Accounting Policies of Shubhshree Biofuels Energy Ltd. Company

Mar 31, 2025

i) Accounting Convention:

"The financial statements are prepared in accordance with the historical cost convention on the accrual basis of
accounting, in compliance with the applicable Accounting Standards as notified under Section 133 of the Companies
Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Act.

The accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto adopted."

ii) Basis of Accounting and Preparation of the Financial Statements:

"The financial statements have been prepared in accordance with the historical cost convention and on the accrual
basis of accounting in compliance with:

The Accounting Standards (AS) as notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014;

The requirements of Schedule III to the Companies Act, 2013;

Other applicable provisions of the Companies Act, 2013 and relevant applicable statutory pronouncements.

The accounting policies have been consistently applied by the Company and are consistent with those used in the
previous year except where a newly issued accounting standard is adopted or an existing standard is amended."

Cash Flow Statement:

The cash flow statement is prepared using the "Indirect Method" as set out in Accounting Standard 3 "Cash Flow
Statements" and presents the cash flows by operating, investing and financing activities of the Company.

Rounding Off:

The financial statements are presented in Indian rupees. The financial figures given in the financial statements has been
rounded off to the nearest thousands and decimals thereof.

iii) 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 application of accounting policies and the reported amounts of assets,
liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis, and any revisions to accounting estimates are recognised in the period in which the
estimate is revised.

iv) "Current and Non-Current Classification of Assets and Liabilities:"

"All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle
and other criteria set out in Schedule III to the Companies Act, 2013. The operating cycle is assumed to be of 12
months."

v) Cash and Cash Equivalents:

Cash and cash equivalents comprises cash at bank and in hand and short term investments with an original maturity of
three months or less.

vi) Property, plant and equipment (PPE) and Intangible assets and Depreciation thereon:

Tangible Assets:

"Property, Plant and Equipment are stated at historical cost less accumulated depreciation and impairment losses, if
any. Cost includes purchase price, non-refundable duties and taxes, borrowing cost, and any directly attributable cost of
bringing the asset to its working condition for intended use."

Subsequent expenditure related to PPE is capitalised only if it increases the future benefits from the existing assets
beyond its previously assessed standard of performance. All other expenses on existing PPE, including repairs and
maintenance, are charged to the Statement of Profit and Loss.

Depreciation is provided using the Straight-Line Method over the useful life of the assets, as prescribed under Schedule
II of the Companies Act, 2013. The residual values, useful lives and method of depreciation of PPE are reviewed at each
financial year-end and adjusted prospectively, if appropriate.

Intangible Assets:

The Company doesn''t have any intangible assets.

vii) Investments:

"Investments are classified as long-term or current based on the intention of management at the time of acquisition.
Investments are accounted for in accordance with AS 13 - Accounting for Investments."

Current Investments are carried at lower of cost and fair value.

Long-term Investments are carried at cost. Provision for diminution is made only if such decline is other than
temporary.

viii) Inventories:

"Inventories are valued in accordance with AS 2 - Valuation of Inventories as follows:

Raw Materials: Valued at cost or net realisable value, whichever is lower. Cost is determined on a FIFO basis.

Work-in-Progress (WIP): Valued at cost or net realisable value, whichever is lower. Cost includes direct materials, labour
and a proportionate share of manufacturing overheads.

Finished Goods: Valued at cost or net realisable value, whichever is lower. Cost includes direct material, direct labour
and a proportion of manufacturing overheads including excise duty.

Traded Goods: Valued at cost or net realisable value, whichever is lower, on FIFO basis."

ix) Borrowing Cost:

General and specific borrowing costs (including exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost) directly attributable to the acquisition, construction or
production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use. All other borrowing costs are charged to Statement of Profit and Loss over the tenure of the borrowings.

x) 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:

Revenue from sale of goods is recognized , when the title of goods has been transferred to the buyer and ultimate
collection is certain.

Revenue from Services:

Revenue from services, if any is recognized pro-rata over the period of the contract as and when services are rendered
and the collectability is reasonably assured.

Interest Income:

"Interest income, if any is recognized on a time proportion basis taking into account the amount outstanding and
applicable interest rate. Interest on refund of taxes is booked in the year of receipts.

