Accounting Policies of Rite Zone Chemcon India Ltd. Company

Mar 31, 2025

C: Significant Accounting Policies:

The significant accounting policies followed by the company are stated as below:

i. Basis of preparation of financial statements

The Company is a Small and Medium Sized Company as defined in the General Instructions
in respect of Accounting Standards specified under Section 133 of the Companies Act, 2013,
read with Rule 7 of the Companies (Accounts) Rules, 2014. Accordingly, the Company has
complied with the Accounting Standards as applicable to a Small and Medium Sized
Company.

Pursuant to the provisions of section 2(40) of the Companies Act, 2013, the Company has
presented a cash flow statement.

Accounting policies not specifically referred to otherwise are in consonance with generally
accepted accounting principles followed by the Company.

ii. Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting
Principles requires estimates and assumptions to be made that affect the reported amounts
of assets and liabilities and disclosure of contingent liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates and differences between actual
results and estimates are recognised in the periods in which the results are known /
materialise.

iii. Property, Plant and Equipments and Depreciation

Fixed assets are stated at Cost less Depreciation. Cost comprises of Purchase price and any
attributable cost of bringing the assets to working condition for its intended use.

Depreciation on all assets is charged proportionately from the date of acquisition /
installation on written down value basis at rates prescribed in Schedule III of the
Companies Act, 2013.

iv. Impairment of Assets:-

An asset is considered as impaired in accordance with Accounting Standard 28 on
Impairment of Assets when at the balance sheet date 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 asset''s net 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.

v. Investments

Investments are Long-term, unless stated otherwise and are stated at cost except where
there is diminution in value other than temporary, in which case a provision is made to the
carrying value to recognize the diminution.

vi. Revenue recognition:

Revenue on such trading of chemicals is accounted on proportionate basis for the period of
such contracts entered into by the company.

vii. Inventories

Inventories are valued at the lower of Cost (Generally determined on FIFO Basis) and Net
Realizable Value. Cost includes all charges in bringing the goods to the point of sale,
including octroi and other levies, transit insurance and receiving charges.

viii. Employee Benefits

Defined Contribution Plan

As the Company is having staff strength lesser than prescribed limit under the Act, the
mandatory compliance pertaining to Employees Provident Act, 1952 and Employees State
Insurance Act are not applicable and hence Company and the employees of the Company has
not made any contribute in it.

Defined Benefit Plan

Compensated Absences:

The Company does not allow any accumulation of leave and employees are allowed to
encash the leave before 31^st March of every year.

Contribution to gratuity fund is defined benefit obligation and is provided for on basis of
actuarial valuation on projected accured benefit method made at the end of each financial
year.

ix. Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of
transaction. Foreign Currency denominated assets and liabilities at the balance sheet date is
translated at the exchange rate prevailing on the date of balance sheet.

x. Earnings Per Share

Basic earning per share is computed by dividing the net profit after tax attributable to
equity shareholders for the year by the weighted average number of equity shares
outstanding during the year. Diluted earning per share is computed by dividing the net
profit after tax attributable to equity shareholders for the year by the weighted average
number of equity shares outstanding during the year as adjusted for the effects of all
dilutive potential equity shares, if any.

xi. Accounting For Taxes on Income

Tax expense comprises of current and deferred tax. Provision for current tax is made, based
on the tax payable under the Income-tax Act, 1961. Deferred tax assets and liabilities from
timing differences between taxable income and accounting income is accounted for using
the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date.

xii. Borrowing Cost

Borrowing costs include interest, amortization of ancillary costs incurred and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are charged to the
Statement of Profit and Loss over the tenure of the loan.

Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from
commencement of activities related to construction/development of the qualifying
asset upto the date of capitalization of the asset is added to the cost of assets.

Capitalization of borrowing costs is suspended and charged to the Statement of Profit and
Loss during extended periods when active development activity on the qualifying asset is
interrupted.

xiii. Current and Non Current Classification

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 the Act. Deferred tax assets and
liabilities are classified as non-current assets and non-current liabilities, as the case may be.