Accounting Policies of SPV Global Trading Ltd. Company

Mar 31, 2024

The Company was incorporated as a public limited company on 05th February, 1985 in the name of
Tarrif Cine & Finance Ltd. for the purpose of trading in shares and securities and was accordingly
registered with the RBI as NBFC. At present, the Company is engaged in the business of trading in copper
scrap and accordingly the RBI cancelled its NBFC registration w.e.f. 02.08.2018. The Company has
changed its name to SPV Global Trading Ltd and has obtained certificate to that effect from the ROC dt.
26.04.2019. The equity shares of the Company are listed at the Bombay Stock Exchange (BSE).

BASIS OF PREPARATION, MEASUREMENT AND MATERIAL ACCOUNTING POLICIES

(A) Basis of preparation of Financial Statements

These financial statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the ''Ind AS'') as notified by the Ministry of Corporate Affairs pursuant to section
133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These financial statements have been prepared and presented under the historical cost convention, on
the accrual basis of accounting except for certain financial assets and financial liabilities that are
measured at fair values at the end of each reporting period, as stated in the accounting policies set out
below. The accounting policies have been applied consistently over all the periods presented in these
financial statements.

(B) KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the financial statements requires the Management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date
of the financial statements and the reported amounts of revenue and expenses during the reporting
period. The recognition, measurement, classification or disclosure of an item or information in the
financial statements is made relying on these estimates. The estimates and judgements used in the
preparation of the financial statements are continuously evaluated by the Company and are based on
historical experience and various other assumptions and factors (including expectations of future events)
that the Company believes to be reasonable under the existing circumstances. Actual results could differ
from those estimates. Any revision to accounting estimates is recognised prospectively in current and
future periods.

All the assets and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

(C) Current / Non-current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:
the asset/liability is expected to be realized/settled in the Company’s normal operating cycle;
the asset is intended for sale or consumption;
the asset/liability is held primarily for the purpose of trading;

the asset/liability is expected to be realized/settled within twelve months after the reporting period;
the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting date;

in the case of a liability, the Company does not have an unconditional right to defer settlement of the
liability for at least

All other assets and liabilities are classified as non-current.

(D) MATERIAL ACCOUNTING POLICIES INFORMATION
i Intangible Assets :

Measurement at recongnition:

Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and accumulated
impairment loss, if any.

Amortization:

Intangible assets are amortized on a Straight Line basis over their respective individual estimated useful
lives not exceeding 10 years as prescribed in Schedule II to the Companies Act, 2013. The estimated
useful life of intangible assets is mentioned below:

Derecognition:

The carrying amount of an intangible asset is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an
intangible asset is measured as the difference between the net disposal proceeds and the carrying amount
of the intangible asset and is recognized in the Statement of Profit and Loss when the asset is
derecognized.

ii Impairment:

Assets that are subject to depreciation and amortization and assets representing investments in
subsidiary are reviewed for impairment, whenever events or changes in circumstances indicate that
carrying amount may not be recoverable. Such circumstances include, though are not limited to,
significant or sustained decline in revenues or earnings and material adverse changes in the economic
environment.

An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in
use. To calculate value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market rates and the risk specific to the asset. Fair value
less cost to sell is the best estimate of the amount obtainable from the sale of an asset in an arm’s length
transaction between knowledgeable, willing parties, less the cost of disposal.

Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation
and amortization expense. Impairment losses, on assets are reversed in the Statement of Profit and Loss
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined if no impairment loss had previously been recognized.

iii Inventories:

Inventories is valued at lower of cost and net realisable value. Cost include purchase price as well as
incidental expenses. Cost formula used is either ''Specific Identification'' or ''FIFO''. The net realisable value
is the estimated selling price in the ordinary course of business less the estimated costs of completion
and estimated costs necessary to make the sale.

iv Cash and Cash Equivalents:

Cash and cash equivalents comprise cash and cheques in hand, bank balances and demand deposits
with bank where original maturity is three months or less from the date of acquisition and other short¬
term highly liquid investments that are readily convertible into cash and which are subject to an
insignificant risk of changes in value.

v 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.

