Accounting Policies of Parmeshwar Metal Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

The financial statements of the company have been
prepared in accordance with generally accepted
accounting principles in India. The company has
prepared these financial statements to comply in all
material respects with the accounting standards
notified under section 133 of the Companies Act
2013 read with paragraph 7 of the Companies
(Accounts) Rules, 2014. The financial statements
have been prepared on an accrual basis under the
historical cost convention. The accounting policies
adopted in the preparation of financial statements
are consistent with those of previous year.

The Company generally follows Mercantile System
of accounting and recognizes significant items of
income and expenditure on accrual basis. The
company follows indirect method prescribed in AS
3 - Statement of Cash Flows for presentation of its
cash flows.

The standalone financial statements are presented
in '' and values are rounded to the nearest Rupees in
lacs except when otherwise indicated.
b Use of Estimates

The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenue, expenses, assets
and liabilities and disclosure of contingent
liabilities at the date of the financial statements and
the results of operations during the reporting
period end.

Although these estimates are based upon
management''s best knowledge of current events
and actions, uncertainty about these assumptions
and estimates could result in the outcomes

requiring a material adjustment to the carrying
amounts of assets or liabilities in future periods.

c Property, Plant and Equipment

Recognition and Measurement : Items of
Property Plant and Equipment are measured at cost
which includes capitalised borrowing cost, less
accumulated depreciation and accumulated
impairment losses, if any. The cost comprises
purchase price, borrowing costs if capitalization
criteria are met and directly attributable cost of
bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price.

Subsequent Measurement : Subsequent
expenditure related to an item of fixed asset is
added to its book value only if it increases the future
benefits from the existing asset beyond its
previously assessed standard of performance. All
other expenses on existing fixed assets, including
day-to-day repair and maintenance expenditure
and cost of replacing parts, are charged to the
statement of profit and loss for the period during
which such expenses are incurred.

The company identifies and determines cost of
each component/ part of the asset separately, if the
component/ part has a cost which is significant to
the total cost of the asset and has useful life that is
materially different from that of the remaining
asset.

De-recognition : Gains or losses arising from
derecognition of fixed assets are measured as the
difference between the net disposal proceeds and
carrying amount of asset and are recognised in the
statement of profit and loss when the asset is
derecognised.

d Intangible Assets

Intangible assets are reported at acquisition value
with deductions for accumulated amortization and
any impairment losses, if any.

e Depreciation and Amortization

Depreciation is provided on fixed assets used
during the period as per Straight Line Method
(''SLM'') on the basis of useful life specified in
schedule II of the Companies Act, 2013.

f Impairment of Assets

As per an assessment carried out by the
management as on the balance sheet date, there is
no indication of any substantial loss on account of
overall impairment in the value of the assets. In the

opinion of the management the assets are likely to
recover the value at which these are stated in the
accounts, on an overall basis.

g Investment

Long-term investments and current maturities of
long-term investments are stated at cost, less
provision for other than temporary diminution in
value. Current investments, except for current
maturities of long-term investments, comprising
investments in mutual funds, government
securities and bonds are stated at the lower of cost
OR fair value.
h Inventories

Inventory of Raw material is valued at purchase cost
on FIFO basis.

Inventory of Imported Goods is valued at it''s landed
cost including import related expenses incurred
thereon.

Inventory of Finished goods is valued at lower of
cost including underlying raw material and pro-rata
overheads incurred thereon OR it''s Net Realisable
value.

Inventory of Stores and consumables is valued at
purchase cost thereof on FIFO basis.

Inventory of By-product is valued at Net realisable
value.

I Cash and Cash Equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into
known amount of cash that are subject to an
insignificant risk of change in value and having
original maturities of three months or less from the
date of purchase, to be cash equivalents.

j Revenue Recognition

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

Revenue from sale of goods, both manufactured
and traded is recognized when all the significant
risks and rewards of ownership of the goods have
been passed to the buyer, usually on delivery of the
goods. The company collects Goods and Service Tax
(GST) on behalf of the government and, therefore
no economic benefits flowing to the company on
that account, the same are excluded from revenue.
Revenue by way of income on job work is
recognized upon completion of service in that
respect.

