Accounting Policies of Sheetal Universal Ltd. Company

Mar 31, 2025

a) Corporate Information: -

Sheetal Universal Limited is the public limited company domiciled in India and incorporated
on 20^th August 2015, CIN - U51219GJ2015PLC084270, registered office at Office NO.1508-
1509, 15^th Floor, Space Odyssey, Near K.K.V. Chowk, 150 Feet Ring Road, Rajkot-360005
Engaged in to the business of Processing and Exporting of agri Product. And not listed with any
stock exchange.

b) Basis of Preparation of Financial Statements:

The Financial statement are prepared on mercantile basis under the historical cost
convention in accordance with the generally accepted accounting principles in India,
Accounting Standards notified under section 133 of the Companies Act, 2013 read with
Companies (Accounting) Rules, 2014 and the other relevant provisions of the Companies
Act, 2013.

c) Use of estimates:

The preparation of Financial Statements in conformity with Generally Accepted Accounting
Principals (GAAP) in India requires management to make estimates and assumptions to be
made that affect the reported amounts of assets and liabilities, disclosure of contingent
amount as at the date of Financial Statements and reported amounts of revenues and
expenses during the reporting period. Actual results could be different from these
estimates. Any revision to the accounting estimates is recognized in the period in which the
results are known/ materialized.

d) Revenue Recognition:

Sales income is recognized as per AS 9 i.e. "Revenue Recognition" when the ownership of
goods and all risk and rewards associated with ownership has been transferred to buyer
which generally coincides with the delivery of goods to customers and there exists no
reasonable uncertainty regarding collection of debts.

e) Property Plant and equipment:

Property Plant and equipment are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of Property Plant and equipment includes interest on
borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use and other incidental expenses incurred up to that date. and
depreciated over the remaining useful life of such assets. Machinery spares which can be
used only in connection with an item of Property Plant and equipment and whose use is
expected to be irregular are capitalized and depreciated over the useful life of the principal
item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized
only if such expenditure results in an increase in the future benefits from such asset
beyond its previously assessed standard of performance.

f) Depreciation:

Depreciation is provided on Written down Value Method at rates specified in Schedule II of
companies Act, 2013.

Depreciation on new asset acquired during the year is provided at the rates applicable from
the date of acquisition to the end of the financial year.

In respect of the asset sold during the year, depreciation is provided from the beginning of
the year till the date of its disposal.

g) Impairment of Assets:

An asset is treated as impaired when carrying cost of asset exceeds its recoverable value.
During the period, company has applied the impairment tests to arrive at any possible
Impairment. Accordingly, in the opinion of management there is no impairment, which is
required to be recognized in the books of accounts.

h) Investments:

Long-term investments (excluding investment properties), are carried individually at cost
less provision for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and duties

i) Borrowing Cost:

Borrowing costs include interest, amortization of ancillary costs incurred and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are charged to the
Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and
utilized for qualifying assets, pertaining to the period from commencement of activities
relating to construction / development of the qualifying asset up to the date of
capitalization of such asset is added to the cost of the assets. Capitalization of borrowing
costs is suspended and charged to the Statement of Profit and Loss during extended
periods when active development activity on the qualifying assets is interrupted.

j) Inventories:

Inventories are stated at lower of cost (On FIFO Basis) and estimated net realizable value,
after providing for cost of obsolescence and other anticipated losses, wherever considered
necessary. Inventories of the company are valued as certified by management.

k) Taxes on Income:

Tax expenses comprise of current and deferred tax.

Provision for current income tax is made on the basis of relevant provisions of Income Tax
Act, 1961 as applicable to the financial year.

Deferred Tax is recognized 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.

l) Earnings Per Share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the
post-tax effect of extraordinary items, if any) by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the
profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) 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. The dilutive potential equity shares
are adjusted for the proceeds receivable had the shares been actually issued at fair value
(i.e. average market value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for share splits / reverse share splits and
bonus shares, as appropriate.

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Mar 31, 2024

Significant Accounting Policies

a) Corporate Information: -

Sheetal Universal Limited is the public limited company domiciled in India and incorporated on 20'' August 2015, CIN - U51219GJ2015PLC084270, registered office at Office No 348 2^nd Floor, I scon Mall, 150 Ft Ring Road, Dist - Rajkot. Engaged in to the business of Processing and Exporting of agri Product. And not listed with any stock exchange.

b) Basis of Preparation of Financial Statements:

The Financial statement are prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India Accounting Standards notified under section 133 of the Companies Act, 2013 read with

Companies (Accounting) Rules, 2014 and the other relevant provisions of the Companies Act, 2013.

c) Use of estimates:

The preparation of Financial Statements in conformity with Generally Accepted Accounting Principals (GAAP) in India requires management to make estimates and assumptions to be made that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of Financial Statements and reported amounts of revenues and expenses during the reporting period. Actual results could be different from these estimates. Any revision to the accounting estimates is recognized in the period in which the results are known/ materialized.

d) Revenue Recognition:

Sales income is recognized as per AS 9 i.e. "Revenue Recognition" when the ownership of goods and all risk and rewards associated with ownership has been transferred to buyer which generally coincides with the delivery of goods to customers and there exists no reasonable uncertainty regarding collection of debts.

e) Property Plant and equipment:

Property Plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of Property Plant and equipment includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date, and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of Property Plant and equipment and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

f) Depreciation:

Depreciation is provided on Written down Value Method at rates specified in Schedule II of companies Act, 2013.

Depreciation on new asset acquired during the year is provided at the rates applicable from the date of acquisition to the end of the financial year.

In respect of the asset sold during the year, depreciation is provided from the beginning of

the year till the date of its disposal.

g) Impairment of Assets:

An asset is treated as impaired when carrying cost of asset exceeds its recoverable value. During the period, company has applied the impairment tests to arrive at any possible Impairment. Accordingly, in the opinion of management there is no impairment which is required to be recognized in the books of accounts.

h) Investments:

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties

The company has made investment during the financial year 2021-22. in form of Union corporate bond fund Rs 500,000/- and Rs 2,99,000/- with subsidiary company namely Svar Industries Private Limited recorded in the books of account. Whereas no such investment is present for the financial year 2023-24.

i) Borrowing Cost:

Borrowing costs include interest, amortization of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

j) Inventories:

inventories are stated at lower of cost (On FIFO Basis) and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Inventories of the company are valued as certified by management. --

RN

k) Taxes on Income:

Tax expenses comprise of current and deferred tax.

Provision for current income tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

Deferred Tax is recognized 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.

l) Earnings Per Share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) 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. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.