II

Other Income:

All other income, if any is recognized on accrual basis.

xi) Earnings per Share:

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

Diluted earnings per share are calculated after adjusting effects of potential equity shares (PES).PES are those shares
which will convert into equity shares at a later stage. Profit / loss is adjusted by the expenses incurred on such PES.
Adjusted profit/loss is divided by the weighted average number of ordinary plus potential equity shares.

xii) Taxes on Income:

Income-tax expense comprises current tax and deferred tax.

Current Income-tax is measured at the amount expected to be paid to the tax authorities after considering tax
allowances, deductions and exemptions determined in accordance with Income Tax Act, 1961 and the prevailing tax
laws.

Deferred tax assets (DTA)/ liabilities (DTL): DTA or DTL is recognized for timing differences between the profit/loss
offered for income tax and profit/loss as per the financial statements. DTA tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date.

DTA is recognized only to the extent there is reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carried forward loss under taxation laws, DTA is
recognized only if there is a virtual certainty of realization of such asset. DTA is reviewed as at each Balance
Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be
realized.

DTA/DTL are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the
DTA and deferred taxes relate to the same taxable entity and the same taxation authority.

xiii) Foreign Currency Transactions:

(i) Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction or at the
rates covered by the forward contracts. Monetary assets & liabilities denominated in foreign currency are translated
into Indian Rupees at the rate of exchange prevailing at the balance sheet date.

(ii) Non monetary items which are carried in terms of historical cost denominated in foreign currency are reported
using the exchange rate at the date of transaction.

(iii) Exchange difference arising at the settlement of monetary items or on reporting the company''s monetary items at
the rate different from those at which they were initially recorded during the period or reported in previous financial
statement are recognized as income or as expenses in the period in which they arise except in case of Long Term
Liabilities.

xiv) Leases

"The Company recognises lease payments under operating leases as an expense in the Statement of Profit and Loss on
a straight-line basis over the lease term as per AS 19 - Leases. The Company has not undertaken any finance lease"

xv) Employees Benefits:

"Employee benefits are accounted for in accordance with AS 15 - Employee Benefits:

Short-term Benefits: Recognised in the period during which the employee renders the related services.

Post-employment and Long-term Benefits: Such as gratuity and leave encashment are provided based on actuarial
valuation using the Projected Unit Credit Method at year-end."

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Mar 31, 2024

1 Company Overview

Shubhshree Biofuels Energy Limited was incorporated under the provisions of the Companies Act, 2013 . The registerd office of the Company is situated in the state of Rajasthan. The main object of the Company is Manufacturing and Trading of Biomass Pellets,Briquettes ,Coal and Wood Chips products and Manufacturing Activities Started during the year only.

2 Significant Accounting Policies

i Accounting Convention:

The financial statements are prepared on going concern basis, in accordance with the generally accepted accounting principles in India, the Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act") read with Rule (7) of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Act.

ii Basis of Accounting and Preparation of the Financial Statements:

These financial statements have been prepared on going concern basis in compliance to the generally accepted accounting principles in India (I-GAAP).

The accounting policies, in all material respects, have been consistently applied by the Company and are consistent with those in the previous year except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in use.

Cash Flow Statement:

The cash flow statement is prepared using the "Indirect Method" as set out in Accounting Standard 3 "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company.

Rounding Off:

The financial statements are presented in Indian rupees. The financial figures given in the financial statements has been rounded off to the nearest thousands and decimals thereof.

iii Use of Estimates:

Preparation of the financial statements requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and 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.

iv Current and Non-Current Classification of Assets and Liabilities:

For the purpose of current / non current classification of assets and liabilities, the Company has ascertained its operating cycle as 12 months.

v Cash and Cash Equivalents:

Cash and cash equivalents comprises cash at bank and in hand and short term investments with an original maturity of three months or less.

vi Property, plant and equipment (PPE1 and Intangible assets and Depreciation thereon:

Tangible Assets:

PPE are tangible assets that are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes purchase price, non refundable duties and taxes, cost of replacing the component parts, borrowing cost and other directly attributable cost to bring the assets to the location and condition necessary for it to be capable of operating in the manner intended by the management.

