Accounting Policies of Pratik Panels Ltd. Company

Mar 31, 2023

Company overview

Pratik Panels Ltd., formerly known as Raipur Panels Pvt Ltd., was incorporated in 1989 and was converted to a Public Limited Company in 1994 having its registered office at Gala No. C-2 (H. No. 366/8-2), Gr. Floor, Gurudev Complex, Behind Deep Hotel, Sonale Village, Bhiwandi Thane MH 421302 IN.

These aforesaid Financial Statements for the year ended March 31, 2023 are approved by the Company''s Board of Directors and authorised for issue in the meeting of Board held on May 12, 2023.

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

These Financial Statements have been prepared in accordance with the Indian Accounting Standards ("IndAS") as per the Companies (Indian Accounting Standards) Rules, (Amended) 2015 and notified by Ministry of Corporate Affairs("MCA") pursuant to Section 133 of the Companies Act, 2013 read with Rule 3.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance sheet as at 1st April, 2016 being the ''date of transition to Ind AS''. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Act. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purposes of current or noncurrent classification of assets and liabilities.

The financial statements have been prepared under the historical cost convention except for the following assets and liabilities which have been measured at fair value

- Financial instruments measured at fair value through profit or loss; and

- Defined benefit plans - plan assets measured at fair value.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates and any revision to such accounting estimates is recognised prospectively in the period in which the results are ascertained.

1.3 Property, Plant and Equipments and depreciation

a) Property, Plant and Equipment ("PPE") are stated at cost less accumulated depreciation and accumulated impairment losses, if any.

Cost includes purchase price, taxes and duties and other direct costs incurred for bringing the asset to the condition of its intended use. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance costs are recognised in Statement of Profit and Loss as incurred. Borrowing costs attributable to the acquisition or construction of a qualifying asset is also capitalised as part of the cost of the asset.

b) Depreciation on PPE is provided on the straight-line method on Depreciable amount i.e 95% of cost of the assets, pro-rata to the period of use, over their useful life. Estimated useful lives of assets as provided in Sch II of Companies Act 2013 & taken into consideration is as under:

Type of assets	Estimated useful life
Building	60 Yrs
Plant & Machineries	15 Yrs
Furniture & Fixtures	10 Yrs
Motor Vehicles	8 Yrs
Computer Peripherals	3 Yrs

1.4 Impairment of Tangible Assets and Intangible Assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimatedin order to determine the extent of the impairment loss (if any). When it is not possible to estimate

uie iccuvciduic amount ui an inuiviuuai asset, me company estimates the lecuveiauie amount ui the casi i-yei lemui iy unit tu which

the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated tu individual cash-yeneratiny units, or otherwise they are allocated tu the smallest group of cash-yeneratiny units for which a reasonable and consistent allocation basis can be identified.

1.5 Revenue Recuynitiun

_a) Revenue is recuynised only when it can be reliably measured and it is reasonable tu expect ultimate collection. Turnover includes sale of yuuds and services, Goods and Services Tax and sales duriny trial run period, adjustment fur discounts but excludiny central tax and state tax.

b) Dividend income is recuynised when riyht tu receive is established.

c) Interest income is recuynised on time proportion basis takiny into account and amount uutstandiny and rate applicable.

1.6 Inventories

a) Stuck in trade is valued at lower of cost or realisable value.

b) Stores & spares are written off at the time of purchases itself and no inventory is maintained.

1.7 Investments

Investments are either classified as current or luny term based on Manayement''s intention at the time of purchases

a) Current investment are carried at the lower of cost and fair market value.

b) Luny term investments are carried at cost less provisions recorded tu recuynize any decline, other than temporary, in the carryiny

value of investments.

1.8 Fureiyn currency transactions

Fureiyn currency transactions duriny the accuuntiny year are translated at the rates prevalent on the transaction date. Exchanye differences arisiny from fureiyn currency fluctuations are dealt with on the date of actual payment /receipt. Assets & liabilities related tu

foreiyn currency transactions remaininy unsettled at the end of the year are translated at the year end rate. The exchanye difference is

credited/ charyed tu profit & loss account in case of revenue items & capital items.

1.9 Income taxes

a) Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax

annually, based on the tax liability computed as per the prevailiny provisions of the Income Tax Act.

b) Deferred tax is recuynized on timiny difference between the accuuntiny income and the taxable income fur the year and quantified usiny the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recuynized and

carried forward to the extent that there is reasonably/ virtual certainty that sufficient future taxable income will be available ayainst

which such deferred tax assets can be realized.

1.10 Retirement benefits

The manayement is of the opinion that since none of the employees of the company were in continuous service of more than five years,

requirement of provision fur yratuity dues nut arises. The manayement is also of the opinion that the provisions of payment of pension

Act are not applicable to the company.

