Accounting Policies of Sriven Multi-Tech Ltd. Company

Mar 31, 2024

2. Significant accounting policies

2.1 Revenue recognition

Revenue is recognized when the significant risks and rewards of ownership have been transferred
to the buyer, recovery of the consideration is probable, the associated costs can be estimated
reliably, there is no continuing management involvement with the goods and the amount of
revenue can be measured reliably. Revenue is measured at the fair value of the consideration
received or receivable, net of taxes and applicable trade discounts and allowances.

Interest income

Interest income from a financial asset is recognized when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on, time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount on initial
recognition.

1.1 Foreign Currency Transactions:

Foreign currency transactions are initially recorded at the exchange rates prevailing on the
transaction date. All revenues denominated in foreign currency are translated at the exchange
rate prevailing on the date of inward remittance. The consequent exchange gains/ losses arising
there from are transferred to the statement of profit and loss. All foreign currency denominated
monetary assets are translated at the exchange rate prevailing at the Balance Sheet date and the
exchange gains/losses resulting there from are transferred to the statement of profit and loss.

Borrowing costs

Borrowing costs 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 or sale.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

1.2 Taxation

Income tax expense consists of current and deferred tax. Income tax expense is recognized in the
income statement except to the extent that it relates to items recognized directly in equity, in
which case it is recognized in equity.

Current tax

Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in
respect of previous years.

Deferred tax

Deferred tax is recognized using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is not recognized for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit; differences relating to
investments in subsidiaries and jointly controlled entities to the extent that it is probable that
they will not reverse in the foreseeable future; and taxable temporary differences arising upon
the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to
be applied to the temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are
offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or
their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realized.

1.1 Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and
the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares, which includes all stock options granted to employees.

1.1 Property, plant and equipment
Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any. Cost includes expenditures that are directly attributable
to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials
and other costs directly attributable to bringing the asset to a working condition for its intended
use. Borrowing costs that are directly attributable to the construction or production of a
qualifying asset are capitalized as part of the cost of that asset.

When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.

Gains and losses upon disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and equipment
and are recognized net within “other (income)/expense, net” in the income statement.

The cost of replacing part of an item of property, plant and equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied within
the part will flow to the Company and its cost can be measured reliably. The costs of repairs and
maintenance are recognized in the income statement as incurred.

Items of property, plant and equipment acquired through exchange of non-monetary assets are
measured at fair value, unless the exchange transaction lacks commercial substance or the fair
value of either the asset received or asset given up is not reliably measurable, in which case the
asset exchanged is recorded at the carrying amount of the asset given up.

Depreciation

Property, plant and equipment is depreciated under straight line method after considering the
useful life’s and residual values at the time of acquisition and reviewe date end of each financial
year. The cost and related accumulated depreciation are eliminated from the financial
statements upon sale or retirement of the asset and the resultant gains or losses are recognized in
the statement of profit and loss

1.2 Cash flow statements

Cash flows are reported using the indirect method, where by profit/(loss) 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
of the Company are segregated based on the available information.

1.1 Inventories

The fair value of inventories acquired in a business combination is determined based on its
estimated selling price in the ordinary course of business less the estimated costs of completion
and sale, and a reasonable profit margin based on the effort required to complete and sell the
inventories.

1.2 Impairment of non-financial assets

The carrying amounts of the Company’s non-financial assets, other than inventories and deferred
tax assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of
its value in use and its fair value less costs to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset or the cash¬
generating unit. For the purpose of impairment testing, assets are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).

An impairment loss is recognized in the income statement if the estimated recoverable amount of
an asset or its cash-generating unit is lower than its carrying amount. Impairment losses
recognized in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortization, if no impairment loss had been recognized.
Goodwill that forms part of the carrying amount of an investment in an associate is not recognized
separately, and therefore is not tested for impairment separately. Instead, the entire amount of
the investment in an associate is tested for impairment as a single asset when there is objective
evidence that the investment in an associate may be impaired.

An impairment loss in respect of equity accounted investee is measured by comparing the
recoverable amount of investment with its carrying amount. An impairment loss is recognized in
the income statement, and reversed if there has been a favorable change in the estimates used to
determine the recoverable amount.

2.2 Employee benefits
Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is
recognized for the amount expected to be paid if the Company has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.

Defined contribution plans

The Company’s contributions to defined contribution plans are charged to the income statement
as and when the services are received from the employees.

