Accounting Policies of Pyramid Technoplast Ltd. Company

Mar 31, 2025

2. Significant accounting policies

A summary of the significant accounting policies
applied in the preparation of the financial statements
is as given below. These accounting policies have been
applied consistently to all the periods presented in the
financial statements.

(A) Property, Plant and Equipment

The cost of property, plant and equipment
comprises its purchase price net of any trade
discounts and rebates, any import duties and other
taxes (other than those subsequently recoverable
from the tax authorities), any directly attributable
expenditure on making the asset ready for its
intended use, including relevant borrowing costs
for qualifying assets and any expected costs of
decommissioning. Expenditure incurred after the
property, plant and equipment have been put
into operation, such as repairs and maintenance,
are charged to the Statement of Profit and Loss
in the year in which the costs are incurred.
Major shut-down and overhaul expenditure is
capitalised as the activities undertaken improves
the economic benefits expected to arise
from the asset.

Property, plant and equipment except freehold
land held for use in the production, supply or
administrative purposes, are stated in the balance
sheet at cost less accumulated depreciation and
accumulated impairment losses, if any.

Property, plant and equipment which are not
ready for intended use as on the date of Balance

Sheet are disclosed as "Capital work-in-progress."
Advances paid towards the acquisition of property,
plant and equipment outstanding at each balance
sheet date is classified as capital advances under
"Other Non-Current Assets"

Subsequent expenditure and componentisation

Parts of an item of PPE having different useful lives
and significant value and subsequent expenditure
on Property, Plant and Equipment arising on
account of capital improvement or other factors
are accounted for as separate components 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.
The carrying amount of any component accounted
for as a separate asset is derecognised when
replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period
in which they are incurred.

Depreciation and useful life

Depreciation is provided on a pro-rata basis on the
straight-line method based on estimated useful
life prescribed under Schedule II to the Companies
Act, 2013. Freehold land is not depreciated.
The Company reviews the residual value, useful
lives and depreciation method annually and, if
expectations differ from previous estimates, the
change is accounted for as a change in accounting
estimate on a prospective basis.

An asset''s carrying amount is written down
immediately to its recoverable amount if the
asset''s carrying amount is greater than its
estimated recoverable amount.

Derecognition

An item of PPE is de-recognised upon disposal or
when no future economic benefits are expected to
arise from the continued use of the asset. Any gain
or loss arising on the disposal or retirement of
an item of property, plant and equipment is
determined as the difference between the sales
proceeds and the carrying amount of the asset and
is recognised in Statement of Profit and Loss.

(B) Intangible assets

Intangible assets with finite useful lives that
are acquired separately are carried at cost less
accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on
a straight-line basis over their estimated useful
lives. The estimated useful life and amortisation
method are reviewed at the end of each reporting
year, with the effect of any changes in estimate
being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that
are acquired separately are carried at cost less
accumulated impairment losses.

Directly attributable costs that are capitalised as
part of the intangible asset include employee costs
and an appropriate portion of relevant overheads.
Capitalised development costs are recorded as
intangible assets and amortised from the point at
which the asset is available for use.

Useful life and amortisation

Intangible assets with finite useful lives that
are acquired separately are carried at cost less
accumulated amortisation and impairment losses.
Amortisation is recognised on a straight-line basis
over the useful lives of the asset from the date of
capitalisation as below:

> Computer software 6-years

The estimated useful life is reviewed at the
end of each reporting period and the effect
of any changes in estimate is accounted
for prospectively.

Derecognition

Intangible assets are derecognised on disposal, or
when no future economic benefits are expected
from use or disposal. Gains or losses arising from
derecognition of an intangible asset are determined
as the difference between the net disposal

proceeds and the carrying amount The Company
has elected to continue with carrying value of all
its intangible assets recognised as on transition
date, measured as per the previous GAAP and
use that carrying value as its deemed cost as of
transition date.

(C) Impairment

At the end of each reporting year, 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 estimated in
order to determine the extent of the impairment
loss (if any). Where it is not possible to estimate
the recoverable amount of an individual asset,
the Company estimates the recoverable amount
of the cash-generating unit to which the asset
belongs. Where a reasonable and consistent basis
of allocation can be identified, corporate assets are
also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group
of cash-generating units for which a reasonable
and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested
for impairment at least annually, and whenever
there is an indication the asset may be impaired.
Recoverable amount is the higher of fair value
less costs to sell and value in use. In assessing
value in use, the estimated future cash flows
are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset for which the estimates
of future cash flows have not been adjusted.

