Accounting Policies of Shivalic Power Control Ltd. Company

Mar 31, 2025

1. CORPORATE INFORMATION

Shivalic Power Control Limited, (hereinafter referred to as “the company”) having its
registered office at Plot No. 72, Sector - 68, IMT Faridabad, Ballabgarh, Haryana, India,
121004 .

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

2.1 BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP), including the Accounting Standards
notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the historical cost convention on
accrual basis.

2.2 USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to
the carrying amounts of assets or liabilities in future periods.

2.3 REVENUE RECOGNITION

Expenses and Income considered payable and receivable respectively are accounted for on
accrual basis.

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.

2.4 PROPERTY, PLANT & EQUIPMENT

Property, Plant & Equipment including intangible assets are stated at their original cost of
acquisition including taxes, freight and other incidental expenses related to acquisition and
installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

2.5 DEPRECIATION

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
down Value (WDV) Method. Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.

Depreciation on assets acquired/sold during the year is recognized on a pro-rata basis to the
statement of profit and loss till the date of acquisition/sale.

2.6 FOREIGN CURRENCY TRANSACTIONS

Transactions arising in foreign currencies during the year are converted at the rates closely
approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign
currency are restated at the year-end exchange rates. All exchange rate differences arising
from conversion in terms of the above are included in the statement of profit and loss.

2.7 INVESTMENTS

On initial recognition, all investments are measured at cost. The cost comprises purchase
price and directly attributable acquisition charges such as brokerage, fees and duties.

2.8 INVENTORIES

Inventories are valued as under:

• 1. Inventories : Lower of cost(FIFO) or net realizable value

• 2. Scrap : At net realizable value.

2.9 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of the qualifying
assets are capitalized as part of the cost of such assets. A qualifying assets is one that
necessarily takes a substantial period of time to get ready for its intended uses or sale. All
other borrowing costs are charged to revenue in the year of incurrence. No amount of
borrowing cost is capitalized during the year.

2.10 TAXES ON INCOME

Provision for current tax is made on the basis of estimated taxable income for the current
accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing
differences between the book and tax profits for the year is accounted for, using the tax rates
and laws that have been substantively enacted as of the balance sheet date.

2.11 EMPLOYEE BENEFITS

• (a) Defined contribution plans: The Company''s contribution to Provident Fund and ESI is
considered as defined contribution plan and charged as an expenses based on the
amount of contribution required to be made and when service are rendered by the
employees.

• (b) Employee Benefit Plans:

o Defined contribution plans- The Company makes Provident Fund and ESI
contributions which are defined contribution plans, for qualifying employees. Under
the Schemes, the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits. The contributions payable to these plans by the
Company are at rates specified in the rules of the schemes.

• (c) The Company pay gratuity to the employees who have completed 5 years of service
with the company at the time when employee leaves the company.

2.12 RETIREMENT BENEFITS

Retirement benefits are accounted for as and when liability becomes due.

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Mar 31, 2024

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024

1.BASIS OF PREPARATION

These Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention, as applicable to going concern, on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the provisions of the Act (to the extent notified). The accounting policies have been consistently applied by the Company and are consistent with those used in previous year.

2.Significant Accounting Policies and notes to Accounts

(i) Summary of Significant Accounting policies

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. the financial Statements have been prepared on an accrual basis and under the historical cost convention.

(ii) Use of estimates

The preparation of financial statements requires the management of the company to make estimate and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statement and reported amounts of income and expenses during the year. Example of such estimates includes provision income taxes, the useful lives of depreciable fixed assets and provisions for impairment.

(iii) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation/amortization. Costs include all expenses incurred to bring the assets to its present location and condition.

(iv) Depreciation/Amortization

Depreciation/ amortization on fixed assets is charged so as to write-off the cost of assets, on the rate prescribe in the Companies Act, 2013.

(v) Inventories

Raw material, consumables are carried at lower of cost and net realizable value

(vi) INCOME

The Company has recognized all incomes on due basis.

(vii) Earning Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

(viii) Taxes on Income

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. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit & loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e. the period for which MAT credit is allowed to be carried forward.

(ix) Cash and Cash Equivalents

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

3. NOTES TO ACCOUNTS

(i)Previous year''s figures have been regrouped/ rearranged/ reclassified, wherever necessary, to make them comparable with figures of current year.

(ii)Payment to Auditors	2023-2024	2022-23
Audit Fees	175000.00	175000
Total	175000.00	175000

(iii) Some of the balances in Sundry Debtors, Sundry Creditors and Advances & Deposits are subject to confirmation, reconciliation and adjustments if any, which in the opinion of management will not be significant and would be carried out when settled.

(iv) The Information about Small Scale Industrial undertaken to whom amount are due has been determined to the extent information is available. As per the information and the explanations given by the management no amounts were due any such entity.

(v) Bank Balances have been taken as per books which have been reconciled with the available Bank statements.

(vi) Provisions for all the known liabilities have been made and no contingent liabilities are pending at the end of the year.

(vii) All the applicable provisions of Companies Act, 2013 have been adhered to in the preparation of Financial Statements for the year ending on 31 March, 2024.

(viii) Notes 1 to 15 form integral part of the Balance Sheet as On March31, 2024 and profit & loss account for the year ended on that date which are given below