Accounting Policies of Prevest Denpro Ltd. Company

Mar 31, 2025

Significant Accounting Policies

Basis of Preparation of Standalone Financial

Statements

These standalone financial statements are
prepared in accordance with Generally
Accepted Accounting Principles (GAAP) under
the historical cost convention on accrual basis.
GAAP comprises mandatory accounting
standards as prescribed under section 133 of
the Companies Act, 2013, Companies
(Accounting Standards) rules, 2015 and
Companies(Accounting Standards)
amendments Rules 2016 and other applicable
provisions of the Act.

Use of Estimates

The preparation of standalone financial
statements is in conformity with GAAP requires
judgments, estimates and assumptions to be
made that affect the reported amount of assets
and liabilities, disclosure of contingent liabilities
on the date of the financial statements and the
reported amount of revenues and expenses
during the reporting period. Difference between
the actual results and estimates are recognized
in the period in which the results are known/
materialized.

Accounting Convention

The company follows the mercantile system of
accounting, recognizing income and expenditure
on accrual basis. The accounts are prepared on
historical cost basis and as a going concern.
Accounting policies not referred to specifically
otherwise, are consistent with the generally
accepted accounting principles.

The following significant accounting policies
are adopted in the preparation and presentation
of these standalone financial statements:

• 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.

Sale of goods: Revenue is recognized when the
significant risks and rewards of ownership of the
goods have been passed to the buyer. Sales are
disclosed net of GST, trade discounts and returns,
as applicable. Income from services: Revenue from
services is recognized when services have been
rendered and there should be no uncertainty
regarding consideration and its ultimate collection.
Interest Income: Interest income is recognized on
a time proportion basis taking into account the
amount outstanding and the rate applicable.

• Property, Plant & Equipment

a) Fixed are stated as per Cost Model i.e., at cost¬
less accumulated depreciation and impairment,
if any;

b) Costs directly attributable to acquisition are
capitalized until the Fixed Assets are ready for
use, as intended by the management;

c) Subsequent expenditures relating to fixed assets
are capitalized only when it is probable that
future economic benefits associated with these
will flow to the Company and the cost of the

item can be measured reliably. Repairs &
maintenance costs are recognized in the
Statement of profit & Loss when incurred;

d) The cost and related accumulated depreciated
are eliminated from the financial statements
upon sale or retirement of the asset and the
resultant gains or losses are recognized in the
Statement of Profit or Loss. Assets to be disposed
of are reported at the lower of the carrying value
or the fair value less cost to sell.

e) Depreciation on Tangible Assets in case of
company is provided in such a manner so that
the cost of asset (Net of realizable value) will be
amortized over their estimated remaining useful
life on SLM basis as per the useful life prescribed
under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual
values are reviewed periodically, including a teach
financial year end;

• Impairment

The Management periodically assesses, using
external and internal sources, whether there is an
indication that an asset may be impaired. An
impairment loss is recognized wherever the
carrying value of an asset exceed sits recoverable
amount. The recoverable amount is higher of the
asset''s netselling price and value in use, which
means the present value of future cash flows
expected to arise from the continuing use of the
asset and its eventual disposal.

An impairment loss for an asset is reversed if, and
only if, the reversal can be related objectively to an
event occurring after the impairment loss was
recognized. The carrying amount of an asset is
increased to its revised recoverable amount,
provided that this amount does not exceed the
carrying amount that would have been determined
(net of any accumulated amortization or
depreciation) had no impairment loss been
recognized for the asset in prior years.

• Inventories

Inventories are valued after providing for obsole¬
scence, as follows:

a) Raw Materials, Stores & Spare parts and Packing
Material-Lowerof cost and net realizable value.
However, materials and other items held for use
in the production of inventories are not written
down below cost if the finished products in which
they will be incorporated are expected to be sold
at or above cost. Cost is determined on Weighted
Average Cost basis.

b) Work-in-Progress is valued at raw material cost
plus proportionate conversion cost.

Net realizable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and estimated costs
necessary to make the sale, however due to the
nature of the company the own manufactured
goods are valued at a Retail Method basis on a
consistent basis.

