Accounting Policies of Kshitij Polyline Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

The financial statements have been prepared as a going concern in accordance with Indian Accoun ng Standards (Ind AS) no fied under the Sec
on 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accoun ng Standards) Rules, 2015 and other relevant provisions
of the Act.

(b) Going conern

The board of directors have considered the financial position of the Company at 31st March, 2025 and projected cash flows and financial
performance of the Company for at least twelve months from the date of approval of these financial statements as well as planned cost and
cash improvement actions, and believe that the plan for sustained profitability remains on course. The board of directors have taken actions to
ensure that appropriate long-term cash resources are in place at the date of signing the accounts to fund the Company''s operations.

(c) Current and Non Current Classificaton

The Company presents assets and liabilities on the Balance Sheet based on Current / Non Current Classification.

An Asset is treated as Current when it is:

- Expected to be realized or consumed in operating cycle,

- Expected to be realised within twelve months aster the reporting period, or

- Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for atleast twelve months after the reporting
period.

All other Assets are classified as non-current.

A Liability is treated as Current when it is;

- It is expected to be settled in operating cycle,

- It is due to settled within twelve months aster the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

(e) Property, Plant and Equipment & Depreciation
Recognition and measurement

a) The cost of an item of property, plant and equipment is recognized as an asset only if it is probable that future economic benefits associated
with the item will flow to the entity and the cost of the item can be measured reliably.

b) Property, plant and equipment are stated at cost net of accumulated depreciation and accumulated impairment loss, if any.

c) The initial cost of an asset comprises its purchase price or construc on cost (including import duties and non-refundable taxes) after
deducting trade discounts and rebates, any costs directly attributable to bringing the asset into the location and condition necessary for it to be
capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation (if any) and the applicable
borrowing cost till the asset is ready for its intended use.

d) Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the
Company.

e) Any gain or loss on disposal of an item of property, plant and equipment recognized in profit or loss.

f) Major spare parts which meet the defini on of property plant and equipment are capitalized as property, plant and equipment. In other cases,
the spare parts are inventorised on procurement and charged to Statement of Profit & Loss on issue/consumption.

(f) Capital work-in-progress

Projects under which property, plant and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related
incidental expenses and a ributable interest.

(g) Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost,
including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s requirements

(h) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before exceptional items and 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 activies of the Company are segregated based on the available information.

(i) Cash and Cash equivalents

In the cash flow statement, cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits held
at call with financial institutions, short-term highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(j) Transaction in Foreign Currency

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the setilement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the
transaction. Nonmonetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair
value was measured. The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition
of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in
Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehensive Income or Statement of Profit and
Loss, respectively).

(k) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity. Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments.

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

Investment in equity instrument are classified at fair value through profit or loss, unless the Company irrevocably elects on initial recognition to
present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost criteria or fair value through other comprehensive income criteria are measured at fair
value through profit or loss. A financial asset that meets the amortised cost criteria or fair value through other comprehensive income criteria
may be designated as at fair value through profit or loss upon initial recognition if such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would arise from measuring assets and liabilities or recognising the gains or losses on them on
different bases.

Financial assets which are fair valued through profit or loss are measured at fair value at the end of each reporting period, with any gains or
losses arising on re-measurement recognized in profit or loss.

(m) De-recognition of financial assets and liabilities

The Company derecognizes a financial asset when the contractual right to the cash flows from the asset expires or it transfers the rights to
receive the contractual cash flows on the financial asset in a transaction which substantially all the risk and rewards of ownership of the
financial asset are transferred. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or
expired; the difference between the carrying amount of derecognized financial liability and the consideration paid is recognized as profit or loss.

(n) Trade Receivables

Trade receivables are recognised initially at fair value unless they do not carry a significant financing component, in which case they are
recognized at the transaction price. The Company generally determines the allowance for expected credit losses based on historical loss
experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future
economic conditions relating to industries the company deals with and the countries where it operates. In calculating expected credit loss, the
Company has also considered credit reports and other related credit information for its customers to estimate the probability of default in

(o) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the
borrowings using the effective interest rate method. Borrowings are removed from the balance sheet when the obligation specified in the
contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit

(p) Trade payables

Trade payables are amounts due to vendors for purchase of goods in the ordinary course of business and are classified as current liabilities to
the extent it is expected to be paid within the normal operating cycle of the business.