If the recoverable amount of an asset (or
cash-generating unit) is estimated to be less
than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is
recognised immediately in the Statement of Profit
and Loss. Goodwill and intangible assets that do
not have definite useful life are not amortised
and are tested at least annually for impairment.
If events or changes in circumstances indicate
that they might be impaired, they are tested for
impairment once again.

(D) Inventories

Raw materials

Raw materials are stated at cost. Raw Material cost
is computed on FIFO basis. Cost of raw materials
and traded goods comprises cost of purchases.

Work in progress and finished goods

Cost of work-in-progress and finished goods
comprises direct materials, direct labour and
an appropriate proportion of variable and fixed
overhead expenditure. Fixed overheads are
allocated on the basis of production of finished
goods. Cost of inventories also include all other
costs incurred in bringing the inventories to their
present location and condition. Costs of purchased
inventory are determined after deducting rebates
and discounts. Net realisable value is the estimated
selling price in the ordinary course of business
less the estimated costs of completion and the
estimated costs necessary to make the sale.

Work in Progress and Finished Goods are valued
at lower of cost or net realizable on FIFO basis.
Net realisable value represents the estimated
selling price for inventories less all estimated
costs of completion and costs necessary
to make the sale.

Stores and spares

Inventory of stores and spare parts is valued at
cost or net realisable value, whichever is lower.
Provisions are made for obsolete and non-moving
inventories. Unserviceable and scrap items,
when determined, are valued at estimated net
realisable value.

(E) Revenue recognition

Revenue from sale of goods is recognised when
control of the products being sold is transferred to
our customer and when there are no longer any
unfulfilled obligations. The Company recognises
revenues on sale of products, net of discounts,
sales incentives, rebates granted, returns, sales
taxes/GST and duties. Export incentives are
recognised as income as per the terms of the
scheme in respect of the exports made and
included as part of other operating revenue.

Revenue from sales is recognised when control
of the products has transferred, being when
the products are delivered to the customer, the

customer has full discretion over the channel
and price to sell / consume the products, and
there is no unfulfilled obligation that could affect
the customer''s acceptance of the products.
Delivery occurs when the products have been
shipped to the specific location, the risks of
obsolescence and loss have been transferred to the
customer, and either the customer has accepted
the products in accordance with the sales contract
or the acceptance provisions have lapsed.

Sale of services

Income from services rendered is recognised
based on agreements/arrangements with the
customers as the service is performed and there
are no unfulfilled obligations.

Dividend and interest income

Dividend income from investments is recognised
when the shareholder''s right to receive
payment has been

established (provided that it is probable that the
economic benefits will flow to the Company and
the amount of income can be measured reliably).
Interest income from a financial asset is recognised
when it is probable that the economic benefits
will flow to the Company and the amount of
income can be measured reliably. 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.

Foreign exchange translation

The functional currency of the Company is Indian
Rupees which represents the currency of the
primary economic environment in which it operates.
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions are generally recognised
in profit or loss. Monetary balances arising from
the transactions denominated in foreign currency
are translated to functional currency using the
exchange rate as on the reporting date. Any gains or
loss on such translation, are generally recognised
in profit or loss.

Exchange differences on monetary items are
recognised in Statement of Profit and Loss in the
year in which they arise.

(F) Income taxes

The income tax expense or credit for the period
is the tax payable on the current period''s taxable
income based on the applicable income tax rate for
each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary
differences and to unused tax losses.

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 and laws
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 (other than in
a business combination) of assets and liabilities
in a transaction that affects neither the taxable
profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the
temporary difference arises from the initial
recognition of goodwill.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future

taxable profits will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting
date. Deferred tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income or
in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in
Other Comprehensive Income or directly in equity.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right
to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.

Minimum Alternate Tax (MAT)

Minimum Alternative Tax (MAT) paid in accordance
with the tax laws in India, which gives rise to future
economic benefits in the form of adjustment of
future income tax liability, is considered as an asset
if there is convincing evidence that the Company
will pay normal income tax after the set-off of
previous years Losses, if any. Accordingly, MAT
is recognised as an asset in the balance sheet
when the asset can be measured reliably, and
it is probable that the future economic benefit
associated with it will fructify.

(G) Borrowing costs

Borrowing costs, general or specific, that
are directly attributable to the acquisition or
construction of qualifying assets is capitalised as
part of such assets. A qualifying asset is one that
necessarily takes substantial period to get ready
for intended use. All other borrowing costs are
charged to the Statement of Profit and Loss.

The Company determines the amount of
borrowing costs eligible for capitalisation as the
actual borrowing costs incurred on that borrowing
during the year less any interest income earned
on temporary investment of specific borrowings
pending their expenditure on qualifying assets, to

the extent that an entity borrows funds specifically
for the purpose of obtaining a qualifying asset.
In case if the Company borrows generally and
uses the funds for obtaining a qualifying asset,
borrowing costs eligible for capitalisation are
determined by applying a capitalisation rate to the
expenditures on that asset.