• Retirement Benefits & Other Employee
Benefits

All short term employee benefits are accounted
on undiscounted basis during the accounting
period based on services rendered by employees.
The Company''s contribution to Provident Fund
and Employees State Insurance Scheme is
determined based on a fixed percentage of the
eligible employees'' salary and charged to the
Statement of Profit and Loss on accrual basis.

The Group has made provision for payment of
Gratuity to its employees. This Provision is made
as per the method prescribed under the Payment
of Gratuity Act. The cost of providing gratuity
under this plan is determined on the basis of
actuarial valuation at year end. Under the Gratuity
Fund Plan, the holding company contributes to
a LIC administered Group Gratuity Fund on behalf
of employees.

• Foreign Exchange Transactions

Foreign-currency denominated monetary assets
and liabilities if any are translated at exchange

rates in effect at the Balance Sheet date. The
gains or losses resulting from the transactions
relating to purchase of current assets like Raw
Material etc. are included in the Statement of
Profit and Loss. Revenue, expense and cash-flow
items denominated in foreign currencies are
translated using the exchange rate in effect on
the date of the transaction.

• Cash Flow Statement

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non- cash nature, any deferrals
or accruals of past or future operating cash
receipts or payments and item of income or
expenses associated with investing or financing
cash flows. The cash flows from operating,
investing and financing activities are segregated.

• Borrowing Costs

Borrowing costs that are directly attributable to
the acquisition or construction of a qualifying
asset are capitalized as part of the cost of that
asset till such time the asset is ready for its
intended use. A qualifying asset is an asset that
necessarily takes a substantial period of time to get
ready for its intended use. Costs incurred in raising
funds are amortized equally over the period for
which the funds are acquired. All other borrowing
costs are charged to profit and loss account.

• Income Tax

The accounting treatment for the Income Tax in
respect of the Company''s income is based on the
Accounting Standard on ''Accounting for Taxes on
Income'' (AS-22). The provision made for Income
Tax in Accounts comprises both, the current tax
and deferred tax. Provision for Current Tax is made
on the assessable Income Tax rate applicable to
the relevant assessment year after considering
various deductions available under the Income Tax
Act, 1961. Deferred tax is recognized for all timing
differences; being the differences between the
taxable incomes and accounting income that

originate in one period and are capable of
reversal in one or more subsequent periods.

Such deferred tax is quantified using the tax
rates and laws enacted or substantively
enacted as on the Balance Sheet date. The
carrying amount of deferred tax asset/liability
is reviewed at each Balance Sheet date and
consequential adjustments are carried out.

• Earnings Per Share

Basic earnings per share is computed by
dividing the net profit after tax by the weighted
average number of equity shares outstanding
during the period. Diluted earnings per share is
computed by dividing the profit after tax by the
weighted average number of equity shares
considered for deriving basic earnings per share
and also the weighted average number of equity
shares that could have been issued upon
conversion of all dilutive potential equity shares.
The diluted potential equity shares are adjusted
for the proceeds receivable had the shares been
actually issued at fair value which is the average
market value of the outstanding shares. Dilutive
potential equity shares are deemed converted as
of the beginning of the period, unless issued at
a later date. Dilutive potential equity shares are
determined independently for each period
presented.

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Mar 31, 2024

Significant Accounting Policies

Basis of Preparation of Standalone Financial Statements

These standalone financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013, Companies (Accounting Standards) rules, 2015 and Companies (Accounting Standards) amendments Rules 2016 and other applicable provisions of the Act.

Use of Estimates

The preparation of standalone financial statements is in conformity with GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these standalone financial statements:

1. 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.

Sale of goods: Revenue is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are disclosed net of GST, trade discounts and returns, as applicable.

Income from services: Revenue from services is recognized when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection.

Interest Income: Interest income is recognized on a time proportion basis taking into account the amount

2. Fixed Assets

a) Fixed are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any;

b) Costs directly attributable to acquisition are capitalized until the Fixed Assets are ready for use, as intended by the management;

c) Subsequent expenditures relating to fixed assets are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs & maintenance costs are recognized in the Statement of profit & Loss when incurred;

d) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell.

e) Depreciation on Tangible Assets in case of company is provided in such a manner so that the cost of asset (Net of realizable value) will be amortized over their estimated remaining useful life on SLM basis as per the useful life prescribed under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year end;

3. IMPAIRMENT

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

4. INVENTORIES

Inventories are valued after providing for obsolescence, as follows:

a) Raw Materials, Stores & Spare parts and Packing Material-Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on Weighted Average Cost basis.

b) Work-in-Progress is valued at raw material cost plus proportionate conversion cost.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale, however due to the nature of the company the own manufactured goods are valued at a Retail Method basis on a consistent basis, however the Trading Goods are valued at the lower of Cost or Net Realizable Value.