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Jun 30, 2000

1. Significant Accounting Policies :

a) Basis of accounting

The financial statements are prepared under the historical cost convention. The Company adopts the accrual basis in the preparation of the accounts. All income and expenditure having material bearing on the financial statements are recognised on accrual basis.

b) Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Depreciation

Depreciation has been provided on Straight-line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on additions during the year has been provided on prorata basis.

d) Capital Work-in-progress

Capital work-in-progress include the cost incurred towards interior work and installation of equipment. Accordingly, the expenditure incurred relating to the above (the allocation of which is based upon the estimates of the management) have been shown under WIP. The Company intends to capitalize the relevant expenses and other assets on commencement of commercial production.

e) Investments

Investments are shown at acquisition cost which include brokerage and stamp charges. In respect of quoted investments where market value is lower than the acquisition cost, a provision is made for the estimated loss. Dividend income is accounted in the year in which it is received.

f) Revenue Recognition

Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership in the goods to the customers.

g) Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the time the transactions are effected. Exchange difference, if any, arising from such transactions is accounted for as and when remittances are made/received.

h) Pre-operative Expenditure

Pre-operative expenditure represents market survey charges and other chareges before commencement of business and will amortized over a period of five years.

i) Retirement Benefits

Contribution to the provident fund is made monthly at a pre-determined rate to the provident fund authorities and debited to the profit and loss account on an accrual basis.

j) Contingent Liabilities

All known liabilities, wherever material, are provided for by way of Notes to Accounts.

Prior period adjustments

Considering the nature of business, all prior period adjustments having material impact on the financial affairs of the Company ore separately disclosed in current year statement of Profit & Loss A/c.

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Mar 31, 1999

The Accounts have been prepared under the historical cost convention, and accrual basis in the preparation.

1. Fixed Assets

Fixed Assets are stated at historical cost. Historical cost is inclusive of freight installation cost duties, taxes and other incidental expenses.

Depreciation is calculated on Straight Line Method at the rates specified in schedule XIV of the Companies Act, 1956. The depreciation on additions to assets has been reckoned for the whole year and not on pro-rata.

2. Capital Work in Progress

Capital expenditure incurred on acquisition of Building and Development are shown under Capital work in Progress, under the schedule "Fixed Assets".

3. Investments

Investments have been in equity shares comprising of two lakhs Equity shares in M/s. Sathya Kamal Agros Limited, which is a Company under same management as defined under section 370 (1 B) of Companies Act 1956, which is company listed in Register maintained under section 301 of the Companies Act 1956. The investments of the company are valued at cost. Provision for any permanent diminution, if any, in the value of investment is made to recognise a decline, other than temporary for each investment individually.

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Mar 31, 1998

1. ACCOUNTING ASSUMPTIONS :

The Accounts have been prepared under the historical cost convention, and accrual basis in the preparation of its Accounts.

2. FIXED ASSETS :

i. Fixed Assets are stated at historical cost. Historical cost is inclusive of freight, installation cost, duties, taxes and other incidental expenses.

ii. Depreciation is calculated on Straight Line Method at the rates specified in schedule xiv of the Companies act, 1956. The depreciation on additions to assets has been reckoned for the whole year and not on pro-rata.

3. CAPITAL WORK IN PROGRESS :

Capital expenditure incurred on acquisition of Building and Development are shown under Capital work in Progress.

4. INVESTMENTS :

Investments have been in equity shares comprising of Five lakhs Ten Thousands Equity shares in M/s. Sathya Kamal Agros Limited, which is a Company under same management as defined under section 370(1B) of Companies act, 1956, which is company listed in Register maintained under section 301 of the Companies Act, 1956. The investments of the company are valued at cost. Provision for any permanent dimunition, if any, in the value of investment is made to recognise a decline, other than temporary, for each investment individually.

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Mar 31, 1997

1. Accounting Assumptions

The Accounts have been prepared under the historical cost convention, and accrual basis in the preparation of its Accounts.

2. Fixed Assets

i) Fixed Assets are stated at historical cost. Historical cost is inclusive of freight, installation cost, duties, taxes and other incidental expenses.

ii) Depreciation is calculated on Straight Line Method at the rates specified in schedule xiv of the Companies Act, 1956. The depreciation on additions to assets has been reckoned for the whole year and not on pro-rata.

3. Capital Work in Progress

Capital expenditure incurred on acquisition of Building and Development are shown under Capital Work in Progress.

4. Investments.

Investments have been in equity shares comprising of two lakhs Equity shares in M/s. Sathya Kamal Agros Limited, which is a Company under same management as defined under section 370(1B) of Companies Act, 1956, which is company listed in Register maintained under section 301 of the Companies Act, 1956. The investments of the company are valued at cost. Provision for any permanent dimunition, if any, in the value of investment is made to recognise a decline, other than temporary, for each investment individually.