Accounting Policies of Inditalia Refcon Ltd. Company

Mar 31, 2025

17 SIGNIFICANT ACCOUXTLNG POLICES

i CORPORATE INFORMATION

Inditalia Refon Limited is a Public Limited Company incorporated in the year 1986.The Company is listed on BSE LTD and is primarily engaged in the business of Trading in biotechnology product.

ii BASIS OF PREPARATION Statement of Compliance

The financial statements as at and for year ended 31 st March,2025 are prepared in accordance with Indian Accounting Standards (Ind-AS) notified under section 133 of tire companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

Basis of Measurement

The Financial Statements are prepared on a going concern basis using historical cost convention and on an accrual method of accounting,except in case of significant unccrtuinities

The standalone financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lakhs, unless otherwise indicated

Operating Cycle

An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has ascertained the operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

iii USE OF ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the year presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant Actual results may differ from these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and Mure periods.

iv CASH & CASH KOII1VALENTS

Cash and cash equivalent in the Balance sheet comprise of cash at bank, cash in hand, other short terra deposits with banks with an original maturity’ of 12 months or less and highly liquid investments, that are readily convertible to known amount of cash and which are subject to insignificant risk of changes in value and Bank overdraft.

For the purpose of statement of cash flow, cash and cash equivalents consist of cash and short term bank deposits etc., as defined above, net of outstanding bank overdrafts since they are considered integral part of the company’s cash management.

v PROVISIONS. CONTINGENT LIABILTY & CONTINGENT ASSETS Provision is recognised when;

-The Company has a present obligation as a result of a past event,

-A probable outflow of resources is expected to settle the obligation and -A reliable estimate of the amount of the obligation can be made.

Reimbursement of the expenditure required to settle a provision is recognised as per contract provisions or when it is virtually certain that reimbursement will be received.

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it are termed as onerous contract and the present obligation under such contracts is recognized and measured as a provision.

Provisions are reviewed at each Balance Sheet date.

Contingent Liabilities and Contingent assets

Contingent liabilities are not recognised in the standalone financial statements. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of die Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made

^vi TAXATION Income Tax

Income tax comprises current and deferred tax. It is recognised in Statement of Profit and Loss except to the extent that it relates to a business combination or to an item recognised directly in Equity or in Other Comprehensive Income.

Current Tax

Current tax comprises the expected tax payable on the taxable income for the year and any adjustment to the tax payable or receivable in respect of previous years.Thc amount of current tax reflects the best estimate of the tax amount expected to be paid after considering tire uncertainly, if any. related to income taxes. It is measured using tax rates under the applicable tax laws.

Deferred Tax

Deferred tax is recognised in respect of temporary differences between the earning amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used,

vii SEGMENT REPORTING

The Company is primarily engaged in the business of manufacturing of Biotechnology. As such the Company’s standalone financial statements are largely reflective of the textile business and there is no separate reportable segment. Pursuant to IND AS 108 - Operating Segments, no segment disclosure lias been made in these standalone financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

vili EARNING PER SHARE

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average number of paid up equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

ix FAIR VALUE MEASUREMENT

Company measures financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability 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 asset or transfer the liability takes place either;

• in the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to the company. The fetr value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure lair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

Assets and liabilities for which fair vaJue is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

2 -Level 2 — Valuation techniques for which the lowest level input that is significant to the lair value measurement is directly or indirectly observable

3 -Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at foe end of each reporting period.

The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on foe basis of the nature, characteristics and risks of the asset or liability and the level of foe fair value hierarchy as explained above.

x FINANCIAL INSTRUMENTS

1) Financial assets NIL

2) Finacial Liabilities

A Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or as payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of financial liability not recognised at FVTPL, transaction cost that are attributable to the acquisition of financial liability. The subsequent measurement of financial liabilities depends on their classification, which is described below

B Subseouent measurement Financial Assets

i) Financial liabilities at Amortised Cost

Financial liabilities at amortised cost represented by trade and other payables, security deposits and Loans etc are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest rate 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 foe 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 liability over the relevant period of the financial liability to arrive at the amortized cost at each reporting date. The corresponding effect of the amortization under effective Interest method is recognized as interest expense over the relevant period of the financial liability. The same is included under finance cost in the Statement of Profit and

ii) Financial liabilities at FVTPL

The company has not designated any financial liabilities at FVTPL.

C Dc-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or foe terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and foe recognition of a new liability, and the difference in the respective carrying amounts is recognised in foe statement of Profit & Loss.

xi BORROWINGS

Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in foe Statement of Profit and Loss over the period of the borrowings using the effective interest method.

