Accounting Policies of Shyam Dhani Industries Ltd. Company

Mar 31, 2025

Our Company was originally incorporated on 19th Day of October 2010 as “Shyam Dhani Industries
Private Limited" at Jaipur as a private limited company under the provisions of the Companies Act,
1956 with the Registrar of Companies, Rajasthan, Jaipur. Subsequently, our company was converted
into public limited company under the Companies Act, 2013 pursuant to the approval accorded by
our shareholders at their extra- ordinary general meeting held on 20^th Day of August, 2024 ,
Consequently, the name of our company was changed to " Shyam Dhani Industries Limited" and a
fresh certificate of incorporation consequent upon conversion from a private limited company to a
public limited company was issued to our company by the ROC, Rajasthan on 8^th Day of October,
2024 and Corporate Identification Number is U15499RJ2010PLC033117.
The Company''s registered office is situated at F-438A, ROAD NO 12, VKIA, JAIPUR-302013,
Rajasthan.

The Company is primarily involved in the manufacturing of spices i.e Ground Spices, Blended spices,
Whole Spices and Grocery Products.

I. SIGNIFICANT ACCOUNTING POLICIES

A) BASIS OF PREPARATION OF FINANCIAL STATEMENT

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. The
accounting policies adopted in the preparation of financial statements have been consistently
applied. All assets and liabilities have been classified as current and non-current as per the
Company''s normal operating cycle and other criteria set out in the schedule III to the Companies
Act, 2013. Based on the nature of operations and time difference between the provision of services
and realization of cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of assets and liabilities.

B) USE OF ESTIMATES

The preparation of financial statements is in conformity with Indian GAAP requires judgments,
estimates and assumptions to be made that affect the reported amount of assets and liabilities,
disclosure of contingent liabilities on the date of the financial statements and the reported amount
of revenues and expenses during 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, liabilities, revenue and expenses in future periods.

C) 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 following significant accounting policies are adopted in the preparation and presentation of
these financial statements:

1. 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.

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have been
passed to the buyer except exports. Export sales has been recognised at the time of removal of
goods from factory at invoice value (whether FOB or CIF) on the basis of exchange rates declared by
Custom Department in the shipping bills. Sales are disclosed net of GST, trade discounts and returns,
as applicable.

Interest Income

Interest income is recognised on accrual basis at applicable interest rate on time proportion basis.
Rent Income

Rental Income is recognised on time period basis.

Other Income

Other Incomes are recognised on the basis of certainty its ultimate collection.

2. Property, Plant and Equipment

a) Property, Plant and Equipment are stated as per Cost Model i.e., at cost net of recoverable taxes,
trade discounts and rebates and include amounts added on revaluation less accumulated
depreciation and impairment, if any;

b) The cost of property, plant & equipment comprises its Purchase value and any directly
attributable cost of bringing the assets to its working condition for its intended use, net charges
on foreign exchange contracts and adjustment arising from exchange rate variations attributable
to the assets in accordance with AS-16 "Borrowing Cost".

c) Property, Plant & Equipment''s except Land is depreciated on Straight Line Method (SLM) on the
basis of useful life prescribed under Schedule II of The Companies Act, 2013.

d) Subsequent expenditures related to an item of Property, Plant and Equipment are added
to its books value if they increase the future benefits from the existing asset beyond its previously
assessed standard of performance. In respect of additions or extensions forming an integral part
of existing assets depreciation is provided as aforesaid over the useful life of respective assets.

e) Significant component of assets having a life shorter than the main assets, if any is depreciated
over the shorter life.

f) Projects under which assets are not ready for their intended use are disclosed under Capital
Work-in-Progress. Property, Plant and Equipment under construction or installation, included in
capital work-in-progress are not deprecated.

g) All expenditure actually incurred for supply and installation of plant & machinery and other
capital assets, pre-operating expenses including interest during construction are accumulated
and shown as capital work-in-progress until the completion of expansion programme.

h) The Property, plant and Equipment''s individually valued below Rs. 5,000 are treated as
expenditure.

3. IMPAIRMENT

If the carrying amount of Property, Plant & Equipment exceeds the recoverable amount on the
reporting date, the carrying amount is reduced to the recoverable amount. The recoverable
amount is measured as the higher of the net selling price and the value in use determined by the
present value of future cash flows.

4. INVENTORIES

Inventories are valued after providing for obsolescence, as follows:

a) Raw Materials, Stores & Spare parts and Packing Material-Lower of cost net and realizable value.
However, materials and other items held for use in the production of inventories are not written
down below cost if the finished products in which they will be incorporated are expected to be
sold at or above cost. Cost of raw materials, components, stores and spares is determined on
FIFO basis.

b) Work-in-Progress and finished goods are valued at lower of cost and net realisable value. Cost
includes direct materials and labour and a portion of manufacturing overheads based on normal

operating capacity. Cost of finished goods includes other costs incurred in bringing the
inventories to their present location and condition and is determined on First in First out (FIFO)
basis.

Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the sale. Direct Expenses
are included in proportion to Raw Material Consumed.

5. RETIREMENT BENEFITS & OTHER EMPLOYEE BENEIFTS:

Defined-contribution plans:

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 and Employee State Insurance Scheme is determined
based on a fixed percentage of the eligible employee''s salary and charged to the statement of Profit
and Loss on accrual basis.

In the financial statements, The Company has made provision for payment of Gratuity to its
employees, based on the actuarial valuation report obtained from actuarial valuer.

6. FOREGIN EXCHANGE TRANSACTIONS

a) Initial Recognition: -

Foreign currency transaction is recorded at Exchange rate prevailing on the date of transaction.

b) Conversion

The foreign currency monetary items consisting of amount received in advance, trade receivable,
payable and balance in bank a/c at the end of the year have been restated at the rate prevailing at
the balance sheet date.

c) Exchange difference

The exchange difference arising on the settlement of monetary items at rate different from those at
which they were initially recorded during the year or reported in previous financial statement are
recognised as income or expense when they arise as per Accounting Standard- 11 (Revised 2005) on
"Accounting for the effects in Foreign Exchange rates" issued by the Institute of Chartered
Accountants of India, expect to the extent of exchange difference which are regarded as adjustment
to interest cost on foreign currency borrowing that are directly attributable to the acquisition or
construction of qualifying assets which are capitalized as cost of assets (as per AS 16 Borrowing
Cost).

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7. CASH FLOW STATEMENT [Jf (FfT\ V\

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Cash flows are reported using the indirect method as prescribed in Accounting Standard 3 ''Cash
Flow Statement'' whereby profit before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of
income or expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities are segregated.

8. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets
are capitalized as part of the cost of that asset till such time the assets is ready for its intended use. A
qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
intended use. Costs incurred in raising funds are amortized equally over the period for which the
funds are acquired. All other borrowing costs are charged to Statement Profit & Loss Account.

Capitalization of interest on borrowing related to construction or development project is ceased
when substantially all the activities that are necessary to make the assets ready for their intended
use are complete or when delays occur outside of the normal course of business.

9. INCOME TAX

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 assets and liabilities are measured using the tax rates and tax laws that been enacted or
substantially enacted at the balance sheet date on timing difference between accounting income
and taxable income that originate in one year and are capable of being reversal in one or more
subsequent year.

In respect of unabsorbed depreciation / carry forward of losses (if any) under the tax , laws deferred
tax assets are recognized only to the extent that there is virtual certainty that future taxable income
will be available against such deferred tax asset can be realized.

10. EARNING PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the profit after tax by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity shares that could have
been issued upon conyEcsion of all dilutive potential equity shares.