Accounting Policies of SG Mart Ltd. Company

Mar 31, 2025

1(ii) Material Accounting Policy Information

The material accounting policies information applied by
the Company in the preparation of its standalone financial
statements are listed below. Such accounting policies have
been applied consistently to the financial year presented in
these standalone financial statements.

(a) Standalone Statement of compliance

The financial statements are prepared and presented
in accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting
Standards) Rules 2015, as amended from time to time as
notified under Section 133 of the Companies Act 2013, the
relevant provision of the Companies Act 2013 ("the Act")
and other accounting principles generally accepted in India.

(b) Basis of Preparation

The standalone financial statements have been prepared
in confirmity with Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Companies Act, 2013
read with the Companies (Indian Accounting Standards)
Rules, 2015 as amended.

The financial statements have been prepared on accrual
basis under the historical cost basis except for following
assets and liabilities which have been measured at fair value:

i. Certain financial assets and liabilities (including
derivative financial instruments) measured at
fair value;

ii. Share based payments;

iii. Defined benefit obligations

The Company presents assets and liabilities in the
standalone balance sheet based on current/non-current
classification. An asset is current when it is:

¦ Expected to be realised or intended to be sold or
consumed in normal operating cycle;

¦ Held primarily for the purpose of trading;

¦ Expected to be realised within twelve months after
the reporting period; or

¦ Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

Current assets include current portion of non-current
financial assets. All other assets are classified as non-current.
A liability is current when:

¦ It is expected to be settled in normal operating cycle;

¦ It is held primarily for the purpose of trading;

¦ It is due to be settled within twelve months after the
reporting period; or

¦ There is no unconditional right to defer settlement
of the liability for at least twelve months after the
reporting period.

Current liabilities include current portion of non-current
financial liabilities. All other liabilities are classified as non¬
current.

Deferred tax assets/liabilities are classified as non-current.
Going Concern

The directors have, at the time of approving the financial
statements, a reasonable expectation that the Company
have adequate resources to continue in operational
existence for the foreseeable future. Thus, they continue to
adopt the going concern basis of accounting in preparing
the financial statements.

(c) Use of estimates and critical accounting
judgements

I n preparation of the financial statements, the Company
makes judgements, estimates and assumptions about
the carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates and the
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and the underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the year in which the estimate is revised and
future years affected.

The following are the critical judgements, apart from those
involving estimations that the directors have made in the
process of applying the Company''s accounting policies

and that have the most significant effect on the amounts
recognised in the standalone financial statements.

(i) Deferred tax assets and liabilities

Significant management judgment is required to determine
the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future
taxable profits.

The amount of total deferred tax assets could change
if estimates of projected future taxable income or if tax
regulations undergo a change.

Deferred tax assets are recognized to the extent that it is
regarded as probable that deductible temporary differences
can be realized. The Company estimates deferred tax assets
and liabilities based on current tax laws and rates and in
certain cases, business plans, including management''s
expectations regarding the manner and timing of recovery
of the related assets. Changes in these estimates may
affect the amount of deferred tax liabilities or the valuation
of deferred tax assets and thereby the tax charge in the
Standalone Statement of Profit or Loss."

(ii) Useful lives of Property, plant and equipment
(''PPE'')

The Company reviews the estimated useful lives and
residual value of PPE at the end of each reporting year.
The factors such as changes in the expected level of usage,
technological developments and product life-cycle, could
significantly impact the economic useful lives and the
residual values of these assets. Consequently, the future
depreciation charge could be revised and thereby could
have an impact on the profit of the future years.

(iii) Defined benefit obligations

The cost of the defined benefit plans and the present value
of the defined benefit obligation (''DBO'') are based on
actuarial valuation using the projected unit credit method.
An actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each
reporting date.

(iv) Inventories

The Company estimates the net realisable values of
inventories, taking into account the most reliable evidence
available at each reporting date. The future realisation of

these inventories may be affected by future technology or
other market-driven changes that may reduce future selling
prices."

(v) Fair value measurement

When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is
measured using valuation techniques. The inputs to these
models are taken from observable markets where possible,
but where this is not feasible, a degree of judgment is
required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.

(vi) Impairment of financial assets

The evaluation of applicability of indicators of impairment of
assets requires assessment of several external and internal
factors which could result in deterioration of recoverable
amount of the assets. At each balance sheet date, based on
historical default rates observed over expected life, existing
market conditions as well as forward looking estimates,
the management assesses the expected credit losses
on outstanding receivables. Further, management also
considers the factors that may influence the credit risk of
its customer base, including the default risk associated with
industry and country in which the customer operates.

(d) Operating cycle

Based on the nature of products / activities of the Company
and the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company
has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as current
and non-current.

(e) Foreign currency transaction

(i) Functional and presentation currency

The financial statements are presented in Indian rupee (?),
which is functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates
of the transactions. Foreign currency monetary items
are reported using the closing rate. Non-monetary items
which are carried in terms of historical cost denominated
in a foreign currency are reported using the exchange rate
at the date of the transaction. Foreign exchange gains and
losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities
denominated in foreign currencies at year end exchange
rates are generally recognised in Statement of Profit
and Loss.

Foreign exchange differences regarded as an adjustment
to borrowing costs are presented in the Statement of Profit
and Loss, within finance costs. All other foreign exchange
gains and losses are presented in the Statement of Profit
and Loss on a net basis within other gains/(losses).