Subsequent expenditure relating to PPE that has already been recognized is added to the carrying amount of that asset when it is probable that future economic benefits associated with the items will flow to the Company and cost of the item can be measured reliably. Repair and maintenance expenses are charged to the Statement of Profit and Loss.

Intangible Assets:

The Company doesn''t have any intangible assets.

Method of Depreciation. Estimated Useful Lives and Residual Value:

Depreciation on PPE is calculated using the straight line method to allocate their depreciable amounts over their estimated useful lives as stated in Schedule-ll of the Act. The residual values, estimated useful lives and depreciation method of PPE are reviewed and adjusted as appropriate, at each Balance Sheet date. The effects of any revision are recognised as profit or loss when the changes arise.

vil Investments:

There in no investment in the Company viii Inventories:

Raw materials are valued on FIFO basis at lower of cost and net realisable value. However, these items are considered to be realisable at cost if the finished products, in which they will be used, are expected to be sold at or above cost. Cost includes cost of purchase and other costs in bringing the inventories to their present location and condition.

Work-in-progress are valued on FIFO basis at lower at cost and net realisable value. Work-in-progress includes costs of direct materials, labour and a proportion of manufacturing overheads based on the normal operating capacity.

Finished goods are valued on FIFO basis at lower at cost and net realisable value. Cost includes direct material cost, direct labour cost, taxes and duties, freight, other direct expenses and an appropriate proportion of variable and fixed overhead expenditure.

Traded goods are valued on FIFO basis at lower at cost and net realisable value Traded goods cost includes cost of purchase and other costs incurred in bringing the goods to their present location and condition.

ix Borrowing Cost:

General and specific borrowing costs (including exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost) directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are charged to Statement of Profit and Loss over the tenure of the borrowings.

x 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:

Revenue from sale of goods is recognized, when the title of goods has been transferred to the buyer and ultimate collection is certain.

Revenue from Services:

Revenue from services, if any is recognized pro-rata over the period of the contract as and when services are rendered and the collectability is reasonably assured.

Interest Income:

Interest income, if any is recognized on a time proportion basis taking into account the amount outstanding and applicable interest rate. Interest on refund of taxes is booked in the year of receipts.

Other Income:

All other income, if any is recognized on accrual basis, xi Earnings per Share:

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

Diluted earnings per share are calculated after adjusting effects of potential equity shares (PES).PES are those shares which will convert into equity shares at a later stage. Profit / loss is adjusted by the expenses incurred on such PES. Adjusted profit/loss is divided by the weighted average number of ordinary plus potential equity shares.

xii Taxes on Income:

Income-tax expense comprises current tax and deferred tax.

Current income-tax is measured at the amount expected to be paid to the tax authorities after considering tax allowances, deductions and exemptions determined in accordance with Income Tax Act, 1961 and the prevailing tax laws.

Deferred tax assets (DTA)/ liabilities (DTL): DTA or DTL is recognized for timing differences between the profit/loss offered for income tax and profit/loss as per the financial statements. DTA tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date.

DTA is recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, DTA is recognized only if there is a virtual certainty of realization of such asset. DTA is reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

DTA/DTL are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the DTA and deferred taxes relate to the same taxable entity and the same taxation authority.

xiii Foreign Currency Transactions:

The Company has not entered in to any foreign currency transactions:

xiv Leases

The company recognises operating lease payments on straight line method and no financial lease has been undertaken by the company.

xv Employees Benefits:

All employees benefits payable/available with in 12 months of rendering the service are classified as short term employee benefits . Benefits such as salaries, wages and bonus etc. are recognized in the Statement of Profit and Loss in the period in which the employee renders the related service.Gratuity long term compensated leaves and Pension, being in the nature of retirement benefits are provided on the basis of actuarial valuation.

xvi Provisions. Contingent Liabilities and Contingent Assets:

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent assets are neither recognized nor disclosed in the financial statements.

xvii Extraordinary, Exceptional. Prior Period Items and Changes in Accounting Policies

a) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

(b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure Improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.