1.11 Statement of Cash Flows

Cash flows are reported usiny the indirect method, whereby net profit for the period is adjusted for the effects of transactions of noncash nature, any deferrals or accruals of past or future operatiny cash receipts or payments and items of income or expenses associated

with investiny or financiny cash flows. The cash flows from uperatiny, investiny and financiny activities of the Company are seyreyated.

1.12 Provisions, Liabilities and Cuntinyencies

Provisions are recuynised when the Company has a present ubliyatiun (leyal or constructive) as a result of a past event, it is probable

that the Company will be required to settle the obliyation, and a reliable estimate can be made of the amount of the obliyation.

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Mar 31, 2014

01). Accounting Assumptions

The financial statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 (Indian GAAP), as adopted consistently by the Company.

02) . Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates and any revision to such accounting estimates is recognised prospectively in the period In which the results are ascertained.

03) .Basis of Accounting

a). Fixed Assets

Fixed Assets are valued at cost less Accumulated depreciation . All Cost including financial Cost till commencement of Commercial production , Pre-operative expenses etc .attributable the fixed Assets are capitalized.

b). Depreciation

Depreciation on fixed assets is not provided during the year. c). Inventories

c). Inventories

Inventories are valued at cost except for finished goods and scrap. Finished goods are valued at lower of cost or net realizable value and scrap are valued at estimated realizable value

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and there is no any uncertainties exists regarding the determination of the amount ,or its associated cost and it would not be unreasonable to expect ultimate collection

e). Prior Period Adjustments

Expenses/lncome pertaining to previous years are booked in the current year under the natural heads of Accounts and its shown separately in the books of accounts.

f). Retirement and other employee benefits:

Retirement benefits in the form of Provident Fund are a defined contribution Scheme, the contributions are charged to the Profit & Loss Account of the year, when the contributions to the respective funds are due. Gratuity fund are administered through a scheme with life insurance corporation of India

g). Foreign Currency Transactions

Transactions in foreign currency are accounted for at the exchange rates prevailing at the time of transaction. However, in case of transactions taking place through bank accounts maintained in foreign currency, the same are recorded at notional rates. Balances in such foreign currency accounts at the year end are converted at the prevailing exchange rates. Current assets and liabilities at the year end are restated at the prevailing exchange rates and the difference between the year end and the actual/notional rates is recognized as income or expense in the Accounts.

h) Borrowing Costs

Borrowing costs attributable to acquisition / construction of qualifying assets are capitalized with the respective assets till the date of commercial use of the assets and other borrowing costs are charged to the Profit and Loss Account.

i) Provisions and Contingent Liabilities Provision

The Company recognizes a provision when there is a present obligation as a result of past event that may probably require an outflow of resources in future. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

i). Provision for Taxation

Provision for Income Tax has not been made as the company has incurred loss during the year

k). Deferred Tax Asset/Liabilitv Refer Note No-5

I). Earninqs per Share

Basic EPS

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average numbers of equity shares outstanding during the year.

Diluted EPS

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

m) Impairment of Assets

The carrying of the assets is reviewed at each balance sheet that if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset net selling price and value in use. In assessing value in use, the Estimated future cash flows are discounted to their present value at the weighted average Cost of capital.

n). Previous year''s figures have been rearranged and regrouped wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2012

1.01 Accounting Assumptions

The financial statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules. 2006 (Indian GAAP), as adopted consistently by the Company.

1.02 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the dale of the financial statements and reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates and any revision to such accounting estimates is recognised prospectively in the period in which the results are ascertained.

1.03 Basis of Accounting

a) Fixed Assets

Fixed Assets are valued at cost less Accumulated depreciation . All Cost including financial Cost till commencement of Commercial production. Pre-operative expenses etc .attributable the fixed Assets are capitalized.

b) Depreciation

Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in the Income Tax’ Act. 1961 as details in Note No-9.

c) Inventories

Inventories are valued at cost except for finished goods and scrap. Finished goods are valued at lower of cost or net realizable value and scrap are valued at estimeted realizable value

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will How to the Company and there is no any uncertainties exists regarding the determination of the amount .or its associated cost and it would not be unreasonable to expect ultimate collection

e) Prior Period Adjustments

Expenses/Income pertaining to previous years are booked in the current year under the natural heads of Accounts and its shown separately in the books of accounts.

f) Retirement and other employee benefits:

Retirement benefits in the form of Provident Fund are a defined contribution Scheme, the contributions are charged to the Profit & loss Account of the year, when the contributions to the respective funds are due. Gratuity fund are administered through a scheme with life insurance corporation of India

g) Foreign Currency Transactions

Transactions in foreign currency arc accounted for at the exchange rates prevailing all the time of transaction.

