Accounting Policies of Nibe Ordnance and Maritime Ltd. Company

Mar 31, 2024

4. Summary of significant accounting policies
a. Use of estimates

Preparation of these financial statements in accordance with Ind AS requires management to make judgements on the
basis of certain estimates and assumptions. In addition, the application of accounting policies requires management
judgement. Estimates are based on the managements view on past events and future development and strategies.
Management reviews the estimates and assumptions on a continuous basis, by reference to past experiences and
other factors that can reasonably be used to assess the book values of assets and liabilities.

h. Presentation of true and fair view

These financial Statements have been prepared by applying Ind AS principles and necessary disclosures have been
made which present a true and fair view of the financial position, financial performance and cash flows of the
Company.

c. Going concern

These financial statements have been prepared on a going concern basis and it is assumed that the company will
continue in operation in the foreseeable future and neither there is an intention nor need to materially curtail the sale
of operations.

d. Accrual hasis

These financial statements, except for cash flow information, have been prepared using the accrual basis of accounting

e. Materiality

Each material class of similar items has been presented separately in these financial Statements.

f. Basis of Measurement

These financial statements have been prepared on an accrual basis, except for certain properties and financial
instruments that have been measured at fair values or revalued amounts as required by the relevant Ind AS.

g. Offsetting

In preparation of these financial Statements, the Company has not offset assets and liabilities or income and expenses,
unless required or permitted by Ind AS.

h. Functional and Presentation Currency

Ind AS 21 requires that functional currency and presentation currency be determined. Functional currency is the
currency of the primary economic environment in which the entity operates. Presentation currency is the currency in
which the financial statements are presented.

These financial statements are presented in Indian Rupee, which is the functional currency and presentation currency
of the Company.

i. Tangible fixed assets (PPE)

Property, plant and equipment (PPE) is recognized when the cost of an asset can be reliably measured and it is
probable that the entity will obtain future economic benefits from the asset.

PPE is measured initially at cost. Cost includes the fair value of the consideration given to acquire the asset (net of
discounts and rebates) and any directly attributable cost of bringing the asset to working condition for its intended
use (inclusive of import duties and non-refundable purchase taxes).

The Company does not have any immovable properties.

j. Depreciation on tangible fixed assets

The depreciable amount of PPE (being the gross carrying value less the estimated residual value) is depreciated over
its useful life as prescribed in Schedule II to the companies Act, 2013 on Written Down value Method.

k. Borrowings costs: -

Interest & commitment charges on borrowings granted by the banks and interest on loans obtained from other
parties are recognized in the Statement of Profit & Loss.

No amounts of borrowing costs have been capitalized during the year.

l. Inventories: -

Inventories are valued in accordance with the method of valuation prescribed by The Institute of Chartered Accountants
of India, at lower of cost or net realizable value. However, there is no inventory as on the balance sheet date.

m. Revenue recognition

Revenue from following transactions is recognized to the extent it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured.

Revenue from export sales is recognized when company neither retain continuing managerial involvement nor effective
control over goods i.e. when delivery of goods is physically given to Customs authorities. Revenue from domestic
sales is recognized when significant risk and rewards associated with goods are transferred by way of delivery to the
customer. The Company collects Goods and Service Tax (GST) on behalf of the government, and, therefore, these are
not economic benefits flowing to the company. Hence, they are excluded from revenue.

n. Taxes on income

Current tax expense is based on the taxable and deductible amounts to be used for the computation of the taxable
income for the current year. A liability is recognized in the balance sheet in respect of current tax expense for the
current and prior periods to the extent unpaid. An asset is recognized if current tax has been overpaid.

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be paid to
(recovered from) the taxation authorities, using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date.

Deferred tax is provided in full for all temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted
by the balance sheet date.

A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable that taxable
profit will be available against which the deductible temporary difference can be utilised.

Current and deferred tax is recognized in profit or loss for the period, unless the tax arises from a business combination
or a transaction or event that is recognized outside profit or loss, either in other comprehensive income or directly in
equity in the same or different period.

o. Earnings per share

Basic EPS is calculated by dividing the profit or loss for the period attributable to the equity holders of the parent
company by the weighted average number of ordinary shares outstanding (including adjustments for bonus and
rights issues).

Diluted EPS is calculated by adjusting the profit or loss and the weighted average number of ordinary shares by
taking into account the conversion of any dilutive potential ordinary shares.

Basic and diluted EPS are presented in the statement of profit and loss for each class of ordinary shares in accordance
with Ind AS 33.

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Mar 31, 2014

1.1) Basis of Accounting

* The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principal in India, Accounting Standard notified under sub-section (3C) of section 211 of the Companies Act, 1956 and the other relevant provisions of the Companies Act, 1956.

* Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

1.2) Revenue Recognition

* Dividend income on Investments is accounted for when the right to receive the payment is established.

* Other Income is accounted on accrual basis as and when the right to receive arises.

1. 3) Inventories

Inventories are valued at lower of cost or net realizable value.

1.4) Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of all incidental expenses related thereto.

1.5) Depreciation

Depreciation on fixed assets has been provided on straight line method at the rates prescribed under schedule xiv to the Companies Act 1956 as Amended up to date from the month they were first put to use on proportionate basis.

1.6) Impairment of Assets

Where there is an indication that an asset is impaired the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

1.7) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources where reliable estimate of the amount of the obligation cannot be made.

1.8) Investment

* Investments are stated at Cost.

* Long term Investment includes investment in shares and mutual funds not intended for trading business

1.9) Foreign Currency Transaction

* Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities at the balance sheet date are translated at the exchange rate prevailing on the date of balance sheet.

* Exchange rate difference resulting from foreign exchange transactions settled during the period including year-end transaction of assets and liabilities are recognized under relevant heads in the profit and loss account.

1.10) Income Tax

* Provision for current income tax is made on the basis of relevant provisions of the Income Tax Act, 1961 as applicable to the financial year.

* Deferred Tax is recognized subject to the consideration of prudence on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets relating to un-absorbed depreciation and business loss are recognized only to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

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Mar 31, 2013

1.1) Balance of Accounting

a. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principal in India, Accounting Standard notified under sub-section (3C) of section 211 of the Companies Act, 1956 and the other relevant provisions of the Companies Act, 1956.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

1.2) Revenue Recognition

c. Dividend income on Investments is accounted tor when the right to receive the payment is established.

d. Other Income is accounted on accrual basis as and when the right to receive arises.

1.3) Inventories

Inventories are valued at lower of cost or net realizable value.

1.4) Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of an incidental expenses related thereto.

1.5) Depreciation ''

Depreciation on fixed assets has been provided on straight tine method at the rates prescribed under schedule xiv to the Companies Act 1956 as Amended up to date from the month they were first put to use on proportionate basis.

1.6)

Where there is an indication that an asset is impaired the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent canning amount exceeds recoverable amount

1.7) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources where rentable estimate of the amount of the obligation cannot be made.

1.8) Investment

e. Investments are stated at Cost

f. Long term Investment includes investment in shares and mutual funds not intended for trading business

1.9) Foreign Currency Transaction

g. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities at the balance sheet date are translated at the exchange rate prevailing on the date of balance sheet

h. Exchange rate difference resulting from foreign exchange transactions settled during the period including year-end transaction of assets and liabilities are recognized under relevant heads in the profit and loss account

1.10) Income Tax

i. Provision for current income tax is made on the basis of relevant provisions of the . Income Tax Act, 1961 as applicable to the financial year.

j. Deferred Tax is recognized subject to the consideration of prudence on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets relating to un-absorbed depreciation and business loss are recognized only to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

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Mar 31, 2010

I Basis of Accounting

a. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principal in India, Accounting Standard notified under sub-section (3C) of section 211 of the Companies Act, 1956 and the other relevant provisions of the Companies Act, 1956.

b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

ii Revenue Recognition

a. Revenue from Export is recognized on the date of bill of lading and includes foreign exchange fluctuation on exports.

b. Dividend income on Investments is accounted for when the right to receive the payment is established.

c. Other Income is accounted on accrual basis as and when the right to receive arises.

iii Inventories

Inventories are valued at lower of cost or net realizable value.

iv Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of all incidental expenses related thereto

v Depreciation

Depreciation on fixed assets has been provided on straight line method at the rates prescribed under schedule xiv to the Companies Act 1956 as Amended up to date from the month they were first put to use on proportionate basis.

vi Impairment of Assets

Where there is an indication that an asset is impaired the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

vii Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources where reliable estimate of the amount of the obligation cannot be made.

viii Investment

a. Investments are stated at Cost.

b. Long term Investment includes investment in shares and mutual funds not intended for trading business

ix Foreign Currency Transaction

a. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities at the balance sheet date are translated at the exchange rate prevailing on the date of balance sheet.

b. Exchange rate difference resulting from foreign exchange transactions settled during the period including year-end transaction of assets and liabilities are recognized under relevant heads in the profit and loss account.

x Income Tax

a. Provision for current income tax is made on the basis of relevant provisions of the Income Tax Act, 1961 as applicable to the financial year.

b. Deferred Tax is recognized subject to the consideration of prudence on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets relating to un-absorbed depreciation and business loss are recognized only to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.