Accounting Policies of SMT Engineering Ltd. Company

Mar 31, 2025

1.1 Overview of the Company

SMT Engineering Limited (formerly known as Adarsh Mercantile Limited) ("The Company") is engaged in the business of trading of
goods and shares and investments in mutual funds, shares and securities.

The Company is a Public Limited company incorporated and domiciled in India and has its registered office at 8A & 8B, Satyam
Towers, 3, Alipore Road, Kolkata 700027. The Company has its primary listing on Bombay Stock Exchange.

In accordance with the notification dated 16th February, 2015, issued by the Ministry of Corporate Affairs, the Company has
adopted Indian Accounting Standards (referred to as âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules,
2015 (as amended) with effect from April 1, 2016.

1.2 Basis of preparation of Financial Statements

These financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost
convention on the accrual basis except for certain financial instruments which are measured at fair values; the provisions of the
Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).
The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued there after.

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 in use.

As the operating cycle cannot be identified in normal course due to the special nature of industry, the same has been assumed to
have duration of 12 months. Accordingly, all assets and liabilities have been classified as current or non-current as per the
operating cycle and other criteria set out in IND AS-1 ''Presentation of Financial Statements'' and Schedule III to the Companies Act,
2013.

The Financial Statements are presented in Indian Rupees and all values are rounded off to the nearest two decimal except
otherwise stated. The presentation and grouping of individual items in the balance sheet, the profit & loss statement and the cash
flow statement, as well as the statement of changes in equity, are based on the principle of materiality.

1.3 Use of estimates and judgments

The preparation of the financial statements in conformity with IND AS requires management to make estimates, judgments and
assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes
in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed in the notes to the financial statements.

1.4 Property, Plant and Equipment

On date of transition, the company has adopted the optional exception in accordance with IND AS 101 to measure Property, Plant
and Equipment (PPE) at fair value and assumption of the same as deemed cost. Property, plant and equipment are stated at cost of
acquisition or deemed cost on the date of transition or construction and subsequent improvements thereto less accumulated
depreciation and impairment losses, if any. Cost of acquisition includes inward freight, duties and taxes (net of Cenvat availed),
dismantling cost and installation expenses etc incurred upto the installation of the assets. An item of PPE is derecognised upon
disposal or when no future economic benefits are expected to arise from use. Gain or loss arising on disposal or retirement of an
item of PPE is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in
the statement of Profit & Loss.

Depreciation is recognised on straight line method basis over the estimated useful lives (or lease term, if shorter) in accordance
with Schedule II of the Companies Act, 2013.

1.5 Impairment of Non-financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher on an asset''s fair value less costs of disposal and value in use. For the purpose of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are
largely independent of the cash flows from other assets or group of assets (cash-generating units). Non-financial assets that
suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

1.6 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

(i) Financial assets

Recognition and Initial Measurement:

All financial assets are initially recognized when the company becomes a party to the contractual provisions of the instruments. A
financial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition of the financial asset.

Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

â¢ Measured at Amortized Cost;

â¢ Measured at Fair Value Through Other Comprehensive Income (FVTOCI);

â¢ Measured at Fair Value Through Profit or Loss (FVTPL);

â¢ Equity Instruments measured at Fair Value Through Other Comprehensive Income (FVTOCI). Financial assets are not
reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for
managing financial assets.

â¢ Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following conditions are met:

- The asset is held within a business model whose objective is achieved by both collecting contractual cash flows; and

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR)
method.

â¢ Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:

- The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and

- The asset''s contractual cash flows represent SPPI.

Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured
at fair value with any gains or losses arising on re-measurement recognized in other comprehensive income, except for impairment
gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is recognized in the
statement of profit and loss in investment income.

â¢ Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the company may elect to designate a debt
instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt instruments included within the FVTPL
category are measured at fair value with all changes recognized in the statement of profit and loss.

â¢ Equity Instruments measured at FVTOCI: All equity investments in scope of Ind AS - 109 are measured at fair value. Equity
instruments which are, held for trading are classified as at FVTPL. For all other equity instruments, the company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such
election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable. In case the
company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment.

Derecogn ition

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

Impairment of Financial Assets

The Company assesses on a forward looking basis the expected credit losses (ECL) in associates with its debt instruments carried at
amortised cost and with the exposure arising from loan commitments and other financial assets. The company recognises a loss
allowance for such losses at each reporting date.

The measurement of ECL reflects:

- An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

- The time value of money; and

- Reasonable and supportable information that is available without undue cost or effort at the reporting date about past
events, current conditions and forecast of future economic conditions.