Borrowing cost includes exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to
the finance cost.

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Mar 31, 2024

2. Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the restated financial statements is as given below. These accounting policies have been applied consistently to all the periods presented in the restated financial statements.

(A) Property, Plant and Equipment

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss as restated in the year in which the costs are incurred. Major shut-down and overhaul expenditure is capitalised as the activities undertaken improves the economic benefits expected to arise from the asset.

Property, plant and equipment except freehold land held for use in the production, supply or administrative purposes, are stated in the balance sheet as restated at cost less accumulated depreciation and accumulated impairment losses, if any.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet as restated are disclosed as “Capital work-in-progress.” Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under “Other Non-Current Assets”

Subsequent expenditure and componentisation

Parts of an item of PPE having different useful lives and significant value and subsequent expenditure on Property, Plant and Equipment arising on account of capital improvement or other factors are accounted for as separate components 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. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Depreciation and useful life

Depreciation is provided on a pro-rata basis on the straight-line method based on estimated useful life prescribed under Schedule II to the Companies Act, 2013. Freehold land is not depreciated. The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.

The Company has elected to continue with the carrying value for all of its property, plant and equipment as recognised in the restated financial statements on transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

Uselife of different classes of assets is as follows:-

Derecognition

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount

of the asset and is recognised in Statement of Profit and Loss restated.

(B) Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting year, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Directly attributable costs that are capitalised as part of the intangible asset include employee costs and an appropriate portion of relevant overheads. Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset is available for use.

Useful life and amortisation

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line basis over the useful lives of the asset from the date of capitalisation as below:

• Computer software 6-years

The estimated useful life is reviewed at the end of each reporting period and the effect of any changes in estimate is accounted for prospectively.

Derecognition

Intangible assets are derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount The Company has elected to continue with carrying value of all its intangible assets recognised as on transition date, measured as per the previous GAAP and use that carrying value as its deemed cost as of transition date.

(C) Impairment

At the end of each reporting year, 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 estimated in order to determine the extent

of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication the asset may be impaired. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and Loss restated. Goodwill and intangible assets that do not have definite useful life are not amortised and are tested at least annually for impairment. If events or changes in circumstances indicate that they might be impaired, they are tested for impairment once again.

(D) Inventories Raw materials

Raw materials are stated at cost. Raw Material cost is computed on FIFO basis. Cost of raw materials and traded goods comprises cost of purchases.

Work in progress and finished goods

Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure. Fixed overheads are allocated on the basis of production of finished goods. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Work in Progress and Finished Goods are valued at lower of cost or net realizable on FIFO basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Stores and spares

Inventory of stores and spare parts is valued at cost or net realisable value, whichever is lower. Provisions are made for obsolete and non-moving inventories. Unserviceable and scrap items, when determined, are valued at estimated net realisable value.

(E) Revenue recognition

Revenue from sale of goods is recognised when control of the products being sold is transferred to our customer and when there are no longer any unfulfilled obligations. The Company recognises revenues on sale of products, net of discounts, sales incentives, rebates granted, returns, sales taxes/GST and duties. Export incentives are recognised as income as per the terms of the scheme in respect of the exports made and included as part of other operating revenue.

Revenue from sales is recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell / consume the products, and there is no unfulfilled obligation that could affect the customer''s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract or the acceptance provisions have lapsed.

Sale of services

Income from services rendered is recognised based on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.

Dividend and interest income

Dividend income from investments is recognised when the shareholder''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. 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.

Foreign exchange translation

The functional currency of the Company is Indian Rupees which represents the currency of the primary economic environment in which it operates. Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are generally recognised in profit or loss. Monetary balances arising from the transactions denominated in foreign currency are translated to functional currency using the exchange rate as on the reporting date. Any gains or loss on such translation, are generally recognised in profit or loss.

Exchange differences on monetary items are recognised in Statement of Profit and Loss as restated in the year in which they arise.

(F) Income taxes

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

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 as restated 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 and laws 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 Restated 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 (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in Other Comprehensive Income or directly in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Minimum Alternate Tax (MAT)

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the set-off of previous years Losses, if any. Accordingly, MAT is recognised as an asset in the balance sheet as restated when the asset can be measured reliably, and it is probable that the future economic benefit associated with it will fructify.

(G) Borrowing costs

Borrowing costs, general or specific, that are directly attributable to the acquisition or construction of qualifying assets is capitalised as part of such assets. A qualifying asset is one that necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to the Statement of

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The Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the year less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset.

Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the finance cost.