Interest income is recognized on accrual basis on a
time proportion basis taking into Account the
Amount outstanding and the rate applicable.
Interest income is included under the head "Other
I ncome" in the statement of profit and loss.

k Employee Benefits

Post-employment benefit plans
Defined Contribution Plan : Retirement benefit in
the form of provident fund is defined contribution
scheme. The Company''s contribution paid/ payable
during the period towards provident fund is
recognized in the Statement of Profit and Loss. The
Company has no obligation other than the
contribution payable to provident fund.

Defined Benefit Plan : Gratuity liability is defined
benefit obligation and is provided for on the basis of
actuarial valuation on projected unit credit method,
made at the end of each financial year. Company''s
contribution towards gratuity is determined based
on actuarial valuation. Actuarial gains or losses for
defined benefit plan is recognized in full in the
Statement of Profit and Loss in the period in which
they occur. Provision has been made in Statement
of Profit and Loss for such liability based on the
valuation and the same shall be disbursed during
the normal course of business of the Company, as
and when the same arises.

Compensated Absence

As per policy of the company, it''s employees are not
entitled to carry forward unutilised balance of
compensated absence at the end of every year.

l Borrowing Cost

Interest and other borrowing costs in connection
with the borrowings of the funds to the extents
related/attributed to the acquisition/construction
of qualifying fixed assets are capitalized up to the
date when such assets are ready for their intended
use and other borrowing cost are charged to profit
and loss statement. The amount of interest
capitalized for the period is determined by applying
the interest rate applicable to appropriate
borrowings as per AS-16.

m Foreign CurrencyTransactions

Transactions in foreign currency are recorded on
initial recognition in the reporting currency using
the exchange rate as on the date of transaction.

At each balance sheet date, foreign currency
monetary items are reported at the closing
exchange rate. Non-monetary items that are

measured in terms of historical cost in foreign
currency are not re-translated.

Transaction gain or loss realized upon settlement of
foreign currency transactions are included in
determining profit/ loss for the period in which the
transaction is settled.

Material translation loss on the assets and liabilities,
being monetary items, denominated in foreign
currency and outstanding at the period end, based
on the exchange rate prevalent at the period end is
recognized as loss during that period.

n Taxation

Current income tax expense comprises taxes on
income from operations in India. Income tax
payable in India is determined in accordance with
the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognised on
timing differences being the difference between
taxable income and accounting income that
originate in one period and is likely to reverse in one
or more subsequent periods. Deferred tax assets
and liabilities are measured using the tax rates and
tax laws that have been enacted or substantively
enacted by the balance sheet date.

Advance taxes and provisions for current income
taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision
arising in the same tax jurisdiction for relevant tax
paying units and where the Company is able to and
intends to settle the asset and liability on a net basis.
The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable
right and these relate to taxes on income levied by
the same governing taxation laws.

o Segment Accounting

The company is engaged in single segment of
business i.e. manufacturing and trading in Copper
related products. As regards geographical segment,
company operates in single segment i.e. India only.
Hence, the management has not identified any
reportable segment.

p Government Grants

Grants and subsidies from the government are
recognized when there is reasonable assurance that
the company will comply with the conditions
attached to them, and grant/subsidy will be
received. Grant received against specific Fixed
Assets are adjusted to the cost of the Assets and
those to the nature of Promoter''s contribution are
credited to Capital reserve. Revenue grants are
recognized as income on a systematic basis in the
Statement of Profit and loss in accordance with the
related scheme and in the period in which these are
accrued. However, the company has neither
received nor recognised any government grant
during the period under audit.

q Earnings Per Share

The company reports basic and diluted Earnings
per Share (EPS) in accordance with Accounting
Standard 20 on Earnings per Share. Basic EPS is
computed by dividing the net profit or loss after tax
for the period attributable to equity shareholders
by the weighted average number of Equity shares
outstanding during the period. Diluted Earnings
per Share is computed by dividing the net profit or
loss after tax for the period (after adjustment for
diluted earnings) attributable to equity
shareholders by the weighted average number of
Equity shares outstanding during the period(after
adjusting for the effects of all dilutive potential
equity shares).