(q) Leases - Company as a lessee
Finance lease:

Leases where the Company assumes substantially all the risks and rewards of ownership are classified as finance lease. Such leases are
capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is
recognized for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant

periodic rate of interest on the outstanding liability for each year

Operating lease:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as
operating lease. Operating lease payments are recognized as an expense on a straight line basis over the lease term unless the payments are
structured to increase in line with the expected general inflation so as to compensate for the lessor''s expected inflationary cost increases.

(r) Inventories

Inventories are valued at the lower of cost and net realizable value after providing for obsolescence and other losses where considered
necessary. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and appropriate proportion
of variable and fixed overhead expenditure and also other costs incurred in bringing the inventories to their present location and condition.
Overhead expenditures are being allocated on the basis of normal operating capacity. Costs of purchased inventory are determined after
deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and the estimated costs necessary to make the sale. Non- production inventory (other than those supplied along with main plant
and machinery, which are capitalised and depreciated accordingly) are charged to profit or loss on consumption. Raw Materials and other items
held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. Work in progress and finished goods are valued at cost or Net Realisable Value whichever is lower.

Saleable scrap is valued at the net realisable value."

(s) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods are net of applicable taxes,
estimated returns and reduction/addition towards variable consideration includes discounts, rebates, incentives, promotional couponing and
schemes. Advance received from customer before transfer of control of goods to the customer is recognised as Current Liabilities. The company
estimates the amount of variable components based on historical, current and forecast information available and either expected value method
or most likely method, as appropriate and records a corresponding liability in other payables; the actual amounts may be different from such
estimates. These differences, which have historically not been significant, are recognized as a change in management estimate in a subsequent
period. The revenue is recognized when the significant risks and rewards of ownership of goods are transferred to the buyer, recoverability of
consideration is probable, the amount of revenue and cost incurred or to be incurred in respect of the transaction can be measured reliably and
there is no continuing managerial involvement over the goods sold. Income from services is recognized when the services are rendered or when
contracted milestones have been achieved. Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset''s net carrying amount on initial recognition. Dividend income is recognized when
the Company''s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to
the Company and the amount of dividend can be measured reliably. Revenue / Income and Cost / Expenditure are generally accounted on
accrual basis as they are earned/ incurred, except those with significant uncertainties. Dividend Income from investment is recognized as and
when received. Other Incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.
Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provisions made.

(t) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are added to the cost of these assets, until such time as the assets are
substantially ready for their intended use or sale. All other borrowing costs are recognised in statement of profit and loss in the period in which

they are incurred "

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Mar 31, 2024

4. Significant accounting policies

4.1 Statement of Compliance

The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards (Ind AS) notified under the Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

4.2 Going Concern

The board of directors have considered the financial position of the Company at 31st March, 2024 and projected cash flows and financial performance of the Company for at least twelve months from the date of approval of these financial statements as well as planned cost and cash improvement actions, and believe that the plan for sustained profitability remains on course. The board of directors have taken actions to ensure that appropriate long-term cash resources are in place at the date of signing the accounts to fund the Company''s operations.

4.3 Property, plant and equipment

Recognition and measurement

a) The cost of an item of property, plant and equipment is recognized as an asset only if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

b) Property, plant and equipment are stated at cost net of accumulated depreciation and accumulated impairment loss, if any.

c) The initial cost of an asset comprises its purchase price or construction cost (including import duties and non-refundable taxes) after deducting trade discounts and rebates, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation (if any) and the applicable borrowing cost till the asset is ready for its intended use.

d) Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

e) Any gain or loss on disposal of an item of property, plant and equipment recognized in profit or loss.

f) Major spare parts which meet the definition of property plant and equipment are capitalized as property, plant and equipment. In other cases, the spare parts are inventorised on procurement and charged to Statement of Profit & Loss on issue/consumption.

g) Direct expenses incurred during construction period on capital projects are capitalised

The Company depreciates property, plant and equipment over their estimated useful lives using the straightline method. The estimated useful lives of assets are per rates prescribed under the Companies act.

4.4 Capital work-in-progress:

Projects under which property, plant and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

4.5 Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s requirements for cost model. The cost of Investment property includes the cost of replacing parts and borrowing costs if the recognition criteria are met. When significant part of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in Statement of Profit and Loss as incurred. The Company''s Investment property consists only of land and hence depreciation thereon is not provided. The fair value of investment property is disclosed in the notes. Fair values are determined based on evaluation performed by accredited external independent valuers. An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property is included in Statement of Profit and Loss in the period in which the property is derecognised."