The Company uses derivative financial instruments, such
as forward currency contracts to hedge its foreign currency
risks in respect of its imports and exports. Such derivative
financial instruments are initially recognised at fair value
on the date on which a derivative contract is entered into
and are subsequently remeasured at fair value. Derivatives
are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of
derivatives are taken to the standalone statement of profit
and loss.

(f) Revenue recognition

Revenue is recognised upon transfer of control of promised
goods or services to customers at an amount that reflects
the consideration to which the Company is expected to
be entitled to in exchange for those goods or services.
Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
considerations) allocated to that performance obligation
as per contractually agreed terms with the customers. The
transaction price of goods sold and services rendered is net
of various discounts and schemes offered by the Company
as part of the contract. Revenue is recorded provided the
recovery of consideration is probable and determinable.

(i) Sale of goods

Revenue from sale of products (including scrap sales) is
measured based on the consideration specified in a contract
with a customer and excludes amounts collected on behalf
of third parties. It is measured at the amount of fair value
of consideration received/receivable, net of returns and
allowances, trade discounts and volume rebates. The
Company recognises revenue when it transfers control over
a product to a customer i.e. when goods are delivered at the
delivery point, as per terms of the agreement.

The Company''s revenue is derived from the single
performance obligation to transfer primarily products
under arrangements in which the transfer of control of the
products and the fulfilment of the Company''s performance
obligation occur at the same time. Revenue from the sale
of goods is recognised when the Company has transferred
control of the goods to the buyer and the buyer obtains the
benefits from the goods, the potential cash flows and the

amount of revenue (the transaction price) can be measured
reliably, and it is probable that the Company will collect the
consideration to which it is entitled to in exchange for the
goods. Whether the customer has obtained control over
the asset depends on when the goods are made available
to the carrier or the buyer takes possession of the goods,
depending on the delivery terms.

Contract assets and contract liabilities

A contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs by transferring goods or services to
a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for
the earned consideration when that right is conditional
on Company''s future performance. A contract liability is
the obligation to transfer goods or services to a customer
for which the Company has received consideration (or an
amount of consideration is due) from the customer. If a
customer pays consideration before the Company transfers
goods or services to the customer, a contract liability is
recognised when the payment is made or the payment is
due (whichever is earlier). Contract liabilities are recognised
as revenue when the Company performs under the contract.
The Company does not expect to have any contracts where
the period between the transfer of the promised goods or
services to the customer and payment by the customer
exceeds one year. As a consequence, the Company does
not adjust any of the transaction prices for the time value
of money."

In contracts where the Company acts as an agent, the
revenue is recorded at the net amount that the Company
retains for its services.

(ii) Interest income

Interest income from financial assets is recognised, when no
significant uncertainty as to measurability or collectability
exists, on a time proportion basis taking into account the
amount outstanding and the applicable interest rate, using
the effective interest rate method (EIR).

(iii) Services rendered

Revenue from service related activities are recognised
as and when services are rendered and on the basis of
contractual terms with the parties.

(g) Leases
As a lessee

The Company''s lease asset classes primarily consist of leases
for land and buildings. The Company assesses whether
a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a period

of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified
asset, the Company assesses whether: (i) the contract
involves the use of an identified asset (ii) the Company
has substantially all of the economic benefits from use of
the asset throughout the period of the lease and (iii) the
Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or
less (short-term leases) and low value leases. For these
short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised. The right-of-
use assets are initially recognized at cost, which comprises
the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely
independent of those from other assets.

The lease liability is initially measured at amortized cost at
the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in
the lease or, if not readily determinable, using the Company''s
incremental borrowing rate. Generally, the Company uses
its incremental borrowing rate as the discount rate. Lease
liabilities are remeasured with a corresponding adjustment
to the related right of use asset if the Company changes
its assessment if whether it will exercise an extension or a
termination option. Lease liability and ROU asset have been
separately presented in the Standalone Balance Sheet and
lease payments have been classified as financing cash flows.

(h) Impairment of non-financial assets

At each balance sheet date, the Company reviews the
carrying values of non-financial assets to determine

whether there is any indication that the carrying value of
those assets may not be recoverable through continuing
use. If any such indication exists, the recoverable amount
of the asset is reviewed in order to determine the extent of
impairment loss (if any).Where the assets does not generate
cash flows that are independent from other assets, the
Company estimates the recoverable amount of the cash
generating unit to which the asset belongs.

Recoverable amount is the highest 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. An impairment loss is recognised
in the statement of profit and loss as and when the carrying
value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the
carrying value of the asset (or cash generating unit) is
increased to the revised estimate of its recoverable amount
so that the increased carrying value does not exceed the
carrying value that would have been determined had no
impairment loss been recognised for the asset (or cash
generating unit) in prior years.

(i) Inventories

Inventories are valued as follows:

Raw materials and stores

At the lower of cost (First in First Out - FIFO basis) and the
net realisable value after providing for obsolescence and
other losses, where considered necessary. Cost includes
cost of purchase, all charges in bringing the goods to
their present location and condition, including indirect
levies, transit insurance and receiving charges. The cost of
purchase consists of the purchase price including duties
and taxes other than those subsequently recoverable
by the enterprise from the taxing authorities, freight
inwards and other expenditure directly attributable for its
acquisition. Stock in transit is valued at lower of cost and net
realisable value.

Finished goods

i. Self manufactured: At lower of cost and net realisable
value. Cost for this purpose includes material, labour
and appropriate allocation of overheads. Cost is
determined on a First in First Out - FIFO basis.

ii. Traded: At lower of cost and net realisable value. Cost
of inventory comprises all costs of purchases, duties,
taxes (other than those subsequently recoverable
from tax authorities) and all other costs incurred in
bringing the inventory to their present location and

condition and is determined on a First in First Out -
FIFO basis."