r Taxes on Income

Tax expense comprises of current and deferred tax.
Current income tax is measured at the amount
expected to be paid to the tax authorities in
accordance with the Income-Tax Act, 1961 enacted
in India. The tax rate and tax laws used to compute
the amount are those that are enacted or
substantially enacted, at the reporting date.
Deferred tax reflects the impact of current period
timing differences between taxable income and
accounting income for the period and reversal of
timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance
sheet date. The deferred tax asset is recognized and
carried forward only to the extent that there is a
reasonable or virtual certainty as the case may be,
that the asset will be realized in future.

s Operating cycle for Current and Non-Current
Classification

All assets and liabilities are classified as current and
non-current as per the normal operating cycle of
the Company. Based on the nature of goods
supplied to the customers and time elapsed
between deployment of resources and realization
in cash and cash equivalents of the consideration
thererof, the Company has considered an operating
cycle of 12 months. The classification has been

made based on the Management''s perception
about realisability time line in respect of such
assets.

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Mar 31, 2024

2.1 Summary of Significant Accounting Policies
I) Use of Estimates:

The preporoUtm of Orumcml imiemmu In conformity wtlh gcnerall) accepted
principle* require* rtiunngrmrni to make judgement*, ind

assumption* ihni affect the reported amount* o: revenue* a''rjeia

mid linbilme* and dtnclonurc of conimKcni UubUitirsut the dute of thr firann :ii
siiitcmrntK and thr (mulls of operations during the reporting (Kirtml end

Although these estimates are based upon imuuiitcmcnt''a best knou ledge of
current events and a etui ns. uncertainly about tlic-w assumption* and
estimates could result in thr outcomes requiring u material u^juatmcni Hi Lite
carrying amounts of aniurt* or liabilities in future perm''d*

it) Properly. Plant and Equipment Depreciation:

Recognition and mefurement

Items of iYoperry Plant and equipment .ire measured .if com which includes
capitalised borrowing cost. less accumulated depreciation ami acrumulutcd
impairment losses, if any. The coat compnncs purchase price. borrowing costs
if capitalization crucrus ore met and directly attributable ctkst of bringing the
asset to its working condition for the in I ended une Any trade distuunu and
rebates arc deducted in arriving at the purchase price,

Subsequent measurement

Subsequent expenditure related to an item a! fixed asset is .-ulded iv t* book
v.iluc only if it increases tile future benefits from (lit* rxnmng unset beyond Its
previously assessed ntandard of performance AD other expense''* on canning
fixed assets, including, day to day rrpuxr and maintenance expenditure and
cost of replacing pans, arc charged to the statement of profit -rod loss far the
period during which such expenses are incurred

The company identifies and determines cos! n! each component part of the
asnr: separately. If the component/ p»irt has a cast which in n.profit:un! to lhr
lofat cost of the unset und luix useful life that is materially different from that
of the remaining asset.

Depreciation

Depreciation is provided on fixed assets ugi d during the prrur.: u-. per Straight
Line Method ( SI.M) on the bmuN of useful life specifier] «n schedule II of the
Companies Act. 2013

The Company has used following uselul life to provide depreciation on its fixed
onsets. •

Dg-rmmUten

Gains or U>ndifference he Lurch the net disposal practtdftand carrying amount of osset ind
are recognised in the statement of profit and loss when the v»»v:! i*
derecognised.

Intangible Aa,vrt-

IntiinRibU* asset** arc reported at acquisition value with deduction* fur
accumulated umortbumon and any impairment, krone*. tf any

til) Impairment of Assets :

As per an assexsmeni earned out by the manitRCincnt as on the balance sheet
date, there in no indication of any substantial Iona on amount of overall
impairment, in the value of the assets In the opinion of the monaRcmrrtt ihc
assets urc likely to recover tlte value at u hich the*/ me mined in Du account*,
on an overall basis

iv) Inventories :

Inventory of Raw material is valued at lower nf purclue%e rust on ^L’lFO or
Net roUUmbld value.

inventory of Imported Goods i\ valued at it''s landed coat mtludim: mpprt
related expenses incurred thereon

Inventory of Finished Roods is valued at Irmrr of purchase rant of unde-lying
raw material including pro rata overheads incurred thereon und N’rl Ht*:''i:«iblc
value of such raw material.

