Accounting Policies of Parvati Sweetners and Power Ltd. Company

Mar 31, 2025

B. Significant accounting policies

i. Statement of compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified
under the Companies (Indian Accounting Standards) Rules, 2015, read with section 133 of the Companies Act, 2013.

ii. Basis of Preparation and Presentation:

The financial statements have been prepared on accrual basis and under the historical cost convention except for
certain financial instruments which are measured at fair value at the end of each reporting period, as explained in
the accounting policies mentioned below.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle
and other criteria set out in Schedule III to the Companies Act, 2013. The Company has ascertained its operating
cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The financial statements including notes thereon are presented in Indian Rupees ("Rupees" or "INR"), which is the
Company''s functional and presentation currency. All amounts disclosed in the financial statements including notes
thereon have been rounded off to the nearest lakhs (''00,000) as per the requirement of Schedule III to the Act, unless
stated otherwise.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The company has identified twelve months as its operating cycle.

iii. Inventories

Inventories are valued at lower of cost and net realisable value, except scrap are valued at net realisable value. Cost
of inventory is arrived at by using Moving Average Price Method. Cost of inventory generally comprises of cost of
purchase, cost of conversion and other cost incurred in bringing the inventory to their present location and
condition.

By products and Saleable scraps, whose cost is not identifiable, are valued at estimated net realisable value.

iv. Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and that the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair
value of the consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government. The Company assesses its revenue arrangements
against specific criteria, i.e., whether it has exposure to the significant risks and rewards associated with the sale of
goods or the rendering of services, in order to determine if it is acting as a principal or as an agent. Revenue is
recognised, net of trade discounts, and taxes, as applicable.

(i) Revenue recognition Sale of Goods

Revenue from Sale of goods is recognised at the time of transfer of substantial risk and rewards of ownership to
the buyer for a consideration. It includes excise duty and cess and excludes GST, Sales Tax / VAT, Trade discounts
and rebates.

(ii) Operation and Maintenance Income

Income from services is recognized as they are rendered (based on arrangement / agreement with the concern
customers).

(iii) Dividend and Interest income

Dividend income from investments is recognised when the right to receive dividend has been established.

Interest income recognised on accrual basis. 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.

v. Property, Plant and Equipment

(i) Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses, if any. The cost of an item of property, plant and equipment comprises its purchase price net of
recoverable taxes, trade discounts and rebates, incidental expenses, erection/ commissioning expenses, borrowing
cost, any directly attributable cost of bringing the item to its working condition for its intended use and costs of
dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted
for as separate components of property, plant and equipment.

A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its
use and disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognised in Statement
of Profit and Loss.

Property, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment
losses, if any, Free hold land is measured at cost.

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

(ii) Depreciation

Depreciation on fixed assets is provided in the manner specified in Schedule II to the Companies Act, 2013.
Depreciation of an asset is the difference between Original cost / revalued amount and the estimated residual value
and is charged to the statement of profit and loss over the useful life of an asset on straight line basis. The estimated
useful life of assets and estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013.

Depreciation on additions during the year is provided on pro rata basis with reference to date of land and Assets held
for sale are not depreciated.

Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the
asset is ready for its intended use.

vi. Intangible assets

Intangible assets are held at cost less accumulated amortisation and impairment losses. Intangible assets developed
or acquired with finite useful life are amortised on straight line basis over the useful life of asset.

The useful lives of intangible assets are assessed as either finite or indefinite. The Company currently does not have
any intangible assets with indefinite useful life. Intangible assets are amortised over the useful economic life and
assessed for impairment whenever there is an indication that the intangible asset may be impaired.

vii. Impairment of Non-Financial Assets

- Property, Plant and Equipment and Intangible Assets

An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment and
the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs
exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use).

The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment
loss in the Statement of Profit and Loss. The impairment loss recognized in the prior accounting period is
reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is
provided on the revised carrying value of the impaired asset over its remaining useful life.

viii. Foreign currency transactions and translations

(i) All transactions in foreign currency are recorded at the rates of the exchange prevailing on the dates when the
relevant transactions took place; any gain/ loss on account of the fluctuations in the rate of exchange is
recognized in the statement of Profit and Loss.

(ii) Monetary items in the form of loans, current assets and current liabilities in foreign currencies at the close of
the year are converted in the Indian currency at the appropriate rate of exchange prevailing on the dates of the
Balance Sheet. Resultant gain or loss on account of fluctuation in the rate of exchange is recognized in the
statement of Profit and Loss.

(iii) Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated in to
functional currency at the exchange rate when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not translated.

ix. Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a
systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When
the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related
asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the
underlying asset i.e. by equal annual instalments. When loans or similar assistance are provided by governments or
related institutions, with an interest rate below the current applicable market rate, the effect of this favorable
interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value
and the government grant is measured as the difference between the initial carrying value of the loan and the
proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

The Company has chosen to present grants related to an asset item as other income in the statement of profit and
loss.

x. Employee benefits
Defined Contribution plan

Provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution
payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an
expense when an employee renders the related service.

xi. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the
cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an adjustment to the borrowing costs.

xii. Segment Accounting Policies

(i) The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind
AS 108 "Operating Segment" the company has identified its reportable segments.

The Chief Operating Decision Maker (CODM) evaluates the company''s performance and allocates resources
based on an analysis of various performance indicators by operating segments. The CODM reviews revenue
and gross profit as performance indicator for all of the operating segments.