Financial Assets

Initial recognition and measurement:

The Company recognizes a financial asset in its Balance Sheet when it becomes party to the contractual
provisions of the instrument. All financial assets are recognized initially at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets, which are not at fair value
through profit or loss, are added to the fair value measured on initial recognition of financial asset. Where
the fair value of a financial asset at initial recognition is different from its transaction price, the difference
between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit
and Loss at initial recognition if the fair value is determined through a quoted market price in an active
market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from
observable markets (i.e. level 2 input). In case the fair value is not determined using a level 1 or level 2
input as mentioned above, the difference between the fair value and transaction price is deferred
appropriately and recognized as a gain or loss in the Statement of Profit and Loss only to the extent that
such gain or loss arises due to a change in factor that market participants take into account when pricing
the financial asset.

However, trade receivables that do not contain a significant financing component are measured at the
transaction price.

Subsequent measurement:

Financial assets are subsequently measured at amortised cost, fair value through other comprehensive
income (FVTOCI) or fair value through profit or loss (FVTPL) on the basis of both:

- the entity’s business model for managing the financial assets, and

- the contractual cash flow characteristics of the financial assets.

(a) Measured at amortised cost: Financial assets that are held within a business model whose objective is
to hold financial assets in order to collect contractual cash flows that are solely payments of principal and
interest, are subsequently measured at amortised cost using the effective interest rate (‘EIR’) method less
impairment, if any. The amortisation of EIR and loss arising from impairment, if any, is recognised in the
Statement of Profit and Loss. This category applies to cash and bank balances, trade receivables, loans
and other financial assets of the Company . The EIR is the rate that discounts estimated future cash
income through the expected life of financial instrument.

(b) Measured at fair value through other comprehensive income: Financial assets that are held within a
business model whose objective is achieved by both, selling financial assets and collecting contractual
cash flows that are solely payments of principal and interest, are subsequently measured at fair value
through other comprehensive income. Fair value movements are recognized in the other comprehensive
income (OCI). Interest income measured using the EIR method and impairment losses, if any, are
recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to ‘other income’ in the Statement of Profit and Loss.
Further, the Company, through an irrevocable election at initial recognition, has measured investments
in equity instruments other than investment in subsidiary at FVTOCI. The Company has made such
election on an instrument by instrument basis. These equity instruments are neither held for trading nor
are contingent consideration recognized under a business combination. Pursuant to such irrevocable
election, subsequent changes in the fair value of such equity instruments are recognized in OCI. However,
the Company recognizes dividend income from such instruments in the Statement of Profit and Loss. On
derecognition of such financial assets, cumulative gain or loss previously recognized in OCI is not
reclassified from the equity to Statement of Profit and Loss. However, the Company may transfer such
cumulative gain or loss into retained earnings within equity.

(c) Measured at fair value through profit or loss: A financial asset is measured at FVTPL unless it is
measured at amortized cost or at FVTOCI. This is a residual category applied to all other investments of
the Company excluding investments in subsidiary. Such financial assets are subsequently measured at
fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Impairment of Financial Assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition.

For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12-month
expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk
of the financial asset has not increased significantly since its initial recognition. The expected credit
losses are measured as lifetime expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. The Company’s trade receivables do not contain significant
financing component and loss allowance on trade receivables is measured at an amount equal to life time
expected losses i.e. expected cash shortfall.

The impairment losses and reversals are recognised in Statement of Profit and Loss.

Financial Liabilities:

Initial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument. Financial liabilities are initially measured at the fair value. Transaction costs that are
directly attributable to the financial liabilities (other than financial liability at fair value through profit or
loss) are deducted from the fair value measured on initial recognition of financial liability.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair
value recognised in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled
or expires.

vi FAIR VALUE MEASUREMENT:

The Company measures financial instruments at fair value in accordance with the accounting policies
mentioned above. Fair value is the price that would be received on sell of an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:

- in the principal market for the asset or liability, or

- in the absence of a principal market, in the most advantageous market for the asset or liability.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy that categorizes into three levels, described as follows, the
inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority
to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority
to unobservable inputs (Level 3 inputs).

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either

directly or indirectly

Level 3 — inputs that are unobservable for the asset or liability

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization at the end of each reporting period and discloses the same.

vii Investment in Subsidiary:

The Company has elected to recognize its investments in subsidiary at cost in accordance with the option
available in Ind AS 27, ‘Separate Financial Statements’. The details of such investments are given in Note
4. Impairment policy applicable on such investments is explained in Note 1(II)(D)(ii) above.