Net realisable 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. Provision for obsolescence is determined
based on management''s assessment and is charged
to the Standalone Statement of Profit and Loss.

Rejection and scrap

Rejection and scrap are valued at net realisable value.

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.

(j) Property, plant and equipment and Capital work-
in-progress

Freehold land is carried at historical cost. All other items
of property, plant and equipment are stated at cost
less depreciation and impairment if any. Cost includes
expenditure that is directly attributable to the acquisition
of the items.

Cost is inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition or construction.
All upgradation / enhancements are charged off as revenue
expenditure unless they bring similar significant additional
benefits. An item of property, plant and equipment is
derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of
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 the
standalone statement of profit and loss.

In case of property, plant and equipment acquired under
asset acquisition, the total consideration of the acquisition

is allocated to the acquired assets based on their relative
fair values.

Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
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 Statement of Profit or Loss
during the reporting year in which they are incurred.

Projects under which property, plant and equipment are
not yet ready for their intended use are carried at cost,
comprising direct cost, related incidental expenses and
attributable interest.

Machinery spares which can be used only in connection
with an item of fixed asset and whose use is expected to be
irregular are capitalised and depreciated over the useful life
of the principal item of the relevant assets.

Property, plant and equipment acquired in business
combination are recognised at fair value at the acquisition
date. Subsequent costs are included in the assets carrying
value or recognised as a separate assets as appropriate only
when it is possible that future economic benefit associated
with the item will flow to the Company.

Capital work-in-progress

Projects under which tangible fixed assets are not yet ready
for their intended use are carried at cost, comprising direct
cost, related incidental expenses and attributable interest"

Depreciation methods, estimated useful lives and
residual value

Depreciation on tangible property, plant and equipment
has been provided on the straight-line methodas perthe useful
life prescribed in Schedule II to the Companies Act, 2013.

The residual values, useful lives and method of depreciation
of Property, plant & equipment is reviewed at the end of each
financial year and adjusted prospectively if appropriate.

(k) Intangible assets

(i) Initial recognition of intangible assets

Costs that are directly attributable to a project''s development
phase are recognised as intangible assets, provided they
meet all of the following recognition requirements:

¦ the development costs can be measured reliably

¦ the project is technically and commercially feasible

¦ the Company intends to and has sufficient resources
to complete the project

¦ the Company has the ability to use or sell the
software, and

¦ the software will generate probable future economic
benefits."

Capitalised development costs are recorded as intangible
assets and amortised from the point at which the asset is
available for use.

(ii) Subsequent measurement

All finite-lived intangible assets, including capitalised
internally developed software, are accounted for using the
cost model whereby capitalised costs are amortised on a
straight-line basis over their estimated useful lives. Residual
values and useful lives are reviewed at each reporting date.
In addition, they are subject to impairment testing.

Subsequent expenditures on the maintenance of computer
software are expensed as incurred.

When an intangible asset is disposed of, the gain or loss on
disposal is determined as the difference between the net
disposal proceeds and the carrying amount of the asset,
and is recognised in statement of profit or loss within other
income or other expenses.

Intangible assets are amortised over their estimated useful
life on straight line method as follows:

(a) Computer software - 5 years

The estimated useful life of the intangible assets and the
amortisation year are reviewed at the end of each financial
year and the amortisation year is revised to reflect the
changed pattern, if any.

(l) Employee benefits

Employee benefits include provident fund, employee state
insurance scheme, gratuity, compensated absences and
performance incentives.

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the year in which the employees
render the related service are recognised in respect of
employees'' services up to the end of the reporting year
and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented
as current employee benefit obligations in the Standalone
Balance Sheet.

(ii) Defined contribution plans: Retirement benefit in the
form of provident fund is a defined contribution scheme.
The Company has no obligation, other than the contribution
payable to the provident fund. The Company recognises
contribution payable to the provident fund scheme as an
expense, when an employee renders the related service. If
the contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognised
as a liability after deducting the contribution already paid.

(iii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not
expected to be settled wholly within 12 months after the
end of the year in which the employees render the related
service. They are therefore measured as the present value
of expected future payments to be made in respect of
services provided by employees up to the end of the
reporting year using the projected unit credit method. The
benefits are discounted using the market yields at the end
of the reporting year that have terms approximating to
the terms of the related obligation. Remeasurements as a
result of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the
reporting year, regardless of when the actual settlement is
expected to occur. The obligations which are shown as non
current liabilities represents entity''s unconditional right
to defer settlement for at least twelve months after the
reporting year as the leaves are subject to approvals.

(iv) Defined benefit plan

For defined benefit plans in the form of gratuity, the cost
of providing benefits is determined using the Projected
Unit Credit method, with actuarial valuations being carried
out at each balance sheet date. Actuarial gains and losses
are recognised in the Other Comprehensive Income in the
year in which they occur. Past service cost is recognised
immediately to the extent that the benefits are already
vested and otherwise is amortised on a straight-line basis

over the average year until the benefits become vested.
The retirement benefit obligation recognised in the Balance
Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost.

(m) Share based payments

Equity-settled share-based payments to employees and
others providing similar services are measured at the fair
value of the equity instruments at the grant date. Details
regarding the determination of the fair value of equity-
settled share-based transactions are set out in note 34.