I) however in case of transactions taking place through bank accounts maintained in foreign currency, the same are recorded at notional rates. Balances in such foreign currency accounts at the year end are converted at the prevailing exchange rates. Current assets and liabilities at the year end are restated at the prevailing exchange rates and the difference between the year end and the actual/notional rates is recognized as income or expense in the Accounts.

h) Borrowing Costs

Borrowing costs attributable to acquisition / construction of qualifying assets are capitalized with the respective assets till the date of commercial use of the assets and other borrowing costs are charged to the Profit and Loss Account.

i) Provisions and Contingent Liabilities Provision

The Company recognizes a provision when there is a present obligation as a result of past event that may probably require an outflow of resources in future. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may. but probably will not. require an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

j).Provision for Taxation

Provision for Income lax. has not been made as the company has incurred loss during the y ear

k).Deferred Tax Asset/Liability Refer Note No-5

I).Earnings per Share

Basic EPS .

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average numbers of equity shares outstanding during the year.

Diluted EPS

Lor the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

The calculation of Laming Per Share as required under Accounting Standard (AS) - 20 is as under:

Basie & Diluted EPS

m) Impairement of Assets .

The carrying of the assets is reviewed at each balance sheet that if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. T he recoverable amount is the greater of the asset net selling price and value in use. In assessing value in use. the Estimated future cash flows are discounted to their present value at the weighted average Cost of capital.

n). Previous year's figures have been rearranged and regrouped wherever necessary' so as to make them comparable with those of the current year.

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Mar 31, 2011

A. Basis of preparation of Financial Statements

a. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principal and the provision of the Company Act, 1956 as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of income & expenditure on accrual basis.

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

d. The Company has provided for all know committed liabilities / income. However small items of expenditure / income which are not material have not been provided for as they are accounted at the time of actual payment.

B. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost, less accumulated depreciation. All cost, including financial cost till commencement of commercial production, pre-operative expenses etc. attribute the fixed assets are capitalized.

b. Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in the Income Tax Act, 1961 as detailed in Schedule -E.

C. Foreign Exchange Transaction

a. Foreign Currencies transactions are normally recorded at the exchange rate prevailing at time of the transaction.

b. Foreign currency transactions remaining unsettled at the end of the year translated at contracted rates.

c. Exchanged differences between the rates applicable at the date of transaction and the rate actually materialized have been included in the respective revenue and expenses account.

D. Inventories

Inventories are valued at cost except for finished goods and scrap. Finished Goods are value at lower of cost or net realizable value and scrap are valued at estimated realizable value.

E. Sales

Sales are exclusive of Excise and Sales Tax collected, and net of discount and rebates.

F. Excise Duty

Excise Duty liability on Finished Goods is accounted for as and when good are cleared from the factory.

G. Employees Retirement Benefits

1. Company's Contribution to Provident fund is charged to Profit and Loss Account.

2. Gratuity Fund are administered through a scheme with Life Insurance Corporation of India.

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Mar 31, 2010

A Basis of preparation of Financial Statements

a. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principal and the provision of the Company Act, 1956 as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of income & expenditure on accrual basis.

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

d. The Company has provided for all know committed liabilities / income. However small items of expenditure / income which are not material have not been provided for as they are accounted at the time of actual payment.

B. Fixed Assets and Depreciation

a. Fixed Assets are stated at cost, less accumulated depreciation. All cost, including financial cost till commencement of commercial production, pre-operative expenses etc. attribute the fixed assets are capitalized.

b. Depreciation on fixed assets is provided on written down value method at the rate and in the manner prescribed in the Income Tax Act, 1961 as detailed in Schedule -E.

C. Foreign Exchange Transaction

a. Foreign Currencies transactions are normally recorded at the exchange rate prevailing at time of the transaction.

b. Foreign currency transactions remaining unsettled at the end of the year translated at contracted rates.

c. Exchanged differences between the rates applicable at the date of transaction and the rate actually materialized have been included in the respective revenue and expenses account

D. Inventories

Inventories are valued at cost except for finished goods and scrap. Finished Goods are value at lower of cost or net realizable value and scrap are valued at estimated realizable value.

E. Sales

Sales are exclusive of Excise and Sales Tax collected, and net of discount and rebates.

F. Excise Duty

Excise Duty liability on Finished Goods is accounted for as and when good are cleared from the factory.

G. Employees Retirement Benefits

1. Companys Contribution to Provident fund is charged to Profit and Loss Account.

2. Gratuity Fund are administered through a scheme with Life Insurance Corporation of India.