---

Mar 31, 2014

A. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

b. The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except for the subsequent realisation of the income which was derecognized earlier in accordance with the provisions of the prudential norms for Income Recognition prescribed by the Reserve Bank of India. Accounts have been prepared primarily on historical cost convention and in accordance with relevant provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules, 2006. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting principles.

c. Long-Term investments are stated at cost after deducting provision made for permanent diminution in the value, if any. Current investments are stated at lower of cost & fair market value.

d. Dividend are recorded when the right to receive payment is established.

e. Stock in trade in the case of Quoted Scrips/Units of Mutual Funds are valued at lower of cost or market value, whereby aggregate cost of all scrips/Units of Mutual Fund is compared with their aggregate market value, category wise & in the case of Unquoted Shares the same are taken at lower of cost or break-up value.

f. Staff benefits arising on retirement/death comprising contribution to Provident Fund, Superannuation and Gratuity scheme, and other post separation benefits are not accounted for as the same is not applicable to the Company.

g. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognised only to the extent there is a reasonable certainity of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

---

Mar 31, 2013

A. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non- Banking Financial Companies.

b. The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except for the subsequent realisation of the income which was derecognised earlier in accordane with the provisions of the prudential norms for Income Recognition prescribed by the Reserve Bank of India. Accounts have been prepared primarily on historical cost convention and in accordance with relevant provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards ) Rules, 2006. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting principles.

c. Long-Term investments are stated at cost after deducting provision made for permanent diminution in the value,if any. Current investments are stated at lower of cost 8b fair market value.

d. Dividend are recorded when the right to receive payment is established.

e. Stock in trade in the case of Quoted Scrips/Units of Mutual Funds are valued at lower of cost or market value, whereby aggregate cost of all scrips/ Units of Mutual Fund is compared with their aggregate market value, category wise & in the case of Unquoted Shares the same are taken at lower of cost or break-up value.

f. Staff benefits arising on retirement/death comprising contribution to Provident Fund, Superannuation and Gratuity scheme, and other post separation benefits are not accounted for as the same is not applicable to the Company.

g. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognised only to the extent there is a reasonable certainity of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

---

Mar 31, 2012

A. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

b. The Company follows the mercantile system of accounting and recoga»es income and expenditure on accrual basis except for the subsequent realisation of the income which was derecognised earlier in accordane with the provisions of the prudential norms for Income Recognition prescribed by the Reserve Bank of India. Accounts have been prepared primarily on historical cost convention and in accordance with relevant provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules, 2006. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting principles.

c. Long Term investments are stated at cost after deducting provision made for permanent diminution in the value. y if any. Current investments are stated at lower of cost & fair market value.

d. Dividend are recorded when the right to receive payment is established.

e. Stock in trade in the case of Quoted Scrips/ Units of Mutual Funds are valued at lower of cost or market value, whereby aggregate cost of all scrips/Units of Mutual Fund is compared with their aggregate market value, category wise & in the case of Unquoted Shares the same are taken at lower of cost or breakup value.

f. Staff benefits arising on retirement/death comprising contribution to Provident Fund, Superannuation and Gratuity scheme, and other post separation benefits are not accounted for as the same is not applicable to the Company.

g. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liabiEty is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognised only to the extent there is a reasonable certainity of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

---

Mar 31, 2010

A. The Company follows the Prudential Norms for Assets Classification, Income Recognition, Accounting Standards, Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

b. The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except for the subsequent realisation of the income which was derecognised earlier in accordane with the provisions of the prudential norms for Income Recognition prescribed by the Reserve Bank of India. Accounts have been prepared primarily on historical cost convention and in accordance with relevant provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules, 2006. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting principles.

c. Long Term investments are stated at cost after deducting provision made for permanent diminution in the value, if any. Current investments are stated at lower of cost & fair market value.

d. Dividend.Income is accounted for in the year in which it is declared.

e. Stock in trade in the case of Quoted Scrips/Units of Mutual Funds are valued at lower of cost or market value, whereby aggregate cost of all scrips/Units of Mutual Fund is compared with their aggregate market value, category wise & in the case of Unquoted Shares the same are taken at lower of cost or breakup value.

f. Staff benefits arising on retirement/death comprising contribution to Provident Fund, Superannuation and Gratuity scheme, and other post separation benefits are not accounted for as the same is not applicable to the Company.

g. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.