4.6 Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance Internally generated intangible assets Expenditure on research activities is recognised as an expense in the period in which it is incurred. An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:

i. the technical feasibility of completing the intangible asset so that it will be available for use or sale,

ii. the intention to complete the intangible asset and use or sell it, the ability to use or sell the intangible asset,

iii. how the intangible asset will generate probable future economic benefits

iv. the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

v. the ability to measure reliably the expenditure attributable to the intangible asset during its development

The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally generated intangible asset can be recognised, development expenditure is recognised in profit and loss in the period in which it is incurred. Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

4.7 Depreciation

Depreciation on tangible fixed assets is provided using the Straight-Line Method based on the useful life of the assets as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement of Schedule II of the Companies Act, 2013. In case of additions or deletions during the year, depreciation is computed from the month in which such assets are put to use and up to previous month of sale or disposal, as the case may be.

4.8 Cash flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before exceptional items and 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 of the Company are segregated based on the available information.

4.9 Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits held at call with financial institutions, short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

4.10 Transaction in Foreign Currency

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction. Nonmonetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehensive Income or Statement of Profit and Loss, respectively)

4.11 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one enfi''ty and a financial liability or equity instrument of another enfi''ty. Financial assets and financial liabilifies are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Subsequently, financial instruments are measured according to the category in which they are classified.

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

Investment in equity instrument are classified at fair value through profit or loss, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost criteria or fair value through other comprehensive income criteria are measured at fair value through profit or loss. A financial asset that meets the amortised cost criteria or fair value through other comprehensive income criteria may be designated as at fair value through profit or loss upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets and liabilities or recognising the gains or losses on them on different bases.

Financial assets which are fair valued through profit or loss are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in profit or loss."

4.13 De-recognition of financial assets and liabilities

The Company derecognizes a financial asset when the contractual right to the cash flows from the asset expires or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction which substantially all the risk and rewards of ownership of the financial asset are transferred. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired; the difference between the carrying amount of derecognized financial liability and the consideration paid is recognized as profit or loss.

4.14 Trade receivables

Trade receivables are recognised initially at fair value unless they do not carry a significant financing component, in which case they are recognized at the transaction price. The Company generally determines the allowance for expected credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to industries the company deals with and the countries where it operates. In calculating expected credit loss, the Company has also considered credit reports and other related credit information for its customers to estimate the probability of default in future.

4.15 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest rate method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

Trade payables

Trade payables are amounts due to vendors for purchase of goods in the ordinary course of business and are classified as current liabilities to the extent it is expected to be paid within the normal operating cycle of the business.

4.16 Leases - Company as a lessee Finance lease

Leases where the Company assumes substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognized for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Operating lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Operating lease payments are recognized as an expense on a straight line basis over the lease term unless the payments are structured to increase in line with the expected general inflation so as to compensate for the lessor''s expected inflationary cost increases.

4.17 Inventories

Inventories are valued at the lower of cost and net realizable value after providing for obsolescence and other losses where considered necessary. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and appropriate proportion of variable and fixed overhead expenditure and also other costs incurred in bringing the inventories to their present location and condition. Overhead expenditures are being allocated on the basis of normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Non- production inventory (other than those supplied along with main plant and machinery, which are capitalised and depreciated accordingly) are charged to profit or loss on consumption. Raw Materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Work in progress and finished goods are valued at cost or Net Realisable Value whichever is lower. Saleable scrap is valued at the net realisable value."

4.18 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods are net of applicable taxes, estimated returns and reduction/additi''on towards variable consideration includes discounts, rebates, incentives, promotional couponing and schemes. Advance received from customer before transfer of control of goods to the customer is recognised as Current Liabilities. The company estimates the amount of variable components based on historical, current and forecast information available and either expected value method or most likely method, as appropriate and records a corresponding liability in other payables; the actual amounts may be different from such estimates. These differences, which have historically not been significant, are recognized as a change in management estimate in a subsequent period. The revenue is recognized when the significant risks and rewards of ownership of goods are transferred to the buyer, recoverability of consideration is probable, the amount of revenue and cost incurred or to be incurred in respect of the transaction can be measured reliably and there is no continuing managerial involvement over the goods sold. Income from services is recognized when the services are rendered or when contracted milestones have been achieved. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition. Dividend income is recognized when the Company''s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of dividend can be measured reliably. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned/ incurred, except those with significant uncertainties. Dividend Income from investment is recognized as and when received. Other Incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provisions made. Claims are stated net of recoveries from insurance companies and others. Administrative and other expenses are stated net of recoveries, wherever applicable."