The Company has no reportable segment.

xiii. Leases

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the
contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and
the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the
identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the
lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct
costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated
depreciation/amortisation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated/amortised using the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if
that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental
borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an operating expense on a
straight-line basis over the lease term.

xiv. Tax Expenses
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as
reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible.

The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end
of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that it is probable that taxable profits will be available against
which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

For operations carried out under tax holiday period (80IA benefits of Income Tax Act, 1961), deferred tax assets or
liabilities, if any, have been established for the tax consequences of those temporary differences between the
carrying values of assets and liabilities and their respective tax bases that reverse after the tax holiday ends.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority
and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is
likely to give future economic benefits in the form of availability of set off against future income tax liability.
Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably,
and it is probable that the future economic benefit associated with the asset will be realised.

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Mar 31, 2024

B. Significant accounting policies

i. Statement of compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under the Companies (Indian Accounting Standards) Rules, 2015, read with section 133 of the Companies Act, 2013.

ii. Basis of Preparation and Presentation:

The financial statements have been prepared on accrual basis and under the historical cost convention except for certain financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies mentioned below.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The financial statements including notes thereon are presented in Indian Rupees ("Rupees" or "INR"), which is the Company''s functional and presentation currency. All amounts disclosed in the financial statements including notes thereon have been rounded off to the nearest lakhs (''00,000) as per the requirement of Schedule III to the Act, unless stated otherwise.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The company has identified twelve months as its operating cycle.

iii. Inventories

Inventories are valued at lower of cost and net realisable value, except scrap are valued at net realisable value. Cost of inventory is arrived at by using Moving Average Price Method. Cost of inventory generally comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventory to their present location and condition.

By products and Saleable scraps, whose cost is not identifiable, are valued at estimated net realisable value.

iv. Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and that the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company assesses its revenue arrangements against specific criteria, i.e., whether it has exposure to the significant risks and rewards associated with the sale of goods or the rendering of services, in order to determine if it is acting as a principal or as an agent. Revenue is recognised, net of trade discounts, and taxes, as applicable.

(i) Revenue recognition Sale of Goods

Revenue from Sale of goods is recognised at the time of transfer of substantial risk and rewards of ownership to the buyer for a consideration. It includes excise duty and cess and excludes GST, Sales Tax / VAT, Trade discounts and rebates.

(ii) Operation and Maintenance Income

Income from services is recognized as they are rendered (based on arrangement / agreement with the concern customers).

(iii) Dividend and Interest income

Dividend income from investments is recognised when the right to receive dividend has been established.

Interest income recognised on accrual basis. 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.

v. Property, Plant and Equipment

(i) Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises its purchase price net of recoverable taxes, trade discounts and rebates, incidental expenses, erection/ commissioning expenses, borrowing cost, any directly attributable cost of bringing the item to its working condition for its intended use and costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate components of property, plant and equipment.

A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognised in Statement of Profit and Loss.

Property, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any, Free hold land is measured at cost.

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

(ii) Depreciation

Depreciation on fixed assets is provided in the manner specified in Schedule II to the Companies Act, 2013. Depreciation of an asset is the difference between Original cost / revalued amount and the estimated residual value and is charged to the statement of profit and loss over the useful life of an asset on straight line basis. The estimated useful life of assets and estimated residual value is taken as prescribed under Schedule 11 to the Companies Act, 2013.

Depreciation on additions during the year is provided on pro rata basis with reference to date of land and Assets held for sale are not depreciated.

Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its intended use.

vi. Intangible assets

Intangible assets are held at cost less accumulated amortisation and impairment losses. Intangible assets developed or acquired with finite useful life are amortised on straight line basis over the useful life of asset

The useful lives of intangible assets are assessed as either finite or indefinite. The Company currently does not have any intangible assets with indefinite useful life. Intangible assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

vii. Impairment of Non-financial Assets

- Property, Plant and Equipment and Intangible Assets

An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment and the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use).

The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and Loss. The impairment loss recognized in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.

viii. Foreign currency transactions and translations

(i) All transactions in foreign currency are recorded at the rates of the exchange prevailing on the dates when the relevant transactions took place; any gain/ loss on account of the fluctuations in the rate of exchange is recognized in the statement of Profit and Loss.

(ii) Monetary items in the form of loans, current assets and current liabilities in foreign currencies at the close of the year are converted in the Indian currency at the appropriate rate of exchange prevailing on the dates of the Balance Sheet. Resultant gain or loss on account of fluctuation in the rate of exchange is recognized in the statement of Profit and Loss.

(iii) Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated in to functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated.

ix. Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual instalments. When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

The Company has chosen to present grants related to an asset item as other income in the statement of profit and loss.

x. Employee benefits Defined Contribution plan

Provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expense when an employee renders the related service.

xi. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

xii. Segment Accounting Policies

(i) The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind AS 108 "Operating Segment" the company has identified its reportable segments.

The Chief Operating Decision Maker (CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as performance indicator for all of the operating segments. The Company has no reportable segment.

xiii. Leases

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation/amortisation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated/amortised using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.

xiv. Tax Expenses

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

For operations carried out under tax holiday period (80IA benefits of Income Tax Act, 1961), deferred tax assets or liabilities, if any, have been established for the tax consequences of those temporary differences between the carrying values of assets and liabilities and their respective tax bases that reverse after the tax holiday ends.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably, and it is probable that the future economic benefit associated with the asset will be realised.