5. RETIREMENT BENEFITS & OTHER EMPLOYEE BENEFITS

All short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

The Company''s contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed percentage of the eligible employees'' salary and charged to the Statement of Profit and Loss on accrual basis.

The Group has made provision for payment of Gratuity to its employees. This Provision is made as per the method prescribed under the Payment of Gratuity Act. The cost of providing gratuity under this plan is determined on the basis of actuarial valuation at year end. Under the Gratuity Fund Plan, the holding company contributes to a LIC administered Group Gratuity Fund on behalf of employees.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign-currency denominated monetary assets and liabilities if any are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from the transactions relating to purchase of current assets like Raw Material etc. are included in the Statement of Profit and Loss. Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction.

7. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

8. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Costs incurred in raising funds are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to profit and loss account.

9. INCOME TAX

The accounting treatment for the Income Tax in respect of the Company''s income is based on the Accounting Standard on ''Accounting for Taxes on Income'' (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

Deferred tax is recognized for all timing differences; being the differences between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

10. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION OF FINANCIAL STATEMENT

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013, Companies (Indian Accounting Standards) rules, 2015 and Companies (Accounting Standards) amendments Rules 2016 and other applicable provisions of the Act.

The preparation and presentation management to make judgements, estimates and assumptions that may impact the application of accounting policies and reported value of assets, liabilities, income, expenses and related disclosures including contingent assets and liabilities at the Balance Sheet date. The estimates and management''s judgements are based on previous experience and other factors considered reasonable and prudent in the circumstances.

USE OF ESTIMATES

The preparation of financial statements is in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

C) ACCOUNTING CONVENTION

The group follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these financial statements:

1. 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.

Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are disclosed net of GST, trade discounts and returns, as applicable.

Income from services

Revenue from services is recognised when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection.

Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable."

Dividend Income

Dividend Income is recognised on receipt basis.

2. Fixed Assets

a) Fixed are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any;

b) Costs directly attributable to acquisition are capitalized until the Fixed Assets are ready for use, as intended by the management;

c) Subsequent expenditures relating to fixed assets are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs & maintenance costs are recognized in the Statement of profit & Loss when incurred;

d) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost

to sell;

e) Depreciation on Tangible Assets in case of company is provided in such a manner so that the cost of asset (Net of realizable value) will be amortized over their estimated remaining useful life on SLM basis as per the useful life prescribed under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year end;

3. IMPAIRMENT

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

4. INVENTORIES

Inventories are valued after providing for obsolescence, as follows:

a) Raw Materials, Stores & Spare parts and Packing Material-Lower of cost and net realizable value.

However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on Weighted Average Cost basis.

b) Work-in-Progress is valued at raw material cost plus proportionate conversion cost.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale, however due to the nature of the company the own manufactured goods are valued at a Retail Method basis on a consistent basis, however the Trading Goods are valued at the lower of Cost or Net Realisable Value.

5. RETIREMENT BENEFITS & OTHER EMPLOYEE BENEFITS

All short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

The Company''s contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed percentage of the eligible employees'' salary and charged to the Statement of Profit and Loss on accrual basis.

The Group has made provision for payment of Gratuity to its employees. This Provision is made as per the method prescribed under the Payment of Gratuity Act. The cost of providing gratuity under this plan is determined on the basis of actuarial valuation at year end. Under the Gratuity Fund Plan, the holding company contributes to a LIC administered Group Gratuity Fund on behalf of employees.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign-currency denominated monetary assets and liabilities if any are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from the transactions relating to purchase of current assets like Raw Material etc. are included in the Statement of Profit and Loss. Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction.

7. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

8. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Costs incurred in raising funds are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to profit and loss account.

9. INCOME TAX

The accounting treatment for the Income Tax in respect of the Company''s income is based on the Accounting Standard on ''Accounting for Taxes on Income'' (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

Deferred tax is recognised for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

10. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.