The fair value determined at the grant date of the equity-
settled share-based payments is expensed on a straight¬
line basis over the vesting period, based on the Company''s
estimate of equity instruments that will eventually vest,
with a corresponding increase in equity. At the end of each
reporting period, the Company revises its estimate of the
number of equity instruments expected to vest. The impact
of the revision of the original estimates, if any, is recognised
in profit or loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to
the equity-settled employee benefits reserve.

(n) Financial instruments - initial recognition,
subsequent measurement and impairment

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

A. Financial assets
(i) Classifications

The Company classifies its financial assets in the following
measurement categories:

-those to be measured subsequently at fair value (either
through other comprehensive income, or through profit or
loss), and

- those measured at amortised cost.

The classification depends on the entity''s business model
for managing the financial assets and the contractual terms
of the cash flows.

For assets measured at fair value, gains and losses will
either be recorded in the statement of profit or loss or other
comprehensive income.

The classification criteria of the Company for debt and
equity instruments is provided as under:

(a) Debt instruments

Depending upon the business model of the Company, debt
instruments can be classified under following categories:

- Debt instruments measured at amortised cost

- Debt instruments measured at fair value through other
comprehensive income

- Debt instruments measured at fair value through profit
or loss

The Company reclassifies debt instruments when and only
when its business model for managing those assets changes.

(b) Equity instruments

The equity instruments can be classified as:

- Equity instruments measured at fair value through profit
or loss (''FVTPL'')

- Equity instruments measured at fair value through other
comprehensive income (''FVTOCI'')

Equity instruments and derivatives are normally measured
at FVTPL. However, on initial recognition, an entity may
make an irrevocable election (on an instrument-by¬
instrument basis) to present in OCI the subsequent changes
in the fair value of an investment in an equity instrument
within the scope of Ind AS -109.

(ii) Measurement

All financial assets are recognised initially at fair value plus,
in the case of financial assets not recorded at fair value
through profit or loss ("FVTPL"), transaction costs that
are attributable to the acquisition of the financial asset.
However, trade receivables that do not contain a significant
financing component are measured at transaction price in
accordance with Ind AS 115. Transaction costs of financial
assets carried at fair value through profit or loss are
expensed in the standalone statement of profit and loss.

Debt instruments

Subsequent measurement of debt instruments depends on
the Company''s business model for managing the asset and
the cash flow characteristics of the asset. There are three
measurement categories into which the Company classifies
its debt instruments:

(a) Amortised cost: Assets that are held for collection
of contractual cash flows where those cash flows
represent solely payments of principal and interest
are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship
is recognised in the statement of profit or loss when
the asset is derecognised or impaired. Interest income
from these financial assets is included in finance
income using the effective interest rate method.

(b) Fair value through other comprehensive income:
Assets that are held for collection of contractual
cash flows and for selling the financial assets, where
the assets'' cash flows represent solely payments of
principal and interest, are measured at fair value
through other comprehensive income. Movements in
the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which
are recognised in profit and loss. When the financial
asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from
equity to profit or loss and recognised in other gains/
(losses). Interest income from these financial assets is
included in other income using the effective interest
rate method.

(c) Fair value through profit or loss: Assets that do not
meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain
or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is
not part of a hedging relationship is recognised in the
statement of profit or loss and presented net in the
statement of profit and loss within other gains/(losses)
in the year in which it arises. Interest income from
these financial assets is included in other income.

Investment in equity shares

The Company subsequently measures all equity
investments at fair value. Where the management
has elected to present fair value gains and losses on
equity investments in other comprehensive income,
there is no subsequent reclassification of fair value
gains and losses to profit or loss. Dividends from such
investments are recognised in the statement of profit
or loss as other income when the Company''s right to
receive payments is established.

Changes in the fair value of financial assets at fair value
through profit or loss are recognised in other gain/
(losses) in the statement of profit and loss. Impairment
losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported
separately from other changes in fair value.

Investment in subsidiaries

Investment in subsidiary are measured at cost less
impairment loss, if any. The investments are reviewed
at each reporting date to determine whether there
is any indication of impairment considering the
provisions of Ind AS 36 ''Impairment of Assets'' If any
such indication exists, policy for impairment of non
financial assets is followed.

(iii) Cash and cash equivalents and Cash Flow Statement

For the purpose of presentation in the Statement of
Cash Flows, cash and cash equivalents includes cash on
hand, other short-term, highly liquid investments with
original maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in
current liabilities in the Balance Sheet.

Cash flows are reported using the indirect method, whereby
net profit before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or
future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company
are segregated based on the available information.

Short term borrowings, repayments and advances having
maturity of three months or less, are shown as net in cash
flow statement.

(iv) Impairment of financial assets

The Company measures the Expected Credit Loss ("ECL")
associated with its assets based on historical trends,
industry practices and the general business environment
in which it operates. The impairment methodology applied
depends on whether there has been a significant increase
in credit risk. ECL impairment loss allowance (or reversal)
recognised during the period is recognised as income/
expense in the Statement of Profit and Loss under the head
''other expenses''

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial
assets and credit risk exposure:

(a) Financial assets that are debt instruments, and are
measured at amortised cost e.g., loans, debt securities,
deposits, trade receivables and bank balance.

(b) Financial assets that are measured at FVTOCI e.g.
investment in bonds.

(c) Trade receivables under Ind AS 115.

