Notes to Accounts of Sheetal Universal Ltd.

Mar 31, 2025

m) Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past
events and it is probable that an outflow of resources will be required to settle the
obligation in respect of which a reliable estimate can be made. Provisions (excluding
retirement benefits) are not discounted to their present value and are determined based
on the best estimate required to settle the obligation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed in the Notes.

n) Employee Benefits

Employee benefits include provident fund, superannuation fund, gratuity fund,
compensated absences, long service awards and post-employment medical benefits.

The Company has not provided for provision for Employee benefit during the financial year
2024-25.

o) Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short¬
term balances (with an original maturity of three months or less from the date of
acquisition), highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.

p) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature
and 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.

q) Foreign currency transactions and translations

Initial recognition

Transactions in foreign currencies entered into by the Company are accounted at the
exchange rates prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date
Foreign currency monetary items (other than derivative contracts) of the Company and its
net investment in non-integral foreign operations outstanding at the Balance Sheet date
are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items),
are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary
items are carried at historical cost. Revenue and expenses are translated at the average
exchange rates prevailing during the year. Exchange differences arising out of these
translations are charged to the Statement of Profit and Loss.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short-term foreign currency
monetary assets and liabilities of the Company and its integral foreign operations are
recognized as income or expense in the Statement of Profit and Loss. The exchange
differences on restatement / settlement of loans to non-integral foreign operations that
are considered as net investment in such operations are accumulated in a "Foreign
currency translation reserve" until disposal / recovery of the net investment.

The exchange differences arising on restatement / settlement of long-term foreign
currency monetary items are capitalized as part of the depreciable fixed assets to which
the monetary item relates and depreciated over the remaining useful life of such assets or
amortized on settlement / over the maturity period of such items if such items do not
relate to acquisition of depreciable fixed assets. The unamortized balance is carried in the
Balance Sheet as "Foreign currency monetary item translation difference account" net of
the tax effect thereon.

r) Government grants, subsidies and export incentives

Government grants and subsidies are recognized when there is reasonable assurance that
the Company will comply with the conditions attached to them and the grants / subsidy
will be received. Government grants whose primary condition is that the Company should
purchase, construct or otherwise acquire capital assets are presented by deducting them
from the carrying value of the assets. The grant is recognized as income over the life of a
depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of exports based on eligibility and when there
is no uncertainty in receiving the same.

Government grants in the nature of promoters'' contribution like investment subsidy,
where no repayment is ordinarily expected in respect thereof, are treated as capital
reserve. Government grants in the form of non-monetary assets, given at a concessional
rate, are recorded on the basis of their acquisition cost. In case the non-monetary asset is
given free of cost, the grant is recorded at a nominal value.

Other government grants and subsidies are recognized as income over the periods
necessary to match them with the costs for which they are intended to compensate, on a
systematic basis.

s) Identification of prior period, Extra ordinary and Exceptional Items

Items of incomes or expenses which aroused in the current year but the conditions,
events or evidences for those transactions relates to one or more prior periods are
separately disclosed in the financial statements.

The items of incomes or expenditure which does not relates to ordinary business
activities are classified as extraordinary items in the financial statements.

Income or expenditures which relates to ordinary business activities but are exceptionally
high or low as comparted to one or more comparatives are classified as exceptional
items.

There is no change in any accounting policy or accounting estimates or the enterprise
which materially affect the financial statements of the enterprise.

For V V Patel & Company
Chartered Accountants
FRN: - 118124W

Kamlesh P. Viradia
Partner.

Mem. No 122480.

Date: - 30.05.2025
Place: - Rajkot

UDIN: - 25122480BMGXGV9815

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Mar 31, 2024

m) Provisions and contingencies

A provision is recognized when the Company has a present obligation as a resuft of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

n) Employee Benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

The Company has not provided for provision for Employee benefit-d&Wfcfi^ttje financial year 2023-24. /ofO El

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o) Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are shortterm balances {with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

p) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and 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.

q) Foreign currency transactions and translations

Initial recoenition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items), are translated at the exchange rate prevailing on the Balance Sheet date. Non-monetary items are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognized as income or expense in the Statement of Profit and Loss. The exchange differences on restatement / settlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in a "Foreign currency translation reserve" until disposal / recovery of the net investment.

The exchange differences arising on restatement / settlement of long-term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortized on settlement / over the maturity period of such items if such items do not relate to acquisition of depreciable fixed assets. The unamortized baiauceTs.-carried in the Balance Sheet as "Foreign currency monetary item translation diff^p^l^unt" net of the tax effect thereon.

FRN

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r) Government grants, subsidies and export incentives

Government grants and subsidies are recognized when there is reasonable assurance that e Company will comply with the conditions attached to them and the grants / subsidy wi be received. Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is recognized as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Government grants in the nature of promoters'' contribution like investment subsidy where no repayment is ordinarily expected in respect thereof, are treated as capital reserve. Government grants in the form of non-monetary assets, given at a concessional rate, are recorded on the basis of their acquisition cost. In case the non-monetary asset is given free of cost, the grant is recorded at a nominal value.

Other government grants and subsidies are recognized as income over the periods necessary to match them with the costs for which they are intended to compensate on a systematic basis. ''

s) identification of prior period, Extra ordinary and Exceptional Items

Items of incomes or expenses which aroused in the current year but the conditions events or evidences for those transactions relates to one or more prior periods are separately disclosed in the financial statements.

The items of incomes or expenditure which does not relates to ordinary business activities are classified as extraordinary items in the financial statements.

Income or expenditures which relates to ordinary business activities but are exceptionally i^ghjOr low as comparted to one or more comparatives are classified as exceptional

There is no change in any accounting policy or accounting estimates or the enterprise which materially affect the financial statements of the enterprise

For V V Patel & Company \(^f fRN . Yi Chartered Accountants jj

FRN: - 118124W /Yt*

Kamlesh P. Viradia Partner.

Mem. No 122480.

Date: - 30/05/2024 Place: - Rajkot

UDIN: - 24122480BKAHTK6724