Accounting Policies of Retaggio Industries Ltd. Company

Mar 31, 2025

A. Significant Accounting Policies

1. Basis of accounting: -

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles
in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies
Act, 2013.

The financial statements have been prepared under the historical cost convention on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets
and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these
estimates are based on the management’s best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying
amounts of assets or liabilities in future periods.

3. Revenue Recognition: -

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

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.

4. Property, Plant & Equipment :-

Property, Plant & Equipment including intangible assets are stated at their original cost of acquisition including
taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less
depreciation till date of their disposal during the year.

Company has adopted cost model for all class of items of Property Plant and Equipment.

5. Depreciation :-

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV)
Method/SLM method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to
the Companies Act, 2013.

Depreciation on assets acquired/sold during the year is recognized on a pro-rata basis to the statement of profit
and loss till the date of acquisition/sale.

The carrying amount of assets is reviewed at each balance sheet date 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 assets, net selling price 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 risks
specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.

6. Foreign currency Transactions: -

Transactions arising in foreign currencies during the year are converted at the rates closely approximating the
rates ruling on the transaction dates. Liabilities and receivables in foreign currency are restated at the year-end
exchange rates. All exchange rate differences arising from conversion in terms of the above are included in the
statement of profit and loss.

7. Investments

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an
individual investment basis. Long-term investments are carried at cost. However, provision for diminutions in
value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged
or credited to the statement of profit and loss.

8. Inventories :-

Inventories are valued as under:-

1. Inventories : Lower of cost (FIFO/specific cost/Weighted avg) or net realizable value

2. Scrap : At net realizable value.

9. Borrowing cost:-

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized
as part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of
time to get ready for its intended uses or sale. All other borrowing costs are charged to revenue in the year of
incurrence.

10. Retirement Benefits:-

The retirement benefits are accounted for as and when liability becomes due for payment.

11. Taxes on Income:-

Provision of tax as required by AS-22 issued by the Institute of Chartered Accountants of India has been made
due to uncertainty that sufficient taxable income against which such deferred tax assets can be realized. The
impact of same has also been determined.