The measurement of the ECL allowance is an area that requires the use of complex models and significant assumptions about
future economic conditions and credit behaviour (e.g. the likelihood of customer defaulting and the resulting losses).

Write-off policy

The Company writes off financial assets, in whole or part, when it has exhausted all practical recovery efforts and has conducted
there is no reasonable expectation of recovery.

(ii) Financial Liabilities
Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings or payables, as
appropriate. All financial liabilities are recognized initially at fairvalue and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as FVTPL if it is classified
as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at
fair value and net gains and losses, including any interest expense, are recognized in statement of profit or loss. Other financial
liabilities are subsequently measured at amortized cost using the effective interest rate method. Interest expense and foreign
exchange gains and losses are recognized in statement of profit or loss. Any gain or loss on derecognition is also recognized in
statement of profit or loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right
to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the counterparty.

1.7 Inventories

Stock in trade is measured at Fair Value as per IND AS.

1.8 Revenue Recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognised when (or as) the Companies
satisfy a performance obligation by transferring a promised goods or service to a customer.

(i) Interest Income

Interest income is recognised using the effective interest rate

(ii) Dividend Income

Dividend income is recognised when the right to receive payment is established.

(iii) Income from investment

Profit / (loss) earned from sale of securities is recognised on trade date basis. The cost of securities is computed based on FIFO
basis.

(iv) All other income are accounted for on accrual basis unless otherwise specified.

Mar 31, 2024

1.1 Overview of the Company

Adarsh Mercantile Limited ("The Company") is engaged in the business of trading of goods and shares and investments in mutual
funds, shares and securities.

In accordance with the notification dated 16th February, 201S, issued by the Ministry of Corporate Affairs, the Company has
adopted Indian Accounting Standards (referred to as "Ind AS") notified under the Companies (Indian Accounting Standards) Rules,
2015 (as amended) with effect from April 1, 2016.

1.2 Basis of preparation of Financial Statements

1.3 Use of estimates and judgments

1.4 Property, Plant and Equipment

On date of transition, the company has adopted the optional exception in accordance with IND AS 101 to measure Property, Plant
and Equipment (PPE) at fair value and assumption of the same as deemed cost. Property, plant and equipment are stated at cost
of acquisition or deemed cost on the date of transition or construction and subsequent improvements thereto less accumulated
depreciation and impairment losses, if any. Cost of acquisition includes inward freight, duties and taxes (net of Cenvat availed),
dismantling cost and installation expenses etc incurred upto the installation of the assets. An item of PPE is derecognised upon
disposal or when no future economic benefits are expected to arise from use. Gain or loss arising on disposal or retirement of an
item of PPE is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in
the statement of Profit & Loss.

Depreciation is recognised on straight line method basis over the estimated useful lives (or lease term, if shorter) in accordance
with Schedule II of the Companies Act, 2013.

1.5 Intangible Assets

Intangible assets are stated at cost comprising of purchase price inclusive of duties and taxes (net of recoverable taxes) less
accumulated amount of amortization and impairment losses.

1.6 Impairment of Non-financial Assets

1.7 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.

(i) Financial assets

Recognition and Initial Measurement:

All financial assets are initially recognized when the company becomes a party to the contractual provisions of the instruments. A
financial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of the financial asset.

Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

â¢ Measured at Amortized Cost;

â¢ Measured at Fair Value Through Other Comprehensive Income (FVTOCI);

â¢ Measured at Fair Value Through Profit or Loss (FVTPL);

â¢ Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following conditions are met:

- The asset is held within a business model whose objective is achieved by both collecting contractual cash flows; and

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate
(El R) method.

â¢ Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:

- The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and

- The asset''s contractual cash flows represent SPPI.

Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently
measured at fair value with any gains or losses arising on re-measurement recognized in other comprehensive income, except for
impairment gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is
recognized in the statement of profit and loss in investment income.

Derecognition

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity.

Impairment of Financial Assets

The Company assesses on a forward looking basis the expected credit losses (ECL) in associates with its debt instruments carried
at amortised cost and with the exposure arising from loan commitments and other financial assets. The company recognises a
loss allowance for such losses at each reporting date.

The measurement of ECL reflects:

- An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

- The time value of money; and

- Reasonable and supportable information that is available without undue cost or effort at the reporting date about past
events, current conditions and forecast of future economic conditions.

Write-off policy

The Company writes off financial assets, in whole or part, when it has exhausted all practical recovery efforts and has conducted
there is no reasonable expectation of recovery.