Inventory of Stores and cunsumnblen is valued i#t purchase owfl thereof on
FIFO hosts

v) Revenue Recognition 2

Revenue is recognised to the extent thni it In probable that flic ecunoma
benefits will flow to the Company and the revenue can tie nntlobly moixural

Revenue from sale of goods, both manufactured and traded is nicugnbani when
nil the significant rtak* and rewards of ownership of tlw gixid* have been
pit stud to the buyufi usually on delivery of the goods. The o-mpnnv collect*
Goods and Service Tux JC1ST) on behalf of thr government und. therefore no
economic benefits flowing to the company excluded from revenue.

Revenue by way of income on job wor k is rccogmi''ed upon cufiiplet on ot -.vice
in tiuit respect

Interest income is recognised on accrual basis on u lime proportion ’>a*o»
taking into Account the Amount outstanding and ihr rate applicable f meres 1
income is included under the head ''Other Income-’ in tin* statement of profit
and loss.

vl) Borrowing cost :

Interest and other borrowing costs m connection with rite bwmiwanjp* of the
funds to thr eatents related/attributed to tiic m''quisiuon/construction of
qualifying fixed assets are capitalized up to the date when such assets »vrr
ready for their intended use and uthcr borrowing cted ore charged to profit arid
loss statement. The amount of interest capttahrrd for the period ti» t!ct»*rmini*d
by applying the interest rate applicable to approjiruitc bammfngn an per
AS 16;

vil) Government Grants:

Grants and subsidies from the government are uvognuvd when there ih
reasonable assurance that the company will comply with the conditions
attached to them, and grunt/subsidy will tic reemsid Grant received against
specific Fixed Asnetn ore adjusted to the cost of the Assets mid thin* to the
nature of Promoter''s contribution are credited to Capital reserve Revenue
grants are reeugmxcd as income on a systematic basis in the Statement of
Profit and toss in accntdanca with the related scheme ami m the period 111
which theme ore accrued. However, the company has neither rccriwd nor
recognised any government grant during the pcrii:»d under audit

viil) Employee Benefits :

Defined contribution plan

Retirement benefit m the form of provident fund is defined contribution
scheme. The Company * contribution paid/ payable Awing the peridd timurd*
provident fund is reongnixed in the Statement of Profit and U>#*» The Company
has no obligation other than the contribution payable to provident fund

Defined benefit plan

Gratuity liability is defined benefit obligation ami »* provided lor on the basis
of actuarial valuation on projected unit credit method, made «t the end of each
finanrial year. Company''s contribution towards gratuity is determined luu»ed
on actuarial valuation. Actuarial gums or losses for defined benefit plan j.n
recognized in full in the Statement of Profit and Loss fit the period in winch
they occur. Provision has been made in Statement ol Profit and l.o»» for surh
liability bused on the valuation and thr same ahull be disbursed during the
normal course of business of the Company., as and when the vastui arise*

Compensated Absence

As per the policy of the compuny, unutilised hams during the ywn b> the
employees gets lapsed in the yenr of accrual itself and nn compensation is
being provided for the lapucd leave*

Ik) Foreign currency transactions:

Transactions m foreign currency are recorded on initial recognition, in the
reporting currency using the exchange rate an on the date of transaction

At each balance sheet elate, foreign currency monetary item* ore reported at
the closing exchange rate. Non monetary items thut are measarrl tn lemi historical coot in foreign currency are not re translated

Transaction gain or loss rtralixrd upon settlement of foreign currency
tnrnmicUung are included in determining profit/ loss lor the period in which
the transaction is settled.

/SJK

Material translation loss on thr assets and liabilities. being monetary Itrrnsi
denominated in foreign currency and outstanding -n the period end, buvd on
the exchange rate prevalent at the period end i» rccwgnuccd ua loss during that
period.

x) Earnings per Share :

The company reports basic und diluted Earnings per Share (El''S) in
accordance with Accounting Standard 20 on Earnings per Slam- Bar.tc KHS iu
computed by dividing thr net profit or loss after lit* for thr period attributable
to equity shareholders by the weighted average number of Equity shares
outstanding during thr period. Diluted Earnings per fthiirv in computed by
dividing the net profit or loss lifter tax for thr prnod (alter adjustment for
diluted comings) attributable to equity shareholders by the weighted average
number uf Equity show* outstanding during the period