Accounting Policies of Sunrise Efficient Marketing Ltd. Company

Mar 31, 2025

significantaccounting POLICIES

1 EJASES OF ACCOUNTING:

he financial sraremenis of Chp Company have been prepared in accordance with
generally accepted accounting principles of India (Indian GAAP). The Company has
prepared these financial statements :o comply in a: mater''31 respect with the
accounting standards noriflcc under the Companies (Accounting Standards) Rules.
2GQfi, fas amended) and this nylevent p^rov^;sidns of t~e Companies Act, 2013 (''the
Act''}. The Financial Statemer''s have been prepared on an accrual basis and under the
historical cost convention except for coitam Fixtid Assets wluci: ire carded el
revalued amounts.

The accounting policies adopted IP the preparation cf hnanoal statements are
consistent with those of previous year.

The company has reclassified the previous year figures in accordance wuh the
requirements applicable in the current ytfor,

The financial statements are presented in Indian rupees.

As the company is listed on SME Platform of BSE, 1 has boon oxempttsd from
applicability of IND-As as per proviso to rule 4 uf Companies (Indian Accounting
Standards) Rules, 2Qi5. The Company tis^ adopted Accounting standards as notified
oy Ministry p: Corporate Adairs Accord''ogly, rhesc financial results have oec.n
prepared ''n accordance with the Accounting Standards pr esc-bod under Section 1 }i]i
of the Companies Act. 2013 and other accounting principles generally accepted in
India.

2. USE OF ESTIMATES;

The preparation of financial statements In conformity with Indian GAAP inquires
judgements, estimates arid assumptions to be made that affect the reported amount
of assets and liabilities, disclosure of contingent liabilities on riie date o''" the financial
statements and the reported amount of revenues Find expanses during the reporting
period. Difference between the actual results and est-mates are recognisec in the
period in wh ch the results are knowiVmotepoliZLid.

3. FIXED ASSETS:

Fixed assets are stated at cost which includes prico, duties, levies and any directly
attributable cosl Of bringing the assets to its wording Condition for the intended
use as reduced by any part of the cost reimbursed by Government or otherwise by
way Df any concession, credits, Cenvat reduction in price, discount etc. dr Otherwise,
at the time of purchase or otherwise subsequently less accumulated depreciation.

4. IMPAIRMENT OF ASSETS:

The camying value of assets at each balance sheet dote Is reviewed for impairment If
any indication Of such > impairment exists, the recoverable amount of those assets is
estimatec and impairment is recognised, if rhe carrying amount of those assets
exceeds their recoverable amount- The recoverable amount Is the greater of the -et
selling pree and their va .ie in use. Value in use is arrvec at by discounting future
cash flows to their present value based on apphOpr uLe^ discount factor. When there is
Indication as at each balance sheet cate, that an impairment loss recognised for asset
in pndr BCCu unting year no ''onger exists or may have decreased such reversal of
impairment loss is recognised.

5 DEPRECIATION:

Depreciation on the assets nave been provided o.n it: on Down Vaiee £WDV) roe tried
as per the rates anp in the manner prescribed in Schedule II of The fjlmpanies Act.
7013.

Depreciation On Nxed assets purchased / sold curing ;ne year is provided on pro-^ata
oasis with reference to the date of add rion/disposal thereoF.

6. VALUATION OF INVENTORIES ;

* Stock of raw material Is valued at cost on first n first out basis.,

Finished Goods are valued at Sower of cost or not realisable value.

Cost of material and F.nished Goods indLdes the purchase cost (not of any taxes or
which credits are received/ receivable) and other incidental cost, to b''ing such
mater al to ns present location and condition

7. INVESTMENTS:

Investments are classified Into Current and l.Ling-term Investments, Cun''flnt
investments are stared at lower of cost and fair vului:''. Lon^-term Investments are
stated at cost, A provision for diminution is msec to recognise a decline, other than
temporary, in the value of Long-term Investments. However, fixed income Iona term
securities jne stated at cost, .ess amortisation of premium/ discount and (jiflylslQnfvf
diminution to recognise a decline, other than temporary.

8. REVENUE RECOGNITIONS:

Revenue is recognised when t is earned and no significant uncertainty exists as ;o its
realisation or collection, f&jyenue from salt: of goods is recognised on delivery of the
products, when all significant contractual obligations have been satisfied, the property
in gcods is transferred for a price, significant risks and rewards Of ownership art;
transferred to the customers and no effective ownership is retained Sales are net of
raxes and accounted on mercantile basis.

9. HAD AND DOUBTFUL DEBTS:

Provisioning policies for Bad ft doubtful Pebts/Wrfting Off, the company examines all
debtors accounts continuously and identifies debtors Facing difficulties Ik Chose who
could fail to meet hnancla'' commitments to the company, in the previous L2 months,

For tuch uf such debtors, the pompany ceases to accrue future Incomes & wntes off
the entire capital outstanding and accrued expenses

10. PRELIMINARY (t PftE OPERATIVE EXPENSES;

Preliminary and ore operative expenc:ure ^!s amortisc-a over a period ot 5 years from
the year of⁷ commencement of operation.

11 EMPLOYEE BENEFITS:

s] Short Term Employee Benefits like leave benefit are paid along with salary &
wages on a month to month basis.,

b) Bonus to employees are charged to profit & loss account, on the basis of actual

payment on year to year basis.

11 TAXES ON INCOME:

Current Tax is doimmined as the amount of tax payabfe Tn the respect of taxable
Income for the year In accordance with the Income Tax Act,

The tax effect ot the tuning differences that resu''t between taxable income and
accounting income and are capable of reversal m one or mere subsequent period5 are
recorded as i deferred La* asset or deferred tax inability.

Deferred tax assets and liabilities are recognized for fature tax consequences
a refutable to timing differ encej They are measured us^ig ''hi? substantlv^enacted
tax rates and tax regu^tlqrts is at the balance sheet date.

Deferred rax assets are recognised and carried forward only to cho extent there is
reasonable certainty that .Sufficient taxable hcome will be available In future, against
which the deterred l&jc assets can be realized; however where there is up absorbed
depreciarion and carried forward losses, defamed tax assets Is created only If there Is
virtual certainty of realisation gf ii&sets

-Tax credit, is recognized in respect of Minimum Alternate Ta* (MAT) as per the
provisions of Section i l. 5 J A A of the income tajfc Act, ISSl based on convmeng
evidence that the Company will pay normal income tax within the statutory time
frame and Is reviewed at tach balance sheet date.

13.BQRRQWING COSTS:

a) Sorrowing Costs incurred on Working Capital is charged off to profit & loss
account.

b) In accordance with the; requirement of Accounting Standard id on "Sorrowing
Cost" issued by the Institute of chartered accountants Of India, Borrowing
Costs that are attributable to qualifying assets are capitalised till the cate of
substantial completion of the activity necessary to prepare the relevant
assets for Its intended use.