(ii) Financial Liabilities
Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings or payables, as
appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as FVTPL if it is classified
as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any interest expense, are recognized in statement of profit or loss. Other financial
liabilities are subsequently measured at amortized cost using the effective interest rate method. Interest expense and foreign
exchange gains and losses are recognized in statement of profit or loss. Any gain or loss on derecognition is also recognized in
statement of profit or loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable
right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the counterparty.

1.8 Inventories

Stock in trade is measured at Fair Value as per IND AS.

1.9 Revenue Recognition

(i) Interest Income

Interest income is recognised using the effective interest rate

(ii) Dividend Income

Dividend income is recognised when the right to receive payment is established.

(iii) Income from investment

Profit / (loss) earned from sale of securities is recognised on trade date basis. The cost of securities is computed based on FIFO
basis.

(iv) All other income are accounted for on accrual basis unless otherwise specified

Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention and in accordance with the provisions of the Companies act, 1956 Accounting policies not referred to otherwise are consistent and are in consonance with the generally accepted accounting principles in India.

1.2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be mace that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period In which the results are known / materialized.

1.3 Fixed Assets & Depreciation

(i) Fixed assets stated at cost of acquisition and subsequent improvements thereto; less accumulated depreciation, and impairment loss if any.

(ii) Depreciation is provide on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. 1956

1.4 impairment of Assets

The carrying amounts of the assets are reviewed at each balance sheet date. An asset is treated as impaired when the carrying cost of the asset exceeds is recoverable value. An impairment loss is charged when the asset is identified as Impaired,

1.5 investments

Long-term investments are carried at acquisition cost. Investments intended to be held for less than one year are classified as ''Current Investments and darried at lower of cost and net realizable value. Provision for diminution in value is made if the decline in value is other than temporay nature in the opinion of the management,

1.6 Inventories

inventories of shares and securities are valued at lower of cost and net realizable value.

1.7 Emplayee Retirement Benefits

(i) Short term employee benefits are charged off at the undiscounted amount in the period in which the related service is rendered.

(ii) Post employment ant other long term employee benefits are charged off in the period in which the employee has rendered services the amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Less.

1.8 Taxes on income

Provision for income Tax made on the basis of estimated taxable income for the period at current rates. Tax expense comprises both Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax payable/ Recoverable in respect of taxable income/ loss for the reporting period- Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originates in one year and are capable of reversal in one or more subsequent years.

1.9 Provisions, Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed In the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

Mar 31, 2012

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention and in accordance with the provisions of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent and are in consonance with the generally accepted accounting principles in India.

1.2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

1.3 Fixed Assets & Depreciation

(i) Fixed assets are stated at cost of acquisition and subsequent improvements thereto; less accumulated depreciation, and impairment loss, if any.

(ii) Depreciation is provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.4 Impairment of Assets ,

The carrying amounts of the assets are reviewed at each balance sheet date. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged when the asset is identified as impaired.

1.5 Investments

Long-term Investments are carried at acquisition cost. Investments intended to be held for less than one year are classified as ''Current Investments'' and carried at lower of cost and net realizable value. Provision for diminution in value is made if the decline in value is other than temporary in nature in the opinion of the management. .

1.6 Inventories

Inventories of shares and securities are valued at lower of cost and net realizable value.

1.7 Employee Retirement Benefits

(i) Short term employee benefits are charged off at the undiscounted amount in the period in which the related service is rendered.

(ii) Post employment and other long term employee benefits are charged off in the period in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

1.8 Taxes on Income

Provision for Income Tax is made on the basis of estimated taxable income for the period at current rates. Tax expense comprises both Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax , payable/ recoverable in respect of taxable income/ loss for the reporting period. Deferred Tax represents the effect of timing difference '' between taxable income and accounting income for the reporting period that originates in one year and are capable of reversal in one or : more subsequent years.

1.9 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

Mar 31, 2011

SYSTEM OF ACCOUNTING :

The company follows accrual basis of accounting in the preparation of account.

FIXED ASSETS & DEPRECIATION:

Fixed assets are valued at cost and depreciation is provided on Written Down Value basis in accordance with the provisions of Schedule XIV (as amended) to the Companies Act, 1956. .

INVESTMENTS:

Long Term Investments are carried at acquisition cost (net of securities transaction tax) and Investments intended to be held for less than one year are classified as Current Investments and valued at lower of cost and market value.

STOCK IN TRADE : .

Stock of shares and securities are valued at lower of cost and market value.

REVENUE :

Income is accounted for on accrual basis except where the receipt of income is uncertain. ''

TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized subject to consideration of prudence, in respect of deferred tax assets on timing differences, being the difference . between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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