For recognition of impairment loss on other financial assets,
investment in subsidiary and risk exposure, the Company
determines whether there has been a significant increase
in the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent
period, credit quality of the instrument improves and
there is no longer a significant increase in credit risk since

initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

In accordance with Ind AS 109- Financial Instruments, the
Company uses the expected credit loss ("ECL") model for
measurement and recognition of impairment loss on its
trade receivables or any contractual right to receive cash
or another financial asset that result from transactions
that are within the scope of Ind AS 115- Revenue from
contracts with customers. For this purpose, the Company
uses a provision matrix to compute the expected credit
loss amount for trade receivables. The provision matrix
takes into account external and internal credit risk factors
and historical data of credit losses from various customers.
The trade receivables measured at amortised cost are
considered to have low credit risk and the loss allowance
recognised is based on life time expected credit loss."

(v) Derecognition of financial assets

A financial asset is de-recognised when the contractual
rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive the
contractual cash flows from the asset in a transaction in
which substantially all the risks and rewards of ownership
of the asset are transferred.

B. Financial Liabilities

(i) Classification

The Company classifies its financial liabilities in the following
measurement categories:

- Financial liabilities measured at fair value through profit
or loss

- Financial liabilities measured at amortized cost

(ii) Measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities measured at fair value through profit
or loss:

Financial liabilities at FVTPL include financial liabilities held
for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term.

This category includes derivative financial instruments
entered into by the Company that are not designated as
hedging instruments in hedge relationships as defined by
Ind AS 109.

Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind

AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses are recognised in the Statement of Profit
and Loss, except for those attributable to changes in own
credit risk, which are recognised in OCI. These gains/ loss
are not subsequently transferred to the Statement of Profit
and Loss.

Financial liabilities measured at Amortised Cost:

After initial recognition, financial liabilities designated
at amortised costs are subsequently measured at
amortised cost using the EIR method. Gains and losses
are recognised in Statement of Profit and Loss when the
liabilities are derecognised as well as through the EIR
amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The amortisation is included
as finance costs in the Statement of Profit and Loss"

(iii) De-recognition of financial liability

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another
party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in the
standalone statement of profit or loss as other income or
finance costs.

(iv) Borrowings and borrowings cost

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in Statement of Profit and Loss over
the year of the borrowings. Fees paid on the establishment
of loan facilities are recognised as transaction costs of the
loan to the extent that it is probable that some or all of the
facility will be drawn down. In this case, the fee is deferred
until the draw down occurs. To the extent there is no
evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment
for liquidity services and amortised over the year of the
facility to which it relates.

Borrowings are de-recognised from the Balance Sheet
when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities
assumed, is recognised in Statement of Profit and Loss as
other gains/(losses).

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
year. Where there is a breach of a material provision of a
long-term loan arrangement on or before the end of the
reporting year with the effect that the liability becomes
payable on demand on the reporting date, the entity does
not classify the liability as current, if the lender agreed,
after the reporting year and before the approval of the
financial statements for issue, not to demand payment as a
consequence of the breach.

Borrowing costs

Borrowing costs include interest, amortisation of ancillary
costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign
currency borrowings to the extent they are regarded as an
adjustment to the interest cost.

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the year of time
that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial year of time to get ready for
their intended use or sale.

I nvestment income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation.

Other borrowing costs are expensed in the year in which
they are incurred.

C. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount
is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or realise the
asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events
and must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcy of the
Company or the counterparty.

D. Derivative financial instruments

Derivatives are initially recognised at fair value on the date
of executing a derivative contract and are subsequently
remeasured to their fair value at the end of each reporting
period. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the fair
value is negative. Changes in the fair value of derivatives
that are designated and qualify as fair value hedges are
recognised in the Standalone Statement of Profit and Loss

immediately, together with any changes in the fair value
of the hedged asset or liability that are attributable to the
hedged risk.

(o) Acceptances

The Company enters into deferred payment arrangements
(acceptances) whereby overseas lenders such as banks and
other financial institutions make payments to supplier''s
banks for import of raw materials. The banks and financial
institutions are subsequently repaid by the Company
at a later date providing working capital benefits. These
arrangements are in the nature of credit extended in
normal operating cycle and these arrangements for raw
materials are recognised as acceptances. Interest borne
by the company on such arrangements is accounted as
finance cost.

(p) Fair value measurements

The Company measures financial instruments at fair value
which is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between
independent market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

¦ In the principal market for the asset or liability, or

¦ In the absence of a principal market, in the most
advantageous market for the asset or liability.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable; and

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs. For assets and liabilities that are
recognised in the balance sheet at fair value on a recurring
basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing

categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the
end of each reporting period."

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.

1(iii) Other Accounting Policy Information
(a) Income tax

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

The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end
of the reporting year.Management periodically evaluates
positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.

Deferred tax is recognised on temporary differences arising
between the tax bases of assets and liabilities and their
carrying values in the financial statements. Deferred tax
is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax
liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences only if it is probable that future
taxable amounts will be available to utilise those temporary
differences and losses.

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.

The carrying value of deferred tax assets is reviewed at the
end of each reporting year and reduced to the extent that
it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

Current and deferred tax is recognised in Statement of
Profit and Loss, except to the extent that it relates to items

recognised in Other Comprehensive Income . In this case,
the tax is also recognised in Other Comprehensive Income.

