Accounting Policies of Shelter Pharma Ltd. Company

Mar 31, 2025

1. Basis of preparation of Financial Statements:

These financial statements are prepared in accordance
with Indian Generally Accepted Accounting Principles
(GAAP) under the historical cost convention on the accrual
basis. GAAP comprises mandatory accounting standards
as prescribed under Section 133 of the Companies
Act, 2013 (''the Act'') read with Rule 7 of the Companies
(Accounts) Rules, 2014, the provisions of the Act.

2. Use of Estimates:

The preparation of financial statement in conformity
with generally accepted accounting principles requires
management of the company to make estimates and
assumptions that affect the reported amount of assets
and liabilities and disclosure of contingent liabilities
at the date of financial statements and the reported
amount of revenues and expenses during the
reporting period. Difference between actual results
and estimates are recognized in the period in which
the results are known / materialized.

3. Accounting Convention:

The company follows the mercantile system of
accounting, recognizing income and expenditure on
accrual basis. The accounts are prepared on historical
cost basis and as a going concern. Accounting policies
not referred to specifically otherwise, are consistent
with the generally accepted accounting principles.

The accounting Policies adopted in the preparation
of the financial statements are consistent with those
followed in the previous year.

4. Property, Plant &Equipments :

Tangible Assets Property, Plants &Equipments are
stated at as per Cost Model. i.e., at cost less accumulated
depreciation and impairment, if any. Costs directly
attributable to acquisition are capitalized until the
property, plant and equipment are ready for use,
as intended by the management. Cost comprises
thepurchase price and any attributable cost of bringing
the asset to its working condition for its intendeduse.
Input tax credits of GST, Grants on capital goods are
accounted for by reducing the cost of CapitalGoods.

Plant and equipment are capitalized only when it is
probable that future economic benefits associatedwith

them will flow to the Company and the cost of the
expenditure can be measured reliably.Repairs and
Maintenance costs are recognized in the Statement of
Profit and Loss when they are incurred. When assets
are disposed or retired, their cost is removed from the
financial statements. The gain or loss arising on the
disposal or retirement of an asset is determined as the
difference between sales proceeds and the carrying
amount of the asset and is recognized in Statement of
Profit and Loss for the relevant financial year.

Repairs and Maintenance costs are recognised in the
Statement of Profit and Loss when they are incurred.

Intangible assets:

Intangible assets purchased are initially measured
at cost. The cost of an intangible asset compriseits
purchase price including any costs directly attributable
to making the asset ready for their intended use.

5. Depreciation :

Depreciation on property, plant and equipment,
tangible and intangible assets, has been provided
Under Written Down Value method over the useful
life of assets estimated by the management which
is inLine with the terms prescribed in Schedule II to
The Companies Act, 2013. Depreciation for assets
Purchased/sold during the period is proportionately
charged. Depreciation method, useful life &
residualValue are reviewed periodically

6. Revenue Recognition:

Revenue is recognized when it is earned and no
significant uncertainty exists as to its realization or
collection. Revenue on sale of product is recognized
on delivery of the product, when all significant
contractual obligations have been satisfied, the
property in goods is transferred for a price, significant
risk and reward of ownership have been transferred
and no effective ownership control is retained.
Interest income is recognized on time proportion
basis. Dividend Income is recognized on receipt basis.

7. Inventories:

Raw Materials have been valued at lower of cost
or net realizable value. Cost of Finished Goods and

semi-finished goods includes all Costs of Purchases,
Conversion Cost and other cost Incurred in bringing
the inventories to their present location and Condition.
The Net realizable value is estimated selling price in
theOrdinary course of business less the estimated
costs of Completion and estimated cost necessary to
make the finished goods/product ready for sale.

8. Borrowing Costs:

Borrowing costs directly attributable to the acquisition
and construction of qualifying assets are capitalized
as part of cost of such asset till such time the asset is
ready for its intended use. A qualifying asset is one
that requires substantial period of time to get ready
for its intended use. All other borrowing costs, if any,
are charged to Profit and Loss account as period cost.

9. Investments:

Non-Current Investments are stated at cost. Provision for
diminution in the value of non-current investments is
made, only if, in the opinion of the management, such a
decline is regarded as being other than temporary.

10. Retirement Benefits & Other Employee Benefits:

All short term employee benefits are accounted on
undiscounted basis during the accounting period based
on services rendered by employees. The Company''s
contribution to Provident Fund is charged to the
Statement of Profit and Loss on accrual basis.
The Company''s obligation is limited to the amount to
be contributed by it. The Liability in respect of gratuity is
recognized on the basis of actuarial valuation.

11. Cash and cash equivalent:

Cash and cash equivalents for the purpose of the cash
flow statements comprise cash at bank and in hand
and short term investments with an original maturity
of three month or less.

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Mar 31, 2024

1. Basis of preparation of Financial Statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''the Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act..