Interest Free Borrowings are recognised at carrying cost whose period of repayment is uncertain or undefind. The Company has measured the borrowings from directors at cost in the financial statements.

xii EMPLOYEE BENEFITS

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which die employees render the related service are recognised in Profit & Loss account in respect of employees’ services up to the end ofthe reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

xiii CASH FLOW STATEMENTS

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing , activities ofthe Company are segregated based on the available information.

xiv GOING CONCERN ASSUMPTION

The company have accumulated losses which in result eroded the entire net worth of the company and the labilities of the company has exceeded the assets of the company as at Halance sheet date. Thete is no business activity in the company during the year which clearly indicated the existence of material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern. However, the financial statements of the company have been prepared on a going concern. The company has started exploring the future plans for carry out business operations in the F.Y,2025-26 and will infused the funds either through loan from banks or Directors. The Co. has also applied for change of RTA and M/s Purva Sharegistry are the new RTA. The tri-partite agreement between CDSL, NSDL, RT and Co. were also signed during the year and expects to start business of Leasing of Reefer containers with intention to start manufacturing after getting foothold in the market.

*^v ROUND-OFF

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule ’ III, unless otherwise stated.

xvl The accounting policies that are currently not relevant or material to the company have not been disclosed. When such accounting policies become relevant or material and have significant impact, the same shall be disclosed.

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Mar 31, 2024

17 SIGNIFICANT ACCOUNTING POLICES

i CORPORATE INFORMATION

Inditalia Refon Limited is a Public Limited Company incorporated in the year 1986. The Company is listed on BSE LTD and is
primarily engaged in the business of manufacturing Refrigerated containers.

ii BASIS OF PREPARATION
Statement of Compliance

The financial statements as at and for year ended 31st March.2024 are prepared in accordance with Indian Accounting Standards
(Ind-AS) notified under section 133 of the companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time.

Basis of Measurement

The Financial Statements are prepared on a going concern basis using historical cost convention and on an accrual method of
accounting,except in case of significant uncertainties

The standalone financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lakhs, unless
otherwise indicated

Operating Cycle

An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The
Company has ascertained the operating cycle as twelve months for the purpose of current or non-current classification of assets and
liabilities.

_iH USE OF ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date
of the financial statements and the reported amounts of the revenues and expenses for the year presented. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant Actual results may differ from
these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future periods.

iv CASH A CASH EQUIVALENTS

Cash and cash equivalent in the Balance sheet comprise of cash at bank, cash in hand, other short term deposits with banks with an
original maturity of 12 months or less and highly liquid investments, that are readily convertible to known amount of cash and which
are subject to insignificant risk of changes in value and Bank overdraft

For the purpose of statement of cash flow, cash and cash equivalents consist of cash and short term bank deposits etc., as defined
above, net of outstanding bank overdrafts since they are considered integral part of the company’s cash management.

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Sep 30, 2014

A. Accounting Convention

The Accounts have been prepared on historical cost basis.

b. Revenue Recognition

The company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

c. Valuation of inventories NA NA

d. Diminution in Value of Investments NA NA

e. Deferred Tax Liability NA NA

f. Depreciation: NA NA

g. Foreign Currency Transactions:

Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of transaction.

h. Retirement Benefits:

There is no liability of gratuity and leave encashment or other retirement benefits on the company.

i. Tax Liability:

Provision for current income tax is made at the current tax rates based on assessable income.

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Sep 30, 2012

A. Accounting Convention

The Accounts have been prepared on historical cost basis.

b. Revenue Recognition

accounting and recognises income and

c. Valuation of inventories

d. Diminution in Value of Investments

e. Deferred Tax Liability

f. Depreciation :

g. Foreign Currency Transactions :

Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of transaction.

h. Retirement Benefits :

encashment or other retirement benefits on

i. Tax Liability :

Provision for current income tax is made at the current tax rates based on assessable income.

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Sep 30, 2011

A) System of Accounting :

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. Financial Statements have been drawn up on a historical cost convention on accrual basis.

B) Fixed Assets :

There are no fixed assets with the Company.

C) Pre-operative Expenses :

No such expenses were incurred during the period under review.

D) Depreciation :

The Company used to provide Depreciation on Written Down value basis at the rates prevalent during the period as prescribed in Schedule XIV to the Companies Act, 1956. As the entire fixed assets were disposed off during last year, no provision is required to be made in the accounts for the period under review.

F) Leave Encashment :

Leave encashment is accounted on the basis of leave earned and outstanding at the year end up to maximum of 20 days incase of staff and 30 days in case of working directors as per the Service Rules.

G) Preliminary & Public Issue Expenses :

Preliminary and Public Issue expenses shall be written off equally over a period of 10 years from the year in which the Company commences commercial production in its new business.