(b) Earnings per share

Basic earnings/ (loss) per share is computed by dividing the
net profit / (loss) after tax by the weighted average number of
equity shares outstanding during the year. Diluted earnings
per share is computed by dividing the net profit / (loss) after
tax as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity
shares, by the weighted average number of equity shares
considered for deriving basic earnings per share and the
weighted average number of equity shares which could
have been issued on the conversion of all dilutive potential
equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would
decrease the net profit per share from continuing ordinary
operations. Potential dilutive equity shares are deemed to
be converted as at the beginning of the period, unless they
have been issued at a later date. Dilutive potential equity
shares are determined independently for each period
presented. The number of shares and potentially dilutive
equity shares are adjusted retrospectively for all periods
presented in case of share splits.

---

Mar 31, 2024

1(i) Company background

SG Mart Limited (Formerly known as Kintech Renewables Limited) (''the Company'') is a public company located in India, having its registered office situated at Unit No. 705, GDITL Tower, Plot No. B-8, Netaji Subhash Place, Pitampura, Shakur Pur I Block, North West, Delhi, India, 110034. The Company was originally incorporated on 9th April 1985 and its shares are listed on Bombay Stock Exchange (BSE). The Company is primarily engaged in the business of trading of building material products.

1(ii) Material Accounting Policies

The material accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies have been applied consistently to the financial year presented in these financial statements.

(a) Statement of compliance

The financial statements are prepared and presented in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015, as amended from time to time as notified under Section 133 of the Companies Act 2013, the relevant provision of the Companies Act 2013 ("the Act") and other accounting principles generally accepted in India.

(b) Basis of Preparation

The standalone financial statements have been prepared in confirmity with Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.

The financial statements have been prepared on accrual basis under the historical cost basis except for certain financial instruments which are measured at fair value at the end of each reporting year.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2, or 3 based on the

degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

(c) Use of estimates and critical accounting judgements

In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised and future years affected.

The following are the critical judgements, apart from those involving estimations that the directors have made in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the standalone financial statements.

Deferred income tax assets and lia bilitiesSig nificant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits. The amount of total deferred tax assets could change if estimates of projected future taxable income or if tax regulations undergo a change.

Income Taxes

Deferred tax assets are recognized to the extent that it is regarded as probable that deductible temporary differences can be realized. The Company estimates deferred tax assets and liabilities based on current tax laws and rates and in certain cases, business plans, including management''s expectations regarding the manner and timing of recovery of the related assets. Changes in these estimates may affect the amount of deferred tax liabilities or the valuation of deferred tax assets and thereby the tax charge in the Standalone Statement of Profit or Loss.

Provision for tax liabilities require judgements on the interpretation of tax legislation, developments in case law and the potential outcomes of tax audits and appeals which may be subject to significant uncertainty.

Therefore, the actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax settlements and therefore the tax charge in the Standalone Statement of Profit or Loss.

Useful lives of Property, plant and equipment (''PPE'')

The Company reviews the estimated useful lives and residual value of PPE at the end of each reporting year. The factors such as changes in the expected level of usage, technological developments and product life-cycle, could significantly impact the economic useful lives and the residual values of these assets. Consequently, the future depreciation charge could be revised and thereby could have an impact on the profit of the future years.

Defined benefit plans

The cost of the defined benefit plans and the present value of the defined benefit obligation (''DBO'') are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of derivative and other financial instruments

The fair value of financial instruments, that are not traded in an active market, is determined by using valuation techniques. This involves significant judgements in selection of a method in making assumptions that are mainly based on market conditions existing at the Balance Sheet date and in identifying the most appropriate estimate of fair value when a wide range of fair value measurements are possible.

(d) Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and noncurrent.

(e) Foreign currency transaction

(i) Functional and presentation currency

The financial statements are presented in Indian rupee (C), which is functional and presentation currency.

(ii) Transactions and balances

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 and

from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Statement of Profit and Loss.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis within other gains/(losses).

(f) Revenue recognition

The revenue is recognised once the entity is satisfied that the performance obligation & control are transferred to the customers.

(i) Sale of goods

The Company derives revenue from Sale of Goods and revenue is recognized upon transfer of control of promised goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods. To recognize revenues, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied. The Company recognises revenue at point in time.

Any change in scope or price is considered as a contract modification. The Company accounts for modifications to existing contracts by assessing whether the services added are distinct and whether the pricing is at the standalone selling price.

The Company accounts for variable considerations like, volume discounts, rebates and pricing incentives to customers as reduction of revenue on a systematic and rational basis over the period of the contract. The Company estimates an amount of such variable consideration using expected value method or the single most likely amount in a range of possible consideration depending on which method better predicts the amount of consideration to which we may be entitled.

Revenues are shown net of allowances/ returns, goods and services tax and applicable discounts and allowances.

(ii) Interest income

Interest income is accrued on a time proportion basis, by reference to the principle outstanding and the effective interest rate applicable.

(g) Income tax

The income tax expense or credit for the year is the tax payable on the current year''s taxable income based on the applicable

income tax rate for each year adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting year.Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

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.

The carrying value of deferred tax assets is reviewed at the end of each reporting year and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Current and deferred tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in Other Comprehensive Income . In this case, the tax is also recognised in Other Comprehensive Income.

(h) Leases As a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset throughout the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company

recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortterm leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

(i) Impairment of assets

At each balance sheet date ,the Company reviews the carrying values of its property, plant and equipment and intangible assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss (if any).Where the assets does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the highest 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. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years.

(j) Cash and cash equivalents and Cash Flow Statement

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, other shortterm, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Short term borrowings, repayments and advances having maturity of three months or less, are shown as net in cash flow statement.

(k) Inventories

Inventories are valued at the lower of cost (First in First Out -FIFO basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes cost of purchase, all charges in bringing the goods to the point of sale, including indirect levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads.

Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition.

Rejection and scrap

Rejection and scrap are valued at net realisable value.

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.

(l) Property, plant and equipment and Capital work-inprogress

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation and impairment if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition or construction. All upgradation / enhancements are charged off as revenue expenditure unless they bring similar significant additional benefits. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of 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 the statement of profit and loss.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, 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 Statement of Profit or Loss during the reporting year in which they are incurred.

Projects under which property, plant and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets.

Capital work-in-progress

Projects under which tangible fixed assets are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Depreciation methods, estimated useful lives and residual value

Depreciation on tangible property, plant and equipment has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

The estimated useful life of various property, plant and equipment is as under:-

(a) Buildings (RCC Frame structures) - 60 years

(b) Buildings (Other than RCC Frame structures) - 30 years

(c) Plant and machinery- 15 Years

(d) Vehicles- 8 years

(e) Furniture and fixtures- 10 years

(f) Office equipment- 5 years

(g) Computers - 3 years

The residual values, useful lives and method of depreciation of Property, plant & equipment is reviewed at the end of each financial year and adjusted prospectively if appropriate.

(m) Intangible assets

Intangible assets are amortised over their estimated useful life on straight line method as follows:

(a) Computer software - 3 to 6 years

The estimated useful life of the intangible assets and the amortisation year are reviewed at the end of each financial year and the amortisation year is revised to reflect the changed pattern, if any.

(n) Earnings per share

Basic earnings per share is computed by dividing the net profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented in case of share splits.

(o) Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting year.

(p) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present

obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent liabilities, contingent assets and commitments are reviewed at each Balance Sheet date.

(q) Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity, compensated absences and performance incentives.

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the Balance Sheet.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the year in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting year using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting year that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting year, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

Defined contribution plans: The Company''s contribution to provident fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans: For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Other Comprehensive Income in the year in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average year until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost.

(r) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Statement of Profit and Loss over the year of the borrowings. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the year of the facility to which it relates.

Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognised in Statement of Profit and Loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting year. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting year with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting year and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

(s) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the year of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial year of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the year in which they are incurred.

(t) Financial instruments - initial recognition, subsequent measurement and impairment

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A. Investments and other financial assets (i) Classification

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

- those measured at amortised cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in the statement of profit or loss or other comprehensive income.

The classification criteria of the Company for debt and equity instruments is provided as under:

(a) Debt instruments

Depending upon the business model of the Company, debt instruments can be classified under following categories:

- Debt instruments measured at amortised cost

- Debt instruments measured at fair value through other comprehensive income

- Debt instruments measured at fair value through profit or loss

The Company reclassifies debt instruments when and only when its business model for managing those assets changes.

(b) Equity instruments

The equity instruments can be classified as:

- Equity instruments measured at fair value through profit or loss (''FVTPL'')

- Equity instruments measured at fair value through other comprehensive income (''FVTOCI'')

Equity instruments and derivatives are normally measured at FVTPL. However, on initial recognition, an entity may make an irrevocable election (on an instrument-by-instrument basis) to present in OCI the subsequent changes in the fair value of an investment in an equity instrument within the scope of Ind AS -109.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of profit or loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

(a) Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in the statement of profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

(b) Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

(c) Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured

at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in the statement of profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the year in which it arises. Interest income from these financial assets is included in other income.

Investment in equity shares

The Company subsequently measures all equity investments at fair value. Where the management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in the statement of profit or loss as other income when the Company''s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

Investment in subsidiary

Investment in subsidiary are measured at cost less impairment loss, if any. Where an indication of impairment exists, the carrying amount of investment is assessed and an impairment provision is recognised, if required immediately to its recoverable amount. On disposal of such investment, difference between the net disposal proceeds and carrying amountis recognised in the statement of profit and loss.

(iii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Expected credit loss are measured through a loss allowance at an amount equal to the following:

(a) the 12-months expected credit losses (expected credit losses that result from default events on financial instrument that are possible within 12 months after reporting date); or

(b) Full lifetime expected credit losses (expected credit losses

that result from those default events on the financial instrument).

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

Subsequent recoveries of amounts previously written off are credited to other income.

(iv) Derecognition of financial assets

A financial asset is derecognised only when:

- the Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

B. Financial Liabilities

(i) Classification

The Company classifies its financial liabilities in the following measurement categories:

- Financial liabilities measured at fair value through profit or loss

- Financial liabilities measured at amortized cost

(ii) Measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities measured at fair value through profit or loss:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. At initial recognition, such financial liabilities are recognised at fair value.

Financial liabilities at fair value through profit or loss are, at each reporting date, measured at fair value with all the changes recognized in the Statement of Profit and Loss.

Financial liabilities measured at Amortized Cost :

At initial recognition, all financial liabilities other than fair valued through profit and loss are recognised initially at fair value less transaction costs that are attributable to the issue of financial liability. Transaction costs of financial liability carried at fair value through profit or loss is expensed in the statement of profit or loss.

After initial recognition, financial liabilities are subsequently measured at amortised cost using the effective interest method. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit or loss over the year of the financial liabilities using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

(iii) De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the statement of profit or loss as other income or finance costs.

C. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must

not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

D. Derivative financial instruments

The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at the end of each year. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

(u) Segment information

The Company is in the business of Trading of Building Material Products and hence there is only one reportable operating segment as per ''Ind-AS 108 : Operating Segments''.