4.19 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of these assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred."

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Mar 31, 2018

A. Basis of preparation

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 2013 (‘the Act’). They are prepared in accordance with the Accounting Standards specified under section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014, and other relevant provisions to the extent applicable. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year.

B. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities as on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in accordance with the requirements of the respective accounting standard.

C. Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition less accumulated depreciation and impairment losses, if any. Cost comprises of purchase price and all other attributable costs for bringing the asset to its working condition for its intended use. Capital Work in Progress comprises of the cost of assets that are not yet ready for their intended use as at the Balance Sheet date.

D. Method of Depreciation

Depreciation is provided on a pro-rata basis on the Written Down value Method over the useful lives as prescribed under Schedule II to the Companies Act, 2013.

Depreciation of these assets commences when the assets are ready for their intended use which is generally on commissioning. Items of property, plant and equipment are depreciated in a manner that amortizes the cost (or other amount substituted for cost) of the assets after commissioning, less its residual value, over their useful lives as specified in Schedule II of the Companies Act, 2013 on a straight line basis. Land is not depreciated.

E. Investments

Investments that are readily realisable and are intended to be held for not more than a year from the date, on which such investments are made, are classified as current investments and are carried at lower of cost and fair value determined on an individual investment basis whereas all other investments are classified as long-term investments and are carried at cost. Provision for diminution in value of long term investment is made to recognise a decline other than temporary as specified in Accounting Standard (AS 13) on “Accounting for Investments”.

F. Inventories

Inventories are stated at lower of cost and net realisable value. The cost is calculated on weighted average method. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to its present location and condition and includes, where applicable, appropriate overheads based on normal level of activity. Net realisable value is the estimated selling price less estimated costs for completion and sale.

Work in progress is valued at cost including material cost and attributable overheads, finished goods & material is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost. Closing Stock is taken as certified by the Management. The inventories are stated at lower of cost and Net realizable value.

Obsolete, slow moving and defective inventories are identified from time to time and, where necessary, a provision is made for such inventories.

G. Revenue recognition

Sale of goods: Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers which, coincides with the date of dispatch/bill of lading.

Rent Income: Rental Income is recognised on the utilisation of the space as per the terms and conditions of the contract.

Dividend: Dividend is recognised when the shareholders’ right to receive payment is established during the accounting year.

Interest income: Interest income is recorded on accrual basis.

Duty Drawback: Export incentives are accounted for when there is a certainty of receipt / utilization.

H. Operating Lease

Leases where the lessor effectively retains substantially all the risk and rewards of ownership of the lease item are classified as operating leases. Operating lease payments are recognized as expenses in the statement of Profit and Loss on straight line basis over the term of the lease.

I. Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset (including real estate projects) are considered as part of the cost of the qualifying asset. Other borrowing costs are treated as period costs and charged to Statement of Profit and Loss as and when they are incurred.

J. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and 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 of the Company are segregated based on the available information.

K. Impairment

(i) The carrying amounts of assets are reviewed at each Balance Sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

(ii) After impairment, depreciation is provided on the assets revised carrying amount over its remaining useful life.

(iii) A previously recognised impairment loss is increased or decreased depending on change in circumstances. However, an impairment loss is not decreased to an amount higher than the carrying amount that would have been determined has no impairment loss been recognised.

L. Income taxes

a) Current Tax: Provision for current Income Tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Tax: Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantially enacted. Deferred tax asset is not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

c) MINIMUM ALTERNATE TAX (MAT):MAT paid in a year is charged to the Statement of Profit and Loss as current tax. The Group recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal taxes during the specified period under the Income Tax Act, 1961. The Company reviews the ‘MAT Credit Entitlement’ asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period.

M. Earnings per share

Basic earnings per equity share are calculated by dividing the net profit / (loss) for the year attributable to equity shareholders (after deducting attributable taxes) by weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for event of fresh issue of shares to the public.

For the purpose of calculating diluted earnings per equity share, the net profit or (loss) for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

N. Segment Reporting

The Company does not have any geographical segments. As such there are no separate reportable segments as per the Accounting Standard 17 on “Segment Reporting” notified under Companies (Accounting Standard) Rules, 2014.

O. Employee Benefits:

The Company has not provided provisions for employee benefits during the financial year and previous financial year.

P. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and other short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Q. Provisions, contingent liabilities and contingent assets

A provision is recognised when there is a present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to reflect the best current estimate. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.