Income: -

Provision for current tax is made based on the tax payable'' under the current provisions of the tax laws applicable in the jurisdiction where in the income is assessable.

Deferred tax expenses or benefit is recognized on timing differences being the difference between taxable income and accounting income that arises in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are accounted for, using the tax rates and tax laws applicable as on the Balance Sheet date.