1(iii) Recent Accounting Developments

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.For the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2023

Significant Accounting Policies

The significant accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies
have been applied consistently to all the periods presented in these financial statements.

a) Statement of compliance

The financial statements are prepared and presented in accordance with Indian Accounting Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules 2015, as amended from time to time as notified under Section 133 of the Companies Act 2013, the relevant
provision of the Companies Act 2013 ("the Act") and other accounting principles generally accepted in India.

b) Basis of Preparation

The financial statements have been prepared in confirmity with Indian Accounting Standards (Ind AS) prescribed under section 133 of the
Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.

The financial statements have been prepared on accrual basis under the historical cost basis except for certain financial instruments which are
measured at fair value at the end of each reporting period.

c) Use of estimates and judgements

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
Estimates and underlying assumptions are reviewed on an ongoing basis. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The application of accounting
policies that require critical accounting estimates involving complex and subjective judgements and the use of assumptions in these financial
statements have been disclosed below. Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. The changes in
the estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the
notes to the financial statements.

d) Current and non-current classification

All assets and liabilities are classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the
Schedule III to the Act.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realised within 12 months after the reporting date; or

(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting
date.

Current assets include current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within 12 months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a

liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

e) Operating Cycle

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as three
months.

f) Property, Plant And Equipment

Property, Plant and Equipment are stated at cost, net of accumulated depreciation. The cost comprises purchase price borrowing cost if capitalization
criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price.

Subsequent expenditure related to an item of assets is added to its book value only if it increases the future benefits from the existing asset beyond
its previously assessed standard of performance. All other expenses on existing assets, including day to day repaired maintenance expenditure and
cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de recognition of assets are measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of profit & loss when the asset is de recognized.

g) Depreciation on Property, Plant And Equipment

Depreciation on fixed asset is calculated on Straight Line method considering the useful life prescribed under the Schedule II to The Companies Act,
2013.

h) Intangibles

Intangible assets are stated at cost of acquisition net of accumulated amortisation and impairment. The cost comprises purchase price. The cost
capitalised are amortised on a straight-line basis over their estimated useful lives as prescribed under the companies act 2013.

Gains or losses arising from de recognition of assets are measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of profit & loss when the asset is de recognized.

i) 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 items of income or expense associated with the investing or financing
cashflows. The cash flows from operating, investing and financing activities of the company are segregated.

j) 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.

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have passed to the customer, usually
on delivery of goods. The Company collects VAT, CST and GST on behalf of the government and therefore, these are no economic benefits flowing to
the Company. Hence they are excluded from revenue.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest
Income is included under the head "Other Income" in the statement of profit & loss.

k) Income Tax

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the company operates.
The tax rates and tax laws used to compute the amount are those that are enacted, at the reporting date.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred
tax assets and liabilities are recognized for the future tax consequences attributable to timing differences between the taxable income and
accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

l) Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the
period.

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Mar 31, 2015

A. SYSTEM OF ACCOUNTING :

The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis.

B. INVESTMENTS :

i) Long Term investments of the company are stated at their cost of acquisition.

ii) Provision for diminution in the value of long term investments is made only if, such a decline is other than temporary in the opinion of the management.

C. SALES & PURCHASES :

Sales & Purchases are recognised net of returns.

D. TAXATION :

i) Current tax has been determined and provided as the amount of tax payable in respect of taxable income for the year.

ii) Deferred tax recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2013

A. SYSTEM OF ACCOUNTING :

The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis.

B. INVESTMENTS :

i) Long Term investments of the company are stated at their cost of acquisition. ii) Provision for diminution in the value of long term investments is made only if, such a decline is other than temporary in the opinion of the management.

C. SALES & PURCHASES :

Sales & Purchases are recognised net of returns.

D. TAXATION :

Current tax has been determined and provided as the amount of tax payable in respect of taxable

i) income for the year.

ii) Deferred tax recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2012

A. SYSTEM OF ACCOUNTING :

The Company follows the mercantile system of accounting and recognises income and expenditure on the accrual basis.

B. INVESTMENTS :

i) Long Term investments of the company are stated at their cost of acquisition.

ii) Provision for diminution in the value of long term investments is made only if, such a decline is other than temporary in the opinion of the management.

C. SALES & PURCHASES :

Sales & Purchases are recognised net of returns.

D. TAXATION :

Current tax has been determined and provided as the amount of tax payable in respect of taxable income for the year.

ii) Deferred tax recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1. The Company has no suppliers which constitutes small scale Industrial undertaking.

2. The Company principally engaged in the business of Textiles. Accordingly there are no reportable segments as per Accounting Standard No.17 issued by the Institute of Chartered Accountants of India on ''Segment Reporting''.

3. The equity shares of the company are listed on the following Stock Exchanges and company has duly paid the requisite amount of annual listing fees for the year 2011-12 to both the Stock Exchanges.

a) Ahmadabad Stock Exchange Limited Kamdhenu Complex, Opp. Sahajanand College, Panjarapole, Ahmedabad - 380 015.

b) Bombay Stock Exchange Limited Phiroz Jeejeebhoy Tower, Dalal Street, Mumbai-01.

4. Related party disclosures as required by Accounting Standard No.18 issued by the Institute of Chartered Accountants of India are as follows :

(a) Relationships :

i) Joint Ventures / Partnerships :

Rayban Investments

ii) Related enterprises where transactions have taken place :

Amichand Textiles Ltd.

Vareli Fabrics Pvt. Ltd.

Garden Silk Mills Ltd.