2. Use of Estimates:

The preparation of financial statement in conformity with generally accepted accounting principles requires management of the company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known / materialized.

3. Accounting Convention:

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.

4. Property, Plant & Equipments :

Tangible Assets

Property, Pl ants & Equipments are stated at as per Cost Model. i.e., at cost less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by the management. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Input tax credit of GST, Grants on capital goods are accounted for by reducing the cost of Capital Goods.

Plant and equipment are capitalized only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the expenditure can be measured reliably. Repairs and Maintenance costs are recognized in the Statement of Profit and Loss when they are incurred. When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

Intangible Assets

Intangible assets purchased are initially measured at cost. The cost of an intangible asset

comprise its purchase price including any costs directly attributable to making the asset ready for their intended use.

5. Depreciation :

Depreciation on property, plant and equipment, tangible and intangible assets, has been provided Under Written Down Value method over the useful life of assets estimated by the management which is in line with the terms prescribed in Schedule II to The Companies Act, 2013. Depreciation for assets Purchased/sold during the period is proportionately charged. Depreciation method, useful life & residual Value are reviewed periodically.

6. Revenue Recognition:

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue on sale of product is recognized on delivery of the product, when all significant contractual obligations have been satisfied, the property in goods is transferred for a price, significant risk and reward of ownership have been transferred and no effective ownership control is retained. Interest income is recognized on time proportion basis. Dividend Income is recognized on receipt basis.

7. Inventories:

Raw Materials have been valued at lower of cost or net realizable value. Cost of Finished Goods and semi-finished goods includes all Costs of Purchases, Conversion Cost and other cost Incurred in bringing the inventories to their present location and Condition. The Net realizable value is estimated selling price in the Ordinary course of business less the estimated costs of Completion and estimated cost necessary to make the finished goods/product ready for sale.

8. Borrowing Costs:

Borrowing costs directly attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such asset till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs, if any, are charged to Profit and Loss account as period cost.

9. Investments:

Non-Current Investments are stated at cost. Provision for diminution in the value of noncurrent investments is made, only if, in the opinion of the management, such a decline is regarded as being other than temporary.

10. Retirement Benefits & Other Employee Benefits:

All short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees. The Company’s contribution to Provident Fund is charged to the Statement of Profit and Loss on accrual basis. The Company’s obligation is limited to the amount to be contributed by it. The Liability in

respect of gratuity is recognized on the basis of actuarial valuation.

11. Cash and Cash Equivalent:

Cash and cash equivalents for the purpose of the cash flow statements comprise cash at bank and in hand and short term investments with an original maturity of three month or less.

12. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the company has a present obligation as a result of past event; 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 are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. This are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclose in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

13. Taxation :

The accounting treatment for the Income Tax in respect of the Company’s income is based on the Accounting Standard on ''Accounting for Taxes on Income’ (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961. Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/ liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

14. Foreign Currency Transaction :

i) Initial Recognition: Foreign currency transaction, are recorded in the reporting currency by applying the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii) Conversion: Foreign currency monetary items are reported using the closing rate.

iii) Exchange Difference: Exchange differences arising on the settlement of monetary items at rates different from those at which they are initially recorded during the year or reported in previous financial statement are recognized as income or as expenses at the end of year by applying closing rate.

15. Impairment of Assets:

An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows. An impairment loss

is charged off to profit and loss account as and when asset is identified for impairment. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. An asset is treated as impaired when Carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

16. Related Party Disclosures:

Related Party disclosures as required under the Accounting Standard (AS) - 18 on “Related Party Disclosures” notified in Companies (Accounting Standards) Rules, 2006:

NAME OF PARTY	NATURE OF TRANSACTION	AMOUNT
Mustaqim Nisarahmed Sabugar	Director’s Remuneration	12.00
Shakil Nisarahmed Sabugar	Director’s Remuneration	12.00
Gandhi Brothers	Sales	152.73
Shelter Pharmacy Pvt.Ltd	Sales	228.96

17. Earnings Per Share

During the current year period the company is having Rs. 5.36 Earnings per Share

18. Notes Forming Part Of The Accounts

Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.

Debit/credit balances under the head “Current liabilities”, “Sundry debtors”, “Unsecured loans” and “Loans and advances” are subject to confirmation from respective parties.

On the basis of the information available with the company, there are no Micro, Small and Medium enterprise to whom the company owes dues, which are outstanding for more than 45 days at the balance sheet date.

The Company does not have any Contingent liabilities in the nature of claims or guarantees.

The total depreciation attributable to Assets in consideration with WDV rule for calculation of depreciation has been considered in full as on 31.03.2024

Previous year’s figures have been regrouped, reclassified wherever necessary to correspond with the current year’s classifications/disclosures.

The company has not entered any transactions with struck off companies under section 248 of the companies Act, 2013 or section 560 of companies Act, 1956.

The company had complied with requirement of registration of charges with Registrar of Companies in respect of borrowings from the bank for company’s assets.

There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.