Accounting Policies of Sellowrap Industries Ltd. Company

Mar 31, 2025

> Company was originally incorporated on April 4, 2004 as "Sellowrap Industries Private Limited" Vide CIN: U25202MH2004PTC145548 under the provisions of the Companies Act,2013. Further, our Company was converted into Public Limited Company and consequently name of company was changed from "Sellowrap Industries Private Limited" to "Sellowrap Industries Limited" Vide CIN:U25202MH2004PLC145548 Vide special resolution passed by the shareholders at Extra ordinary General meeting held on 30.08.2024 and a fresh certificate of incorporation dated 14.10.2024 issued by the Registrar of companies.

> Sellowrap Industries Limited is engaged in manufacturing of various types of Plastic and Foam Products.The Company has manufacturing Plants in India and sales in India

1. Significant Accounting Policies

A. Basis of preparation of Financial Statements:-

a) The financial statements are prepared under the historical cost Convention on accrual basis as a going concern in accordance with the Generally Accepted Accounting Principles in India and the provisions of The Companies Act, 2013.

b) Accounting Policies not specifically referred to otherwise are in consonance with Generally Accepted Accounting Principles.

B. Property, Plant & Equipment and Depreciation

a) Property, Plant & Equipment are accounted for on historical cost less depreciation. Imported Property, Plant & Equipment are recorded at actual cost paid plus import duty & other charges or expenses.

b) Depreciation is charged on written down value method at the rates specified in Schedule II to the Companies Act, 2013. Depreciation on assets purchased during a month has been charged from next month on pro-rata basis except in case of BIN.

C. Sales:

Sales are accounted for Net of Trade discount but excluding of Goods and Services

tax.

D. Investments:

a) Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

b) Investment p shares of unlisted private limited company is stated

E. Investments in shares:

The Company has invested in unlisted equity shares of Prystine Food & Beverages Private Limited amounting to Rs.150.00 lakhs and Sellowrap EPP India Private Limited amounting to Rs.685.50 lakhs. The Company holds all relevant documents in support of these investments.

F. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit & Loss Account.

G. Valuation of Inventories:

Inventories are valued at cost or net realizable value whichever is lower. Cost of Inventories.

Comprises of all cost of purchases (Net of ITC) cost of conversion and other cost incurred in bringing the inventory to their present location and condition.

For the purpose of valuation of closing stock of finished goods, the cost has been arrived at by reducing 26% from the sale price of the finished goods during the current financial year. This marks a change in the accounting policy, as in the previous financial year the valuation was done by reducing only 5% from the sale price. This change in policy has resulted in a reduction of Rs.136.36 lacs in the value of closing stock and also resulted in reduction of profit by Rs. 136.36 lacs. However, the opening stock-has been valued in accordance with the previous accounting policy, i.e., by reducing 5% from the sale price, and no change has been made in its valuation.

H. Retirement Benefits:

(i) Contribution to provident fund is accounted on accrual basis.

(ii) Provision for Gratuity & Leave Encashment is made on actuarial valuation at year end.

I. Foreign Exchange Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. In the case of long term loans and current liabilities incurred for the acquisition of fixed assets, the loss or gain on conversion at the rates prevailing at the year end is included in the carrying amount of the related fixed assets.

Current assets and current liabilities (other than those relating to fixed assets) are restated at the rates prevailing at the year end and the difference between the year-end rate and the exchange rate at the date of the transaction is recognized as income or expenses in the profit and loss account. ___

J. Impairment of Assets

1. There is no impairment loss on any assets that has occurred in terms of AS-28.

Z Sundry Creditors includes amounts due to small scale industrial undertaking (SSI) to the

extent, such parties have been identified from available information to which company owes a sum exceeding Rs. 1.00 lacs for more than 30 days as on 30th Sep 2024 are as

- NIL - (As certified by the Director of the Company)

3. In the opinion of the Directors, the Current Assets, Loans and advance are approximately of the value stated, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amounts considered reasonably necessary.

4. Balance of parties, Institutions and other agencies are subject to confirmation and reconciliation.

5. a) GST & other Taxes, Interest and penalties payable on assessment of the same are accounted

on assessment basis and no provision for contingent liabilities against the same is made.

b) Contingent Liabilities

Claims against the company not acknowledged as debt

I. Rs. 0.65 lacs (Int & Penalty) on account of demand raised by TNGST Authority under section 65 of the TNGST act for the FY 2019-20 (Chennai Unit)

II. Rs. 3.96 lacs (Tax & Penalty) on account of demand raised by TNGST Authority under section 65 of the TNGST act for the FY 2018-19 (Chennai Unit)

III. Rs. 25.08 lacs (Tax & Penalty) on account of demand raised by TNGST Authority under section 65 of the TNGST act for the FY 2020-21 (Chennai Unit)

IV. Rs.0.87 lac (Tds) on account of demand raised by Tds CPC

c) There are no other contingent liabilities. (As Certified by the Directors of the Co.)

6. Revenue Recognition:

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, trade sales, job work and Net of sales tax, service tax, excise duty, Value Added Tax. Interest income is recognized on time proportion basis taking into account outstanding and rate applicable. Dividend income is recognized when right to receive is established.

7. Figures of the previous year has been regrouped, recasted and rearranged where ever necessary.